Under Local Bond Law, a temporary capital budget may include the capital project and later be incorporated into the capital budget.

Under Local Bond Law, a temporary capital budget may include the capital project and later be incorporated into the capital budget.

• A. It may be adopted without any further action.
• B. It requires a referendum before adoption.
• C. It cannot be used if the capital budget is already adopted.
• D. It may include the project and later be incorporated into the capital budget.

Answer: (D)

A temporary capital budget exists to move a project forward while the full capital budget is being prepared. Under Local Bond Law, you can authorize the actual capital project in that temporary budget, and then when the permanent capital budget is adopted, you can incorporate that same project into it. This lets work begin promptly without waiting for the entire capital plan to be finalized, and it keeps the funding aligned as the final budget is put together. This is why including the project in the temporary budget and later folding it into the capital budget is the correct approach. It isn’t necessarily required to have a referendum for a temporary capital budget, and the idea that it can be adopted with no further action overlooks the need to place the project into the formal capital budget later. It’s also not correct to say it cannot be used if the capital budget is already adopted, since the mechanism is specifically about continuing the project into the final budget.

A temporary capital budget exists to move a project forward while the full capital budget is being prepared. Under Local Bond Law, you can authorize the actual capital project in that temporary budget, and then when the permanent capital budget is adopted, you can incorporate that same project into it. This lets work begin promptly without waiting for the entire capital plan to be finalized, and it keeps the funding aligned as the final budget is put together.

This is why including the project in the temporary budget and later folding it into the capital budget is the correct approach. It isn’t necessarily required to have a referendum for a temporary capital budget, and the idea that it can be adopted with no further action overlooks the need to place the project into the formal capital budget later. It’s also not correct to say it cannot be used if the capital budget is already adopted, since the mechanism is specifically about continuing the project into the final budget.