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Frequently Asked Questions - Capital Planning
Capital outlay requests must be submitted by July 1 to be eligible for consideration for the next fiscal year’s plan. For example, requests submitted by July 1, 2018 will be considered for the FY2020-2027 Capital Improvements Plan and FY2020 Capital Budget.
Capital outlay requests are rated based on criteria developed by the Long Range Capital Planning Commission. For more information please review the Commission’s Capital Outlay Request Project Submittal and Evaluation Guidelines.
No, there is not a limit. Agencies are encouraged to submit capital outlay requests for any capital need that is anticipated for the next eight years.
A link to the document can be found under the map on the right side of the Capital Planning web page.
The State Capital Improvement Planning Act requires that the plan cover an eight year period. The Act requires detailed project and budget information for the first two years of the plan and more general information on capital needs for the following six years of the plan.
The Long Range Capital Planning Commission, through Title 428 of the Oklahoma Administrative Rules, has defined “capital project” as a planned expense for a facility or physical item requiring a minimum expenditure of $25,000, having a useful lifespan of five years or more, and meeting one of the following definitions:
- Involves the acquisition or construction of any physical facility;
- Involves the acquisition of land;
- Involves the acquisition or construction of public utilities;
- Involves the acquisition of major equipment or physical systems, such as computer technology, communications systems, major specialized vehicles, etc.;
- Involves modifications to facilities, including additions to existing facilities, which increases the useful life of the facility, and/or
- Capital maintenance or replacement projects on existing facilities, which are defined as non-recurring projects to repair, maintain or replace existing facilities for the purpose of protecting the state’s investment in a facility and minimizing future maintenance and replacement costs. To be considered a capital maintenance project, a project must have an interval between expenditures of at least five years.
Capital projects do not include normal operating expenditures for salaries, routine maintenance or repair, or activities associated with or consumed during a single fiscal year.
Yes, the State Capital Improvement Planning Act requires that all projects meeting the definition of “capital project”, as outlined in Title 428 of the Oklahoma Administrative Rules, be submitted through the Long Range Capital Planning Commission regardless of funding source. For example, if your agency desires to construct a new office building utilizing funding from an agency-controlled revolving fund, the project must be submitted as a capital outlay request through Hyperion and be approved by the Long Range Capital Planning Commission and the Legislature as a part of the Capital Improvements Plan. For more information on the Act, please see 62 O.S. § 900 et. seq.
The Maintenance of State Buildings Revolving Fund was created by the State Legislature in 2013 for the sole purpose of funding capital projects as outlined in the state’s Capital Improvements Plan and Annual Capital Budget. The Legislature periodically provides appropriations to the Fund based on recommendations made in the Capital Improvements Plan. In 2014, the State Legislature, through HB3050 (74 O.S. §61.8F.), required that the sales/transfers of all state-owned property be approved by the Long Range Capital Planning Commission and all sales proceeds be deposited into the Maintenance of State Buildings Revolving Fund and be used exclusively for implementing the Capital Improvements Plan. 74 O.S. §61.8H. exempts the following agencies from this requirement:
- The Oklahoma Ordnance Works Authority
- The Commissioners of the Land Office
- The Oklahoma Department of Transportation
- The Oklahoma Turnpike Authority
The first year of the eight-year Capital Improvements Plan also serves as the Annual Capital Budget. The Annual Capital Budget is funded through a variety of sources, including agency revolving funds, federal funds, external funds and the Maintenance of State Buildings Revolving Fund.
The State Capital Improvement Planning Act requires all State governmental entities, as defined in 62 O.S. § 695.3, to participate in the Capital Improvements Plan process, which states:
"State Governmental Entity" means the State of Oklahoma or any agency, board, commission, authority, department, public trust of which the state is the beneficiary or other instrumentality of state government, other than a public trust with the state as beneficiary whose jurisdiction is limited to one county, including, but not limited to, the following:
- Oklahoma Municipal Power Authority,
- Oklahoma Development Authority,
- Oklahoma Industrial Finance Authority,
- Grand River Dam Authority,
- Oklahoma Water Resources Board,
- Northeast Oklahoma Public Facilities Authority,
- Oklahoma Turnpike Authority,
- Oklahoma Housing Finance Authority, and
- Oklahoma Public, Industrial and Cultural Facilities Authority.
62 O.S. § 901 requires the Oklahoma State Regents for Higher Education to submit capital outlay requests to the Commission.
The State Capital Improvement Planning Act exempts:
- The Oklahoma Ordnance Works Authority, and
- The Commissioners of the Land Office.
The purpose of the eight-year Capital Improvements Plan is to systematically plan, schedule, manage, monitor and finance capital projects to ensure efficiency and conformance with State strategic goals and objectives. The Long Range Capital Planning Commission develops the Capital Improvements Plan to recommend capital project funding and prioritization to the State Legislature. The Legislature makes capital funding decisions based on recommendations made in the plan.