Download - Capital Planning and Budgeting Process
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Capital Planning and Budgeting Process
Olivia Yang – Interim Vice President for Finance & Administration
Joan King – Associate Vice President/Chief University Budget Officer
March 24-25, 2016
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Background
• Requests for state funded new buildings were for individual colleges, therefore many needs are still waiting
• State funding for "major" projects typically take three biennia (six years) if each phase funded consecutively
• No funding for state minor capital program renewal forlast three biennia
• State funding for annual facility operations and maintenance (O&M) costs does not have inflation escalator
• Situation: “haves” and “have nots”
• Typical of universities across the country, deferred maintenance backlog continues to grow
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Physical Facilities Situation
• Facilities condition assessment
• VFA study
• Three phases completed in Pullman(represents 87% of state-funded Pullman campus)
• Starting limited assessment for other campuses
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Physical Facilities Situation – Conditions Curve
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Physical Facilities Situation - continued
STATE FUNDING OF OPERATIONS & MAINTENANCE(O&M)
Typical request per facility: $10/SF
Typical funding received: $ 5/SF
Campus Average: $1.90/SF
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Strategy
• Clearer alignment of capital investment withstrategic plan
• "Even out" capital investment in physical facilities
- Need renovation or demolition as serious options
“A building is a gift that keeps on taking”
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Actions Taken in the Last Ten Months
Call for needs across the institutions (all campuses)
• Identify all the needs• “Bucket” needs and prioritize
Priorities from Deans (Pullman)
1. Life Sciences/Physical Sciences
2. Material Science/Chemistry
a. Data Center/IT Infrastructure
b. Computational Data Sciences
4. Energy and Environment
5. Collaborative and Maker Spaces
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Actions Taken in the Last Ten Months - continued
Campus PrioritiesWSU Vancouver
• Vancouver Life Sciences Building• Vancouver Library 2nd Floor Conversion• Vancouver Business Building• Vancouver Sciences Building
WSU Tri-Cities (includes non-state needs)• Tri-Cities Academic Building• Tri-Cities Student Housing• Preservation: East Building, CIC Building, Gateway Project, Signage & Sidewalks• Athletic Facilities – Fields and Gym• Hotel Conference Center & Incubation/Distillery• Outdoor Performing Arts Amphitheater• Food Processing Engineer & Technology Lab• Welcome and Interpretative Center• Facilities Building
WSU Spokane (includes non-state needs)• Inter-professional Clinical & Res. Learning Space• Event Space• Fitness & Recreation Facility• Administrative Offices• Laboratory Space• Classroom Expansion for Active Learning
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Actions Taken in the Last Ten Months - continued
Parameters for state capital requests
• Multidisciplinary facilities
• Teaching and research
• Integrate programmatic needs with physicalcondition needs
• A budget driven model
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State Request for 2017-2019
Characteristics
• A budget driven model
• Major vs mini majors
• Transitional: 2015-17 commitments
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State Request for 2017-2019 - continued
2015-2017 commitments
Life science/physical sciences
• Pullman pre-design• Vancouver pre-design
Mini majors
• Rolling STEM teaching (renovations of parts ofbuildings)
• One time card key (active shooter lock downcapability)
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State Request for 2017-2019 - continued
Project Name Prior $ 2017-2019 2019-2021
2015-17 Committed ProjectsPullman Plant Sciences (REC5) $7,100,000 $ 58,900,000 ---
Pullman Global Animal 2 $1,900,000 $ 38,100,000 $21,300,000
Tri-Cities Academic Building $ 400,000 $ 3,000,000 $27,000,000
Minor Capital Improvement (MCI/Eq) --- $ 21,750,000 $22,000,000
Minor Capital Preservation (MCR) --- $ 42,500,000 $43,000,000
Proposal Process Projects
STEM Teaching Labs/BuildingInfrastructure Upgrades
--- $ 4,900,000 $ 4,900,000
Pullman Life/Physical Sciences Building --- $ 3,500,000 $52,000,000
Vancouver Life Sciences Building --- $ 500,000 $ 5,900,000
Pullman Security-Building Card Key Access --- $ 4,750,000 ---
Data Center Renovation --- $ 4,950,000 ---
Pullman Life/Safety/BAS Building Systems --- $ 4,900,000 $ 4,900,000
Spokane Interprofessional Clinic --- $ 4,990,000 ---
2017-2019 TOTAL $192,740,000
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Related Effort
• Capital cost initiative, collaboration with University ofWashington
• Work by other entities: Intel, WSDOT
• Premised on questioning assumptions- Small working group consisting of WSU, UW and contractors
& architects
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Capital Cost Initiative Takeaways
• 100 year building redefined: adaptable, “plug and play”
• Impact on design standards
• Governance- Internal building committee: composition and charge
- External partners: contractual relationships and riskallocations
Plan is to identify key premises to pilot on WSU and UW capital projects
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WASHINGTON STATE " UNIVERSI1Y