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SBCTC Policy Manual
Chapter 6: Capital Expenditures and Real Property Transactions


6.30.00 Types of Capital Funds

Appropriated capital funds are provided by the Legislature from General Obligation bond monies (Fund 057), Education Construction Account (253), and Community and Technical College Construction Account (060), and are included in the biennial state capital appropriations act or other acts affecting capital appropriation.

Non-appropriated funds are local funds (see Process for Allocation of Appropriations – Source of Non-appropriated Funds, Appendix C). These funds may be used for capital purposes and are derived from fee revenue, gifts, contracts, interest earnings, grants, etc. Such local funds are not considered capital funds until they are transferred into Fund 147 by action of the local board of trustees or until they are proposed for use in a particular project.

6.30.10 Appropriated Capital Funds

The Legislature provides appropriations of state capital funds to the SBCTC for the community and technical college system. The legislative appropriations act specifies the intended purpose of each appropriation.

  1. Following the Governor's signing of a legislative appropriations act, approvals for an individual college to spend from an appropriation are granted by the SBCTC (see Appendix B: Process and Schedule).
  2. Appropriations of capital funds take effect on the effective day of the appropriations act. For the biennial capital budget, the effective day is normally July 1 of the odd-number year – the first day of the biennium.
  3. Appropriations of capital funds lapse (expire) on the last day of the biennium (or earlier if written in the appropriations act).
  4. Re-appropriation by the Legislature of previously authorized funds (and projects) is required before any portion of a biennium-ending balance can be expended in the subsequent biennium.
  5. Re-appropriations of anticipated project fund balances are included by the SBCTC in the system capital request for the subsequent biennium, not all requests for reappropriation are accepted by the Legislature.
  6. Because any biennium-ending fund balance exceeding the reappropriation level in the bill will be lost (not available in the new biennium to complete the intended project) reappropriation requests must reflect accurate local accounting of current project expenditures.

6.30.20 Non-appropriated Funds

Non-appropriated funds for a capital purpose require SBCTC approval and are based on a “recommendation to approve” from the local board of trustees. Such a "recommendation to approve" should be explicit in the deliberations of the local board of trustees or may be made by college staff under an authority clearly delegated by the local board for that project or category of capital expenditure (see Appendix C Appropriated / Non-appropriated Funds for Local Capital Expenditure Authority). See Chapter 1 for delegated authorities related to capital expenditures.

Expenditures of non-appropriated funds for a capital purpose are not subject to legislative appropriation, unless such funds are used to acquire real property. Then, acquisition may be subject to legislative approval. Upon approval, SBCTC staff will amend the college’s allocation schedule and send the revised schedule to the college’s business officer along with other appropriate forms.

Note: Non-appropriated funds identified in the biennial capital budget request do not require additional approval by the State Board.

6.30.30 Borrowed Funds

College districts may borrow funds, to be used for capital purposes, from commercial sources or through the Certification of Participation program of the State Treasurer.

  1. Any loan from the state treasurer or other financing contract for real property acquisition or improvement requires explicit prior approval by the Legislature and the state finance committee (see RCW 39.94).
  2. SBCTC approves the proposed alternatively financed capital expenditure as well as the local board's loan arrangements either in the capital budget process or by separate resolution.
  3. Loans arranged through the State Treasurers Lease Purchase Program or Energy Conservation Program, managed by the Department of Enterprise Services , do not require legislative or State Board approval. These programs have sufficient oversight and fiscal requirements imposed by the state financial committee to ensure performance.

Policy History

ActionDescriptionRevision Date
SBCTC Resolution 02-09-16 Board approved Policy Manual 9/19/2002

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Page Manager: asavin@sbctc.edu
Page Reviewed/Updated: September 12, 2014, 11:20 AM

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