Updated March 20, 2026
Section 201: Introduction
The School Construction Assistance Program (SCAP) provides local school districts with state financial assistance for qualifying major construction projects.
The types of school facility projects that may receive state assistance in funding are:
- New construction (including additions to existing facilities), and
- Modernization or new-in-lieu of modernization (replacement of existing facilities).
State funding contributions to construction costs are determined by a funding formula on three main factors: eligibility (sf), the Construction Cost Allocation, and a state funding assistance percentage (FAP). The amount of funding assistance received by a district can vary and often changes year to year. While this chapter provides information on these determining factors, OSPI strongly encourages you to stay in touch with your Regional Coordinator for SCAP estimate and planning assistance before and throughout your planning and design process.
Section 202: Basic Policy of OSPI
OSPI recognizes:
- The statutory responsibilities and authority of the district board of directors to determine the type of school facilities it desires to construct for the children of its district.
- The statutory responsibilities and authority of the OSPI to administer control, set terms and conditions and disburse allotments to districts to assist them in providing school facilities.
In prescribing these rules and regulations, it shall be the policy of OSPI to:
- Equalize, insofar as possible, the efforts of districts to provide capital monies.
- Equalize, insofar as possible, the educational opportunities for the students of the state.
- Establish a level of state support for the construction and modernization of school facilities consistent with monies available.
- Recognize that districts may find it necessary to apply local monies in excess of state funding assistance in order to provide facilities consistent with their respective educational specifications.
Section 203: Local Funding Sources
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).
Section 204: Estimating Capacity Needs
- Enrollment Projections
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The OSPI “K-Linear Cohort Project” model is used along with the space allocations described in this section to make the determination of eligibility.
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)
- Space Allocation
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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 (see Chapter XXX).
For state funding assistance purposes, per-student space allocations are factored with enrollment projections (see above) in accordance with the following:
Grade Levels SF Per Student K-6 90 sf 7-8 117 sf 9-12 130 sf Students with Developmental Disabilities (See Form 1066 for more details) 144 sf - Source: WAC 392-343-035
- Small High School
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Space allocation for state funding assistance purposes for districts with fewer than 400 students in grades 9-12 shall be computed as:
Figure 1: Small High School Space Allocation
(Grades 9-12)
Number of Headcount Maximum Space Allocation Per FacilityMaximum Space Allocation Per Facility 1-200 42,000 square feet 201-300 48,000 square feet 301 or more 52,000 square feet Source: WAC 392-343-035
Section 205: Calculating SCAP Eligibility per Project Type
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”).
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 XXX 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
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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.
- New Construction (“Unhoused”)
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Brand new construction of a school facility, or an addition to an existing school. Provides square footage that has not previously existed to house more programs or a growing student population. A new construction project is eligible for state funding if the district has a need for instructional space based on unhoused students.
- Calculating New Construction SCAP Eligibility
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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.
Formula for Calculating New Construction Eligibility:
Capacity Needs per Section 204 minus SCAP-Recognized sf (district-wide) = New Construction Eligibility
Source: WAC 392-343-035
- Modernization
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Remodel of an existing school. Addresses structural, HVAC and electrical components; building, fire safety and health codes; and ADA. A modernization construction project must be a significant scope of work, as modernization of any given building with SCAP assistance must comprise of at least 40% of its replacement value (WAC 392-347-035).
A modernization project is eligible for state funding when there is:
- Need for modernization of an existing facility that satisfies the housing needs of the district and is more than 20 years old and has not been modernized under the provisions of Chapter 392-347 WAC in the last 20 years, prior to January 1, 1993.
- Need for modernization of a facility that was built after January 1, 1993, and is at least 30 years old.
- New-in-Lieu (Replacement Option)
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The full term is “New construction in lieu of modernization,” or a district’s ability to use modernization eligibility toward new construction. Provides a new facility when the effort to bring an older one up to date is not financially nor structurally feasible. If the replacement facility is larger than the older one, the difference in square footage is considered new construction. New-in-lieu replacement of existing facilities is generally subject to the same criteria as modernization. New-in-lieu replacement of existing facilities is generally subject to the same criteria as modernization.
Calculating Modernization (New-in-Lieu) Eligibility
Modernization eligibility factors a school district’s “improved space” of the assigned grade span against the total space allocations for that grade span.
“Improved space” consists of all eligibility captured in SCAP-funded projects in the past 30 years (but no earlier than January 1, 1993) and any locally funded new square footage that is recognized by SCAP (see WAC XXX for more information on SCAP-recognized space).
Formula for Calculating Modernization (and “New-in-Lieu”) Eligibility:
Capacity Needs per Section 204 minus “Improved Space” = Modernization (and “New-in-Lieu”) Eligibility
Source: WAC 392-343-035
- Other Factors for Modernization Projects
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The 40% Rule
State funding is not available for projects that do not exceed 40% of the Construction Cost Allocation. When calculating the cost-per-sf for the purpose of the 40% rule, the entire footprint of the existing facilities must be considered, as well as any other separate buildings being modernized as part of the contract.
In addition, if that cost-per-sf does not exceed the Construction Cost Allocation (CCA), then the district is only eligible for receive funding assistance for that project up to the cost-per-sf amount of the project.
For these reasons, modernization projects that are seeking SCAP assistance generally need to be more significant in scope.
Age-Eligible Space
Modernization and new-in-lieu eligibility can only be used toward existing square footage that is age-eligible. Existing space that is not age-eligible is also called “improved space” and consists of all eligibility captured in SCAP-funded projects in the past 30 years (but no earlier than January 1, 1993) and any locally funded new square footage that is recognized by SCAP (see WAC XXX for more information on SCAP-recognized space).
In addition, if an existing facility receives SCAP funding assistance, the entire building, not simply the square footage that receives funding assistance, is no longer age-eligible for 30 years.
Section 206: SCAP Funding Formula
The following formula is used to determine SCAP eligibility for a school district:
Eligibility x Construction Cost Allocation x State Funding Assistance Percentage = Maximum Allowable State Funding Assistance
Eligibility (sf)
See Section 205 for more information on SCAP eligibility.
Construction Cost Allocation (CCA)
The construction cost allocation is the maximum cost per square foot of construction used to calculate the amount of state financial assistance to school districts for construction. 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 Section XXX for more information)
- At date of secured funding status or authorization to open bids (Form D-8, see Section XXX for more information)
State funding assistance percentages per school district can be found on the School Facilities and Organization website.
Section 207: State Assistance Funding Categories
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 Section XXX in the “Advanced Planning—Study and Survey” chapter”)
- 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.
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Section 208: Additional State Assistance
Additional state assistance may be available to districts for the following purposes:
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.
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.
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.
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.
Section 209: Costs to be Financed Entirely with Local Funds (Non-SCAP-Recognized Costs)
Local funds must be used for the following items as they are not eligible for state funding assistance per WAC 392-343-120:
- Area in excess of the space allocations in WAC 392-343-035
- Acquisition costs of the site
- Maintenance and operation
- Alterations, repairs, and demolitions (except alterations necessary to connect new construction to an existing building)
- Central administration buildings
- Stadia/grandstands
- Costs incidental to advertising for bids, site surveys, soil testing for site purchase and costs other than those connected directly with construction of facilities.
- Bus garages, except interdistrict cooperatives
- Sales and/or use taxes levied by local governments other than those sales and/or use taxes generally levied throughout the State
- All costs in excess of state support level factors established by OSPI
- All costs associated with the purchase, installation and relocation of portable classrooms.
- Costs for work performed by district staff for tasks (other than construction management as defined by WAC 392-343-102 shall not be eligible for state funding assistance.
Section 2010: Transportation Cooperative
Per WAC 392-346-070, school districts participating in an interdistrict transportation cooperative may receive 90% state funding assistance for eligible transportation project costs. OSPI approves and determines which costs qualify for this funding. See Figure 1: Transportation Cooperative Application Packet of Information for details on what items must be submitted to apply.
| D-Form Application | Highlights |
|---|---|
| Letter of Formal Application | A formal letter from the school district’s superintendent submitting the application for funding assistance. |
| Tab A – Joint Resolutions | Include copies of joint resolutions adopted by the boards of directors of all participating school districts. These resolutions must:
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| Tab B – Description of Services and Transportation Details | Provide a written description of the services to be offered through the proposed interdistrict transportation cooperative. This section must:
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| Tab C – Project Facility Description | Submit a detailed description of the proposed facility. This must include:
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| Tab D – Area Map and District Profiles | Include a map clearly indicating the location of the proposed facility in relation to all participating districts. Additionally, provide a brief profile for each participating district. |
| Tab E – Certification of Maintenance Fund | Complete and include OSPI Form D-3: Application for State Assistance for New Construction and/or Modernization of a School Facility. This can be found on the OSPI website or connect with your Regional Coordinator. |
| Tab G – Interdistrict Cooperative Agreement |
Attach a copy of the executed interdistrict agreement between all participating districts. The agreement must include the following elements:
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