CAPITAL OUTLAYTRAINING SEMINAR

For State AgenciesSeptember 2017

Understand the definition of Capital Outlay

OBJECTIVES

Understand the steps oftheCapitalOutlay process

OBJECTIVES

Understand generalobligation bond priorities

OBJECTIVES

Understand the difference between an appropriation and

funding

OBJECTIVES

Understand how to readan appropriation

OBJECTIVES

Understand the limits ofan appropriation

OBJECTIVES

Understand the informationrequired in a capital outlay

request

OBJECTIVES

Knowwhere to go for help

OBJECTIVES

WHAT IS CAPITAL OUTLAY?Understand the definition of Capital Outlay

CAPITAL OUTLAY BUDGET

Three phase budget cycle

Governed by state laws

House Bill 2 is enactedannually as theCapitalOutlay Act

expenditures for acquiring lands, buildings, equipment, or other permanentproperties,

or for their preservation or development or permanent improvement.

CAPITAL OUTLAYS ARE…

Permanent – useful life ofat least 10 years

Major – complex, requiringcoordination of two or moretrades

CAPITAL OUTLAY PROJECTS

are entered into eCORTS

are due November 1st

CAPITAL OUTLAY REQUESTS

appropriationfundingmeans of financegeneral obligation bonds line of creditnoncashrescissionreappropriation

THE LANGUAGE OF CAPITALOUTLAY

CAPITAL OUTLAY PROCESSUnderstand the Steps of the Capital Outlay

Process

THE CAPITAL OUTLAYPROCESS

SubmitCapitalOutlayRequest

Receive anAppropriation in theCapitalOutlayAct

Receive Funding of the Appropriation

Submit PreliminaryProgram

Designer Selection

Project Design Begins

July 2018

Sep 2018

Oct 2018

Nov 2018

BES

TCA

SESC

ENARIO Nov 2017

WHEN DO FUNDS BECOMEAVAILABLE?

Funds Requested

Designer Selected

Funds Appropriated

Project Funded

CapitalOutlay is not designedto be a quick fix.

PLAN AHEAD

CAPITAL BUDGETDEVELOPMENT

$200 million, adjusted for inflation putthe limit at $385 million for FY 17‐18.

Includes noncash to cash (P5 to P1) and new (P2) lines of credit. Does not includeP1.

R.S. 39:112 F

G.O. BOND CAPACITY

Original House Bill 2

BUDGET DEVELOPMENT

RequestsCapacity

Priorities

GovernorHouse of

Representatives

HouseWays and Means

Committee

HouseAppropriationsCommittee

Floor of theHouse of

Representatives

On to theSenate

SenateSenate Revenueand FiscalAffairs 

Committee

Senate Finance Committee

Floor of theSenate

House of RepresentativesforConcurrence

Governor

GENERAL OBLIGATIONBONDS

Understand general obligation bond priorities

PRIORITY 1Always a reauthorization of appropriations

with PRIOR lines of credit

Priority1

Priority 1

Priority2

Priority 3 Priority

4

Priority 5

Newauthorization forCASH

To be spent in the fiscal year of theAct

PRIORITY 2

Newauthorization forCASH

NOTto be spent in thefiscal year of theAct

PRIORITIES 3 AND 4

New or reauthorized“BudgetAuthority”

Can only be granted aNONCASHline of credit

PRIORITY 5

APPROPRIATIONSUnderstand the difference between an appropriation

and fundingUnderstand how to read an appropriationUnderstand the limits of an appropriation

Being “in theAct” is NOT the same as “receiving 

funding.”

APPROPRIATED VS FUNDED

Represents budgetauthority

(legislative approval for you to receive funding

IF GRANTED)

APPROPRIATIONS

Allocation of funds

“Funding” can be aCash Line ofCredit or aNoncash Line ofCredit

FUNDING

Appropriations Memos are distributed

GeneralObligation Bond appropriations areconsidered for funding

Lines ofCredit are granted by theState Bond Commission

AFTER THE LEGISLATIVE SESSION

A

C

B

D

E F

UNDERSTANDING APPROPRIATIONS

22 (123) Offices of Southern Louisiana HealthCenter,

23 Planning andConstruction

24 (Orleans)

25 Payable fromGeneralObligation Bonds

26 Priority 1 $  900,000

EXAMPLE APPROPRIATION

22

23

(987) Offices ofSouthern Louisiana HealthCenter 

Planning andConstruction24 (Orleans)

25 Payable fromGeneralObligation Bonds

26 Priority 1 $ 75,000

27 Priority 2 $ 40,000

28 Priority 5 $   785,000

29 Total $   900,000

POSSIBLE PRIOR YEAR APPROPRIATION

22

23

(345) Offices forSouthern Louisiana HealthCenter 

Planning andConstruction

24 (Orleans)

25 Payable fromGeneralObligation Bonds

26 Priority 2 $ 75,000

27 Priority 5 $   875,000

29 Total $   950,000

POSSIBLE PRIOR YEAR APPROPRIATION

22 (684) Offices forSouthern Louisiana HealthCenter,

23 Planning andConstruction

24 (Orleans)

25 Payable fromGeneralObligation Bonds

26 Priority 5 $   900,000

POSSIBLE PRIOR YEAR APPROPRIATION

…to a specific entity, for a specific purpose

APPROPRIATIONS ARE MADE…

CAPITAL OUTLAYREQUESTS

Understand the information required in a capital outlay request

CAPITAL OUTLAY REQUESTS

Shall include a detailed project description andjustification including an

analysis of needR.S. 39:102

REQUIRED INFORMATION

EXAMPLE REQUEST

RESOURCESKnow where to go to get help

https://wwwcfprd.doa.louisiana.gov/ecorts/default.cfm

ECORTS INSTRUCTIONS

http://www.doa.la.gov/Pages/ofpc/Index.aspx

STATE AGENCY TRAINING MANUAL

http://www.doa.louisiana.gov/fpc/fpc.htm Email: CapitalOutlay@la.gov Phone: 225.342.0823

CONTACT CAPITAL OUTLAY STAFF

Lanetta Barthelemy, AnalystJoyce Jenne, AnalystMarc Parenti, AnalystClaire Vermaelen, AnalystBrian Criss, Capital Outlay ManagerSimonne Whitmore, Capital Outlay Administrator

CONCLUSIONImportant points to take away from this seminar

SubmitCapital Outlay Request

Receive an Appropriation in theCapital OutlayAct

Receive Funding of the Appropriation

Submit thePreliminaryProgram

Proceed with Project

THE CAPITAL OUTLAY PROCESS

�Detailed Description of theProject

�Justification of the Projectincluding an Analysis of Need

STATUTORILY REQUIRED INFORMATION

AppropriationsAuthority to

Receive Funding

FundingCommitment

of funds

APPROPRIATIONS VS FUNDING

…to a specific entity, for a specific purpose

APPROPRIATIONS ARE MADE…

A

C

B

D

E F

UNDERSTANDING APPROPRIATIONS

Priority1

Priority1

Priority 2

Priority3 Priority 

4

Priority5

GENERAL OBLIGATION BONDSPRIORITIES 1-5

�Capital Outlay Webpage

�eCORTS Instructions

�State Agency Training Manual

�Capital Outlay Staff

RESOURCES