CAPITAL CONSTRUCTION BUDGET PROCESS
The capital construction budget process originates with the Oregon State Legislature. Every two years, the legislature determines the amount of state funding that will be available for higher education through a biennial budgeting process. The Oregon University System (OUS) Chancellor's Office then allocates biennial funds to each of the seven (7) state higher education institutions. The institutions, in turn, develop their own unique budgets for each year of the biennium. These budgets are based on statewide goals and objectives, institutional priorities, departmental needs, and directives at each of the institutions.
The OSU Office of Budgets and Fiscal Planning is responsible for projecting, preparing, monitoring, and evaluating annual budgets for state-appropriated funds at OSU. Each year, the office distributes annual budget instructions in cooperation with the Vice President of Finance and Administration and the Vice Provost for Academic Affairs. The instructions provide information and resources necessary for budget development for a new fiscal year.
Oregon Revised Statue 351.060(3) identifies that the OSBHE has the general power to "Erect, improve, repair, maintain, equip and furnish buildings, structures and lands for higher education." Any capital project must be submitted through the biennial budget process for approval by the State of Oregon Legislature.
The OUS Internal Management Directives (IMD) 6.001(2) provides central fiscal and accounting services, including payroll accounting, property accounting, and disbursement of state, federal, and all other funds under the OSBHE control.
IMD 7.106 Authorization to Undertake Capital Construction Projects is a directive for the capital construction budget process. Before an institution undertakes to raise funds, prepare other than conceptual plans or contract for capital construction on land owned or controlled by the Oregon State Board of Higher Education (OSBHE), the institutions must seek the OSBHE approval for capital projects regardless of the source of funds or the method by which the project is to be financed. Capital construction is defined as any facilities improvement which costs $100,000 or more and is not considered maintenance and repair. There are two major funding avenues included in the capital budgeting process:
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Oregon Constitution Article XI-G funds: These funds are for buildings or other facilities to be used for education and general purposes and shall be sought through state appropriation, including authorizations for bond borrowings.
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Oregon Constitution Article XI-F(1) funds: These funds are for buildings or other facilities for auxiliary enterprises and shall be sought from self-liquidating bond borrowings.
In addition, through IMD 7.130 Approval of Plans, Specifications, and Construction, the OUS Vice Chancellor for Finance and Administration is authorized to administer the following directives:
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Review and approve subsequent phases of planning for buildings and other capital construction projects provided there are no material deviations from the concepts, scope of work or cost estimates previously approved by OSBHE;
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Prepare requests to the Emergency Board for releaase of funds for projects requiring Emergency Board approval;
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Receive bids and award construction contracts for any project for which bids are within available project funds.
The Vice Chancellor also appropriates reports about capital projects to the OSBHE.
The following links show the legislatively approved projects for Oregon State University for the past three biennium.
If there are more questions about the above listed projects, or questions about the capital budgeting process. Contact Lori Fulton at 541-737-4625.