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CAPITAL OUTLAY TRAINING SEMINAR
For State Agencies September 2017
W HAT IS C APITAL O UTLAY ? Understand the definition of Capital - - PowerPoint PPT Presentation
W HAT IS C APITAL O UTLAY ? Understand the definition of Capital - - PowerPoint PPT Presentation
C APITAL O UTLAY T RAINING S EMINAR For State Agencies September 2017 O BJECTIVES Understand the definition of Capital Outlay O BJECTIVES Understand the steps of theCapitalOutlay process O BJECTIVES Understand general obligation bond priorities
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Understand the steps of theCapitalOutlay process
OBJECTIVES
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Understand general
- bligation bond priorities
OBJECTIVES
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Understand the difference between an appropriation and funding
OBJECTIVES
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Understand how to read an appropriation
OBJECTIVES
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Understand the limits of an appropriation
OBJECTIVES
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Understand the information required in a capital outlay request
OBJECTIVES
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Know where to go for help
OBJECTIVES
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WHAT IS CAPITAL OUTLAY?
Understand the definition of Capital Outlay
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CAPITAL OUTLAY BUDGET
Three phase budget cycle Governed by state laws
House Bill 2 is enacted
annually as theCapitalOutlay Act
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expenditures for acquiring lands,
buildings, equipment, or other permanent properties,
or for their preservation or
development or permanent improvement.
CAPITAL OUTLAYS ARE…
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Permanent – useful life of
at least 10 years
Major – complex, requiring
coordination of two or more trades
CAPITAL OUTLAY PROJECTS
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are entered into eCORTS are due November 1st
CAPITAL OUTLAY REQUESTS
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appropriation funding means of finance general obligation bonds line of credit noncash rescission reappropriation
THE LANGUAGE OF CAPITAL OUTLAY
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CAPITAL OUTLAY PROCESS
Understand the Steps of the Capital Outlay Process
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THE CAPITAL OUTLAY PROCESS
SubmitCapitalOutlay Request Receive anAppropriation in theCapitalOutlayAct Receive Funding of the Appropriation Submit Preliminary Program Designer Selection Project Design Begins
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July 2018 Sep 2018 Oct 2018 Nov 2018
BESTCASE SCENARIO
Nov 2017
WHEN DO FUNDS BECOME
AVAILABLE?
Fu Funds Requested Designer Designer Select Selected ed Funds Appropriat ppropriated ed Project F Project Funded nded
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CapitalOutlay is not designed to be a quick fix.
PLAN AHEAD
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CAPITAL BUDGET DEVELOPMENT
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$200 million, adjusted for inflation put
the limit at $385 million for FY 17‐18.
Includes noncash to cash (P5 to P1) and
new (P2) lines of credit. Does not include P1.
R.S. 39:112 F
G.O. BOND CAPACITY
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Original House Bill 2
BUDGET DEVELOPMENT
Requests Capacity Priorities
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Governor House of Representatives HouseWays and Means Committee House Appropriations Committee Floor of the House of Representatives On to the Senate
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Senate Senate Revenue and FiscalAffairs Committee Senate Finance Committee Floor of the Senate House of Representatives forConcurrence Governor
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GENERAL OBLIGATION BONDS
Understand general obligation bond priorities
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PRIORITY 1
Always a reauthorization of appropriations with PRIOR lines of credit
Priority 1
Priority 1 Priority 2 Priority 3 Priority 4 Priority 5
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Newauthorization for CASH To be spent in the fiscal year of the Act PRIORITY 2
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Newauthorization for CASH NOTto be spent in the fiscal year of the Act
PRIORITIES 3 AND 4
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New or reauthorized “BudgetAuthority” Can only be granted a NONCASHline of credit PRIORITY 5
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APPROPRIATIONS
Understand the difference between an appropriation and funding Understand how to read an appropriation Understand the limits of an appropriation
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Being “in theAct” is NOT the same as “receiving funding.”
APPROPRIATED VS FUNDED
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Represents budget authority (legislative approval for you to receive funding IF GRANTED) APPROPRIATIONS
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Allocation of funds “Funding” can be a Cash Line ofCredit or a Noncash Line ofCredit
FUNDING
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Appropriations Memos are distributed GeneralObligation Bond appropriations are
considered for funding
Lines ofCredit are granted by theState Bond
Commission
AFTER THE LEGISLATIVE SESSION
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A C B D E F
UNDERSTANDING APPROPRIATIONS
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22 (123) Offices ofSouthern Louisiana HealthCenter, 23 Planning andConstruction 24 (Orleans) 25 Payable fromGeneralObligation Bonds 26 Priority 1 $ 900,000
EXAMPLE APPROPRIATION
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22 23 (987) Offices ofSouthern Louisiana HealthCenter Planning andConstruction 24 (Orleans) 25 Payable fromGeneralObligation Bonds 26 Priority 1 $ 75,000 27 Priority 2 $ 40,000 28 Priority 5 $ 785,000 29 Total $ 900,000
POSSIBLE PRIOR YEAR APPROPRIATION
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22 23 (345) Offices forSouthern Louisiana HealthCenter Planning andConstruction 24 (Orleans) 25 Payable fromGeneralObligation Bonds 26 Priority 2 $ 75,000 27 Priority 5 $ 875,000 29 Total $ 950,000
POSSIBLE PRIOR YEAR APPROPRIATION
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22 (684) Offices forSouthern Louisiana HealthCenter, 23 Planning andConstruction 24 (Orleans) 25 Payable fromGeneralObligation Bonds 26 Priority 5 $ 900,000
POSSIBLE PRIOR YEAR APPROPRIATION
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…to a specific entity, for a specific purpose
APPROPRIATIONS ARE MADE…
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CAPITAL OUTLAY REQUESTS
Understand the information required in a capital outlay request
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CAPITAL OUTLAY REQUESTS
Shall include a detailed project description and justification including an analysis of need
R.S. 39:102
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REQUIRED INFORMATION
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EXAMPLE REQUEST
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RESOURCES
Know where to go to get help
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https://wwwcfprd.doa.louisiana.gov/ecorts/default.cfm
ECORTS INSTRUCTIONS
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http://www.doa.la.gov/Pages/ofpc/Index.aspx
STATE AGENCY TRAINING MANUAL
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http://www.doa.louisiana.gov/fpc/fpc.htm Email: CapitalOutlay@la.gov Phone: 225.342.0823
CONTACT CAPITAL OUTLAY STAFF
Lanetta Barthelemy, Analyst Joyce Jenne, Analyst Marc Parenti, Analyst Claire Vermaelen, Analyst Brian Criss, Capital Outlay Manager Simonne Whitmore, Capital Outlay Administrator
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CONCLUSION
Important points to take away from this seminar
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SubmitCapital Outlay Request Receive an Appropriation in theCapital OutlayAct Receive Funding of the Appropriation Submit the Preliminary Program Proceed with Project
THE CAPITAL OUTLAY PROCESS
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Detailed Description of the Project Justification of the Project including an Analysis of Need
STATUTORILY REQUIRED INFORMATION
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Appropriations Authority to Receive Funding Funding Commitment
- f funds
APPROPRIATIONS VS FUNDING
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…to a specific entity, for a specific purpose
APPROPRIATIONS ARE MADE…
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A C B D E F
UNDERSTANDING APPROPRIATIONS
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Priority 1
Priority 1 Priority 2 Priority 3 Priority 4 Priority 5
GENERAL OBLIGATION BONDS
PRIORITIES 1-5
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