In New Mexico, capital outlay is authorized by the Legislature and generally is nonrecurring – one-time – money.
Capital Outlay funds are used to build, improve or equip physical property that will be used by the public. Roads, computers, museums, playgrounds, schools, irrigation ditches, hospitals, lands, and furniture can all be capital outlay projects.
Upon the conclusion of the legislative session, the Governor of New Mexico has 20 days to either approve or line item veto capital outlay projects. The IAD will immediately notify the tribal entity/organization of the capital outlay projects appropriated to their community through an award letter for both Severance Tax Bond and General Fund appropriations. IAD will request that a scope of work (SOW) be submitted to IAD. A SOW must by submitted for each appropriated project(s).
Much of the state’s capital outlay is funded through three sources: general obligation bonds, severance tax bonds and nonrecurring general fund revenue. Amounts vary from year to year depending on the economy. Nonrecurring general fund moneys are particularly unpredictable. The state also issues bonds for state transportation projects, projects funded by the New Mexico Finance Authority, and other projects and typically those bonds are repaid with other revenue.
Each year the New Mexico Indian Affairs Department is the administering agent for monies allocated to the department from the Legislature for each tribal entity.
NOTE: IAD urges tribal entities to thoroughly assess project readiness. The Bonds are subject to arbitrage (interest charged to the bond). The longer it takes for the tribal entity/organization to spend the money, the more interest the State must pay on the bond. This is money that could be better spent by tribes to fund more projects.
Do you have a request for funding?
To submit a capital outlay request, you must fill out a Capital Outlay Request form. All forms must be signed by a sponsoring legislator and submitted to the Legislative Council Service, Capital Outlay office. The deadline to submit all capital outlay request forms is Monday, February 11, 2019