RD218 - Annual Report on the Status of 2002 Bond Projects


Executive Summary:
Overview

During the 2002 Session, the General Assembly provided $1,649.8 million in tax-supported bonds for the construction of 311 capital outlay projects over the next nine years (Chapters 827, 854, 855, 859, 884, or 887). Specifically, this legislation provided:

• $262.6 million to complete 59 previously “frozen” projects;

• $367.8 million for 57 Virginia College Building Authority (VCBA) and Virginia Public Building Authority (VPBA) projects which were viewed as the next highest funding priority (called “Jump Start” projects). The VPBA project list had two parts: “A” projects, which were to be initiated as quickly as possible, and “B” projects, which were not to begin until all “A” projects were initiated;

• $900.4 million for 123 general obligation bond projects at state colleges, universities, and museums; and,

• $119.0 million for 72 general obligation bond projects at state parks and natural areas.

Legislative Requirements

Chapters 839 and 888 of the 2002 Acts of Assembly set out certain requirements for the administration of this debt package. One such requirement limited the maximum amount of debt that could be issued in a fiscal year for the approved VCBA, VPBA, and general obligation bond projects, not counting the funding for the “frozen” projects, to $250 million. The legislation allowed for any unused portion of that annual debt limit to be rolled forward and added to the cap for subsequent fiscal years.

These two chapters also required the Governor to release a plan for the implementation of the authorized capital outlay projects. This plan was to:

• Be based as much as possible on agency plans ;

• Provide for the orderly issuance of the bonds;

• Remain within the debt service appropriations included in the 2002 Appropriation Act; Account for the Commonwealth’s budgetary ability to open and operate any completed capital projects; and,

• Adhere to the Commonwealth’s debt capacity limits.

The Governor released his Capital Implementation Plan (CIP) in March 2003.

Several enactment clauses of this legislation require annual updates on the status of the approved projects. Chapter 855 requires the Secretary of Finance, in conjunction with the Secretaries of Education, Administration, and Natural Resources, to provide a periodic status report to the chairmen of the House Appropriations and Senate Finance Committees until the capital projects authorized by these chapters are completed.

Report Outline

This report provides the 2005 annual update. Contents include:

• A summary of the progress to date for all 2002 bond projects subject to the $250 million cap;

• A progress report for each category of bond projects;

• A table showing the status of the cap as of June 30, 2005; and,

• The status of efforts to expedite the capital outlay review process. Appendix A provides the latest draw schedules for all of the projects.