Strategic Growth Plan, Bond Accountability

Right Column

CSU Proposition 1D

Front-end Accountability

Administrating Agency

CSU Board of Trustees

Bond

2006 University Capital Outlay Bond

Organization Name

California State University Campuses

Program Title

Capital Outlay, California State University

Bond Statute

 Education Code 101042**

Implementing Statute (if needed)

Proposition 1D

Bond Expenditure Criteria or Process

1. Legal Requirements

State law requires that bond proceeds be spent on the following:

  • Capital Project Design costs
  • Site acquisition of land for future facilities
  • Construction and reconstruction on existing campuses
  • Construction of facilities that may be shared with other segments of Higher Education
  • Renovation of facilities
  • Equipment for the facilities

2. Strategic Master Plan

The California State University (CSU) Board of Trustees (the Board) has adopted a strategic master plan to fulfill its academic mission to serve all eligible California students who desire a CSU education. Each campus has an approved academic master plan and physical master plan showing the existing and anticipated facilities necessary to accommodate the student enrollment at targeted dates. In developing the master plan, the campus considers the required physical needs for all academic programs and support activities, as well as environmental impacts. The strategy for each campus is to improve the use of classrooms, especially through the summer term, expand distance learning, use technology effectively and support off-campus centers and/or branch campuses.

3. Project Funding Prioritization

The Board has adopted categories and criteria to guide the prioritization of projects for new and renovated facilities proposed by the 23 campuses in accordance with their master plans. The priority system emphasizes projects that address critical fire, life safety and seismic deficiencies, needed equipment, and the need to preserve critical infrastructure such as major utilities. In addition, projects that received only a portion of the funds needed are given priority for the additional funding needed to complete the project.  An example of this would be funding the design of a project one year and the construction the following year.  Finally, projects that extend the useful life of an existing building by replacing utilities systems, electrical systems and exterior enclosures, called Capital Renewal Projects, are considered in the prioritization of projects.

4. Project Selection Criteria

The objective of the CSU’s selection criteria for capital funding is to invest roughly 60 percent of the available budget amount in renovation projects (fire, life safety, seismic, critical infrastructure, capital renewal and existing program deficiencies) and the remaining 40 percent for projects that increase instructional capacity (classrooms, laboratories) or provide infrastructure for growth (utilities, streets). The greater amount allotted for renovation is intended to preserve and extend the use of existing facilities and infrastructure. On a systemwide basis, CSU monitors the physical condition of its facilities and prioritizes renovation funds based on the age of facilities and size of the affected campus populations.

In recent years, the funds for growth in instructional capacity have been focused on increasing the capacity at small campuses, typically those campuses that serve less than 5,000 full time students, so as to promote operating efficiency and reduce administrative costs. Additional criteria for funding instructional growth projects include the forecast of space needs entitled by growth in specific academic disciplines, the degree of utilization of existing campus facilities, the level of attainment for targeted summer enrollment, the amount of useable space per student, and the amount of available campus library and other support space.

The culmination of the capital program development process is the approval of an Annual Capital Outlay Program, a prioritized list of projects selected by means of the above criteria and tied to the available capital funds. The list is considered and adopted at the September meeting of the Board, and transmitted to DOF for review by the legislature and inclusion in the annual state budget.

** EDUCATION CODE SECTION 101042

(a) From the proceeds of bonds issued and sold pursuant to Article 4 (commencing with Section 101050), the sum of six hundred
ninety million dollars ($690,000,000) shall be deposited in the 2006 University Capital Outlay Bond Fund for the purposes of this article.
When appropriated, these funds shall be available for expenditure for the purposes of this article.

(b) The purposes of this article include assisting in meeting the capital outlay financing needs of the California State University.

(c) Proceeds from the sale of bonds issued and sold for the purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the acquisition of related fixtures, construction of facilities that may be used by more than one segment of public higher education (intersegmental), the renovation and reconstruction of facilities, site acquisition, the equipping of new, renovated, or reconstructed facilities, which equipment shall have an average useful life of 10 years; and to provide funds for the payment of preconstruction costs, including, but not limited to, preliminary plans and working drawings for facilities of the California State University.