State Agency Resources to Initiate a State Building Construction Project

Fees/Payment

Funding for State Building Construction Projects:

State Building Construction Projects are known as Capital Building Construction Projects, which primarily include construction of buildings as well as remodeling or renovation projects, and improvements to property and grounds. Capital Building Construction Projects are part of a state agency’s capital budget, and are financed by state bond funds. The bond process begins when an Executive Branch state agency presents their proposed capital budget to the governor.

The governor presents the proposed capital budget to the General Assembly each odd-numbered year. If the General Assembly approves the capital budget, then the issuance of bonds is authorized in legislation under a Public Act or Special Act and Section. The enabling legislation is known as a “Bond Authorization”. Bonds are then issued and sold to investors, thereby raising money (known as “bond funds”) for the capital projects.

Once bonds have been authorized and issued, the state agency must request approval from the Office of Policy and Management (OPM) to use the bond funds for the capital project. If OPM approves, the request is placed on the State Bond Commission's agenda for consideration. At its monthly meeting, the ten-member State Bond Commission reviews the agency request and votes to approve (or not approve) the request.

If the State Bond Commission approves the agency request, bond funds are allocated for the project. This approval is known as a "Bond Allocation". The Capital Construction Project can begin!