Capital Budget Hearing State University of New York Dr. Nancy L. Zimpher, Chancellor October 22, 2009
State University State University of New York Construction Fund SUNY Capital Program Summary # of Sq. Avg 2008-13 Projects Managed Funded By Bldgs Foot (1 (1) Age (2 (2) Funding (1 (1) By Educational 1,828 57.6 44.5 $4,426 (3 (3) State Fund/ Campus Facilities Hospital Hospitals 13 2.5 24.3 $450 Fund/ Campus Revenues DASNY/ Residence 467 19.3 34.0 $573 Room Rents Halls Campus 50% State Community 490 17.9 41.6 $436 Local Colleges 50% Local Totals 2,798 97.3 42.1 $5,885 (1) Square footage and funding expressed in millions. Not es es: (2) Average age (expressed in years) represents a straight average with no consideration given to the size of buildings or subsequent renovations. (3) Includes $1.65B in future appropriations for critical maintenance projects for 2010/2011 through 2012/2013. 2
State University State University of New York Construction Fund Educational Facilities Critical Maintenance Site Utility Lines - Alfred Electrical Distribution Upgrade - Fredonia Strategic Initiatives Construct New Business School - Albany New School of Education/Child Care - Cortland 3
State University State University of New York Construction Fund SUNY – Educational Facilities ■ 73% of SUNY Educational Facilities are more than 30 years old Millions 14 12 10 8 6 4 2 0 Pre- 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 1900 Millions GSF 4
State University State University of New York Construction Fund Capital Investment – Critical Maintenance Addressing Backlog and Facility Renewal Needs In 2007, SUNY and the Construction Fund undertook a comprehensive Condition Assessment Survey and Capital Reinvestment Study. The initiative identified a $3.2 billion deferred maintenance backlog and a need for Campus-wide Satellite Boilers – Alfred Ceramics approximately $400 million per year for on-going facility renewal. 5
State University State University of New York Construction Fund Capital Investment – Critical Maintenance Addressing Backlog and Facility Renewal Needs 2007 Building Condition Assessment Survey (BCAS) Profile of Overall Ratings Statewide Approx. 55 Million Gross Square Feet (GSF) GSF Rated Excellent 10% GSF Rated Poor 20% GSF Rated Good 42% GSF Rated Fair 28% 6
State University State University of New York Construction Fund Capital Investment – Critical Maintenance Addressing Backlog and Facility Renewal Needs A long term investment is necessary to reduce the current backlog to an industry standard of 5 percent of current replacement value The 2008-09 Enacted Budget included an initial commitment of $550 million annually over a 5-year period The follow chart illustrates a 15-year-plan to reach the desired outcome 7
State University State University of New York Construction Fund Capital Investment – Critical Maintenance Addressing Backlog and Facility Renewal Needs $550M/$777M/$945M Will Reduce Backlog to 5% of Current Replacement Value in Fifteen Years $3,500 $3,000 $2,500 Dollars (Millions) $2,000 Investment $1,500 Backlog $1,000 $500 $0 Start 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year 8
State University State University of New York Construction Fund Strategic Initiatives New Engineering Building – Buffalo University Science Engineering Technologies - Oswego High Tech Incubator - Fredonia New Technology Building – Buffalo College 9
State University State University of New York Construction Fund Strategic Initiatives Enacted Capital programs since 2008 contained over $1.7 billion in funding for Strategic Initiative projects Many of the initiatives provide vital support to science, technology and research activities These investments are necessary to: Maintain and enhance SUNY’s ability to attract and retain students and faculty Be competitive in its academic offerings and research capacity 10
State University State University of New York Construction Fund SUNY’s Capital Investment Merits of Multi-year Capital Programs: Adds predictability Cost effective Leads to better planning allowing for the identification and prioritization of projects to address ongoing critical maintenance needs Provides for the efficient execution of necessary capital investments by allow appropriate sequencing and phasing of projects Enables the University to maintain constant levels of investment; avoids peaks and valleys and the long ramp-up period to reach sustainable investment levels 11
State University State University of New York Construction Fund SUNY’s Capital Investment Educational & Hospital Facility Capital Programs Annual State Fiscal Plan Project Commitment & Disbursement Targets thru 2012/13 2008/09 Actuals showing B1184 delays; Estimated 2009/10-2012/13 as needed to Reduce CM Backlogs & support #1 SI's $1,400 $1,200 $1,253 $984 $980 $1,148 $962 $1,000 $1,038 Dollars, in millions $953 $800 $718 $710 $600 $464 $496 $409 $377 $400 $493 $287 $297 $242 $224 $492 $225 $269 $199 $500 $200 $220 $246 $360 $280 $169 $164 $151 $0 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 New Contract Commitments Annual Disbursement Levels 12
State University State University of New York Construction Fund Capital Plan Progress Replace Fuel Tanks – Downstate Medical Center Hudson Hall General Reconstruction – Plattsburgh 13 Waste Stream Mechanical Facility – Cornell University Replace HTHW Lines – New Paltz
State University State University of New York Construction Fund SUNY Capital Program (1) Projects in Design and Construction Billions 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 .5 .0 4/05 4/06 4/07 4/08 4/09 9/09 Design Construction 14 (1) Educational Facilities and Hospital Plans Only.
State University State University of New York Construction Fund SUNY Capital Program (1) 1) Projects Active or Completed Since 2004 1,862 Projects ($4.3B) 200 Projects ($2.6B) Critical Maintenance Strategic Initiatives 15 (1) Educational Facilities and Hospital Plans Only.
State University State University of New York Construction Fund SUNY Capital Program (1) Projects Active or Completed Since 2004 3,000 2,500 # Projects $ Value 2,000 In Design 287 $ 2.8 B Under Construction 526 $ 2.2 B 1,500 Completed Projects 1,249 $ 1.9 B Total 2,062 $ 6.9 B 1,000 500 0 N D R A S I E B n i x e a o D l t t d o t w t e e e a A / g f r I r s C / i / n i S T o F o o f r y e i r r s n l r R e e a t R s c s e t e S e m o t r h r / a n m A u a s o f b e c c v t t a q y u u t r i i e o s n i t s i o n 16 (1) Educational Facilities and Hospital Plans Only.
State University State University of New York Construction Fund Hospitals Hospital Capital is distributed to each hospital based on its approved multi-year strategic business plan Projects include both critical maintenance and revenue- enhancing initiatives Vertical Expansion – Upstate Medical Center Each SUNY Hospital pays for the principal and interest associated with the debt for its capital projects Appropriations are required to submit for Certificate of Need approval Major Modernization - PHII – Stony Brook University Hospital 17
State University State University of New York Construction Fund Hospitals Hospital Funding – Capital Funding 500 Dollars in Millions 400 300 Funding Amount 200 100 0 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Fiscal Year 18
State University State University of New York Construction Fund Residence Halls The Residence Hall Capital program is self sustaining with revenues from room rents and other associated revenues paying the cost of debt service Switched to disbursement- East Campus Housing Project – Binghamton University based bonding in 2008 to utilize capital in a more efficient manner 19
State University State University of New York Construction Fund Residence Halls Residence Hall Funding – Capital Funding 700 600 Dollars in Millions 500 400 Funding Amount 300 200 100 0 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Fiscal Year 20
State University State University of New York Construction Fund Community Colleges All community college capital projects are planned, designed, bid and constructed under local control and authority, either by the college or the local sponsor Local sponsors must provide at least 50% of the capital funding for a Community College project Colleges must obtain a local sponsor resolution committing the local sponsor’s funding share to be included in SUNY’s Capital Budget Request 21
State University State University of New York Construction Fund Community Colleges Community College Funding – Capital Funding 450 400 Dollars in Millions 350 300 250 Funding Amount 200 150 100 50 0 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Fiscal Year 22
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