Capital Outlay - Frequently Asked Questions

How can I apply for capital outlay funds for my community?

The State of New Mexico Legislative website can be found at http://www.nmlegis.gov/lcs/. The "Capital Outlay" link is on the right side of the home page. Click on this link for access to the Capital Outlay Request Form, which is designed to assist you in describing the project for which you are seeking funding. Completing this form is necessary to provide accurate information to the legislative council service for drafting purposes and for legislators to make informed decisions about funding projects. All Capital Outlay requests must be signed by the sponsoring legislator.

How does the capital outlay process work?

The State of New Mexico Legislature intends to fund projects that are well planned and budgeted and that have been deemed important to communities. Additionally, the legislature is trying to fund projects in phases. The legislature has developed a list of criteria for funding needed projects. The criteria list is available at the legislature's web site (www.nmlegis.gov/lcs/). Participation in the Infrastructure Capital Improvement Plan ("ICIP") process allows an entity to create an individual ICIP. The plan includes information that describes the entity's planning process, goals, trends, inventory as well as a summary and details of projects planned for the next five years, including project priority, description, budget, possible funding sources, operating expenses, and implementation schedule. From this information the entity picks its top five state fiscal year projects that they wish to earmark for funding consideration during the legislative session. A helpful hint is to begin working early each year (in the interim between each legislative session) to begin to inform your respective legislators about your project(s) and seek their support.

My capital outlay project was funded by the State Legislature. What do I do next?

As soon as a legislative session is completed, the information on the capital outlay projects that were funded is forwarded to the responsible state agency (i.e. Indian Affairs Department, DFA Local Government Division, Aging & Long Term Care Department, etc.). The agency will then notify the local government responsible for carrying out the intended purpose of the project. The Indian Affairs Department will send a letter to: 1) Inform the entity of the project by stating the legislative intent of the project and legal citation; and 2) Request a scope of work to begin the negotiation of the contract (Joint Powers Agreement).

What is the format and requirements for a scope of work ("SOW")?

The IAD Capital Outlay Unit Guidelines can be found at www.iad.state.nm.us/capital_outlay_guidelines.html. See p. 3, Sec. D. Sample SOW can also be found in the COU link for various types of capital outlay projects including, construction, renovation and improvement projects; vehicle purchase projects; water/wastewater projects; equipment/furnishing purchase projects; power line extension projects; bathroom addition projects; and projects where Art in Public Places ("AIPP") applies.

What is the Art in Public Places Program (AIPP)?

In 1986, the Legislature of the State of New Mexico passed and the Governor signed into law the Art in Public Places Act (§13-4A-1, NMSA 1978, as amended). The legislation declares it to be "a policy of the State that a portion of appropriations for capital expenditures be set aside for the acquisition or commissioning of works of art to be used in, upon, or around public buildings." (§13-4A-2, NMSA 1978). The resulting AIPP is often referred to as the One Percent for Art Program because of the requirement in the law. The primary provision in the AIPP Act is that "all agencies shall allocate. . . one percent or $200,000, whichever is less, of the amount of money appropriated for new construction or a major renovation exceeding $100,000 to be expended for the acquisition of . . . art (§13-4A-4).

For questions about AIPP, please contact staff at: aipp@oca.state.nm, in Santa Fe 827-6490 or in-state 800-879-4378.

I submitted my scope of work to IAD. What's next?

The SOW must be forwarded to IAD Capital Outlay Unit, where it will be reviewed, prioritized and processed. The Capital Outlay Unit Staff and General Counsel will review the SOW to assure that it is within the legislative intent of the appropriation. Upon its approval, the SOW is incorporated into the JPA. The JPA is forwarded to the tribal entity/organization for signature by the tribal/organizational leader. Upon signing, the JPA is sent back to IAD, where it is forwarded to New Mexico Taxation and Revenue Department for review and signature. Purchase documents are prepared by IAD and then forwarded to New Mexico Department of Finance and Administration for final approval by the Cabinet Secretary for DFA. Please note this process takes approximately 60 to 90 days.

Where can I find out more information on the status of my capital outlay project?

The IAD Capital Outlay Unit Master List can be found at www.iad.state.nm.us. Go to the Capital Outlay Unit ("COU") and click on Capital Projects Status List. This status list is updated frequently and provides information about all capital projects being administered by the Indian Affairs Department. The projects are listed in alphabetical order by tribal government (i.e. Pueblos, Apaches, Navajo and Other). The Master List provides the project's brief description, org code, funding source, appropriation end date, amount appropriated, balances, legal citation, and status of the project.

How do I submit a request for reimbursement for expenses paid by the tribe for my capital outlay project?

In an effort to standardize the process for capital outlay projects, special projects and special appropriations, instructions for IAD's process for Request for Payment of Project Expenses & Reporting Requirements can be found at the IAD website at www.iad.state.nm.us/capital_outlay_guidelines.html. See p. 4, Sec. E.

When will my check be ready?

If the capital outlay appropriation is from the General Fund, IAD will process your Request for Payment within 7 days from the time it is received. Requests for Payment for projects funded with Severance Tax Bond proceeds are processed in accordance with the State Board of Finance deadlines which are the 10th and 20th of each month. All tribal entities organizations must have an authorized (and up-to-date) agreement for wire transfer services. It is critical that IAD be kept informed if an entity changes its financial institution. Once the funds have been transferred to the tribal entity/organization, written notification is sent to verify the wire transfer.

My capital outlay project was not fully funded. What should I do?

It is very rare that that the NM State Legislature is able to fully fund capital outlay requests, especially for facility construction projects. The key to a successful project is seek multiple funding sources to leverage the project, in order to accomplish a fully funded project. It is also important to contemplate how the operations and maintenance will be provided for once the facility construction project is complete. Another strategy is to phase the project. For example, Phase I-Planning and Design; Phase II-Funding for Infrastructure (Water, Wastewater and Utilities); Phase III-Constructon, etc.

Potential funding sources want to know how all activities will be provided for. The following websites have foundations and corporations are resources for potential grants:

• http://fdncenter.org
• http://www2.guidestar.org
• http://www.helping.org/nonprofit
• http://philanthropy.com
• https://www.cfda.gov/