Agency: Capital Budget

Function

The Capital Budget funds new construction, major remodeling, alterations, repairs, improvements, real estate, roofing and paving projects.

The Capital Budget is divided into five line items:

1. Capital Developments
2. Capital Improvements
3. Property Acquisition
4. Land Banking
5. DFCM Planning Fund

Statutory Authority

UCA 63A-5-104 defines 'Capital Developments' as either of the following:

• A remodeling, site, or utility project with a cost of $2,500,000 or more
• A new facility with a construction cost of $500,000 or more
• A purchase of real property where an appropriation is requested to fund the purchase

The same statute defines 'Capital Improvements' as either of the following:

• A remodeling, alteration, replacement or repair project with a total cost of less than $2,500,000
• A site and utility improvement with a total cost less than $2,500,000
• New facility with a total construction cost of less than $500,000

UCA 63A-5-103 requires the State Building Board to develop and maintain a Five-Year Building Program for submission to the governor and Legislature that includes:

• A priority list of new building construction
• Detailed information for each project recommended in the first two years of the plan
• A summary of Contingency Reserve and Project Reserve balances
• Information about state leased facilities
• The results of facility condition assessments including the cost of needed improvements

UCA 63A-5-104(2) requires the State Building Board to submit its capital development recommendations and priorities to the Legislature for approval and prioritization. The SBB makes recommendations on behalf of all state agencies, commissions, departments and institutions.

Per UCA 63A-5-104(3) a capital development project may not be constructed on state property without legislative approval unless:

• The Building Board determines that a requesting higher education institution has provided adequate assurance that state funds will not be used for construction, O&M, or future capital improvements of the facility, and the new facility is consistent with the needs of the institution and the state
• The renovation, remodeling, or retrofitting of an existing facility will be done with non-state funds
• Facilities will be built with non-state funds and owned by non-state entities within research park areas at the U of U or USU
• Facilities will be built at This is the Place State Park
• Projects are funded by the Navajo Trust Fund or Uintah Basin Revitalization Fund, and do not provide a new facility for a state agency or higher education institution
• Projects are on school and institutional trust lands and funded from the Land Grant Management Fund, and do not provide a new facility for a state agency or higher education institution
• The project will be constructed by UDOT as a result of an exchange of real property under UCA 72-5-111; however, when UDOT approves these exchanges it must notify the Senate President, House Speaker, and CFAS co-chairs about any new facilities to be built under this exemption

UCA 63A-5-104(4) requires the State Building Board, on behalf of all state agencies and institutions, to submit by January 15 of each year a list of anticipated capital improvement requirements to the Legislature. Unless otherwise directed by the Legislature, the Building Board must prioritize capital improvements from the list submitted to the Legislature up to the level of money appropriated. In an emergency situation the Building Board may reallocate capital improvement funds.

The State Building Board may provide capital improvement funding to a single project, or to multiple projects within a single building, even if the total cost of the project(s) is more than $2,500,000, if the project(s) will take more than one year to complete and the Legislature has affirmatively authorized the project(s).

UCA 63A-5-104(6) prohibits the Legislature from funding the design or construction of any new capital development projects, except to complete already begun projects, until the Legislature has appropriated 1.1 percent of the replacement cost of existing state facilities to capital improvements. However, during a time of budget deficit, the Legislature may reduce the appropriation to 0.9 percent.

'Replacement cost' is determined by the Division of Risk Management, except for auxiliary facilities as defined by the Building Board.

The Building Board may make rules allocating to institutions and agencies their proportionate share of capital improvement funding.

In UCA 63A-5-104(9) the Legislature declares its intention to fund at least half of the capital improvement requirement with the General Fund.

UCA 63-38-8(3)(d) prohibits transfers from a line item of any agency or institution into the Capital Projects Fund without the prior express approval of the Legislature.

Funding Detail

The table shown below includes all appropriations in the capital budget. It does not show bond proceeds or other non-appropriated (for example, donated) funds.