Critical Capital Renewal: $2.4 Billion

A complementary strategy to address the CSU’s deferred maintenance and infrastructure needs includes a request for one-time funds from the state for critical capital renewal.

The CSU seeks $2.4 billion of one-time funding to continue to address the growing maintenance backlog of building and utility infrastructure systems that have passed their useful life. More than half of the CSU’s academic buildings are over 40 years old, and many of these buildings are overdue for major renovation. The CSU has estimated more than $7.4 billion in critical capital renewal backlog and accumulates approximately $344 million of additional critical capital renewal costs per year.

As buildings and their associated systems age, the cost to operate, maintain and renovate the facilities increases. Although CSU facilities staff does an admirable job of keeping these aging facilities operational with limited financial resources, increased funding is necessary. Over the past two years, the state has provided $125 million in one-time funding to address a portion of the deferred renewal backlog. This is a substantial amount of funding, and it is being put to good use on the most pressing campus projects. It should be noted, however, that two significant factors are exacerbating this budget challenge: year-over-year growth in the CSU backlog and unusually high construction cost inflation over the past several years.

The $2.4 billion one-time funding request will allow the CSU to address additional systemwide deficiencies, improve the reliability of systems and prevent costly and disruptive outages caused by system failures. Aligned with the CSU’s overarching academic mission, system repairs and replacements will provide safer and healthier environments that support teaching and learning across all 23 universities.

Providing safe and modern facilities for students, faculty, and staff – spaces where teaching, learning, and student well-being can thrive