Capital developments include renovations or other projects costing $2,500,000 or more, new facilities costing $500,000 or more, or real property purchases needing an appropriation for financing. The Legislature uses this line item to appropriate funds for construction of new capital developments.
The Legislature divides capital developments into two types: state-funded developments and "other"-funded developments. State funded developments include all projects requesting general state funds. These projects compete for funding from the Legislature. Other-funded developments are funded entirely by restricted funds that cannot be appropriated for general state purposes. The Legislature reviews these projects and decides whether to approve or not approve them.
During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $0 from all sources for Capital Development Fund. This is a 0 percent change from Fiscal Year 2015 revised estimated amounts from all sources.
STATE-FUNDED CAPITAL DEVELOPMENTS
For purposes of capital developments, 63A-5-104(1)(A) defines "state funds" as public monies appropriated by the Legislature.
Each October the State Building Board meets to fulfill its statutory responsibility to determine its capital development priorities and recommendations on behalf of all state agencies and institutions. There is no queue for projects - each year projects are prioritized based on merit. This avoids lining up projects that may or may not meet changing state or institutional priorities.
The Legislature enacted statute during the 2013 General Session that states the Legislature may not authorize the new building or facility until the Legislature appropriates funds for: (a) the portion of operations and maintenance, if any, that will require an immediate or future increase in state funding; and (b) the portion of capital improvements, if any, that will require an immediate or future increase in state funding.
OTHER-FUNDED CAPITAL DEVELOPMENTS
For purposes of capital developments, statute defines state funds as public monies appropriated by the Legislature. By extension, other funds include any monies from non-state sources that the Legislature does not directly appropriate, such as donations or revenue bonds (which the Legislature approves, but does not appropriate).
Each October the State Building Board hears and determines recommendations for all other-funded requests submitted by higher education institutions and state agencies. These projects bring value to the state by using donations, fees, restricted funds, or federal funds instead of state tax funds to construct buildings. However, these projects also represent new operational costs, fuel and power costs, assets to maintain, and (in some cases) revenue bond commitments.
Unlike state-funded buildings, other-funded buildings may not receive funding for O&M (if eligible to receive such) until the projects are completed. Appropriations subcommittees that oversee the operational budgets of the entities requesting other-funded projects recommend budget increases for O&M. The chairs of the Infrastructure and General Government Appropriations Subcommittee communicate anticipated O&M costs to chairs of those subcommittees.
Since other funds are not appropriated by the Legislature, the Legislature approves these types of projects in a bill other than an appropriations act.
During the 2008 Second Special Session the Legislature replaced $30 million in ongoing state funds (General Fund or Education Fund) in this line item with one-time funds thereby eliminating all ongoing funding. Since that time the Legislature has not appropriated ongoing funds in this line item.
COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.