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2013-14 SUNY Budget Request Operating and Capital Finance and Administration Committee November 14, 2012 Albany, NY

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2013-14 SUNY Budget Request Operating and Capital

Finance and Administration Committee November 14, 2012 Albany, NY

The Request versus Total Operations What IS in the Request What is NOT in the Request

State-Support for State-Operated Campuses

State-Operated Campuses – Operations / Capital Campus Foundation Funds

Fringe Benefits (General State Charges) Auxiliary Service Corporations

Statutory Campuses – Operations / Capital Statutory Campuses

Community Colleges – Operations / State Share Capital Tuition and Fee Revenue

Hospitals – Operations / Capital

Authority to Spend Community Colleges

Tuition, Fee, and other Campus Generated Revenue Local Sponsor Share: Operating

Dormitory Operations / Capital Local Sponsor Share: Capital

Patient Revenue Tuition Revenue

Federal Funding for Student Loans and Grants Research Foundation Operations

2013-14 Budget Request in Perspective

SUNY Budget Preparation:

June Thru Sept.

SUNY Trustee Approval /

Division of Budget Review:

Sept. Thru Nov.

Statewide Budget Making:

Oct. Thru Dec.

Governor’s Executive Budget:

January

Legislative Budget Negotiations:

Jan. Thru March

Enacted Budget: April 1st

Budget Implementation: April 1st Thru March 31st

(State) July 1st Thru June 30th

(SUNY State-Ops/Statutory) Sept. 1st Thru August 30th

(SUNY CC)

State Structural Deficits • Over the past five years, New York State has faced historic challenges in

aligning revenue and expenditures, leading to tough choices to close multi-year State-wide budget gaps:

$27.8 B

$83.0 B

$60.7 B $63.2 B

$16.3 B

$8.9 B

$-

$10.0 B

$20.0 B

$30.0 B

$40.0 B

$50.0 B

$60.0 B

$70.0 B

$80.0 B

$90.0 B

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Recent Multi-Year Budget Gaps Prior to Enacted Budget Actions

Note: 2013-14 reflects projected Budget Gaps for FY 2014 through FY 2016 per July Update to State Financial Plan

Impact of State Debt Reform • Legislation passed in 2000 “capped” the amount of new

debt issued to four percent of personal income • Economic pressures have reduced the amount of “cap

room” available – Available room decreasing from $3.5B in 2011-12 to

$748M in 2013-14 • Could lead to potential impact on the SUNY Capital

program, and eventual impact on operations through inability to attend to deferred maintenance of essential facilities

2013-14 Budget Request • SUNY’s Operating and Capital funding request:

– Reflects resources required to continue operations and provide a robust and complete educational experience such as contractually required increases in salary rates and inflationary related increases

– Focuses on potential investment in programs that will aid New York State continue its economic recovery by investing in SUNY, specifically the Power of SUNY

– Includes a ten year capital plan – as requested by the NY Works Task Force – that:

• Provides the infrastructure backbone required to support SUNY’s operations and contribution to the State, and

• Helps support the State’s construction industry as the private sector regroups from the recent recession

2012-13 to Date in Review

2012-13 Successes

• 2012-13 Enacted Budget reflected both the provisions of the Maintenance of Effort and Rational Tuition for the State-Operated campuses

• Base Operating Aid for Community Colleges increased for the first time since 2007-08, $2,272/FTE from $2,122/FTE

• Hospital State support increased by $30M • Enacted funding for the fifth of a planned five years of

critical maintenance related capital funding for the State-Operated and Statutory institutions

2012-13 Challenges

• Continued fiscal pressures facing the three SUNY teaching hospitals

• Lack of capital authority for the SUNY teaching hospitals and SUNY Residence Hall program

• Gyrodyne Vs. State of New York settlement

2013-14 Budget Request

Operating Budget Requested Changes* 2012-13 Enacted

Requested Change

2013-14 Total Request

Percent Change

State-Operated Campuses

State Support $839.7M $53.0M $892.8M 6.3%

Tuition Revenue 1,467.2M 106.0M 1,573.2M 7.2%

Core Operating Budget 2,306.9M 159.0M 2,466.0M 6.9%

Statutory Colleges

Cornell 125.5M 10.3M 135.8M 8.2%

Alfred 8.1M 0.2M 8.3M 2.0%

Hospital State Support 89.8M 134.0M 223.8M 149.3%

Other Appropriated Hospital Funds** 2,983.6M (2,939.9M) 43.7M (98.5%)

Community Colleges 457.0M 45.9M 502.9M 10.0%

State Support Total 1,520.0M 243.3M 1,763.3M 16.0%

Revenue Authority Total** 4,450.8M (2,833.9M) 1,616.9M (63.7%)

Grand Total $5,970.8M ($2,590.6M) $3,380.2M (43.4%)

*Does not include funds (such as residence halls or support for fringe benefits) which are requested to remain flat **Reflects request to move hospital appropriation “off-budget”

State-Operated Campuses: State Tax Support

• Costs to Continue – Salary increases and inflationary changes

• Initiatives – The Power of SUNY: Research and Education

Innovation Initiative • SUNY Leads • Pipeline Initiatives • Research and Innovation

– Performance Based Funding (PBF)

Research and Innovation: $15.0M • Focuses on strengthening multi-campus research

collaboration and building a base of world-class faculty researcher capable of attracting significant research dollars. Projects include: – SUNY Research Collaboration Fund, – Inter-Campus Student/Faculty Collaboration, – A five-year NY-SUNY Innovators Program (SIP), and – SUNY REACH (Research Excellence in Academic

Health).

State-Operated Campuses: State Tax Support for The Power of SUNY

Education Pipeline Initiatives: $8.0M • Funding to expand and scale-up programs that will serve

to increase the number of students who will succeed both in college and the workforce: – $4.0M for the Pathway to Success Program – $3.0M to maintain support for the Smart Scholars

Early College High School Programs – $0.6M to create Centers of Pedagogy – $0.4M to support the Cradle-to-Career initiative

State-Operated Campuses: State Tax Support for The Power of SUNY

State-Operated Campuses: State Tax Support for The Power of SUNY

NY-SUNY Leads: $5.5M • High Needs Programs: $5.0M

– Will provide funding for the initiation of new or expansion of existing programs in areas that are essential to the economic growth of NYS such as the health-related fields, information technology, and Bio-Med/Bio-Technology. Matched by SUNY

• Co-Op: $0.5M – Will create a community-based approach to

integrating classroom studies with learning through productive work experiences. Matched by SUNY

Performance Based Funding (PBF): $5.0M • Starting with 2013-14, SUNY will match this $5.0M and distribute $10.0M

based on institutional progress in areas identified as the best measures of quality and excellence

• Based on research, approaches like this only succeed where the State, the system, faculty, staff, and students all commit to the approach

• Using limited and simple to understand metrics, PBF will be used to achieve: – Higher Completion and Graduation Rates – Reduce the Time to Degree – Produce higher performing institutes with greater student access – Improve remediation – Offer alternative delivery options – Increase awareness of State priorities and institutional performance

State-Operated Campuses: State Tax Support

State-Operated Campuses: State Tax Support State-Operated Campuses, System Administration, and University Wide Programs

2012-13 Enacted State Support $839.7M

Costs to Continue

Contractual Salary Increases* 14.1M

Inflation (General @ 1.7% and Library @ 5.7%) 5.4M

Initiatives

The Power of SUNY: Research, Education & Innovation Initiative

Research Innovation (Year One of Five) 15.0M

SUNY Leads (High-Needs and Co-Op) 5.5M

Pipeline Initiatives 8.0M

Performance Based Funding (State Match) 5.0M

Total Request 53.0M

2013-14 Requested State Support $892.7M

*UUP has yet to finalize a new contract with NYS. It is expected that such agreement will mirror other recent agreements

State-Operated Campuses: Tuition

• Costs to Continue – Reflects the full amount of authority required to disburse tuition

revenue derived from student enrollment at established 2012-13 tuition levels

– Reflects the third year of the Rational Tuition Plan in the form of a $300 resident undergraduate tuition increase and associated increases to other degree types

– Under existing statutory authority, SUNY is developing a new tuition policy for on-line students and students that attend SUNY from border States to make SUNY more competitive in these markets

SUNY’s Five Year Tuition Plan

• Allows for: – A quality educational experience – Resources to be available for completion – Predictability for students and parents – Predictability revenue stream for institutions

• Required annually by 11/30, per NY-SUNY 2020 Legislation

SUNY’s Five Year Tuition Plan Maximum Annual Change

Resident Non-Resident Undergrad at Centers $300 10.0% Undergrad at Comp/Tech Same as Centers 5.0% Graduate $500 10.0% MBA 9.0% 10.0% Masters of Social Work 9.0% 10.0% Masters of Architecture 9.0% 10.0% Physicians Assistant 9.0% 20.0% Law 9.0% 10.0% Pharmacy 9.0% 10.0% Medicine 9.0% 5.0% Dentistry 9.0% 10.0% Optometry 10.0% 10.0% Physical Therapy 9.0% 10.0% Nursing Practice 9.0% 10.0%

21

SUNY Tuition Remains an Affordable Choice

Source: College Board Trends in College Pricing: http://trends.collegeboard.org/college-pricing

$6,843

$338

$12,330 $11,172

$10,619 $9,907 $9,368 $9,190

$8,354 $7,181

$6,232

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

PA MI MA VA CA OH TX SUNY FL

Average Tuition and Fees Proposed 2013-14 SUNY Versus 2012-13 Selected Peer States

2012-13 Tuition and Fees Proposed Increase

Border State and On-Line Course Tuition Policy • Survey conducted by SUNY Office of Budget Policy and Analysis

– 21 of 23 states surveyed have some sort of special rate or participate in a reciprocal arrangement for students from bordering states

– About half of the institutions surveyed charge students participating in on-line courses the same rate, regardless of residency

• Recent increases in non-resident tuition have impacted enrollment on certain campuses

• Non-resident tuition rates for on-line courses impacts SUNY’s market position; these students have many choices and price is a key criteria

• Existing authority permits tuition differentiation by residency

• Recommendation: Establish a SUNY-wide task force to develop border state and on-line tuition policies and rates for 2013-14 implementation

State-Operated Campuses: Tuition

State-Operated Campuses, System Administration, and University Wide Programs

2012-13 Enacted Tuition Appropriation $1,467.2M

Costs to Continue Full authority to disburse tuition revenue at current rates and enrollment 15.2M

Year Three of Rational Tuition Plan 90.8M

Total Request 106.0M

2013-14 Requested State Support $1,573.2M

Statutory Colleges

• Operating budget request prepared by the host universities (Cornell and Alfred Ceramics) and transmitted through SUNY to the Division of the Budget

25

Statutory Colleges Cornell and Cornell Cooperative Extension 2012-13 Enacted Support $125.5M

Cornell Operations and University-Wide Programs 121.2M Cornell Cooperative Extension 4.2M

Costs To Continue Salary and Wages 2.6M Utilities 0.6M Operations and Maintenance on Existing and New Facilities 1.1M Accessory Instruction 0.5M Cornell Cooperative Extension Formula Base Adjustment 0.2M

Initiatives DVM Class Expansion (Year 1 of 4) 0.5M MRI Facility Development (Year 1 of 3) 0.5M

Improving the Labor Force (Year 1 of 3) 0.3M Harvest NY Program with Cornell Cooperative Extension 4.0M

Total Request 10.3M 2013-14 Budget Request $135.8M Alfred Ceramics 2012-13 Enacted Support $8.1M Costs To Continue 0.2M 2013-14 Budget Request $8.3M 26

Hospitals • Includes both State support and spending authority for Hospital IFRs

– Hospital State Support • Intended to reflect the incremental costs related to State entity status.

Current support covers only 56 percent of total differential – Hospital IFRs

• For the operation and administration of the fiscal aspects of health care related activities

• Costs to Continue – Inflationary and contractual costs – $134.0M

• Downstate Restructuring: $99.0M • Upstate Medical: $35.0M

• Initiatives – Cost Neutral: Removal from the State appropriation process, additional

procurement/contract flexibility

Hospitals

• Downstate Restructuring: $99.0M – $35.0M in State support to supplement the SUNY loan of $75.0M

made in 2012-13 to address the shortfall between current revenue/cost savings

– $64.0M in one-time funding for costs associated with reductions in Downstate’s workforce

• Upstate Stabilizing: $35.0M – These funds will be used in concert with current cost-savings

actions to mitigate the impact of salary and fringe benefit related issues within the face of limited alternative approaches

Hospitals

Profile • 15,000 Employees • 1.4M Inpatient/ Outpatient Visits • 260,289 ER Visits • Total Revenue: • $1.0B: 2001/02 • $2.3B: 2011/12

• The three hospitals are integrated with Academic Programs

– “Classrooms” for Academic Health programs

– Produce professionals to serve NYS – First Year Medical Students From

New York: • SUNY Medical Schools (including UB):

81.9% • NY Private Medical Schools: 35.4%

– Native New Yorkers who attend a NY medical school are the most likely to practice in NY

Hospitals • The need for flexibility and removal from appropriation

process – The majority of hospital funds are federal or patient revenue in

nature and would not exist without the hospitals themselves – Restrictions on annual operating growth, spending limits, and the

budget process itself puts strain on these facilities – Hospitals operate in a fast paced and ever changing environment – There is a need to react quickly and efficiently to meet the needs of

patients and approval delays in the purchasing of equipment and service contracts impact hospital operations and the delivery of services

Hospitals State Support for Hospitals and Hospital IFRs

2012-13 Enacted Hospital Support

State Support for Hospitals $89.8M

Hospital IFRs (Including Long Island Veterans Home) 2,983.6M

Costs to Continue

Non-Recurrence of 2012-13 Federal Grant - LIVH (0.4M)

Initiatives:

Removal of Hospital IFRs from Appropriations (2,939.5M)

Upstate Stabilization 35.0M

State Share of Downstate Restructuring 35.0M

Heal Grant Funding for Downstate 64.0M

Total Request State Support 134.0M

Total Request Hospital IFRs (2,939.5M)

2013-14 Requested State Support for Hospitals 223.8M

2013-14 Requested Hospital IFR Spending Authority $43.7M

Community Colleges • State funding reflects State support for operations and specific programs across the 30 community

colleges – Base Operating Aid

• Education Law requires up to 40 percent of costs to be covered by State • Remaining costs are shared by Local Sponsors and Student Tuition Revenue

– Program Support: • Directly funded programs such as Child Care, High Need Programs and additional State

support for low enrollment community colleges • Costs to Continue

– Slight downward adjustment related to normalization of enrollment in the face of gradual economic recovery

– $37.3M comprised of two actions: • $7.9M for the $55/FTE not funded in 2012-13 in support of SUNY’s Five Year Plan to

return State funding to one third of total Community College Operations • $29.4M for the second year of the Five Year Plan ($205/FTE)

– $11.2M for the State to cover chargeback costs related to upper division and graduate students at the Fashion Institute of Technology

• Initiatives – $1.2M related to additional funding to be used in a targeted fashion for high need programs

to meet the economic needs of New York State

Ten Year History of Community College Funding Shares

31.8% 31.5% 29.3% 30.4% 30.9% 31.4% 30.8% 29.4% 26.8% 24.8% 25.6%

31.6% 30.6% 32.0% 30.5% 30.5% 29.3% 28.4% 27.0% 29.2% 30.3% 30.6%

36.6% 37.9% 38.7% 39.2% 38.6% 39.4% 40.8% 43.6% 43.9% 44.9% 43.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10* 2010-11* 2011-12 2012-13

State Share Local Share Student Share

*2009-10 and 2010-11 State funding partially supported by federal ARRA funds

Impact of FIT Upper Division and Graduate Student Chargebacks

Nassau $ 3,288.5 K

27%

Suffolk $ 3,231.0 K

26%

Westchester $ 958.6 K

8%

Rockland $ 507.1 K

4% Orange

$ 460.7 K 4%

Erie $ 278.8 K

2% Monroe $ 257.7 K

2% Dutchess $ 246.3 K

2%

Onondaga $ 212.8 K

2%

All Others $ 2,784.0 K

23%

Community Colleges Base Operating Aid and Specific Programs

2012-13 Enacted Community Colleges $457.0M

Costs to Continue

Enrollment Normalizing (3.8M)

Five Year Plan to Return State Share to 33.3 Percent 37.3M

Upper and Graduate Division FIT Chargeback Costs 11.2M

Initiatives

Targeted Funding for High Need Programs 1.2M

Total Change 45.9M

2013-14 Requested State Support: $502.9M

SUNY’s Ten Year Capital Request Submittal to the NY Works Task Force

36 10.26.12 DRAFT

TEN YEAR CAPITAL PLAN REQUEST

• Address ongoing critical maintenance renewal needs in order to keep facilities in a state of good repair and prevent backlog from growing.

• Build institutional-grade structures with backup systems for disaster preparedness and occupant safety and sheltering.

• Repurpose facilities to maximize use of existing buildings and reduce carbon footprint.

• Design to a LEED Silver standard and build energy efficient facilities to reduce ongoing operating costs.

• Preserve facilities, and the historic character of older structures.

• Most importantly, provide SUNY with the physical infrastructure capable of achieving its statutorily-driven mission of educating students (current enrollment of over 467,000 students), expanding research and supporting specific State initiatives such as NY-SUNY 2020, Technology Transfer, and Regional Economic Development Council initiatives.

38

Capital Investment Goals

39

How SUNY Succeeds

• The State’s investment in capital contributes to SUNY’s success. Capital investment has provided SUNY with a strong physical infrastructure that enables SUNY to competitively fulfill its mission AND meet the Governor’s challenge to do more.

• SUNY is able to meet its diverse needs in providing a quality education and expanding its research capabilities by investing in a wide variety of facilities, including classrooms, libraries, research facilities, and athletic facilities.

• SUNY is better able to attract and retain students and faculty by providing modern and safe facilities that ensure a quality higher educational experience.

• SUNY plays an important role in New York’s economy on many levels.

• SUNY is a significant, diverse, and essential component of New York State’s physical infrastructure, comprising 33% of the State’s building infrastructure.

• SUNY’s extensive and geographically diverse network of facilities across New York provides a built-in, broad framework for promoting economic development.

• The economic impact of core operations plus capital investments make SUNY a transformative economic catalyst in every region of the State.

40

Economic Impact of Capital Investment

41

Return on Investment

64 Campus Non-State

Revenue Generation

(in millions)

Tuition and fees Student Housing & Food Service

Federal Grants Hospitals & Clinics (1 million patients annually)

Private Grants Other

TOTAL

$2,395 840 723

2,012 329

702 $7,001

Employment SUNY employs nearly 88,000 individuals state-wide, resulting in income tax revenue for NYS. Construction on SUNY campuses supports another 10,000 jobs.

Enrollment SUNY enrollment reached 467,991 in 2012, including 26,133 out-of-state students and 22,837 international students.

Graduation Rate 45% four-year graduation rate versus the 31% national average, with 89,645 degrees awarded in 2011.

Impact of the SUNY Capital Program on the Construction Industry

• SUNY’s capital program investments not only supports higher education, but the New York construction industry as well.

• Public construction work remains the primary driver of the construction market as private investment is still lagging. The building construction market for SUNY projects is still strong.

• 94% of SUNY Capital Program contracts awarded are to New York State firms.

• 2011-12 SFY disbursements of $1.2B for all four programs combined projected to have created an estimated 10,000 jobs.

• Employs multiple construction trades.

• Supports the vertical (building) segment of the construction industry.

42

43

Building Industry Impact Construction Spending by Category

82.6 80.4 79.4 69.2

55.9 55.8 44.8 43.6

22.2 19.7 18.7 15.2 13.1 12.2

171.9

48.5

10.9

133.2

3.4 2.9

53.4

20.6 13.6

($ in millions)

44

Profile of SUNY Capital Programs

Notes: (1) Square footage and funding expressed in millions. (2) Average age (in years) represents straight average with no consideration given to the size of buildings or subsequent renovations.

# of Bldgs

Sq. Foot(1)

Avg Age(2) Funded By

Projects Managed By

Educational Facilities 1,844 58.5 45.4 State Fund/Campus

Hospitals 19 3.3 28.2 Hospital Revenues Fund/Campus

Residence Halls 485 20.5 34.8 Room Rents

DASNY/ Campus

Community Colleges 503 18.9 41.3

50% State 50% Local

Local

Totals 2,851 101.2 41.9

45

SUNY Stewardship • SUNY is responsible for 2,851 buildings encompassing 101.2 million GSF

with an average age of 41.9 years.

• SUNY has a vast array of physical infrastructure on the State-operated campuses. For example, combined, there are 429 athletic fields, 124 miles of electrical distribution systems, and 265 miles of roadway.

• SUNY made prudent investments at its State-operated campuses over the last five years, which slightly reduced the backlog of deteriorated conditions in 2011. Without these investments, backlog would have grown to $5.3B.

• Timely investments have resulted in significant cost avoidance.

• In 2011, SUNY updated its assessment of capital renewal and backlog needs.

• The 2011 analysis predicts that if investments do not continue: • Total backlog for infrastructure and buildings will increase by 70% in 5 years • Total backlog will double in 8 years

46

SUNY Stewardship

$3,153.0 M

$3,659.8 M

$4,068.8 M

$4,684.7 M

$5,318.0 M

$3,104.0 M

$-

$1,000.0 M

$2,000.0 M

$3,000.0 M

$4,000.0 M

$5,000.0 M

$6,000.0 M

2007 Actual 2008 Projected 2009 Projected 2010 Projected 2011 Projected 2011 Actual

Projected vs. Actual - SUNY State-Operated and Statutory Facility Backlog

New York State’s Fiscal Environment

• SUNY recognizes limitations due to Debt Cap legislation.

• SUNY understands State’s competing infrastructure needs.

• SUNY has proposed removal of the Residence Hall Program from the Debt Cap calculation.

• New capital programs ramp up slowly, so new plan debt issuance can be phased in over time.

47

Information Requested:

Who? What? When? NY Works Task Force 10-Year Capital Plan using

NY Works Task Force format October 30, 2012

Division of Budget Capital Budget Request October 30, 2012

SUNY was developing 5-Year Capital Plans. On September 19th 10-Year Plans were requested by the NY Works Task Force.

48

• NY Works Task Force requires plans to be categorized by: • State of Good Repair • Capacity Optimization • Transformational Projects

• Plans are to be reported by Economic Development regions.

• Return on investment is used to evaluate Capital Plans.

Essential Elements of a Successful Capital Program

• Meaningful planning in collaboration with each campus. All plans represent

the requests of the campuses.

• SUNY is already engaged in the type of planning recommended by the NY Works Task Force.

• Predictable and reliable capital levels.

• Adequate and appropriate funding levels to satisfy SUNY’s mission and stewardship responsibilities.

• Identification of projects for advancement by the campus.

49

Foundation for the Ten Year Capital Plan 2013/14 – 2022/23

Program Area Foundation for Plan, Years 1-5 Foundation for Plan, Years 6-10

Educational Facilities

Developed from Facility Master Plans in coordination with each campus and reviewed with System staff.

Developed using Facility Master Plans, requires additional individual project review with System staff.

Residential Halls Developed using campus-generated business/capital plans, reviewed by System staff.

Developed using building condition data to determine ongoing capital needs.

Hospitals Developed using business plans, reviewed by System staff.

Developed using building condition data to determine ongoing capital needs.

Community Colleges

Based on 5-year capital plans submitted by each college. Each college has a Facility Master Plan and has to coordinate with the local sponsor on its capital plan.

Developed using building condition data to determine ongoing capital needs.

50

Capital Budget Enacted Versus 2013/14 – 2022/23 Capital Request

Last 5 Years

Enacted in Billions

Last 10 Years

Enacted in Billions

Years 1-5 In Billions

Years 6-10 In Billions

Total 10 Years

in Billions

10 Year Plan

in Billions

Educational Facilities (includes NY-SUNY 2020) $5.141 $8.327 $5.102 $8.262 $13.364 $13.364

Hospitals 0.450 0.869 0.804 0.427 1.231 1.231

Community Colleges1 0.578 0.954 0.497 0.498 0.995 1.9892

Subtotal, State-Related Funding $6.169 $10.150 $6.403 $9.187 $15.590 $16.584

Residence Halls (Pay-As-You-Go) 0.258 0.358 0.197 0.165 0.363 0.363

Residence Halls (Non State-Related Bond-Financed) 0.781 1.366 0.944 0.537 1.4813 1.481

Subtotal, Residence Halls $1.039 $1.724 $1.141 $0.703 $1.844 $1.844

Total All 4 Programs $7.208 $11.874 $7.544 $9.890 $17.433 $18.428

New 10 Year Request

SUNY is also requesting reappropriations totaling $5.458B in support of all four programs.

1. Enacted and requested amounts are State share only. 2. Includes State and local funding shares. 3. Amount of appropriation will depend on acceptance of residence hall debt cap proposal to treat this as non State-related debt.

51

SUNY Ten Year Capital Plan $18.428B

52

Educational Facilities

72%Hospitals7%

Residence Halls10%

Community Colleges

11%

New24%

Critical Maintenance

31%

Rehabilitation Program

45%

By Program By NY Works Task Force Categories

By SUNY Categories

Capacity Optimization

24%

State of Good Repair

30%

Transformational Initiatives

46%

Presenter
Presentation Notes
Reappropriation note

Educational Facilities Capital Plan - $13.364B

53

Planning & Approach • Multi-year capital facility investment plan addressing both academic mission and building renewal needs. • System-wide plan driven by Facility Master Plans (FMPs) reviewing mission, programmatic space

demands, facilities condition, and subsequent capital improvement needs for each campus. • Campus prioritization and ‘right sizing’ of identified needs into a manageable and affordable capital plan of

construction improvements. • Evaluation of individual campus capital plan proposals within context of SUNY system-wide strategic

management plans.

Funding • The funding is largely through the Personal Income Tax (PIT) bond program. • State pays associated debt service costs.

Goals • Identify capital projects that support systemness and advance strategic and academic and research goals

within the context of SUNY’s overall strategic enrollment/academic management plan. • Develop a state of good repair and fulfill the campus mission within the SUNY context. • Support SUNY strategic mission by providing a wide variety of educational facilities that respond to

changing enrollments, contemporary pedagogy, and the corresponding programmatic space needs. • Provide a quality educational environment by maintaining and improving the condition of the existing

buildings and infrastructure.

54

Educational Facilities Ten Year Capital Plan $13.364B

Comprehensive 35%

University Centers

34%

Other Doctoral 16%

Technology Colleges

15%

Capital Request by Sector

Comprehensive 42%

University Centers

39%

Other Doctoral 6%

Technology Colleges

13%

FTE by Sector

Comprehensive 33%

University Centers

37%

Other Doctoral 18%

Technology Colleges

12%

GSF by Sector

Educational Facilities Ten Year Capital Plan $13.364B

55

37% 37%

17% 13% 8% 5%

20%

51%

20% 18%

6% 4% 1%

56

Educational Facilities Ten Year Capital Plan $13.364B

New 25%

Critical Maintenance

21%

Rehabilitation Program

54%

by SUNY Categories

Capacity Optimization

27%

State of Good Repair 20%

Transformational Initiatives

53%

by NY Works Task Force Categories

System-Wide Request for Information Technology Integration - $94.9M

• Devolution led to multiple information technology systems across the campuses.

• Cost avoidance can be achieved by consolidating major information systems across all campuses.

• Goal is to obtain efficiencies while achieving consistent student services, tracking and reporting.

• Request is for hardware, software, and consulting services to support a new IT system (Educational Facilities Request includes: $65.2M first 5 years, $29.7M second 5 years).

• Key areas: • Streamline and standardize student information systems and associated student data,

Campus-based software, and business intelligence and data warehousing. • Campus utilization of SUNY public and private cloud services. • Data center consolidation.

57

Residence Halls Ten Year Capital Plan - $1.844B Planning & Approach

• Campuses annually update a rolling 5-year capital investment plan which is reviewed for affordability.

• Years 6-10 are based on annual renewal and backlog data.

Funding • The Program is entirely funded from revenue received from student rents. • Majority of budget request will be bonded ($1,481M), balance is cash ($363M). • SUNY is working with DASNY to remove this self sufficient program from the state debt cap as

no state funds are used for capital expenditures or debt service.

Goals • Modernize and add new beds to satisfy the trend of more students preferring to live on

campus. • Continue to maintain existing housing stock in a state of good repair. • Enhance academic experience through specialized learning centers within residential facilities. • Attract and retain students. • Provide a positive overall residential experience resulting in loyal alumni.

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Residence Halls Ten Year Capital Plan $1.844B

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Comprehensive 46%

University Centers 38%

Technology Colleges

15%

Other Doctoral 1%

Existing Beds by Sector

Comprehensive 42%

University Centers 39%

Technology Colleges 13%

Other Doctoral 6%

FTE by Sector

Comprehensive 42%

University Centers

40%

Technology Colleges

15%

Other Doctoral 3%

Capital Request Funding by Sector

Residence Halls Ten Year Capital Plan $1.844B

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Critical Maintenance

52% Rehab 34%

New 14%

By SUNY Categories

State of Good Repair 62%

Capacity Optimization

24%

Transformational Initiatives

14%

By NY Works Task Force Categories

Planning & Approach • Each hospital submitted a 5 year capital plan. • Years 6-10 based on annual renewal and backlog needs. • Plans include projects to address critical maintenance needs, accreditation and revenue generating

services. • Capital improvements necessary in the face of ever increasing market demands and competition. • Changing health care delivery systems make planning challenging. • Requires full project funding in order to properly plan and execute. • Lack of predictable funding has made it difficult for hospitals to engage in strategic business

development, accreditation needs and critical capital renewal. Funding

• Previous requests totaling $1.0B were submitted, however, the hospitals did not receive any funding in the last 4 years.

• The funding is financed through the Personal Income Tax (PIT) bond program. • Hospitals pay associated debt service costs through an offset of operating revenues.

Goals • Maintain safe and up-to-date facilities. • Keep hospitals competitive. • Preserve accreditation to sustain federal reimbursement funding. • Increase patient revenue and service to the communities.

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Hospital Capital Plan - $1.231B

Hospital Ten Year Capital Plan $1.231B

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Capacity Optimization

13%

State of Good Repair 35%

Transformational Initiatives

52%

by NY Works Task Force Categories

New 30%

Critical Maintenance

35%

Rehabilitation Program

35%

By SUNY Categories

Community College Capital Plan (State and Local) $1.989B

Planning & Approach • Colleges have consultant-prepared Master Plans completed over varying timeframes. • Colleges coordinate with local sponsors in the development of College Capital Budgets which are

then included in the sponsors’ Capital Budget. • Colleges submitted 5-year capital plans to be incorporated into SUNY’s Capital Budget request. • Years 6-10 are based on annual renewal and backlog data from the 2009 Building Condition

Assessment Survey which was performed for all Community Colleges escalated to today’s dollars.

• Uncertainty of sponsor’s ability to provide funding impacts long-term planning. • Prior Community College requests were on annual basis.

Funding • Fifty percent of capital funding comes from local sponsors, generally a county. • Local share may include grants, gifts and capital chargeback funds. • Fifty percent comes from the State, which is funded with bond proceeds.

Goals • Enhance ability to respond to changing programs to meet workforce development needs. • Maintain a state of good repair. • Increase capacity to handle a growing student population.

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Community Colleges Ten Year Capital Plan (State and Local) $1.989B

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State Of Good Repair 61%

Capacity Optimization

9%

Transformational Initiatives

30%

By NY Works Task Force Categories

Critical Maintenance

62%

Rehab 18%

New 20%

By SUNY Categories

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SUNY’s Ten Year Capital Request

Years 1-5 In Billions

Years 6-10 In Billions

Total 10 Years (State Share)

in Billions 10 Year Plan

in Billions

Educational Facilities (includes SUNY 2020) $5.102 $8.262 $13.364 $13.364

Hospitals 0.804 0.427 1.231 1.231

Community Colleges1 0.497 0.498 0.995 1.9892

Subtotal, State-Related Funding $6.403 $9.187 $15.590 $16.584

Residence Halls (Pay-As-You-Go) 0.197 0.165 0.363 0.363

Residence Halls (Bond-Financed) 0.944 0.537 1.4813 1.481

Subtotal, Residence Halls $1.141 $0.703 $1.844 $1.844

Total All 4 Programs $7.544 $9.890 $17.433 $18.428

New 10 Year Request

SUNY is also requesting reappropriations totaling $5.458B in support of all four programs.

1. Enacted and requested amounts are State share only. 2. Includes State and local funding shares. 3. Amount of appropriation will depend on acceptance of residence hall debt cap proposal to treat this as non State-related debt.

Capital Request by NY Works Regions (in Billions)

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Campus Total

Capital Region Albany, Empire, System Admin Adirondack, Columbia-Greene, Hudson Valley, Schenectady $1.560

Central New York Cortland, Environmental Science & Forestry, Oswego, Syracuse/Upstate Cayuga, Onondaga 1.815

Finger Lakes Brockport, Geneseo Finger Lakes, Genesee, Monroe .876

Long Island Farmingdale, Old Westbury, Stony Brook Nassau, Suffolk 2.965

Mid-Hudson New Paltz, Purchase Dutchess, Orange, Rockland, Sullivan, Ulster, Westchester 1.434

Mohawk Valley Cobleskill, Morrisville, Oneonta, SUNYIT Fulton-Montgomery, Herkimer, Mohawk Valley 1.162

New York City Brooklyn/Downstate, Maritime, Optometry Fashion Institute of Technology 1.597

North Country Canton, Plattsburgh, Potsdam Clinton, Jefferson, North Country 1.190

Southern Tier Binghamton, Cornell Statutory, Delhi Broome, Corning, Tompkins-Cortland 2.277

Western New York Alfred State, Buffalo State, Buffalo University, Fredonia, Ceramics Erie, Jamestown, Niagara 3.186

Statewide .366

Grand Total $18.428

SUNY’s Ten Year Capital Request Submittal to the NY Works Task Force

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FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 TOTAL

Cash Disbursements by Fiscal Year

Carry-In Commitments From Prior Year (Appropriations in Force) 1,432,961 1,327,748 1,223,134 1,047,514 869,887 26,838 18,766 19,158 6,386 2,386 5,974,778

Planned Spending (Future Appropriations/Reappropriations) 0 0 0 0 0 0 0 0 0 0 0

Spending from New Commitments 265,449 699,640 1,275,589 1,676,626 1,726,516 1,689,042 1,856,437 2,152,160 2,255,510 2,112,672 15,709,641

TOTAL 1,698,411 2,027,388 2,498,723 2,724,140 2,596,403 1,715,880 1,875,203 2,171,318 2,261,896 2,115,058 21,684,420

Source of Funds

Bond Financing 1,453,349 1,716,090 2,131,249 2,326,747 2,327,489 1,563,855 1,742,842 2,036,944 2,127,947 1,981,160 19,407,673

Federal Pay-As-You-Go 0 0 0 0 0 0 0 0 0 0 0

State Pay-As-You-Go 46,692 55,028 42,106 41,408 44,050 38,665 34,065 33,093 33,093 33,093 401,294

General Obligation Bonds 0 0 0 0 0 0 0 0 0 0 0

Other Major Funding Sources 198,369 256,269 325,368 355,985 224,864 113,360 98,295 101,282 100,855 100,806 1,875,454

TOTAL 1,698,410 2,027,388 2,498,724 2,724,140 2,596,403 1,715,881 1,875,203 2,171,319 2,261,896 2,115,059 21,684,421

CASH DISBURSEMENTSState University of New York

($ in thousands)

SUMMARY OF ALL FUNDS REQUEST

Operating Budget 2012-13 Enacted Costs to Continue Initiatives10 Year Capital Plan Request

Total 2013-14 Request

State Operated Campuses 2,306,935.5$ 125,494.5$ 33,500.0$ -$ 2,465,930.0$ State Support 839,730.5 19,520.7 33,500.0 - 892,751.2 Tuition Revenue Approp 1,467,205.0 105,973.8 - - 1,573,178.8 Statutory Colleges 129,319.8 4,909.0 1,285.0 - 135,513.8 Community Colleges 456,998.9 44,648.7 1,208.0 - 502,855.6 Hospital Support 89,756.0 134,000.0 - - 223,756.0 Cornell Cooperative Extension 4,220.0 246.0 4,000.0 - 8,466.0 General State Charges 212,956.0 - - - 212,956.0 Special Revenue Funds - Federal 428,600.0 - - - 428,600.0 Special Revenue Funds - Other 4,316,685.1 - (2,939,907.1) - 1,376,778.0 Fiduciary Funds 37,000.0 - - - 37,000.0 Internal Service Funds 20,100.0 - - - 20,100.0

Total Operating 8,002,571.3$ 309,298.2$ (2,899,914.1)$ -$ 5,411,955.4$

Capital Budget 2012-13 Enacted Costs to Continue Initiatives10 Year Capital Plan Request

Total 2013-14 Request

Educational Facilities 550,000.0$ -$ -$ 13,276,000.0$ 13,276,000.0$ NY-SUNY 2020 Bonded 215,000.0 - - 88,000.0 88,000.0 Hospitals - - - 1,231,000.0 1,231,000.0 Community Colleges 86,969.0 - - 995,000.0 995,000.0

Total State-Related Capital 851,969.0$ -$ -$ 15,590,000.0$ 15,590,000.0$

Residence Halls Bonded -$ -$ -$ 1,481,000.0$ 1,481,000.0$ Residence Halls Hard Dollar 45,000.0 - - 363,000.0 363,000.0

Total Residence Halls 45,000.0$ -$ -$ 1,844,000.0$ 1,844,000.0$

Grand Total 8,899,540.3$ 309,298.2$ (2,899,914.1)$ 17,434,000.0$ 22,845,955.4$

Notes: Community College 10 Year Capital Plan Request reflects only State ShareResidence Hall appropriation dependent upon acceptance of residence hall debt cap proposal to treat this as non State-related debt