Current through Register Vol. XXXIX, No. 11, March 18, 2022
By December 31, 2017, the Council and
Commission shall, jointly or separately, develop a system capital development
over sight policy for approval by the Legislative Oversight Commission on
Education Accountability. This oversight policy must include the following
4.1.a. State capital funding
will focus on educational and general capital improvements, not capital
4.1.b. Renovations of
existing buildings will generally receive greater consideration for state
funding than new construction.
4.1.c. Institutions will fund maintenance and
deferred maintenance needs as the Legislature increases funding for new
education and general capital improvements and major renovations and supplants
existing educational and general debt.
4.1.d. The effect of additional debt loads on
students and the financial health of institutions will be considered.
4.1.e. State capital funding and
institutional capital fees will be used primarily for maintenance and deferred
Institutions will not be rewarded with state capital funding if they neglect to
address facilities maintenance needs or do not prudently manage their capital
minimum, the system capital development oversight policy will include the
4.2.a. System goals for capital
4.2.b. An explanation
of how system capital development goals align with established state goals,
objectives and priorities and with system master plans.
A description of how the Council and
Commission will prioritize their recommendations for prioritizing capital
projects for state funding based on their ability to further state goals,
objectives and priorities and system capital development goals. The following
data elements will be used for this process:
Physical plant needs segregated by
the following asset groups:
Education and General.
Physical plant needs by project category:
4.2.c.2.D. New Construction.
Physical plant investment
needs segregated by the following categories:
4.2.c.3.B. Asset Preservation.
4.2.c.3.C. Program Improvement.
4.2.c.3.D. Economic Operations.
4.2.c.3.F. New Construction.
Physical plant package
needs segregated by the following categories:
4.2.c.4.A. Building Envelope.
4.2.c.4.B. Building Systems.
4.2.c.4.D. Space Renewal.
4.2.c.4.E. Utility Infrastructure.
4.2.c.4.F. Existing Grounds
A building renewal formula to
calculate a dollar benchmark that shall be collected annually and invested in
facilities to minimize deferred maintenance and to provide the Council and
Commission objective information to determine if the investments in maintenance
are occurring. The following components will be included in the formula:
A net asset value for each building
determined by using the following formula:
To View Image
4.2.d.2. Space utilization
Needs segregated by:
4.2.d.4.A. Asset Group.
4.2.d.4.B. Project Category.
4.2.d.4.C. Investment Needs.
4.2.d.4.D. Physical Plant
will be prioritized for each institution in accordance with institutional plans
confirmed by the Commission or approved by the Council.
4.2.d.6. Facility utilization rates will be
an important factor in prioritizing capital projects across the
4.2.d.7. Institutions with
overall net asset values and capacity utilization rates that exceed or equal
thresholds set annually by the Council and Commission are the presumptive
priority for new facilities. If these projects do not replace an existing
facility, they would be included in the Program Improvement category.
Capital project funds will be
distributed to institutions for capital projects in the following investment
Institutions may request funding for new facilities that replace aged and
obsolete structures. The investment categories will be used to analyze the cost
of the improvements resulting from the new construction.
4.2.d.10. An aggregate net asset value
percentage change resulting from the proposed funding will be calculated for
process for governing boards to follow in developing and submitting campus
development plans to the Council for approval and confirmation by the
for governing boards to follow to ensure that sufficient revenue is generated
for and applied toward facilities maintenance. This process will incorporate
the following benchmark comparisons:
Facilities maintenance expenditures.
4.2.f.2. Facilities maintenance to capital
plant age ratios.
4.3. The system capital development plan
shall be created in consultation with governing boards and appropriate
institution staff. Before approving the system capital development plan, the
Council and Commission shall afford interested parties an opportunity to
comment on the plan through a notice-and-comment period of at least thirty
4.4. The Council and
Commission shall update its system capital development plan at least once in
each ten-year period.