Local funding sources will be required to receive state funding assistance. Sources of local funding may include voter-approved capital levies and bonds, impact fees, mitigation payments, interest income from the capital project fund, transfers from the district’s general fund (with OSPI approval). 

Enrollment Projections

The OSPI “K-Linear Cohort Projection” model is used along with the space allocations described in this section to make the determination of eligibility.

K-Linear Cohort Projection Model

The K-Linear cohort projection model estimates future enrollment by tracking how groups of students (cohorts) historically progress from one grade to the next using average "survival ratios" (for example, the percentage of first graders who become second graders the following year). These ratios are applied to current enrollment to project grades 1-12, while kindergarten--because it has no preceding grade that is factored--is projected separately using a linear trend based on historical kindergarten enrollment. The result is a straightforward projection that assumes future enrollment pattern will generally follow recent historical trends. A school district's Form 1049 shows these projections and can be found in their ICOS profile. 

(Source: WAC 392-343-045)

Capacity needs are estimated based on:

• A three-or-five-year cohort survival enrollment projection for growth districts, whichever is greater (pursuant to Form 1049 )
• A three-or-five-year cohort survival enrollment projection for declining districts, whichever is lesser (pursuant to Form 1049)
• Actual enrollment of preschool students with disabilities, factored at fifty percent (pursuant to Form 1066)

(Source: WAC 392-343-045)

Space Allocation

These space allocations are used for purposes of determining eligibly for state funding assistance and do not necessarily reflect an accurate need of space for a school district as determined by the educational specifications. 

For state funding assistance purposes, per-student space allocations are factored with enrollment projections (see above) in accordance with the following

(Source: WAC 392-343-035)

Small High School Factor

Space allocation for state funding assistance purposes for districts with fewer than 400 students in grades 9-12 shall be computed as:

(Source: WAC 392-343-035)

SCAP Eligibility determines the amount of square footage of a construction project that may be eligible for state funding assistance.

There are two types of eligibility:

• New construction (or “unhoused”) eligibility, and
• Modernization eligibility, which may also be used toward replacing an existing facility (called “new construction in lieu of modernization” or simply "new-in-lieu"). 

Eligibility is first calculated for the entire school district and then may be used in projects depending on various factors, such as the type of eligibility, type of project, how much eligibility is available, whether the eligibility can be used toward the grade span, whether an existing facility is “age-eligible” (in the case of modernization or replacement project. See Section "Modernization" below for more information), and other factors.  

Be sure to stay in touch with your Regional Coordinator for assistance in determining SCAP Eligibility. 

School District Assigned Grade Spans 

Assigning grade spans for a district is a local determination (WAC 392-343-050, Item 4). SCAP eligibility can only be used toward the grade span for which it was calculated. For example, if a school district is designated as a K-8 primary district and 9-12 secondary, then eligibility calculated for K-8 cannot be used for 9-12 construction projects and vice versa. For K–12 school districts, the eligibility may be used for all K–12 school buildings that are SCAP recognized.

New Construction (“Unhoused”) 

New construction is the construction of a new school facility or an addition to an existing school that creates instructional space that did not previously exist. These projects provide additional space to accommodate a growing student population or expand educational programs. A new construction project is eligible for state funding when the district demonstrates a need for additional instructional space based on its number of unhoused students. 

Calculating New Construction SCAP Eligibility 

New construction eligibility factors a school district’s total SCAP-recognized inventory (square footage of recognized buildings) of the assigned grade span against the total space allocations for that grade span. 

Modernization/New-in-Lieu

Modernization is the renovation of an existing school facility to extend its useful life and update building systems. Modernization projects may address structural components, HVAC and electrical systems, building and fire codes, health and safety requirements, and accessibility improvements.

To be eligible for SCAP assistance, a modernization project must represent a significant scope of work, with the estimated cost of major structural changes equal to at least 40% of the building’s replacement value (factored against the Construction Cost Allocation), as required by WAC 392-347-035.

A modernization project is eligible for state funding when there is a demonstrated need to modernize an existing facility that is at least 30 years old and has not been modernized with SCAP assistance within the previous 30 years.

New-in-Lieu (Replacement Option) 

New construction in lieu of modernization (New-in-lieu) allows a district to use modernization eligibility toward the construction of a replacement facility when modernizing an existing facility is not financially or structurally feasible. The replacement facility must generally meet the same eligibility requirements as a modernization project. If the replacement facility provides more square footage than the existing facility, the additional square footage is considered new construction and must meet new construction eligibility requirements or be funded by local dollars.

“Improved space” consists of all eligibility captured in SCAP-funded projects in the past 30 years and any locally funded new square footage that is recognized by SCAP in the last 30 years (see "Recognized versus Non-Recognized Space").

Other Factors for Modernization Projects 

The 40 Percent Rule 

State funding is not available for projects that do not exceed 40 percent of the Construction Cost Allocation (See WAC 392-347-035). When calculating the cost-per-sf for the purpose of the 40 percent rule, the entire footprint of the existing facilities must be considered. 

Age-Eligible Space 

Age-eligible space is existing facility space that is eligible to receive modernization or "new-in-lieu" funding based on its age and funding history. Generally, existing space must be at least 30 years old and cannot have received SCAP funding assistance or other recognized improvements within the previous 30 years. Modernization and new-in-lieu eligibility can only be used toward existing square footage that is age-eligible. 

In addition, if an existing facility receives SCAP funding assistance for Modernization, the entire building, or the portion of the building that was age-eligible at the time of the project, is no longer age-eligible for SCAP funding for 30 years.

The SCAP funding formula is used to determine the maximum amount of state funding available for an eligible project. It combines the project’s SCAP-eligible square footage, the applicable Construction Cost Allocation (CCA), and the district’s State Funding Assistance Percentage (FAP). Because these factors can change during the course of a project, districts should stay in contact with their Regional Coordinator to confirm the applicable values when calculating potential state assistance.

The following formula is used to determine SCAP eligibility for a school district:

Funding Formula Equation

SCAP Eligibility x Construction Cost Allocation (CCA) x State Funding Assistance Percentage (FAP) = Maximum Allowable State FundingSCAP Eligibility (sf) 

See "Calculating SCAP Eligibility per Project Type" for more information on SCAP eligibility. 

Construction Cost Allocation (CCA) 

The Construction Cost Allocation is the maximum construction cost per square foot used to determine the amount of state financial assistance available to school districts. An annual CCA is determined through the biennium budget as approved by the legislature. 

State Funding Assistance Percentage (FAP) 

The state funding assistance percentage is the percentage of project costs that will be paid for by the state (up to the construction cost allocation amount). It is determined in accordance with the state funding assistance formula set forth in RCW 28A.525.166.

The ratio varies in relation to the local district’s ability to raise funds measured in terms of assessed value per student. State funding assistance percentages average 50% statewide but vary from (a mandated minimum of) 20% to 100%. The variation in state funding assistance percentages equalizes the differences in local school district’s abilities to fund construction.

A district’s state funding assistance percentage is calculated each calendar year. The applicable state funding assistance percentage is the highest rate determined at these three times during the development process:

• At time of securing local funding (normally passage of school bond issue)
• At time of OSPI project approval (Form D-4, see Chapter 5 for DBB projects, Chapter 6 for GC/CM, and Chapter 7 for Progressive Design Build)
• At date of secured funding status or authorization to open bids (Form D-8, see Chapter 5 for DBB projects, Chapter 6 for GC/CM, and Chapter 7 for Progressive Design Build)  

State funding assistance percentages per school district can be found on the School Facilities and Organization website.  

SCAP funds are distributed as reimbursement for several categories of work. The following categories are eligible for state assistance:  

• Districtwide Study and Survey activities (see “Advanced Planning—Study and Survey”) 
• Developing educational specifications 
• Architectural and engineering design service fees 
• Construction of school facilities 
• Value engineering 
• Energy conservation reports 
• Certain special inspections and testing 
• Furniture and equipment 
• Constructability Reviews 
• Building commissioning 
• Construction management 
• Art (funds provided for art in public places. Contact XXX for more information) 

See WAC 392-343-120 for a list of costs that are not eligible for state funding assistance. 

SCAP Eligible Cost Categories and Requirements

SCAP State Assistance Calculation by Eligible Cost Category

In certain circumstances, districts may be eligible for additional or modified state assistance.

School Facilities Abatement and Order to Vacate 

If a school facility is abated and ordered to vacate and required to be replaced as defined by WAC 392-343-115, the district is eligible for additional assistance if the district has authorized the issuance of bonds and/or levying of excess taxes to its legal limit.

Indirect Cooperative Centers 

For indirect cooperative projects conforming to provisions of Chapter 392-345 WAC, districts are eligible to receive moneys up to ninety percent of the total project cost determined eligible for state funding assistance. To be eligible, the facility shall meet the following criteria:  

• Provides educational opportunities, including vocational skill programs, not otherwise provided.  
• Avoids unnecessary duplication of specialized or unusually expensive education programs or facilities. 

(See Chapter 3, Section 308: Transportation Cooperative SCAP Funding Assistance)

School Housing Emergency 

A district with a housing emergency, requiring an allocation of state moneys in excess of the amount allocable under the statutory formula, is eligible for additional assistance if the district has authorized the issuance of bonds to its legal limit. 
 
The total amount of state moneys allocated shall be the district’s regular state funding assistance percentage plus 20 percent, but it shall not exceed 90 percent of the total approved project cost determined to be eligible for state funding assistance.  

See WAC 392-345-115(3).

Improved School District Organization 

OSPI shall provide state funding assistance, based on the total approved costs of the project at 75 percent, if two or more districts reorganize into a single district and the construction of new school facilities results in the elimination of:  

• A high school with a fulltime equivalent enrollment in Grades 9-12 of less than 400 students. 
• An elementary school with a fulltime equivalent enrollment of less than 100 students.  

For more information on these, see the "Small High School Factor" part of Chapter 3, Section 302: Estimating SCAP Capacity Needs)

Racial Imbalances

If a district that has a racially imbalanced school facility, as defined in WAC 392-342-025, demonstrates that new construction or modernization eliminates the racial imbalance in accordance with WAC 392-343-115(5), the district may receive an additional ten percent above the district’s regular state funding assistance percentage. This amount may not exceed 90 percent of the total approved cost of construction.  
 
If the school facility does not remain racially balanced for five years, the additional state moneys shall be subject to recapture by the state from any future state facility construction funds.  

Local funds must be used for the following items as they are not eligible for state funding assistance per WAC 392-343-120: 

1. Area in excess of the space allocations in WAC 392-343-035 
2. Acquisition costs of the site 
3. Maintenance and operation 
4. Alterations, repairs, and demolitions (except alterations necessary to connect new construction to an existing building) 
5. Central administration buildings 
6. Stadia/grandstands 
7. Costs incidental to advertising for bids, site surveys, soil testing for site purchase and costs other than those connected directly with construction of facilities.  
8. Bus garages, except interdistrict cooperatives 
9. Sales and/or use taxes levied by local governments other than those sales and/or use taxes generally levied throughout the State 
10. All costs in excess of state support level factors established by OSPI 
11. All costs associated with the purchase, installation and relocation of portable classrooms. 
12. Costs for work performed by district staff for tasks (other than construction management as

Interdistrict transportation cooperatives are eligible for state funding assistance under a separate set of requirements from the typical SCAP eligibility calculations described elsewhere in this chapter. Rather than determining eligibility based on the standard SCAP space and project-type formulas, OSPI reviews the proposed transportation cooperative and project to determine which costs are eligible for state assistance.

An interdistrict transportation cooperative is generally formed by two or more school districts that share transportation operations and administrative functions. For purposes of state funding assistance under Chapter 392-346 WAC, the cooperative includes participating districts that anticipate making full use of the cooperative’s services and contribute their agreed share of local funding, as well as contract districts that agree to use the cooperative’s services for a specified period. The district where the facility will be located serves as the applicant district and is responsible for submitting the application for state funding assistance. See Chapter 392-346 WAC for the requirements governing interdistrict transportation cooperatives.

Under WAC 392-346-070, participating school districts may receive 90 percent state funding assistance for eligible transportation cooperative project costs. OSPI reviews the proposed project and determines which costs qualify for assistance. Districts considering formation of an interdistrict transportation cooperative or seeking funding for a transportation cooperative facility should contact their Regional Coordinator early in the process. The Regional Coordinator can help identify the applicable requirements, discuss the proposed project, and provide the appropriate application materials.

Transportation Cooperative Application Packet of Information