Atlantic City School Administration Building Contract Raises $5.6 Million Budget Question

District records show a proposed $27.1 million construction contract for a project listed at $21.5 million in the advertised school budget.

ATLANTIC CITY, N.J. — As Atlantic City Public Schools celebrates the groundbreaking of its new administration building, a review of official school district records reveals a $5.6 million difference between the amount identified for the project in the district's advertised budget and the construction contract presented to the Board of Education in September.

The district's publicly advertised 2026-27 budget identifies $21.5 million for construction of a new administration building.

However, a September 30 special Board of Education meeting agenda calls for awarding a $27,132,590 construction contract to T.N. Ward Company of Atlantic City.

The proposed contract is $5,632,590 higher than the amount identified for the building in the April budget, a difference of approximately 26.2%.

The comparison raises questions about how the district is financing the project and whether additional funds have been allocated since the original budget was advertised.

The available records do not establish that the project has exceeded its final authorized budget or that any improper expenditure has occurred. The $21.5 million figure represents an advertised capital allocation, while the $27.1 million figure represents a proposed construction contract.

South Jersey NewsBeat reviewed the district's published budget and September 30 meeting agenda to identify the difference.

What the School District's Records Show

The district's advertised 2026-27 budget, prepared for an April 28 public hearing, includes a section identifying capital projects and their anticipated costs.

The new administration building appears as Project 2026-17, with an allocation of $21.5 million.

The budget also identifies a planned withdrawal of $32.1 million from the district's capital reserve for three projects:

• New administration building: $21.5 million.

• Atlantic City High School culinary renovation: $3.7 million.

• Atlantic City High School track, turf and lighting improvements: $6.9 million.

Those allocations total $32.1 million.

The September 30 special meeting agenda, however, presents a substantially higher construction figure for the administration building.

Under its Goods and Services section, the agenda calls for awarding Bid No. 27-005 to T.N. Ward Company, located at 815 Atlantic Avenue in Atlantic City.

The proposed contract amount is $27,132,590, with a contract period beginning October 1, 2026, and continuing until completion of the project.

The agenda specifies that the amount represents the base bid, applicable allowances and a deduction for an alternate construction item.

The difference between the April allocation and September contract proposal is $5,632,590.

The documents do not explain whether the additional amount would come from another capital-reserve withdrawal, previously appropriated funds, a budget transfer or another authorized financing source.

Four Contractors Submitted Bids

The September 30 agenda provides a breakdown of four construction proposals received by the district.

The bids were opened September 17.

T.N. Ward Company submitted the lowest total bid at $27,132,590 after an alternate deduction.

The other bidders were:

• Newport Construction Management Corporation of Pennsauken: $28,350,850.

• Weatherby Construction & Renovation Corp. of Atlantic City: $29,478,250.

• Kappa Construction Corp. of Ocean: $32,270,000.

The amounts included specified allowances, including a 5% contingency, and adjustments for an alternate involving exterior building materials.

The district's proposed award to T.N. Ward therefore reflected the lowest total bid among the four contractors listed.

The bidding documents do not, by themselves, establish that the district paid more than necessary or that the procurement process was improper.

They do show that the lowest submitted construction proposal exceeded the administration building's advertised April allocation by more than $5.6 million.

Groundbreaking Held October 28

The financial questions arise as the district moves forward with construction.

A ceremonial groundbreaking was held Wednesday, October 28, at the corner of North New Jersey and Arctic avenues, the former site of the New Jersey Avenue School.

Superintendent Dr. La'Quetta Small, Mayor Marty Small and district representatives participated in the event.

The former New Jersey Avenue School had been closed since Superstorm Sandy in 2012.

The century-old school building was demolished to make way for the new administrative headquarters.

The district previously unveiled architectural renderings of the planned building during a September 2025 farewell ceremony for the old school.

According to the construction solicitation, the new project includes an administration building and surface parking for 69 vehicles.

The school district's website also displays renderings of the proposed facility.

A firm completion date has not been publicly established in the records reviewed.

District Seeks to Replace Costly Leased Offices

The administration building project has been presented as a long-term investment intended to eliminate the district's need to lease commercial office space.

Atlantic City Public Schools currently maintains its central administrative offices at CitiCenter, 1300 Atlantic Avenue.

The district occupies space on the fifth floor, while the Board of Education uses a sixth-floor meeting room.

According to reporting by WPG's Harry Hurley, former school board member John Devlin previously confirmed that the district entered into a five-year lease in 2022 costing approximately $700,000 annually.

That amounts to more than $58,000 per month.

Replacing those rental payments with a district-owned building could produce long-term financial benefits.

However, the ultimate savings would depend on the completed project's total cost, ongoing maintenance expenses, utilities, insurance and any financing obligations.

At the previously reported annual rent of $700,000, the proposed $27.1 million construction contract alone is equivalent to approximately 39 years of rent.

That comparison does not account for inflation, the potential value of owning the building, future rent increases or the full operating costs of either property.

It illustrates why a comprehensive financial analysis would be important in evaluating the investment.

Capital Reserve Funds Are Available, but Allocation Remains Unclear

The district's advertised budget shows substantial capital reserves.

It projected a capital-reserve balance of approximately $108.7 million as of June 30, 2026, declining to approximately $76.7 million by June 30, 2027.

The budget also identifies approximately $46.8 million in facilities acquisition and construction expenditures for the 2026-27 school year.

Those figures suggest the district anticipated significant capital spending during the current budget year.

They do not establish whether the administration building's additional $5.6 million was subsequently authorized or how it would be funded.

The distinction is important because a construction contract exceeding an earlier advertised project allocation does not necessarily mean the district lacks sufficient money to pay for it.

School districts can revise capital plans and make authorized transfers or withdrawals, subject to applicable requirements.

The question is whether Atlantic City Public Schools approved the necessary financing and how that decision was communicated to the public.

Questions About the Final Approval

The district's September 30 agenda contains a proposed resolution to award the construction contract to T.N. Ward Company.

However, the publicly accessible Board of Education webpage reviewed by South Jersey NewsBeat does not currently include the minutes from that special meeting.

As a result, the published agenda alone does not independently establish the final vote or whether the proposed contract was approved without modification.

The district's subsequent groundbreaking indicates that the project has advanced into its construction phase, but the complete executed contract and updated financing plan remain important records for establishing the project's final authorized cost.

Several questions remain:

What is the current total budget for the new administration building, including architectural services, engineering, site preparation, construction and other expenses?

Did the Board of Education approve the $27,132,590 contract at its September 30 meeting?

If so, what additional appropriation or financing source covers the difference between that amount and the $21.5 million advertised allocation?

Will the district use additional capital-reserve funds, and would doing so affect funding for other planned school improvements?

And what annual operating savings does the district expect after relocating from its leased CitiCenter offices?

These are questions about financial transparency and public accountability, not evidence of wrongdoing.

A Major Public Investment

Atlantic City Public Schools serves approximately 7,000 students across 11 schools, including Atlantic City High School, which also enrolls students from several neighboring municipalities.

The district's advertised 2026-27 budget totals approximately $297 million across its various funds.

Its capital improvement program includes renovations, athletic facilities, infrastructure improvements and other projects in addition to the new administration building.

The new headquarters represents one of the district's largest individual construction investments.

Supporters of the project have emphasized the benefits of owning a permanent administrative facility rather than continuing to pay substantial commercial rent.

The district's published records, however, leave an important financial question unresolved: how the proposed $27.1 million construction contract fits into a project originally listed at $21.5 million.

South Jersey NewsBeat will continue seeking clarification of the contract approval, financing arrangements and total anticipated cost as construction proceeds.