Governor Deval Patrick's Five Year Capital Investment Plan FY2013 - FY2017

Governor's Capital Investment Plan FY2013

Impact of Capital Budget on the Operating Budget

Each year, as part of the annual development of the capital investment plan, the Executive Office for Administration and Finance evaluates the operating budget impacts for all requested projects.  This year the Administration has taken steps to better evaluate the impact of capital investments on the operating budget. Starting in FY13, before investing in new IT projects, a private IT investment consultant will forecast the project’s return on investment and long term operating impact. (More detail about this initiative can be found in the Information Technology capital investment category.) 

Every state government capital spending request must show the incremental on-going annual operating costs/savings that are expected to be incurred upon completion of the project.  Decisions on whether to fund the capital projects depend on A&F’s assessment of not only the programmatic need for the project, but also the affordability of the related operating costs. The following capital budget construction projects are expected to result in an FY13 operating budget impact that exceeds $500,000 per year:

  • Hampden Sheriff's Department - Western MA Women's Correctional Facility
  • New Middlesex Courthouse Project
  • Greenfield Trial Court Project
  • Worcester Recovery Center and Hospital
  • Worcester State University - Wellness Center
  • Framingham State University Hemenway Hall Science Center Modernization
  • Bridgewater State University - Conant Building Modernization
  • UMass Lowell - South Campus Academic Facilities
  • Fitchburg State University - Science Facility Modernization
  • UMass Amherst - New Academic Classroom Building
  • UMass Amherst - New Laboratory Science Building
  • UMass Boston - New Integrated Science Building

In addition, for construction projects that are starting study in FY13, those studies will project the operating cost impact and will be reported to A&F over the year.  When agencies are preparing their annual budget requests during A&F’s spending plan process they are asked that the additional operational costs associated with capital projects are reflected in their projected funding requirements.

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