New Jersey Department of Education

Capital Reserve Guidance

ATTACHMENT

Selected Definitions and References Under Commissioner Regulations Implementing (EFCFA) – N.J.A.C. 6:23A

Definitions – N.J.A.C. 6:23A-1.2

"School facilities project" means the acquisition, demolition, construction, improvement, repair alteration, modernization, renovation, reconstruction or capital maintenance of all or any part of a school facility or of any other personal property necessary for, or ancillary to, any school facility, and shall include fixtures, furnishings and equipment, and shall also include, but is not limited to, site acquisition, site development, the services of design professionals such as engineers and architects, construction management, legal services, financing costs and administrative costs and expenses incurred in connection with the project. To qualify as a school facilities project, the project must be new construction in order to meet the housing needs of unhoused students, or rehabilitation for the purpose of keeping a school facility functional for its original purpose or for a new purpose accomplished within the gross square footage of the original building. Maintenance projects intended solely to achieve the design life of school facility and routine maintenance do not constitute school facilities projects.

"Other capital projects" means all projects, or portions thereof, that are not eligible for State support under EFCFA, including:

1. Capital projects for the construction or rehabilitation of "other facilities" (defined below);

2. Projects funded through lease purchase agreements not in excess of five years duration which are not for additions or improvements to an existing school facility;

3. Leases of school facilities;

4. Capital projects for which a district is not seeking State funds; and

5. Projects for which there are no costs eligible for State support.

"Other facilities" means athletic stadiums, grandstands, greenhouses, garages, facilities used for non-instructional or non-educational purposes, and any structure, building or facility used solely for school administration.

"Required maintenance" means, for purposes of determining ‘M’ in the formula in N.J.A.C. 6:23A-2.8, specific maintenance activities required for system warranty purposes which are approved for repairs and replacements for the purpose of keeping a school facility open and safe for use or in its original condition, including repairs and replacements to a school facility’s heating, lighting, ventilation, security and other fixtures to keep the facility or fixtures in effective working condition, and which does not consist of routine maintenance or capital maintenance. Required maintenance is not an eligible cost of a school facilities project.

"Routine maintenance" means contracted custodial or janitorial services, expenditures for the cleaning of a school facility or its fixtures, the care and upkeep of grounds or parking lots, and the cleaning of, or repairs and replacements to, movable furnishings or equipment. Routine maintenance is not an eligible cost of a school facilities project.

Emergent School Facilities Projects - N.J.A.C. 6:23A-2.2(e)

Prior to the approval of a district’s LRFP, a district may apply directly for approval of a school facilities project when an emergent condition exists. An emergent condition exists when a condition is so injurious or hazardous that it causes an imminent peril to the health and safety of students and staff. A school facilities project will be approved for an emergent condition if, after an on-site inspection, the county superintendent of schools certifies that an emergent condition exists as defined above.

Equipment, ,Furnishings and Fixtures – N.J.A.C. 6:23A-2.2(a)(4)

Furnishings, fixtures and equipment are not eligible for state support unless included in a school facilities project as follows:

1. Furnishings and equipment, which meet all of the criteria for capitalization as defined pursuant to N.J.A.C. 6:20-2A.5(a), when part of a school facilities project which is either new construction or "major rehabilitation" as defined in the UCC, N.J.A.C. 5:23-6.1 et seq.

2. BFixtures when part of a school facilities project.