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DFCM outlines lease-rate method, flags agency data gaps and capital-improvement priorities
Summary
DFCM told the Transportation Infrastructure Subcommittee it has created lease-rate estimates under House Bill 349 (2019) to capture capital-replacement and capital-improvement costs, but staff warned that incomplete agency reporting forces estimations; DFCM urged clearer reporting rules and discussion of how collected capital-replacement funds would be used.
The Division of Facilities Construction and Management (DFCM) told the Transportation Infrastructure Appropriation Subcommittee on Feb. 4 that it has developed a lease-rate methodology to supplement operations-and-maintenance funding and better account for capital replacement and capital improvements.
“We use the 1.3% as a midpoint between 1.1 and 1.5%,” DFCM division director Andy Maher said while explaining how the lease-rate work implements House Bill 349 from 2019. He said the purpose is to produce a private‑sector‑style lease rate that more accurately reflects capital renewal and improvement costs than the current O&M-only rates.
DFCM said it began by asking state agencies to self-report detailed…
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