Accounting & Fiscal Guidance
February 2, 2001
The attached chart provides additional general guidance on the required approvals and recommended 2001-02 budgeting action for capital projects under the Educational Facilities Construction and Financing Act (EFCFA) and the recently issued Commissioner regulations (N.J.A.C. 6:23A). It identifies the type of projects into the five categories below. The specific regulatory definitions and references to these five categories is also attached.
As the attached document indicates, other capital projects and emergent school facilities projects may be submitted to the department for review and approval prior to final approval of the LRFP. Other capital projects are reviewed only for consistency with the LRFP and educational adequacy, if applicable. If a district chooses to forfeit state funding for a non-emergent school facilities project and therefore submit it as an other capital project for review and approval prior to approval of its LRFP, such project will never be eligible for state funding under EFCFA. Such projects should be budgeted in Fund 12 and identified on supporting documentation 4 at the estimated local support to implement the project. (The estimated local support for other capital projects is 100 percent since, by definition, it will not receive state support.)
School facilities projects that are not approved as an emergent project, must receive LRFP and project approval prior to requesting approval of the projects local support under the Commissioners regulations. The estimated local support for any non-emergent school facilities project for which a district anticipates receiving all required approvals and to be completed in 2001-02 should be budgeted in the districts capital reserve (appropriation line 7690) for future withdrawal upon approval of the school facilities project. Districts are not limited to deposits into the capital reserve for such projects anticipated to be completed in 2001-02, as a district can deposit at budget time up to the total estimated local support needs to implement its entire LRFP. Deposits are not made for specific projects. Withdrawals are made for the local support of specific projects upon final project approval and determination of final eligible costs.
I hope this helps in your budget process. If you have any questions, please contact your county superintendent.