Date post: | 14-Jun-2015 |
Category: |
Education |
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Show Me the MoneyChanging the Conversation about deferred maintenance and funding facilities
Moderated by: Jim Kadamus Vice President of Sightlines
Panel of Experts:Tony Calcado: Vice President, University Facilities and Capital Planning at Rutgers University
Greg Scott: Assistant Vice President for Finance and Business at The Pennsylvania State University
Norm Young: Associate Vice President for Facilities Planning and Management at the University of Hartford
Learning ObjectivesUpon completion of this program you will be able to:
• Communicate national and regional trends affecting higher education
facilities today
• Define strategies institutions are using to tackle enrollment challenges
• Address the age profile and functional obsolescence of campus buildings
• Optimize campus operations to limit the impact of funding cut backs
• More effectively build constituency on campus and engage your Board to
support facilities improvements
Northeast Regional Trends in Higher Education Facilities
Campus space growth less than enrollment growth
Enrollments leveling starting in 2011 and declining in 2013
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2007 2008 2009 2010 2011 2012 2013
Perc
ent C
hang
e of
Enr
ollm
ent &
Spa
ce
Growing Campus EnrollmentNortheast Average within Sightlines Database
Northeast Space Growth Northeast Enrollment Growth
Campus Space and Enrollment by Institution TypeResearch institutions only group to see continued enrollment growth and lower space growth
-2%
0%
2%
4%
6%
8%
10%
12%
2007200820092010201120122013 2007200820092010201120122013 2007200820092010201120122013
Percen
t Cha
nge of Enrollm
ent a
nd Spa
ce
Campus Enrollment vs. SpaceBy Constituent Group
Space Growth Enrollment Growth
Comprehensive Institution Research Institution Small Institution
Pre-War Post-War Modern Complex
Waves of Construction in the Northeast
0
10
20
30
40
50
60
Tota
l Dat
abas
e G
SF C
onst
ruct
ed (M
illio
ns)
Constructed Space Since 1880
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013
% o
f Spa
ce
Square Footage by Age CategoryRenovation Age
Under 10 10 to 25 25 to 50 Over 50
Northeast Average Public Average Private Average
Northeast Public and Private Campuses after Renovations
Northeast publics have high % of space in 25-50; private high % in over 50
Capital has not recovered from 2008-09 recession
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013
$/G
SF
Capital Investment into Existing Space
Annual Capital One-Time Capital Average
Public Average Private Average
Reliance on annual institutional capital sources is growing
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013
$/G
SF
Capital Investment into Existing SpaceRecurring Capital
Annual Capital Average
Public Average Private Average
Facilities Backlogs Continue to RisePublic campuses over $100/GSF; private campuses at $80/GSF
$91 $93 $95 $98 $101 $104 $107
$69 $70 $73 $74 $76 $79 $80
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
$-
$20
$40
$60
$80
$100
$120
2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013
$/G
SF
Backlog $/GSF
Backlog/GSF Percentage Change of Backlog
Public Average Private Average
Northeast Campuses Operating Budgets Flat
And definitely not keeping pace with inflation
$4.6 $4.7 $4.8 $4.8 $5.0 $4.9 $5.0
$0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2007 2008 2009 2010 2011 2012 2013
$/G
SF
Operating Budget $/GSF
Daily Service Planned Maintenance
$4.50 $4.72 $4.76 $4.72 $4.94 $4.83 $5.00$4.62 $4.73 $4.88 $4.94 $4.98 $5.04 $5.07
$0.22$0.24 $0.25 $0.25
$0.28 $0.28$0.27
$0.31 $0.32$0.35 $0.35 $0.36 $0.38 $0.40
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013
$/G
SF
Daily Service Planned Maintenance
Public vs PrivateOperating budgets averages adjusted for inflation
Public Average Private Average$5.63 $5.89
Conclusions
Enrollment trends in northeast are declining, having a negative impact on net tuition revenue used to fund facilities investments or pay for debt service
Aging facilities are competing with faculty needs and financial aid for funding
Capital funding has not returned to pre-recession levels; public campuses have continued to see cuts in State funding
Funding for facilities operations have not kept pace with inflation, meaning cuts in staffing and contracts
Backlogs are growing and at public campuses reaching unsustainable levels
Institutional mission needs to drive the facilities conversation if money is to be secured
Facilities Experts in the Think Tank
Questions for the PanelIssue 1: How are you dealing with enrollment challenges and the implications for facilities?
Penn State and Rutgers:Growth at Main and some Regional Campuses
Decline at some Regional Campuses
How to balance your investments –both capital and operations?
University of Hartford:How to prioritize programs in the face of enrollment challenges?
How does this impact facilities?
Questions for the PanelIssue 2: How are you addressing age profile and functional obsolescence of campus buildings?
Rutgers:How are you balancing investments into new and existing space
University of Hartford:How are you addressing campus buildings from the 60s and 70s?
Penn State:Resource allocation between main campus and regional locations
How are you involving and engaging the Board of Trustees?
Questions for the PanelIssue 3: How are you managing campuses with limited operational funding?
Rutgers:What organizational and operational changes have you made to reduce the impact of significant funding cuts?
How has the UMDNJ merger impacted funding and resource distribution?
University of Hartford:How have you shifted your operations following the creation of a model that reflects the full cost of buildings?
Penn State:How do you manage operations across multiple campuses that have very different needs?
Questions for the PanelIssue 4: How are you securing additional facilities funding to support the institutional mission?
Group Discussion:What strategies have you used to develop broader support for facilities investments on campus?
Which strategies were most successful, which were unsuccessful?
How have you engaged the Board to secure funding for deferred maintenance needs on campus?
Upon completion of this program you will be able to:
Learn the process required to
create that
QUESTIONS
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