Capital Outlay

BACKGROUND            INTENT            USAGE            ELIGIBILITY            FILING            PAYMENT           ​ RESOURCES            ​ ACRONYM GLOSSARY ​
Background
Purchases from the Capital Outlay Fund are guided primarily by SDCL 13-16-6 and SDCL 13-13-37.
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​Intent
Capital Outlays refers to appropriations for the purchase of goods and services, the benefits of which extend beyond the fiscal year and which add to the assets of the local government unit concerned.
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Usage
The capital outlay fund of the school district is a fund provided by law to meet expenditures of which result in the acquisition of or lease of or additions to real property, plant, or equipment. Such an expenditure shall be for:

  • Land
  • Existing facilities
  • Improvement of grounds
  • Construction of facilities
  • Additions to facilities
  • Remodeling of facilities, or;
  • For the purchase or lease of equipment.
It may also be used for installment or lease-purchase payments for the purchase of real property, plant or equipment, which have a contracted terminal date not exceeding 20 years from the date of the installment contract or lease-purchase and for the payment of the principal of and interest on capital outlay certificates issued pursuant to SDCL 13-16-6.2.

Any purchase of $1,000 or less may be paid out of the general fund. The total accumulated unpaid principal balances of such installment contracts and lease purchase and the outstanding principal amounts of such capital outlay certificates may not exceed three percent of the taxable valuation.

​Miscellaneous Usage Notes
  • The capital outlay fund may be used to purchase textbooks, instructional software and warranties.
  • However, no school district that receives money under Public Law 81-874 may expend general fund money for new construction.
  • Purchases of equipment per invoice per asset type exceeding $1,000 may not be purchased from the General Fund, but equipment less than $1,000 may be purchased from either the General Fund or Capital Outlay Fund.
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Eligibility
Applicable to all NYS K12 public school districts.
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Filing
Not applicable.
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Payment
Via property taxes:
​“The school district shall provide a sufficient levy each year under the provisions of § 13-16-7 to meet the annual installment contract, lease-purchase and capital outlay certificate payments, including interest.”
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Resources
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Note that New York State Education Dept. (NYSED) is still issuing guidelines for use of NYS's $7.9 billion allocated in the American Rescue Plan (ARP) passed by U.S. Congress in March 2021. Currently, available district funds must be spent by Sept. 30, 2024, although a deadline extension is possible. Sign up to be notified when significant content updates are posted.
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