FY2014 - FY2018 Capital Investment Plan
Report - 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.  Every capital spending request must show the incremental and ongoing annual operating costs/savings that are expected to be incurred upon completion of the project.  The decision on whether to fund a capital project depends 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 FY14 operating budget impact that exceeds $500,000 per year:

• Bridgewater State University’s Conant Science Building Modernization and Expansion
• New Middlesex Justice Complex
• The Hampden Sheriff’s Department’s Western Massachusetts Women’s Correctional Facility
• The Massachusetts College of Liberal Arts’ Center for Science and Innovation
• Springfield Data Center
• UMass Amherst’s New Laboratory Science Building
• UMass Lowell’s South Campus Academic Facilities

In addition, for construction projects that are starting study in FY14, those studies will project the operating cost impact and will be reported to A&F during 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.