Capital Budget: this process is separate from the operating budget process and occurs once per year in February/March for the following fiscal year. For example, we will submit in February 2018 the capital budget request for July 2019-June 2020. These requests are then subject to a recommendation/approval process by TBR, THEC, Governor’s Office, and finally SBC. This budget provides the campus with state funds for projects.

Our campus submits one capital budget request per fiscal year.  These budget requests contain both Capital Maintenance and Capital Outlay.

Capital Maintenance –requested as part of the capital budget process. The amount of the request(s) is capped by TBR.

Definition -Major non-routine repairs and replacements for E&G space unrelated to new construction, for:

• Repair to restore a facility or infrastructure to its former, better state without a change in use.
• Replacement of exhausted or damaged utility systems, roofs, exterior fencing and lighting, infrastructure, and paving.
• Removal of hazards such as asbestos encapsulation or abatement.
• Alteration of safety or accessibility features, to rectify code deficiencies.
• Modernization or Update of obsolete building systems, for continuation of educational program.
• Corrections to bring buildings or systems into compliance with newer codes or standards.

Capital Outlay - requested as part of the capital budget process. These request(s) require a 2-10% match from the institution.

Definition: New buildings or structures, utility and/or service systems, land acquisition, site improvements, appurtenances, or permanent betterments which materially extends the useful life and improves or changes the functional use of a facility, normally meeting one or more of the following criteria:

• Renovation, restoration, and/or replacements, which result in a change in use, with the end product qualifying as E&G space for the PFI.
• New Facility or Addition to Existing Facility, which creates new E&G square footage.

Example Timeline for Capital Budgets

FY 19/20 Capital Budget Submittal

Getting Started
February-March 2018
TBR issues annual guide with instructions and required forms
Campuses prepare Capital Outlay (DB70), Capital Maintenance, and Disclosure submittals, including prioritized summary list (DB 71)

TBR provides assistance to campus staff for preparing budget submittal

March 2018
Deadline for FY 19/20 Budget Submittal to TBR

Analysis
March-April 2018
TBR reviews projects
Research with questions and answers
Scoring and ranking projects

Submittals and Approvals
May 2018
Presentation to the Tennessee Board of Regents

June 2018
Submit Capital Budget Request to THEC and F&A
Answer questions and perform additional research as necessary

January/February 2019
Gubernatorial recommendation

May/June 2019
Appropriations Bill is signed

July 2019
Projects are taken to the State Building Commission for project and funding approval

Glossary

• DB70/DB71 – form(s) required by TBR to be submitted as part of the capital budgeting process
• SBC – State Building Commission
• TBR – Tennessee Board of Regents
• THEC – Tennessee Higher Education Commission