704: Front-Funding versus Non-Front-Funding

Front-funding is when a district applying for SCAP funding certifies that it has the financial capacity to pay the full project cost without relying on the state assistance. The district may proceed past a D-8 with the project before SCAP funding is available. Historically, SCAP funding has been released annually in July. However, funding is not guaranteed until the Legislature passes the capital budget. Once the capital budget is passed and the project has met the applicable funding milestones, OSPI releases the state assistance funds. 

Front-funding allows the district to proceed with bidding and construction before the annual July release of state assistance funds. If a district is dependent on the state's share of project funding, the project cannot be front-funded and is therefore considered non-front-funded. In that case, bidding and construction activities must be scheduled to occur after the state assistance funds have been released. This does not apply to mini-MACC's or early work packages involving non-building construction in GC/CM and Progressive Design-Build projects. These activities may proceed before the release of state assistance funds; however, the school district assumes the financial risk for proceeding before those funds are available. 

What the "(1)" Means

For front-funded projects whose SCAP funds have not yet been released, OSPI issues a D-6(1), D-8(1), and D-10(1) in place of the standard D-6, D-8, and D-10. The "(1)" designation indicates that the project has been authorized to proceed under the front-funding provisions, but the project's SCAP funds have not yet been released. Once the state assistance funds are released, OSPI issues a standard D-10, replacing the D-10(1), to confirm that the project's SCAP funds have been secured. The "(1)" designation also authorizes the project to proceed with applicable milestones that would otherwise require the state funds to have been released.