Board briefed on $477 million authorized but unallocated capital authorizations, deferred maintenance backlog

System capital staff presented the committee with an overview of capital planning, the state bond process and program priorities, saying the system has a large volume of authorized projects that remain unallocated while the bond commission allocates funds in limited stages.

Keith (system capital staff) and Pete Epstein, vice president for facilities, real estate and infrastructure, told the Finance and Infrastructure Committee that the system's capital inventory includes nearly $2.7 billion in facilities and equipment and that many campuses have aging buildings that require ongoing investment. They described capital as a long-term program requiring coordination with campuses, OPM and the Department of Administrative Services, and said that authorizations do not equal available cash until bond commission allocations occur.

Why it matters: Staff said about $477 million in authorizations exists for projects and programs that have not been allocated; that authorization does not guarantee timely availability of construction funds. Staff and regents discussed project prioritization, the staging of requests to the governor and bond commission, and how delayed allocations can drive inefficient interim repairs and increased costs.

Key points from the presentation

- Authorized vs. allocated: Staff explained the difference between projects authorized in prior bond acts and the…