In lieu of issuing bonds, or using another form of long-term debt, the state often uses a form of lease-purchase agreement called certificates of participation (COPs) to finance the construction of its new facilities. A certificate refers to an investor's proportionate interest in the state's lease payments. COPs give the state the flexibility to build capital facilities even when funds are not available to pay for projects on a pay-as-you-go basis....

This memorandum summarizes the capital construction and controlled maintenance recommendation for FY 2014-15. The projects are included in House Bill 14-1336, the 2014 Long Bill, as introduced. The Long Bill includes 79 projects totaling $342.8 million. A transfer to the Capital Construction Fund of $220.5 million from the General Fund and $1.0 million from the State Historical Fund is required to fully fund the FY 2014-15 capital construction and...