The Capital Outlay Coordinating Commission for Higher Education was created by the House Appropriations Committee on November 16, 1970, subsequent to a subcommittee report on capital outlay allocations submitted to the Appropriations Committee on October 12, 1970. The Appropriations Committee directed the Commission to conduct specific studies in all areas related to the allocation of capital funds for the construction of facilities at the State's institutions for higher education.

The initial study of the need for a Coordinating Commission on Capital Outlays was conducted by a subcommittee composed of five members of the Appropriations Committee -- Edward E. Lane (Chairman), Matt G. Anderson, George B. Anderson, Junie L. Bradshaw, and Arthur R. Giesen, Jr.; and L. M. Kuhn, Legislative Fiscal Officer, provided staff services for the subcommittee.

The scope of the investigation by the subcommittee in compiling data for the review involved questionnaires to the fifty states, the Council of Higher Education, and numerous college presidents. From the replies received, the subcommittee's report was based on procedures of capital outlay planning now practiced in eighteen states.