Modernization and rehabilitation of existing school facilities is a key factor to increase the life expectancy of facilities and to benefit students by increasing educational standards. Since United States' last recession in 2009, many school districts have been confronted with difficulty in funding their projects. The existing process of decision making on distributing budget is subjective and depends on the judgment of decision makers. To avoid the errors involved in the existing approach, an optimization model is developed in this research study to optimize the project selection. This optimization system increases the horizontal and vertical equity in the educational system while it reflects the importance of different categories of facility projects and the various educational demands of students. Two powerful methods of Genetic Algorithm and Dynamic Programming is utilized to solve the optimization problem. Moreover, the proficiency of the developed model is shown in a case study.