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
O BJECTIVES Understand the difference between an appropriation and funding
O BJECTIVES Understand how to read an appropriation
O BJECTIVES Understand the limits of an appropriation
O BJECTIVES Understand the information required in a capital outlay request
O BJECTIVES Know where to go for help
W HAT IS C APITAL O UTLAY ? Understand the definition of Capital Outlay
C APITAL O UTLAY B UDGET Three phase budget cycle Governed by state laws House Bill 2 is enacted annually as theCapitalOutlay Act
C APITAL O UTLAYS ARE … expenditures for acquiring lands, buildings, equipment, or other permanent properties, or for their preservation or development or permanent improvement.
C APITAL O UTLAY P ROJECTS Permanent – useful life of at least 10 years Major – complex, requiring coordination of two or more trades
C APITAL O UTLAY R EQUESTS are entered into eCORTS are due November 1st
T HE L ANGUAGE OF C APITAL O UTLAY appropriation funding means of finance general obligation bonds line of credit noncash rescission reappropriation
C APITAL O UTLAY P ROCESS Understand the Steps of the Capital Outlay Process
T HE C APITAL O UTLAY P ROCESS SubmitCapitalOutlay Request Receive anAppropriation in theCapitalOutlayAct Receive Funding of the Appropriation Submit Preliminary Program Designer Selection Project Design Begins
W HEN DO FUNDS BECOME AVAILABLE ? Fu Funds Requested BESTCASE SCENARIO Nov 2017 July 2018 Funds Appropriat ppropriated ed Sep 2018 Project Funded Project F nded Oct 2018 Designer Select Designer Selected ed Nov 2018
P LAN A HEAD CapitalOutlay is not designed to be a quick fix.
C APITAL B UDGET D EVELOPMENT
G.O. B OND C APACITY $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
B UDGET D EVELOPMENT Requests Priorities Capacity Original House Bill 2
HouseWays and House of Means Governor Representatives Committee Floor of the House On to the House of Appropriations Senate Representatives Committee
Senate Revenue Senate Finance and FiscalAffairs Senate Committee Committee House of Floor of the Representatives Governor Senate forConcurrence
G ENERAL O BLIGATION B ONDS Understand general obligation bond priorities
P RIORITY 1 Always a reauthorization of appropriations with PRIOR lines of credit Priority 3 Priority Priority 2 4 Priority Priority Priority 1 1 5
P RIORITY 2 New authorization for CASH To be spent in the fiscal year of the Act
P RIORITIES 3 AND 4 New authorization for CASH NOT to be spent in the fiscal year of the Act
P RIORITY 5 New or reauthorized “BudgetAuthority” Can only be granted a NONCASH line of credit
A PPROPRIATIONS Understand the difference between an appropriation and funding Understand how to read an appropriation Understand the limits of an appropriation
A PPROPRIATED VS F UNDED Being “in theAct” is NOT the same as “receiving funding.”
A PPROPRIATIONS Represents budget authority (legislative approval for you to receive funding IF GRANTED )
F UNDING Allocation of funds “Funding” can be a Cash Line ofCredit or a Noncash Line ofCredit
A FTER THE L EGISLATIVE S ESSION Appropriations Memos are distributed GeneralObligation Bond appropriations are considered for funding Lines ofCredit are granted by theState Bond Commission
U NDERSTANDING A PPROPRIATIONS A B C D E F
E XAMPLE A PPROPRIATION 22 (123) Offices ofSouthern Louisiana HealthCenter, 23 Planning andConstruction 24 (Orleans) 25 Payable fromGeneralObligation Bonds 26 Priority 1 $ 900,000
P OSSIBLE P RIOR Y EAR A PPROPRIATION 22 (987) Offices ofSouthern Louisiana HealthCenter 23 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
P OSSIBLE P RIOR Y EAR A PPROPRIATION 22 (345) Offices forSouthern Louisiana HealthCenter 23 Planning andConstruction 24 (Orleans) 25 Payable fromGeneralObligation Bonds 26 Priority 2 $ 75,000 27 Priority 5 $ 875,000 29 Total $ 950,000
P OSSIBLE P RIOR Y EAR A PPROPRIATION 22 (684) Offices forSouthern Louisiana HealthCenter, 23 Planning andConstruction 24 (Orleans) 25 Payable fromGeneralObligation Bonds 26 Priority 5 $ 900,000
A PPROPRIATIONS ARE MADE … …to a specific entity, for a specific purpose
C APITAL O UTLAY R EQUESTS Understand the information required in a capital outlay request
C APITAL O UTLAY R EQUESTS Shall include a detailed project description and justification including an analysis of need R.S. 39:102
R EQUIRED I NFORMATION
E XAMPLE R EQUEST
R ESOURCES Know where to go to get help
E CORTS I NSTRUCTIONS https://wwwcfprd.doa.louisiana.gov/ecorts/default.cfm
S TATE A GENCY T RAINING M ANUAL http://www.doa.la.gov/Pages/ofpc/Index.aspx
C ONTACT C APITAL O UTLAY S TAFF http://www.doa.louisiana.gov/fpc/fpc.htm Email: CapitalOutlay@la.gov Phone: 225.342.0823 Lanetta Barthelemy, Analyst Joyce Jenne, Analyst Marc Parenti, Analyst Claire Vermaelen, Analyst Brian Criss, Capital Outlay Manager Simonne Whitmore, Capital Outlay Administrator
C ONCLUSION Important points to take away from this seminar
T HE C APITAL O UTLAY P ROCESS Receive an SubmitCapital Receive Submit the Appropriation Proceed with Outlay Funding of the Preliminary in theCapital Project Request Appropriation Program OutlayAct
S TATUTORILY R EQUIRED I NFORMATION �Detailed Description of the Project �Justification of the Project including an Analysis of Need
A PPROPRIATIONS VS F UNDING Appropriations Funding Authority to Commitment Receive Funding of funds
A PPROPRIATIONS ARE MADE … …to a specific entity, for a specific purpose
U NDERSTANDING A PPROPRIATIONS A B C D E F
G ENERAL O BLIGATION B ONDS P RIORITIES 1-5 Priority 3 Priority Priority 2 4 Priority Priority Priority 1 1 5
R ESOURCES �Capital Outlay Webpage �eCORTS Instructions �State Agency T raining Manual �Capital Outlay Staff
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