This proposal outlines a three-part capital outlay plan designed to meet specified educational planning principles, to eliminate duplication of control by district and state agencies, and to direct state planning personnel from project justification to planning assistance. The proposal first discusses current problems, including multi-directional objectives, varied outlay and procedural requirements, and multi-faceted operational procedures, as a rationale for a new outlay program. Capital construction is then discussed in terms of income, distribution, and facilities planning. Specific to an income plan, techniques are demonstrated for using the "day-graded student" unit to determine the amount of income to be made available each year to the Board of Governors by the State Department of Financing. The proposal then details the objectives of distribution planning and illustrates a distribution formula based on capacity/load ratios, relative district abilities, college size factors, and effort factors. The facilities plan separates and classifies planning functions between the various state and district agencies, considering district autonomy as well as state prerogatives. Finally, transitional requirements, including a handbook and budgetary and legislative considerations, are discussed. (JP)