DOE A to Z: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #
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Funding Options/Approval
for Local/State Support
For Capital Projects under EFCFA
General Guidance
Key Points:
Department approval of the Long Range Facilities Plan (LRFP) and the capital project is necessary before districts can award bids and initiate capital project construction. For school facilities projects, project approval includes calculation of final eligible costs and the districts election to receive a grant or debt service aid.
Under EFCFA, all local funding for implementation of capital projects must receive voter or Board of School Estimate approval. Approval is achieved through inclusion in the districts budget certified for taxes detailed on supporting documentation 4, or through a bond referendum or special election question, or specific capital reserve deposit. Funding for the local share less excess costs of a school facilities project may also be withdrawn from capital reserve without voter approval, by board resolution.
Spending on a capital project approved by referendum is limited to the amount approved by the voters in the referendum question.
All bond referenda must include and list separately by source, all local revenue to be used on the capital project. This includes such revenue as capital reserve, surplus, and interest earnings. Spending on a referendum approved capital project cannot be increased above the voter approved amount through a transfer of local revenue to the capital projects fund if it was not identified in the original question.
Board approval of change orders must certify funds are available to complete the capital project. No change order can be approved if it will increase the total cost above the referendum approved amount.
Contracts for capital projects require a contingency of 5 percent at time of bid award.
School Facilities Projects
Revenue Source |
Pre-Award of Construction Contract (incl. 5% required contingency) |
Post-Award of Construction Contract for Change Orders |
||
Non-Referendum |
Referendum |
Non-Referendum |
Referendum |
|
Bond Proceeds | NA |
Up to Amt Approved in Referenda Q | NA |
Up to Amt Approved in Referenda Q |
EDA Grant | Grant Award - State Share of Final Eligible Costs | Grant Award - State Share of Final Eligible Costs as stated in Ref | Grant Award - State Share of Final Eligible Costs | Grant Award - State Share of Final Eligible Costs as stated in Ref |
Budgeted Capital Outlay |
As approved in budget & detailed by project on SD4. Cap outlay budget restricted; reallocation OK among projects. | NA |
As approved in budget & detailed by project on SD4. Cap outlay budget restricted; reallocation OK among projects. | NA |
Capital Reserve Withdrawal by Bd Resolution | Up to 110% of local share less excess costs. |
Up to Amount of Cap Reserve in Approved Referendum Q. | Up to 110% of local share less excess costs. | Up to Amount of Cap Reserve in Approved Referenda Q. |
Interest on Bond Proceeds | NA |
Up to Amt of Interest in Approved Ref | NA |
Up to Amt of Interest in Approved Ref |
Surplus
by Board Resolution |
NA |
Up to Amount of Surplus in Approved Referenda | Up to 20% of Contract Award for Allowable Change Orders | Up to Amount of Surplus in Approved Referenda |
Surplus
if Receive Formal Commissioner Approval |
NA |
Amount if approved by Commissioner per N.J.S.A. 18A:22-8.2 | NA |
Amount if approved by Commissioner per N.J.S.A. 18A:22-8.2 |
Special Voter Question | Up to Amount approved in Special Question | Up to Amount approved in Special Question | Up to Amount approved in Special Question | Up to Amount approved in Special Question |
Current Expense by Bd Resolution | NA |
NA |
NA |
NA |
Unexpended Bond Proceeds | Only for Pre-EFCFA proceeds and if receive voter approval for new use. Bond Proceeds under EFCFA must be used to reduce principal. See regulations for specific requirements. |
Other Capital Projects
Shaded Areas are different than
School Facilities Projects
Revenue Source |
Pre-Award (incl. 5% required contingency) |
Post-Award for Change Orders |
||
Non-Referendum |
Referendum |
Non-Referendum |
Referendum |
|
Bond Proceeds | NA |
Up to Amt Approved in Referenda Q | NA |
Up to Amt Approved in Referenda Q |
EDA Grant | NA |
NA |
NA |
NA |
Budgeted Capital Outlay |
As approved in budget & detailed by project on SD4. Cap outlay budget restricted; reallocation OK among projects. | NA |
As approved in budget & detailed by project on SD4. Cap outlay budget restricted; reallocation OK among projects. | NA |
Capital Reserve Withdrawal by Bd Resolution | After receiving voter approval in budget with separate Q. | Up to Amount of Cap Reserve in Approved Referendum Q. | After receiving voter approval in budget with separate Q. | Up to Amount of Cap Reserve in Approved Referenda Q. |
Interest on Bond Proceeds | NA |
Up to Amount of Interest in Approved Referenda | NA |
Up to Amount of Interest in Approved Referenda |
Surplus
by Board Resolution |
Total of 1% of budget or $50,000, whichever is greater. | Up to Amount of Surplus in Approved Referenda | Up to 20% of Contract Award for Allowable Change Orders | Up to Amount of Surplus in Approved Referenda |
Surplus
if Receive Formal Commissioner Approval |
NA |
Amount if approved
by Commissioner per N.J.S.A. 18A:22-8.2
Approval unlikely. |
NA |
Amount if approved
by Commissioner per N.J.S.A. 18A:22-8.2
Approval unlikely. |
Special Voter Question | Up to Amount approved in Special Question | Up to Amount approved in Special Question | Up to Amount approved in Special Question | Up to Amount approved in Special Question |
Current Expense by Bd Resolution | NA |
NA |
NA |
NA |
Unexpended Bond Proceeds | Only for Pre-EFCFA proceeds and if receive voter approval for new use. Bond Proceeds under EFCFA must be used to reduce principal. See regulations for specific requirements. |