Fiscal Research Division
Capital
Capital Appropriations
2015-17 Fiscal Biennium Budget Highlights
Fiscal Brief December 3, 201 5
The General Assembly appropriates funds and authorizes debt for capital projects through the House Appropriations
Committee, the House Appropriations Committee on Capital, the Senate Appropriations/Base Budget Committee, and
the House and Senate Finance Committees.
Background
“Capital projects” include real property acquisition,
new construction or rehabilitation of existing facilities,
and repairs and renovations. Under current law, the
General Assembly must authorize all capital projects,
unless those projects are funded from non-General
Fund resources at the University of North Carolina
System (UNC) or the National Guard. Broadly
speaking, the General Assembly must authorize all
debt-financed capital projects, regardless of funding
source.
The State currently maintains 123.4 million in gross
building square footage at an insured value of $28.8
billion. UNC currently owns 59% of the State’s gross
square footage at an insured value of $20.5 billion,
while the State agencies own the remaining 41% at an
insured value of $8.3 billion. The General Fund
supports the repair and renovation of $19.2 billion in
insured building value; State agency and UNC receipts
support the repair and renovation of $9.6 billion in
insured building value.
The General Assembly is also responsible for
authorizing debt-financed projects throughout the
State. At the close of FY 2014, there was $8.2 billion
in outstanding debt issued by the State of North
Carolina. Of this amount, $6.8 billion was tax-
supported, with the General Fund supporting $5.8
billion in outstanding debt. The annual debt service
requirement for the General Fund in FY 2015-16 to
support existing debt is $713.2 million. Furthermore,
the General Assembly authorizes the issuance of debt
for UNC, which is supported by campus revenue. At
the close of FY 2014, there was $4.2 billion in
outstanding debt at the various campuses.
S.L. 2015-241, Appropriations Act of 2015 (H.B. 97),
as amended by S.L. 2015-268, General Government
Technical Corrections (H.B. 259) and S.L. 2015-264,
GSC Technical Corrections 2015 (S.B. 119)
appropriates $50.6 million for capital projects
throughout the State. In addition, S.L. 2015-280,
Connect North Carolina Bond Act of 2015 (H.B. 943),
authorizes $2.0 billion in General Obligation Bonds,
subject to voter approval. Finally, S.L. 2015-275,
University of North Carolina self-liquidating projects,
authorizes $184.5 million in capital projects within the
University of North Carolina (UNC) system. This
Fiscal Brief summarizes of the FY 2015-17 biennial
budget for Capital. The legislative budget process
focused primarily on the following major areas:
• Repair and renovation of the State’s buildings;
• Planning for UNC capital projects;
• Increased oversight of State capital projects
and related financing;
• A general obligation bond package for voter
approval.
Repair and Renovations
The Appropriations Act provides $150 million from
the State's prior year fund balance for repair and
renovations to General Fund supported State
agency and UNC building. In addition, State
agencies and universities receive $15.8 million
from the General Funds for specific repair and
renovations projects.
Reserve for Repair and Renovations
• The Appropriations Act appropriates $150
million from the prior year fund balance for
repairs and renovations of State agency ($100
million) and UNC System buildings ($50
million).
• The General Assembly required the UNC
Board of Governors to consider the
