Capital Improvement and Capital Construction are expenditures for land, buildings and support systems, and equipment/information technology-related projects or systems. (These categories should not include routine maintenance and repairs.) While these are not expenditure categories, these two are treated as separate program units in agency budgets. DAS will prepare a separate appropriation bill or bills for capital construction projects in the Governor's Recommended Budget.
Capital Improvements Defined:
A capital improvement project must meet the following criteria:
• The total project cost will be less than $1 million including anticipated requests in future biennia, and
• Costs will be capitalized in accordance withOAM 15.60.10 (i.e. (a) the expenditure is for acquisition (including land) or construction of a new asset, or, (b) for existing assets, the expenditure significantly increases the value, extends the useful life, or makes it adaptable to a different use); or;
• Costs are for substantial (non-routine) maintenance, or repair.
• Land acquisition for a project that has total, complete project costs of less than $1 million should be requested as a Capital Improvement Policy Package.
Major Construction or Acquisition Projects Defined
A Major Construction or Acquisition project must meet the following criteria:
• Costs will be capitalized as required by the OAM of the DAS.
• The complete project cost will be $1 million or more. Major projects normally follow a two-phase process. Phase one is planning and design; phase two is construction. This criterion applies to the combined total estimated costs of all phases of a project.
• It must build, acquire, adapt, replace, or change the use or function of an information technology-related system(s), a facility or group of related facilities (see reconstructions under Operating Expenditures.)