Oct 28th, 2025

2026-27 Capital Outlay Project and 2026 Building Condition Survey

School Districts and BOCES should take advantage of the available expedited building aid for a Capital Outlay Project for the 2026-27 budget year and be prepared to satisfy the requirement for a Building Condition Survey in 2026 if you have been assigned to the 2026 calendar-year group.

2026 Building Condition Survey

A Building Condition Survey (“BCS”) must be completed by each district and BOCES once every 5 years. The NYS Education Department (“NYSED”) divided all districts and BOCES into 5 groups (based on criteria applied by the NYSED). Each group has been assigned to a calendar year in a 5-year cycle of recurring surveys. Each district and BOCES, once every 5 years, is required to complete and submit to NYSED a survey of its occupied buildings and the goals for maintaining each. In addition, the BCS is a required filing which must be submitted to the NYSED when seeking a capital project building permit.

For BCS assignments for the current 5-year cycle, see 2025-2029 - Assignment List

The reimbursement rate for the BCS was a maximum of $0.41 per square foot for the 2024 BCS. The rate for calendar year 2025 and later years will be published by the NYSED. You will receive aid for the actual expenses or the maximum rate multiplied by the square footage, whichever is less, multiplied by the district’s aid ratio.

2026-27 Capital Outlay Project

Capital Outlay Projects (“COP”) are smaller construction projects that school districts can use to work on smaller construction issues. Repair or replacement of doors, windows, and floors, for example.

The budget for a COP is limited to a maximum cost of $100,000 and the following requirements must be satisfied: the scope and amount ($100,000) of a COP must have been included in the district’s annual budget, with a scope description in the budget newsletter, and approved by the voters; the Board must review the project under the State Environmental Quality Review Act (“SEQRA”) prior to submitting the COP for voter approval in the annual budget; and the project must be reviewed and approved by the NYSED.

To qualify for expedited building aid, the COP must be completed by June 30th of the year following the year of voter approval and have a total cost of no more than $100,000.

After the NYSED’s approval is obtained, the competitive bidding requirements under GML §§103 and 104 must be satisfied before awarding contract(s). The district must estimate the costs carefully, providing enough room for the contractor(s) to complete work (with or without alternates), as well as any incidental costs, at a total cost not to exceed $100,000. You should consider using “Alternates”, if possible, in connection with preparing the bid specifications. Given the current construction marketplace, supply chain issues, the $100,000 funding limit, and the completion deadline, you should give yourself as much flexibility as possible, so that you will be able to salvage at least a portion of the COP if bids come in above the funding maximum.

Once the COP is satisfactorily completed, you should ensure all closeout obligations have been satisfied, and the necessary documentation has been submitted by the contractor(s) and approved by the project architect. You should be sure to submit the final cost report timely to obtain the expedited building aid.

Finally, because of the small scope of a COP, typically, there’s no construction manager involved, and the project architect and school district share responsibilities for construction administration. You should be sure your contract with the project architect is clear about all responsibilities for COP administration.

For more information on your Capital Outlay Project for 2026-27 and your 2026 Building Condition Survey, please contact a member of our Construction Law Team at 315.437.7600.

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David E. Tinker

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