Capital Outlay Planning and Budgeting (language only)

Item 4-4.02 #1s

Language
Page 592, line 49 strike “AND BUDGETING” and insert “FOR CAPITAL OUTLAY”
Page 593, strike lines 1 through 3 and insert:
“b.  In effecting the intent of the General Assembly, as set out in paragraph a of this section, the Governor shall submit a six-year capital improvement plan to the General Assembly on or before August 15 of each odd-numbered year. This plan shall include all capital outlay projects that the Governor deems necessary for the six fiscal years beginning on July 1 of the next year. This plan shall:
i. Identify each capital outlay project;
ii. Describe the scope and nature of the project;
iii. Provide an estimate of the total cost of each project upon payment in full;
iv. Detail, by fiscal year, the source or sources of funds recommended for each capital outlay project, provided, however, that the general funds recommended for each year shall equal at least two percent of the anticipated general fund revenues for that fiscal year, as such revenues are estimated in the six-year revenue plan submitted in the prior calendar year pursuant to § 2.1-393.  This amount of general funds shall be in addition to any recommendation for capital outlay projects from the Maintenance Reserve program.
v. Explain the specific criteria or justification that was used in determining the fiscal year in which funds were allocated to projects; and
vi. Include any other information as may be requested by the General Assembly.
§ 4-4.03. BUDGETING FOR CAPITAL OUTLAY
a. For purposes of this section:
1. "Anticipated general fund revenues" for a fiscal year means the estimated general fund revenues for such year as contained in the six-year revenue plan submitted in the prior calendar year pursuant to § 2.1-393.
2. "Capital outlay project" means the same as that term is defined in § 2.1-393.1.
b.1. In each budget submitted pursuant to § 2.1-399, the Governor shall provide for the funding of capital outlay projects, as specified in this section. Such funding recommendations shall be in addition to any appropriation for capital outlay projects from the Central Maintenance Reserve of the appropriation act.
2. When the anticipated general fund revenues for a fiscal year or years are at least five percent greater than the anticipated general fund revenues for the preceding fiscal year, the Governor shall include in the budget submitted pursuant to § 2.1-399 funding from the general fund for capital outlay projects in an amount equivalent to at least two percent of the anticipated general fund revenues for the fiscal year or years.
3. When the anticipated general fund revenues for a fiscal year or years are at least three and one-half percent but less than five percent greater than the anticipated general fund revenues for the preceding fiscal year, the Governor shall submit a proposal for funding capital outlay projects from the general fund in an amount equivalent to at least two percent of the anticipated general fund revenues for the fiscal year or years, provided, however, that up to one-half of the proposed capital budget amount may be funded from alternative financing mechanisms, including, but not limited to, bonded indebtedness. The Governor shall submit such bill or bills for consideration by the General Assembly as are necessary to implement such alternative financings. Further, the Governor shall include in the budget submitted pursuant to § 2.1-399 proposed appropriations from the general fund for those capital outlay projects to be supported from the general fund.
4. When the anticipated general fund revenues for a fiscal year or years are less than three and one-half percent greater than the anticipated general fund revenues for the preceding fiscal year, the Governor shall submit a proposal for funding capital outlay projects from the general fund in an amount equivalent to at least two percent of the anticipated general fund revenues for the fiscal year or years, provided, however, that the proposed capital budget amount may be funded from alternative financing mechanisms, including, but not limited to, bonded indebtedness. The Governor shall submit such bill or bills for consideration by the General Assembly as are necessary to implement such alternative financings.
c. The capital outlay projects proposed under this section shall be consistent with those capital outlay projects included in the corresponding fiscal year of the current six-year capital improvement plan submitted pursuant to §4-4.02 of this act. The Governor shall provide explanations for deviations from the plan related to changes in scope, elimination or addition of projects, and such additional information as may be requested by the General Assembly."

Explanation
(This amendment requires the Governor to develop a six year capital outlay plan and establishes criteria for funding based on revenue growth. Similar provisions were contained in SB 1188 which passed the Senate.)