What is a capital improvement plan (CIP) and what is its purpose?

• A. Short-range maintenance plan with immediate funding details.
• B. Long-range plan detailing anticipated facilities projects, funding sources, costs, and timing to align with asset management and the budget.
• C. Plan for funding extracurricular activities with no relation to facilities.
• D. A compliance checklist for annual safety inspections.

Answer: (B)

A capital improvement plan is a long-range planning document that lays out anticipated facilities projects, how they will be funded, the estimated costs, and when they would occur, all in a way that aligns asset management with the budget. This means it looks ahead several years to identify major improvements or new construction, plan the sequence of projects, and show how funding will come from different sources (such as the general fund, bonds, or grants). The purpose is to prioritize, schedule, and finance significant facility investments in a way that supports maintaining and improving assets while keeping the overall budget sustainable.

It’s not just about short-term maintenance, activities unrelated to facilities, or safety checklists. Those latter items cover ongoing operations or compliance, whereas a CIP centers on planned, multi-year capital work and the financial planning that makes it possible.