Core Capital Projects

Budget Highlights

Core Capital Projects spending represents the implementation of a Statewide Capital Efficiency Plan. As part of the FY 2018 Management Plan, agencies will be implementing a capital controls plan that results in a 5 percent reduction in their capital spending plan across the five-year capital plan. Recognizing that most capital spending is under contract near term, the 5 percent capital spending reductions are assumed to take effect in FY 2019 and each year thereafter. This will require agencies to administer their capital contracts in FY 2018 (and beyond) to meet these spending reductions. These reductions are needed to maintain compliance with the State’s statutory debt cap and have been assumed in the FY 2018 Executive Budget.

The objective is not to eliminate projects, but to prioritize those that are essential and defer non-essential projects that will not impact an agency’s core mission.

A project would be deemed essential if failure to complete it would:

1. Present an immediate, demonstrable threat to public health and safety;

2. Directly violate a court order or Federal, State, or local law; or

3. Result in a substantial reduction in Federal aid.

This is expected to reduce bonded-capital spending by approximately $1.5 billion across the five-year capital plan.

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