Purpose/Description:
The Capital Outlay Program (Bond Program) provides a source of funding for public improvement type projects not eligible for funding through any of the dedicated funding programs. The funds are provided through the sale of State General Obligation Bonds and can be used for acquiring lands, buildings, equipment or other properties, or for their preservation or development of permanent improvements. Items which qualify as capital outlay expenditures include acquisition of land; site development and improvement; construction of buildings and other structures; additions, major improvement, and alterations to an existing facility that will extend its life or increase its usefulness; installation, extension, or replacement of utility systems, fire protection, and other major facilities; initial equipment and furnishings for new buildings; and major equipment and furnishings for existing buildings.

The program requires that projects be submitted by the head of each budget unit (i.e., Department Secretary). However, local officials of political subdivisions are also allowed to make requests, but only through the senator and representative in whose district the proposed project will be located. Each legislator forwards such requests to the Facility Planning and Control Section of the Division of Administration.

Projects then compete through the legislative process, and successful ones are grouped into various funding priorities and included in the approved Capital Outlay Bill. Funding for a specific project does not become available until such time as the bonds for that project are sold, or an advance cash line-of-credit is approved by the State Bond Commission.

DOTD will assist local governments in the preparation of Capital Outlay applications for water resources development projects.