Indicator 13.2Capital Renewal - Projected Needs and Actual Spending, 1998-99 to 2012-13
Capital renewal investment is required when a capital system (such as a building's heating and air conditioning system, roof or plumbing system), or an infrastructure system (such as a campus utility distribution system) reaches the end of its projected useful life.
The University's capital renewal needs are expected to increase significantly over the next decade. At the same time, no ongoing systematic funding is available to address these needs. The state has provided no dedicated funding for capital renewal or deferred maintenance since 2001-02, though some campuses have allocated a portion of state capital construction funds for this need.
In tracking capital renewal needs, campuses assess the condition of building systems as they reach the end of their projected useful life. Based on this assessment, the useful life of a system may either be extended or moved to the deferred maintenance backlog. Previous estimates put the backlog of high-priority deferred maintenance at $800 million. Analysis is being done to refine this estimate, which may be significantly higher. Without adequate capital renewal funding, the University's deferred maintenance backlog will continue to grow.
Source: UC Budget and Capital Resources and Facilities Infrastructure Renewal Model (FIRM).
UC’s Facilities Infrastructure Renewal Model (FIRM) is a budget model that assumes standard life cycles and costs for renewing infrastructure and building systems and projects those costs for a 50-year period, with ongoing updates on the condition of facilities provided by the campuses. Data are for state-maintained and funded spaces only. Dollar figures have been adjusted for inflation.