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Updated
August 28, 2008
Legislature Home Page | Committee Listings
COMMITTEE
OVERSIGHT ACTIVITIES
Budgeted Projects | Unbudgeted Projects | Emergency | Court Projects | Bonds
| Leases
CAPITAL
CONSTRUCTION - BUDGETED PROJECTS
Receive
quarterly and annual reports from the Finance and Administration Cabinet on the status
of the state's capital construction program; receive similar reports from the five state
universities that manage their own capital construction programs: Murray State University,
Northern Kentucky University, University of Kentucky, University of Louisville, and
Western Kentucky University; receive quarterly report from the Administrative Office of
the Courts on court construction and renovation projects; receive quarterly reports from
the Commonwealth's Chief Information Officer concerning implementation of information
technology systems.
No
Committee action required.
Receive
a report from the Finance and Administration Cabinet and those universities that
manage their own construction any time a decision is made to use an alternative project
delivery method (design-build or construction- management-at-risk) to construct an
authorized project.
No Committee action required.
Review
requests to alter GA-approved capital projects. Usually, the request is to increase
the scope of a project. Requests to transfer additional moneys to a project are limited by
statute to 15% of the authorized project scope, unless the source of funds is private or
federal, or the increase is necessitated by action of federal or state courts or
regulatory agencies. Moneys specifically budgeted and appropriated by the General Assembly
for another purpose shall not be allotted or reallotted in order to increase the scope of
a capital project. The Finance and Administration Cabinet administers the state's Capital
Construction and Equipment Purchase Contingency Account, which may be used to fund cost
overruns on projects - up to 15% of authorized scope.
Committee
action required for scope increases and for allocations from the Contingency Account.
Review local public infrastructure projects the Kentucky Infrastructure
Authority (KIA) recommends for funding from its loan and grant programs, including
those supported in whole or in part by state bond proceeds. KIA's two largest loan
programs are Fund A, the Federally Assisted Wastewater Revolving Loan Fund, and Fund F,
the Federally Assisted Drinking Water Revolving Loan Fund. Both programs are
supported by approximately 83% federal funds and 17% state bond funds. Other KIA funds
currently active include: (1) Fund B, the Infrastructure Revolving Loan Fund, 100% state
supported; (2) Fund C, the Governmental Agencies Program, funded through KIA-issued bonds
but with no state appropriation; and (3) Various grant programs, 100% state
supported. KIA also administers grant programs for broadband and gas system
restoration projects.
Committee
action required.
Review
projects that the Kentucky Economic Development Cabinet proposes to fund from the Economic
Development Bond Pool. The Economic Development Bond (EDB) Pool program uses state
bond proceeds to leverage against private investment for economic development in the
Commonwealth. Project selection criteria include, but are not limited to: project's job
creation and job retention potential, degree of public and private local involvement,
degree and conditions of potential project payback, and provision of child care assistance
for employees. Project selection is to be documented with rationale for selection and
expected economic development impact.)
Committee
action required.
Receive
notice when projects involving equipment estimated to cost over $200,000 or other projects
estimated to cost over $600,000 are funded from specified pools of money authorized by
the General Assembly, such as repair of state-owned dams, Kentucky River Authority Locks
and Dams Renovation and Maintenance Pool, Parks Renovation Pool, Parks Development Pool,
Bond-funded Maintenance Pool, University Major Items of Equipment Pools, land acquisition
and property demolition, economic development initiatives including the High-Tech
Construction Pool and the High-Tech Investment Pool, and the Education Technology Pool,
Kentucky Center for the Arts Major Maintenance Renovation Pool, and the Research Capital
Match Program of the Research Challenge Trust Fund.
No
Committee action required.
- Receive
reports of land acquisitions funded through the Kentucky Land Heritage Conservation Fund KRS 146.570.
No
Committee action required.
- Review
Kentucky Lottery Corporation capital projects authorized by the General Assembly prior to
expenditures being made KRS 154A.060.
No
Committee action required.
- Receive
report from the Secretary of the Finance and Administration Cabinet of any
guaranteed energy savings contracts approved by the Office of Financial Management.
No Committee action required.
CAPITAL
CONSTRUCTION - UNBUDGETED PROJECTS
Review
requests for unbudgeted projects. Unbudgeted projects are permitted only if 50% or
more of the funds are private or federal funds, or if the project is necessitated by state
or federal court action or by regulatory action. Unbudgeted acquisition of scientific,
research or medical equipment, excluding computer equipment and aircraft, is permitted if
the acquisition will not involve funds budgeted for other purposes and is reported to the
Committee upon acquisition.
Committee
action required except for reports of unbudgeted acquisition of scientific, research, or
medical equipment.
Receive
requests to use funds in the Capital Construction and Equipment Purchase Contingency
Account to finance feasibility studies for projects which may be contemplated for
future funding.
Committee
action required.
EMERGENCY
REPAIR
Receive
notice from the Finance and Administration Cabinet when funds have been allocated from the
state's Emergency Repair, Maintenance, and Replacement Account for emergency
expenditures on state facilities. Cabinet is required to report such allocations within 30
days.
No
Committee action required.
COURT
PROJECTS
Receive
quarterly reports by the Administrative Office of the Courts on the status of court
projects authorized by the General Assembly. (While these projects continue to be
local projects, usually funded by local bond issues, the State pays a use allowance for
court space based on local debt service.)
No
Committee action required.
Review
requests by the Administrative Office of the Courts to permit modifications in court
projects that will impact the authorized use allowance. Overruns shall not
exceed 15% of the authorized use allowance.
Committee
action required.
BOND
ISSUES
Review,
prior to issuance, all state agency bonds. State agencies affected by the requirement
include: the State Property and Buildings Commission, the Kentucky Asset/Liability
Commission, Kentucky Housing Corporation, Kentucky Infrastructure Authority, Kentucky
Higher Education Student Loan Corporation, Kentucky River Authority, Kentucky Agricultural
Finance Corporation, Kentucky Local Correctional Facilities Construction Authority,
Turnpike Authority, and state postsecondary institutions. Information to be submitted for
each proposed bond issue includes the purpose and amount of the issue, as well as an
itemized list of costs directly and indirectly associated with the issue, and the names of
those receiving fees or commissions.
Committee
action required for all but Turnpike Authority issues.
(Follow-up
reports are submitted to the Committee on the results of bond sales, but no further
Committee action is required.)
Review,
prior to issuance, all bond issues by local school districts that include state funding
through the School Facilities Construction Commission. All bond payee disclosure
information is required to be reported to the Committee. In addition, any local tax
increase associated with the issue is noted.
Committee
action required.
Receive,
prior to issuance, bond payee disclosure information on all school bond issues that are
100% locally funded. Any local tax increase associated with the issue is noted.
No
Committee action required.
Receive
reports from the Auditor's Office certifying that procedures required by statute were
followed in the selection of underwriters and bond counsel for state bond issues; receive
reports from the Auditor's Office certifying statutory procedures were followed in
procurement of built-to-suit leases.
No
Committee action required.
LEASES
Review
new state leases before execution when the annual rent is over $100,000. All leases
with annual rent in excess of $200,000 are to be included as a line-item in the applicable
enacted State/Executive Budget, with certain exceptions: (1) when there is a space
consolidation; (2) additional space is needed to meet space-need standards; (3) 50% of the
rental costs are to be paid with federal or private funds; or (4) an emergency is
declared. Emergency leases can be reported after execution; all other leases over $100,000
annually are to be reported prior to execution.
Committee
action required.
Review,
prior to execution, all leases that contain a lease-purchase option or are built-to suit
leases; review any proposal to exercise an option to purchase.
Committee
action required.
Review
all modifications of state leases. Customarily, such modifications might involve
increases/decreases in leased space footage or interior wall or electrical alterations to
meet current needs of the occupying agency.
Modifications costing less than $50,000 over the term of the lease are to be
reported after execution. No Committee action required.
Modifications costing $50,000 or more over the term of the lease are to be reported
prior to execution. Committee action required.
- Review
biennial reports by the Auditor's Office relating to compliance with state leasing laws.
Committee
action not required
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