- In This Section:
- Final 2009-2011 Budget
- Issue Briefs
- Governor's Recommended Budget for Higher Ed
- Student Success
- Affordability
- Infrastructure
- Research
- Sustainability
- OUS 2009 Legislation
- OUS Government Relations Contacts
- 2009 Ways & Means Presentation
- Other Links:
- OUS Fact Book 2008
- Enrollment Watch
- PK-16 Alignment
- ETIC
- Campus Profiles
- Performance Measures
- State Board of Higher Education
- Board Strategic Plan
- Chancellor's Office
ECONOMIC DRIVERS: INFRASTRUCTURE
CAPITAL CONSTRUCTION
[ Key Features of GRB ][ Funding Basics ][ Policies & Procedures ][ Glossary ]
Related issue briefs:
- Capital Construction
- University/City partnerships
Oregon University System (OUS) campus buildings and property represent 50% of all state-owned facilities and have a $3.5 billion replacement value. The 2009-20011 Governor's Recommended Budget (GRB) for OUS Capital Construction proposes to make significant increases in key areas that will improve student access, and protect and enhance the value of its existing facilities, and create nearly 20,000 construction and related jobs in Oregon.
Key features of the GRB for
Capital Construction include:
Total investment in capital construction is $980 million for 36 projects, including facilities repair, deferred maintenance, and new projects at all campuses; this includes a total of $18 million in General Fund. This compares to $761 million in 2007-2009.
- Funding current capital repair needs through an investment of $51.4 million and making major investments of $103.8 million in deferred maintenance projects will allow OUS to remain current with capital repairs, code compliance and safety issues- including seismic upgrades. This investment will reduce the deferred maintenance backlog.
- Providing Article 11-G and lottery bonding authority of about $115 million for university Priority 1 capital projects; and $85 million for debt service on outstanding capital bonds are additional capital construction provisions in the Governor’s budget that address student access and quality academic programs and facilities.
- $250 million to create an interinstitutional Life Sciences Collaborative Complex in Portland’s South Waterfront development area, which will provide an instruction and research facility for bioscience, medical device/diagnostics, medical and pharmacy faculty from OHSU, PSU, OSU, UO and OIT working collaboratively on life and bioscience issues with private sector partners.
- Oregon center for sustainability will receive $80 million in bonding authority and be located in Portland, and will promote collaboration between universities, nonprofit organization and the private sector to provide information on sustainable initiatives and investments in renewable energy and other areas.
- A third initiative of $165 million will house a South Waterfront Corporate Complex between the private sector and Oregon high schools, community colleges and universities in math, science, engineering, and alternative energy.
- Four renewable energy projects will also be funded at $74.9 million which will include projects to upgrade the power station utilizing waste gases at UO, and expand geo-thermal energy plant at OIT in Klamath Falls, and demonstration projects involving bio-fuels and wind power statewide
Funding Basics
Education & General (E&G) (General Fund, Article XI-G bonds, Lottery, COP, Gifts/Others) projects are the only types of facilities eligible to receive State General Fund revenues and Article XI-G bonds. E&G facilities provide the basic instructional space, administrative and campus support facilities necessary for the university. Examples include libraries, classrooms, and physical plants.
Auxiliary (Article XI-F(1) bonds, Gifts/Other) projects are self-financing and self-supporting. These facilities include Campus Housing/Dining, Parking and Athletics. Funding is primarily received through the use of Article XI-F bonds, repaid through revenues generated by operations.
Systemwide (State Energy Loan Program, SELP) projects support academic modernization, code, deferred maintenance and capital repair projects from the other three facility categories (E&G, Aux, SBF). Therefore, the funding sources for systemwide projects are the same funding sources available to the facility category under which the supported facility is classified.
Student Building Fee (Student Building Fee, Article XI-F(1) bonds) projects are student-related facilities such as recreation centers or student unions. The Student Building Fee Debt Service Reserve serves as the source of debt repayment on Article XI-F(1) bonds issued to finance the construction and renovation of major student facilities These projects are in a category of their own because they have a dedicated fund source.
Policies & Procedures
Policies
Oregon University System follows Oregon Revised Statutes Chapter 351 and Oregon Administrative Rule 580-50 when submitting the capital budget. ORS Chapter 351 provides guidance to the OUS specific to higher education. Specifically, ORS 351 establishes OUS procurement authority separate from the state, releasing OUS from operating under ORS 279. OAR 580-50 establishes the rules and procedures OUS follows in campus planning, capital construction and use of property. One of the most prominent policies OUS now follows is that all newly constructed buildings must be LEED/SEED certified. Leadership in Energy & Environmental Design (LEED) is a green building rating system. Please view 'Seismic & Sustainability' on the left for more information. This requirement ensures that new OUS buildings are energy efficient, helping to reduce operating costs in the future.
Procedures
The capital construction budget request must go through a comprehensive, multi-level review process of assessments, edits, and approvals. First, the budget starts out with the campuses working hand-in-hand with the Oregon University System. The campuses assess their current facilities, forecast their future enrollment, and anticipated the facilities needs of their programs while engaging their students, faculty, and staff. Next, the capital budget goes to the State Board of Higher Education for review. After the Board makes its recommendation, the budget is then submitted to the Governor's staff for review. The Governor then compiles his recommended budget for submission to the State Legislature.
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Links:
- ORS 351
- OAR 580-50
Glossary
General Fund - a pool of resources used to support a wide range of state services. These include K-12 schools, higher education, state police, state prisons, assistance and medical services for the needy.
Article XI-G bonds - defined by XI-G of the State Constitution, Article XI-G bonds may be issued to support E&G projects as long as they are matched equally by the General Fund (including Lottery Funds), Building Use Credits, or gift funds placed in a legislatively approved Donation Account. Debt service is paid from the State General Fund within the operating budget. No appropriations are received for debt service in the biennium in which the bonds are approved.
Article XI-F(1) bonds - defined by XI-F(1) of the State Constitution, Article XI-F(1) bonds may be issued for projects that are self-liquidating and self-supporting. Each campus and auxiliary is responsible for their share of the debt service. Projects not selling bonds within two years may request reauthorization in succeeding Legislative sessions.
Lottery - Oregon 's Lottery proceeds are used to support education, economic development, and natural resources programs. Lottery Bonds are administered by the Department of Administrative Services, with State Lottery revenue pledged to pay the debt service.
Certificates of Participation - Tax-exempt government securities used to raise funds to improve and construct buildings or purchase equipment. Certificates of Participation (COP) are used to finance capital costs related to construction or acquisition and may not be used to finance ongoing operating costs. In return, the investors receive COP payments, which include interest income that is exempt from federal and Oregon income tax.
Gifts/Other - These include various gifts and grants. Gift funding typically consists of donations. Grant funding is present at the federal, state, and local level.
State Energy Loan Program (SELP) – This program offers low-interest, long-term loans for any qualified Oregon project that invests in energy conservation, renewable energy, alternative fuels, or creating products from recycled materials. These Oregon general obligation bonds support the loans used to fund a majority of the OUS capital renewal backlog as proposed in the GRB. The loans would be structured so that energy savings and General Funds would cover the loan payment.
Student Building Fee – This fee is established by the State Legislature and is currently $45 a term. These funds, collected from students for the Student Building Fee Debt Service Reserve, serve as the source of debt repayment on Article XI-F(1) bonds issued to finance the construction and renovation of major student facilities such as recreation and fitness centers, student unions, and child care centers.
