Capital Projects

Capital Project Accounting provides financial accounting and reporting for the District's ongoing construction projects. Contracts from Construction Services that are authorized by the Board of Education are appropriated and encumbered. Progress payment requests are submitted to Capital Project Accounting for payment to contractors, architects, engineers, program administrators and other construction-related vendors. Projects are reconciled to ensure that accounts and project funding are always balanced. Project trends and cash flows are also analyzed throughout the life of capital projects funds. Monthly financial reports are prepared for the District’s Facilities Capital Programs and any other capital project fund initiatives.

Primary sources of funding for capital projects are bond issues, tax increment reinvestment zone (TIRZ) funds, pay-as-you go funds, miscellaneous funding provided by proceeds from the sale of capital assets, capital leases, and other miscellaneous revenue sources.

• The $1.89 billion 2012 Facilities Capital Program is funded from the bond issue approved by voters in November 2012. Additionally, the Board approved $212.4 million in October 2015. The 2012 Bond program consists of new construction and repair of 40 schools across the district, technology upgrades, the replacement of regional field houses and athletic facility improvements, middle school restroom renovations and, safety and security improvements.
• Tax increments reinvestment zones (TIRZ) were created by the City of Houston to redevelop blighted areas. The success of the TIRZ program requires the district's participation. Funds are generated from property value increases of the property within the zones. Projects utilizing these funds must be approved by the Board of Education.
• In 2006, the district implemented a new "Pay-As-You Go" Program to maintain both schools and non-school facilities. Projects utilizing these funds must be approved by the Board of Education.
• Miscellaneous funding is generated from sales of capital assets, capital leases, and miscellaneous revenue sources. Major improvement projects must be approved by the Board of Education.

Capital Project Accounting also provides information to bonding companies, contractors, subcontractors, taxpayers, and government agencies. Current construction project files are maintained by the department, as well as the District's permanent construction and real-estate files.