CAPITAL OUTLAY BUDGET CHANGE PROPOSALS (COBCPs) - 6808

A COBCP is required for:

1. Any request for a capital outlay appropriation or reappropriation. Information to determine whether a request is for capital outlay can be found in Section 6803.
   
   
2. Any request for Trailer Bill Language to authorize lease-based development agreements or appropriations to fund one-time costs related to those agreements. Information related to Lease-Based Project Development can be found in Section 6836.
   
   
3. Exercising a purchase option on capital assets. Exercising a purchase option (even if a nominal amount) requires a capital outlay appropriation. This includes exercising a purchase option on trailers and relocatable or modular buildings.

For new capital outlay projects, budget packages should be completed prior to submitting COBCPs.

Although COBCPs are generally submitted for consideration in the annual Governor’s Budget, at Finance’s discretion, COBCPs may be accepted through the April 1 or May 15 Finance Letter process. The guidelines, including timeframes, for submitting COBCPs for the Finance Letter process are included in the annual Finance Budget Change Proposal Budget Letter.  A timetable for budget preparation and enactment is provided in Section 6806.

Instructions to complete a COBCP.  The COBCP form can be found on Finance’s website: Department of Finance | State of California. The COBCP includes, but is not limited to, the following:

• Purpose of project: What is the problem? What is the underlying program need or infrastructure deficiency?
• Relationship of Project to Strategic Plan: Explain the project’s relevancy to the department’s strategic plan. Projects which lack a clear supporting relationship to the department’s strategic plan will be returned.
• Alternatives:
  • Present all reasonable alternatives to solve the problem. Please present more than one alternative that consists of an approach that includes another action other than taking no action at all.
  • For any alternatives that would require swing space, i.e., temporary accommodation during a facility remodel, the anticipated cost should be noted informationally in the alternative.
  • For any options that result in the sale of surplus property, estimated proceeds should be included in the alternative.
• Recommended Solution and Why: Which is the best alternative, and why? Describe the recommended alternative in detail. This description is the basis on which initial scope will be defined.