There are numerous examples on every CSU campus of academic and plant facilities that are in need of repair or replacement. The systemwide state-supported deferred maintenance backlog will be reduced to approximately $2.0 billion once funded projects are completed. The previous support from the state of one-time and recurring funds has enabled a reduction in the backlog from $2.6 billion to $2.0 billion. This is good progress, but, unfortunately, the backlog will grow by approximately $150 million per year as facilities continue to age and due to the partial funding of the support budget request in 2016-2017. Unlike 2013-2014 and 2014-2015, the CSU was not able to dedicate new permanent funding for annual debt service on longer-term bond-financed projects due to the 2016-2017 funding level. Instead, the university is utilizing $25 million from 2015-2016 and $35 million from 2016-2017 of one-time state funding to address the CSU’s most urgent facility maintenance and infrastructure needs.
Under estimated bond market conditions, dedicating $10 million of recurring funds in 2017-2018 would finance approximately $150 million of needed infrastructure projects. This would roughly keep pace with the aging infrastructure, but would not reduce the backlog. Also, the CSU continues to look to other ways to fund its infrastructure needs and we will keep the board informed on ways to do so.
Agenda item 1 of the September 20-21, 2016 joint meeting of the Committees on Finance and Campus Planning, Buildings and Grounds includes the draft priority list for the 2017-2018 Capital Outlay program. The list prioritizes critical infrastructure and utility renewal projects and facility renovation to support the academic program needs. The addition of $10 million in recurring funds would enable the CSU to fund limited capacity student growth to complement the plan to address deficiencies in existing facilities. The CSU continues to refine the planning and financing process in light of the increased capital financing authority granted in 2014.
The CSU would separately request $50 million from the state to further address the deferred maintenance backlog and $25 million of cap and trade funds to implement greenhouse gas and energy reduction projects.