Capital Outlay Projects

What Are Capital Projects? (learn more here)

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Every year, the New Mexico Legislature approves a list of construction and improvement projects to support local communities across the state. These projects can be funded in three ways:

• General Obligation (GO) Bonds: Used for big projects like building or renovating public facilities. Paid off using property taxes collected by local governments.
• State General Fund Money
• Severance Tax Bonds: Used for capital needs of state agencies, local governments, tribes, and schools. Paid off using severance taxes – these come from mining and natural resource production.

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Nonprofits can only receive capital funding if the property involved is owned by the state, a county, or a city.

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How Projects Are Managed

• Each project has a name, amount of funding, funding source, and county listed.
• Money usually goes first to a state oversight department, before the local government/community receives the appropriation 
• Local governments must sign a grant agreement before using the funds.
• Projects are funded on a reimbursement basis – local governments spend their own money first, then get reimbursed by the state.
• Each appropriation has an expiration date. Normally, a project’s funding is valid from two to four years; however, the Legislature may reauthorize the funding for a longer period of time.
• Unused funds may also be reauthorized on one project for another project.

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Apply for Capital Outlay (How-to)

1. Determine the type of project: Ensure the project falls under the definition of a capital outlay project as defined by the Property Control Act. The Property Control Act defines a “capital outlay project” as the acquisition, improvement, alteration or reconstruction of assets of a long-term character that are intended to continue to be held or used, including land, buildings, machinery, furniture and equipment.
2. Gather necessary documentation: Collect all required project details, including contact information, project cost, description, location, and ownership.This information is necessary to draft the legislation. The remaining information requested may be used by state agencies to administer a project, if an appropriation is made for that project.
3. Submit the application: Complete the capital outlay request form and submit it online through the Legislative Council Service (LCS) website. The form is available from October to December. Requests to the Governor’s Office must first be submitted to the Legislative Council Service (LCS)
   
   1. Submission request reminders:
      
      1. Use LCS Web ID and project title if applying for funding on the governor’s website
      2. Fiscal agent for chapters on Navajo Nation: select chapter name
      3. Project contact info does not auto-fill from ICIP (Infrastructure Capital Improvement Plan) project number – be sure to include current project contact info
      4. Project type for title – select the type that best describes your project
      5. Titling – the system will generate the beginning and end of your title (requesting entity) (project type for title)
      6. Project titles for roads or schools should begin with the road or school name
      7. Check that project description matches title description 
      8. Budget – be sure to provide a complete budget breakdown – including funded to date and not yet funded – so you can generate a total project cost
      9. Use whole round numbers – do not use decimal points, commas, periods, or other punctuation 
      10. Avoid duplication project requests – Email documentation and requests to delete duplicate projects to (sheila.keleher@nmlegis.gov)  
4. Contact for assistance: If you have questions or need help with the application process, reach out to the Capital Outlay Bureau at the New Mexico Department of Finance and Administration or the Governor's Office for guidance. For more detailed information and to access the application forms, visit the New Mexico Legislature's website or the Governor's Office website.

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Capital Appropriation Reauthorization Request Process:

1. Request forms available here
2. Deadline to submit a reauthorization request Feb 2025
3. Reauthorization request forms require a sponsor’s signature and must be submitted to the LCS office by deadline
4. Bring two copies of the signed reauthorization form to the LCS office. The forms will be date stamped, and one copy will be returned to you
5. Capital appropriations from previous years may be reauthorized to extend the time of expenditure, change or expand the project purpose or change the administering agency

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