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Where is Capital Planning in the Future?

Where is Capital Planning in the Future? . On the Brink 2014-15 Governor’s Budget Proposal. Overview. Competing Needs State Capital Outlay Financing Governor’s Proposal Capital Financing Next Steps Capital Outlay Program Planning. Competing Needs. Enrollment demand

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Where is Capital Planning in the Future?

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  1. Where is Capital Planning in the Future? On the Brink 2014-15 Governor’s Budget Proposal

  2. Overview • Competing Needs • State Capital Outlay Financing • Governor’s Proposal • Capital Financing Next Steps • Capital Outlay Program Planning

  3. Competing Needs • Enrollment demand • Existing seat capacity • Renovation needs: • Academic program requirements • Code changes • Accessibility • Operational costs • On-Going and deferred maintenance

  4. Reduction in On-Going MaintenanceTotal Operating Expenditures and Maintenance Costs per SF Expenditures remain depressed

  5. State-Supported Facilities Renewal BacklogChange in Forecast versus Actual

  6. Capital Outlay FundingState Funded by Type of Financing

  7. Governor’s Proposal • Allows use of operating budget for capital: • Fund academic and infrastructure projects • Refund or retire SPWB bond debt • General Fund limited to 12 percent • Prohibits use of authority to justify tuition increases, employee layoffs, or reduced pay • Streamlined approval process • Debt service added to base budget

  8. State Public Works Board & General Obligation Annual Debt Payment

  9. Governor’s ProposalCross Pledge with Systemwide Revenue Bond • 90083.  The board may pledge revenues received in accordance with Section 89770 to secure bonds issued in accordance with this article for capital expenditures as defined in Section 89770 or for projects as defined in Section 90011, and may pay all costs and expenses incident to the issuance …”.

  10. Capital Debt Financing

  11. Next Steps • Legislative Budget Hearings • Present information to March board meeting. • Develop new capital financing program • Discuss policy and develop recommendations

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