Knox County Schools officials agreed that there could be a better definition for PPU funds than currently exists.
That in mind, I came across this little line of text in the Knox County budget that outlines a definition that shows the line between capital and other expenses in the county:
Construction projects and capital purchases that generally cost in the aggregate more than $100,000 and/or have a useful life of greater than seven years will be included in the Capital Improvement Plan. Furniture, fixtures and equipment purchased for major additions or renovations will be included in the plan; all other regular maintenance and capital purchases less than $100,000 will be included in the operating budget.
What’s important about defining spending within a capital improvement plan? Generally speaking, it creates a clear line on which money can be used to buy what. Further, it makes a standard for reviewing the funds and their use – which makes public review and oversight easier to do.