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1. What are capital expenditures?

Capital Expenditures: expenditures to acquire capital assets or expenditures to make additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations, or alterations to capital assets that materially increase their value or useful life 

2. What are capital assets?

Capital Assets: tangible or intangible assets used in operations having a useful life of more than one year which are capitalized in accordance with [Generally Accepted Accounting Principles] i.e lands, facilities, equipment, and intellectual property

3. Is a capital expenditure an eligible use?

A capital expenditure may be an eligible use.

4. What should be considered when submitting a Capital Expenditure project?

Identify Impact/Harm

Identified Who Was Impacted/Harmed

Identify Location/Cost

Design a Response that Addresses or Responds to the Identified Impact or Harm

Technically Sound

Reasonably Designed to Benefit the Individual or Class that Experienced the Impact or Harm

Related and Reasonably Proportional to the Extent and Type of Impact or Harm

Written Justification, $1M or Greater

Describe Harm/Need Addressed

Explain Why Expenditure is Appropriate to Address Harm/Need

Compare to Alternative Capital Expenditures

Also,

High-Quality, Averts Delays, Promotes Efficiency, Technically Sound, Superior to Alternatives

Comply with Strong Labor Standards & Laws and Regulations

5. What are some examples of capital expenditures?

• Physical Plant Improvements to Public Hospitals and Health Clinics
• Ventilation Improvements in Congregate or Health Care Settings
• Physical Plant Changes to Enable Social Distancing
• Technology Infrastructure
• Capital Expenditures to Address Vacant Property
• Recreation Facilities to Promote Improved Health Outcomes and Public Safety

Generally Ineligible

• Physical Plant Changes to Enable Social Distancing
• Construction of New Congregate Facility Costing More Than $1M
• Convention Centers and Stadiums

6. What should be considered for the written justification for a capital expenditure of $1M or greater?

Describe Harm/Need Addressed

Provide a description of the specific harm or need to be addressed, and why the harm was exacerbated or caused by the public health emergency. May provide quantitative information on the extent and type of the harm, such as the number of individuals or entities affected.

Explain Why Expenditure is Appropriate to Address Harm/Need

Provide an independent assessment demonstrating why a capital expenditure is appropriate to address the specified harm or need. This should include an explanation of why existing capital equipment, property, or facilities would be inadequate to addressing the harm or need and why policy changes or additional funding to pertinent programs or services would be insufficient without the corresponding capital expenditures. May show that other interventions would be inefficient, costly, or otherwise not reasonably designed to remedy the harm without additional capital expenditure.

Compare to Alternative Capital Expenditures

Provide an objective comparison of the proposed capital expenditure against at least two alternative capital expenditures and demonstrate why proposed capital expenditure is superior to alternative capital expenditures that could be made. Specifically, should assess the proposed capital expenditure against at least two alternative types or sizes of capital expenditures that are potentially effective and reasonably feasible. Where relevant, should compare the proposal against the alternative of improving existing capital assets already owned or leasing other capital assets. Should use quantitative data when available, although encouraged to supplement with qualitative information and narrative description. If analyses has minimal or no quantitative data should provide an explanation for doing so.