Capital Overview

The Common School Construction Fund is derived primarily from state timber sales and leases of school trust lands, and provides cash for school construction projects. Since the 1980s, revenues from timber sales have been insufficient to meet the construction needs of the K­12 system. Since 1985, the Legislature has appropriated from both the operating budget and from general obligation bond sales to meet the capital requirements of the school system. In the ten years from 1987 to 1997, $261 million in state general fund and $170 million in general obligation bonds have been appropriated for this purpose. This comes in addition to the $2 billion in revenue produced from school trust lands since 1965.

The 1997-2007 capital plan recognizes the continuing shortfall in timber revenues to meet K-12 facility needs. The 1997 supplemental operating budget and the 1997-99 capital budget include $50 million of general fund cash and $50 million of general obligation bonds to the Department of Natural Resources in a Trust Land Transfer program, respectively, to supplement the forecasted timber revenues. In the biennia after 1997-99, the plan provides $75 million of general obligation bonds to supplement timber revenues. However, even at this level, a backlog will develop of projects that have received approval by the State Board of Education and have passed a local school levy. The priority system of the State Board of Education will be used to identify the most important projects which receive state matching dollars.

Capital Plan Highlights

• The 1997 supplemental operating budget provides $50 million in general fund cash and the 1997-99 capital budget provides $50 million in general obligation bonds to the Department of Natural Resources in a Trust Land Transfer program to supplement the forecasted timber revenues.