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2013/14 Supplemental Documentation

Uses Of Revenue

Urgent Maintenance Needs, $50,000,000

Deferred Maintenance occurs when scheduled repairs are delayed to subsequent years due to project cost, timing, and/or lack of available resources. Historically the CSU has also used the term Deferred Maintenance to include the delayed replacement of building systems that have exceeded their useful life.

The CSU has not received funding for deferred maintenance since 2007/08. With no funds available to further reduce the backlog of deferred maintenance, it has grown since then by over $49.3 million to $462.9 million in fiscal year 2013/14. The CSU system has been confronted with funding appropriation challenges that have a profound effect on facilities maintenance. The CSU support budget for 2013/14 identifies a deferred maintenance need of $462.9 million. However, this amount represents the highest priority projects out of an estimated $1.7 billion in deferred maintenance and capital renewal backlog derived from the Facilities Replacement and Renewal Model (FRRM) data and statistics. The average backlog is $38.50 per gross square foot, and 25 percent of the needs fall into the HVAC and equipment categories. The model also concludes that absent investment of at least $99 million per year (or $290/FTES) to maintain the current backlog level, the need will grow to $2.2 billion by 2016. An estimated $190 million per year (or $560/FTES) is needed to address the renewal needs plus deferred maintenance backlog.

The CSU is requesting $50 million in funding in the 2013/14 Support Budget to address the most urgent maintenance needs that are part of the priority deferred maintenance backlog. This request only addresses the most critical renewal/repair projects with health and safety concerns that are identified at each campus (e.g., fire protection, structural repairs, roofing, electrical distribution, HVAC, and elevators) which are required in order to avoid building and campus shutdowns. The following chart shows the growth of the Deferred Maintenance backlog over the last 20 years, along with the funding provided to address this backlog.

CSU Deferred Maintenance Backlog Projections from 1993/94 to 2013/14
Budget Year CA-CPI
% Change
Budget
Funding
Offset
(in millions)
Backlog
(in millions)
1993/94 Base     $351.0
1994/95 1.8% $17.0 340.3
1995/96 1.7% 24.0 322.1
1996/97 1.4% - 326.6
1997/98 2.3% - 334.1
1998/99 2.0% 20.0 320.8
1999/00 2.5% - 328.8
2000/01 3.2% 2.8 336.5
2001/02 4.3% - 351.0
2002/03 2.9% - 361.2
2003/04 2.6% - 370.6
2004/05 1.9% - 377.6
2005/06 3.3% 1.5 388.6
2006/07 4.2% 2.5 402.4
2007/08 3.4% 2.5 413.6
2008/09 3.4% - 427.6
2009/10 1.3% - 433.2
2010/11 0.7% - 436.2
2011/12 1.7% - 443.6
2012/13 2.2% - 453.4
2013/14 2.1% - 462.9
2013/14 Proposed Offset $50.0 $412.9

CA-CPI % Source: CA Department of Finance, Planning Estimate Forecast, July
(calculated using a formula developed by the CA Dept. of Industrial Relations)