Capital Planning Update 1 Senate Fiscal Committee/COPE Presentation January 3, 2012

Capital Planning 2 Prepared by Administration & Planning, Office of Physical Planning and Real Estate A refined approach to capital planning must ensure capital investments are aligned with strategic priorities, long-term financial perspectives, and the One University Framework vision.

Capital Planning Culture Change 3 Prepared by Administration & Planning, Office of Physical Planning and Real Estate Past College/Unit-Centric incremental; decentralized goals; internal competition; short-term perspective; inefficient solutions Transition strategic plans; facility condition assessments; Framework Plan Future Integrated Planning driven by academic mission; comprehensive; linked to strategic and long-term financial planning processes; data-informed; transparent; efficient solutions meet multiple goals

Annual Capital Planning Process 4 Prepared by Administration & Planning, Office of Physical Planning and Real Estate Target Milestones April – First review of Five Year Capital Investment Program (CIP) and FY13 Capital Budget June - Action on Five Year CIP and FY 13 Capital Budget

Initiate Annual Process 5 Review existing Capital Investment Program (CIP) Identify and weight high-level criteria to assist with evaluation of capital needs Determine initial financial guidelines Develop general schedule, data collection tools, and communications strategies Prepared by Administration & Planning, Office of Physical Planning and Real Estate Summer/Fall

Initiate Annual Process Alignment w/ Strategic Principles and Objectives Advancement of the Academic Mission Business Continuity and Risk Management Civic Infrastructure Competitive Advantage Patient Care Renewal and Deferred Maintenance 24/7 Campus Life Sustainability and Energy Conservation 6 Prepared by Administration & Planning, Office of Physical Planning and Real Estate Summer/Fall

7 Identify Needs/Opportunities 15-Year View Fall Work with colleges and units to develop a comprehensive list, pulling from numerous previously-siloed plans

Analyze Needs 8 Gather data and use Framework planning tools to assess implications of potential investments Engage stakeholder groups and refine scopes of projects Prepared by Administration & Planning, Office of Physical Planning and Real Estate Fall/Winter

9 Engage broad-based interdisciplinary team to develop CIP scenarios guided by the Framework Review with university community Prioritize and align CIP scenarios and cash flows with financial capacity Prepared by Administration & Planning, Office of Physical Planning and Real Estate Develop Five-Year CIP Winter

Approve CIP and Capital Budget 10 Finalize and document the recommended five-year Capital Investment Program (CIP) Prepare a detailed one- year Capital Budget Prepared by Administration & Planning, Office of Physical Planning and Real Estate Spring

Implement Projects and Refine the Planning Process 11 Establish project delivery teams, contract for professional services, finalize project budgets and schedules… Further align the annual capital planning cycle with strategic, financial, and budgeting processes Initiate next cycle Prepared by Administration & Planning, Office of Physical Planning and Real Estate Ongoing

Capital Needs Inventory (CNI) Review Initial CNI Developed from Framework, strategic initiatives, and facility condition data Refine CNI Identify any additional capital needs driven by unit’s strategic plan Placeholder cost threshold of $100, year planning horizon Enter Needs Data Enter CNI data through the Web-form 12 Prepared by Administration & Planning, Office of Physical Planning and Real Estate

13 Questions/Discussion