Southeastern New Mexico Economic Development District

CAPITAL OUTLAY

Legislative Capital Outlay funding is for the creation or improvement of a fixed asset that will last at least 10 years.  It may include purchasing equipment or land or making improvements to roads, water and sewer systems, buildings and anything permanently attached to those things. In the Property Control act, “capital outlay project” means the acquisition, improvement, alternation or reconstruction of assets for a long-term character that that are intended to continue to be held or used, including land, buildings, machinery, furniture and equipment.  A capital outlay project includes all proposed expenditures related to the entire undertaking (see Section 15-3B-1 NMSA 1978).  It is bricks and mortar and the equipment related to such bricks and mortar, although it has also come to be the purchase and installation of technology.  Although Capital Outlay funding is primarily for bricks and mortar, a more defined list of typical eligible projects includes:

  • planning, designing, constructing, equipping and furnishing community centers, senior centers, fire stations, libraries, courthouses and other buildings;
  • purchasing vehicles, such as for fire departments, senior centers or police departments;
  • street improvements;
  • park renovations or equipment;
  • acequia improvements;
  • water and wastewater systems;
  • improvements to existing buildings to comply with the Americans with the Disabilities Act of 1990;
  • construction or renovations to state institutions of higher education; and
  • construction or improvements to buildings on tribal lands.

Capital Outlay funds are not for operating expenses, salaries, materials and supplies, events, brochures, pamphlets and publications, retroactive reimbursements of previous payments, loan payments, anything for the federal government (BLM, BIA, etc.) or anything for a private, nongovernmental entity (nonprofits).

Capital Outlay Funding Sources
Three main sources fund capital outlay projects: proceeds from severance tax bonds, nonrecurring revenue in the General Fund and proceeds from general obligation bonds.  The state of the economy drives the capacity of each. Because general obligation bonds are repaid through property taxes and have to be approved by the voters in a general election, money for these projects is only available in even-numbered years. Severance tax bonds are repaid with revenue from resources severed from the land, such as oil and gas.

Documentation Requirements
Capital assets must be owned by the state or a political subdivision of the state. If the asset will be leased to another organization, the owner will be asked to certify ownership and that the item will be leased at fair market value prior to the release of funding.

Frequently Asked Questions (FAQS)

 

DATES TO REMEMBER

New Mexico Legislature Dates
SNMEDD Capital Outlay Hearings
October 18, 2023 – Capital outlay electronic entry begins
October 31, 2023 – Deadline for entities to submit copy of each capital request (prioritized #1-#5) to SNMEDD
January 11, 2024 (3:00 pm) – Final date for capital outlay entries
January 28, 2024 (3:00 pm) – Reauthorizations are due

HOW TO APPLY

Capital Outlay Request Forms

Capital outlay requests are entered electronically on the NM Legislative website.  Anticipated date for entry is October 18, 2023.

SNMEDD Capital Outlay Hearings.

In preparation for the regional Capital Outlay Hearings, the Capital Outlay & Reauthorization Request Forms for each project need to be emailed to SNMEDD by October 31, 2023 after the entity submits the original project/reauthorization request form(s) to the Legislative Council Service.  Requests need to be prioritized in the top right-hand corner on each request.

For further information, please contact SNMEDD at (575) 624-6131.