Indiana Commission for Higher Education

October 9, 2009

Higher Education Capital Projects Report

FY 2007 through FY 2011 State Funded Higher Education Capital Projects Either Appropriated or Authorized by the General Assembly

2008-09 Biennium$447,620,000

2010-11 Biennium$288,350,000

TOTAL $735,970,000

Requires approximately $61,600,000 per year in Debt Service

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State Funded Higher Education Capital Projects 1999-2011

1999 2001 2003 2005 2007 2009 $-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

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Historical Cap Projects requests, CHE recommendations and GA Passed

1995 1997 1999 2001 2003 2005 2007 2009 $-

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

H.E. Requested CHE RecommendedGA Approved

Note: GA approvals have exceeded CHE recommendations by $930M4

Ball State University

2007-09 2009-11

BSU Central Campus Academic Project, Phase I & Utilities $33,000,000

BSU Central Campus Rehab $19,700,000

Note: Projects in RED have been reviewed by CHE5

Indiana State University

2007-09 2009-11

ISU Life Sciences/Chemistry Lab Renovation $14,800,000 ISU Federal Bldg $10,000,000

Note: Projects in RED have been reviewed by CHE6

University of Southern Indiana

2007-09 2009-11

USI College of Business/General Classroom Building $29,900,000

USI Teacher Theatre Replacement $15,000,000

Note: Projects in RED have been reviewed by CHE7

Ivy Tech Community College of Indiana2007-09 2009-11

ITCCI Bloomington Phase II A&E $350,000 ITCCI Anderson Campus $20,000,000

ITCCI Elkhart Phase I $16,000,000 ITCCI Bloomington Campus $20,000,000

ITCCI Fort Wayne Technology Center & Demolition Costs $26,700,000

ITCCI Elkhart Additional Authorization $4,000,000

ITCCI Greencastle $8,000,000 ITCCI Gary Campus $20,000,000

ITCCI Indianapolis Fall Creek Expansion Project* $69,370,000 ITCCI Warsaw $10,100,000

ITCCI Lamkin Ctr for Instructional Leadership &

Development $1,000,000

ITCCI Logansport $16,000,000

ITCCI Muncie/Anderson A&E $4,800,000

ITCCI Sellersburg $20,000,000

ITCCI Warsaw A&E $1,000,000

Note: Projects in RED have been reviewed by CHE

* Partial review

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Indiana University2007-09 209-11

IU School of Medicine South Bend Cancer Research Institute $10,000,000

IUB Life Science Lab Renovations $10,000,000

IU South Bend Arts Building Renovation $27,000,000

IUB CyberInfrastructure Building $16,000,000

IU Southeast Medical Education Center A&E $1,000,000 IUNW Tamarack Hall $33,000,000

IUB Cyber Infrastructure Building Data Center $18,300,000

IUPUI Life Science Lab Renovations $10,000,000

IUPUI Neurosciences Research Building $20,000,000 IUPUI Neurosciences Bldg $23,000,000

IUS Ed & Tech Bldg $22,000,000

Note: Projects in RED have been reviewed by CHE 9

Purdue University2007-09 2009-11

PU Calumet Gyte Building A&E $2,400,000

PUNC Student Srvcs Complex $23,700,000

PU North Central Student Services & Recreation

Center A&E $1,000,000PUWL Life Sciences Lab

Renovations $10,000,000

PUWL ADDL BSL3 Laboratory Bldg $30,000,000

PUWL Med School Renovations $6,000,000

PUWL Boiler #6 $53,000,000IPFW Northeast Ind. Innovation Center. $10,000,000

IUPU Fort Wayne NE Indiana Innovation Center $5,000,000

IUPU Fort Wayne Student Services &

Library Complex $24,000,000

Note: Projects in RED have been reviewed by CHE 10

Vincennes University

2007-09 2009-11

VU Gibson County Ctr. for Advanced Manufacturing $5,000,000 VU P.E. Bldg Renov. $5,000,000

VU Jasper - Advanced Manufacturing and

Applied Technology Ctr $8,000,000 VU Davis Hall Renov. $850,000

VU Special R&R (Health & Science Lab Renov) $2,000,000

Note: Projects in RED have been reviewed by CHE 11

Capital Projects Awaiting Review

Name State Funding

BSU Central Campus Rehab $19,700,000

ISU Federal Bldg [Renov] $10,000,000

USI Teacher Theatre Replacement $15,000,000

ITCCI Bloomington Campus $20,000,000ITCCI Lamkin Ctr for Instructional Leadership & Development $1,000,000

ITCCI Muncie/Anderson A&E $4,800,000

ITCCI Anderson Campus $20,000,000

ITCCI Bloomington Campus $20,000,000

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Capital Projects Awaiting Review

Name State Funding

ITCCI Gary Campus $20,000,000

IU Southeast Medical Education Center A&E $1,000,000

IUPUI Neurosciences Research Building $20,000,000

IUPUI Neurosciences Bldg $23,000,000

IUNW Tamarack Hall $33,000,000

IUS Ed & Tech Bldg $22,000,000

PU Calumet Gyte Building A&E $2,400,000

PU North Central Student Services & Recreation Center A&E $1,000,000

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Capital Projects Awaiting Review

Name State Funding

PUWL ADDL BSL3 Laboratory Bldg $30,000,000

PUNC Student Srvcs Complex $23,700,000

PUWL Life Sciences Lab Renov $10,000,000

PUWL Med School renov $6,000,000

IPFW Northeast Ind. Innov. Ctr. $10,000,000VU Jasper - Advanced Manufacturing and Applied Technology Ctr $8,000,000

TOTAL $320,600,000

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Debt Service Appropriations FY 1976-FY2011

1975

-76

1977

-78

1979

-80

1981

-82

1983

-84

1985

-86

1987

-88

1989

-90

1991

-92

1993

-94

1995

-96

1997

-98

1999

-00

2001

-02

2003

-04

2005

-06

2007

-08

2009

-10

$-

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

$200,000,000

CAGR 8.3%

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Debt Service as a Percentage of Debt Service and Operating Appropriations

1975

-76

1977

-78

1979

-80

1981

-82

1983

-84

1985

-86

1987

-88

1989

-90

1991

-92

1993

-94

1995

-96

1997

-98

1999

-00

2001

-02

2003

-04

2005

-06

2007

-08

2009

-10

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

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Debt Service Appropriated at Time of Project Authorization

Biennium D.S. Required for Projects

D.S. Appropriated in Same Biennium

2001-03 $21.5M $0

2003-05 $22.5M $0

2005-07 $19.3M $7.8M

2007-09 $35.9M $20.0M

2009-11 $24.1M $16.5M

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Debt Service Requirements

$320.6M in Authorized Capital Projects Awaiting Review/Approval

$26.8M – annual debt service requirements for $320.6M of capital debt

$6.3M – “unclaimed” debt service appropriations in FY11

FY 12 may require $20.1M in debt service appropriation increase

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Cumulative Increases in Campus Operating and Debt Service Appropriations FY 01-FY11

Operating Debt Service0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

15.5%

81.9%

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Capital Project Review Process

Review process is statutoryReview is triggered based on:

Type of project (e.g., new construction, R&R, lease)Cost of projectSource of funds for project

Most statutes require:reviewed by CHE, and approval by the governor upon recommendation of the

budget agency

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Capital Project Review Process

“Typical” Review Process (in practice)CHE “review”State Budget Committee “review”“Recommendation” by the State Budget Agency[Recommendation by Indiana Finance Authority]“Approval” by Governor

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CHE Review

IC 21-33-3-3Approved or authorized projects not subject to

review by the commissionSec. 3. (a) Except as provided in subsection (b), a

project that has been approved or authorized by the general assembly is not subject to review by the commission for higher education.

(b) The commission for higher education shall review a project approved or authorized by the general assembly if the review is requested by the budget agency or the budget committee.

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Budget Committee Review

IC 21-33-3-4 Advisory recommendation Sec. 4. (a) The budget agency may refer to the budget committee

budgetary and fiscal matters under this chapter for which it would like an advisory recommendation.

(b) If a matter is referred to the budget committee, the budget committee:

(1) shall hold hearings; (2) may exercise any powers under IC 4-12-1-11; and (3) shall make an advisory recommendation to the budget agency. The advisory recommendation may recommend that the matter as

referred be approved, disapproved, referred to the general assembly, or resolved in another way.

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R&R Appropriations

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

$100,000,000

07-09 Gen R&R approp

07-09 Payment Delay Repayment

ARRA R&R Appropriations

ARRA Operating Or R&R Approps

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Energy Savings Contracts Bonding Authority IC 21-34-10-7 Bonds may be issued by the board of trustees of a state educational institution without the

approval of the general assembly to finance a qualified energy savings project if annual operating savings to the state educational institution arising from the implementation of a qualified energy savings project are reasonably expected to be at least equal to annual debt service requirements on bonds issued for this purpose in each fiscal year.

However, the amount of bonds outstanding for the state educational institution other than Ivy Tech Community College at any time for qualified energy savings projects, other than refunding bonds and exclusive of costs described in sections 3 and 4 of this chapter, may not exceed fifteen million dollars ($15,000,000) for each campus of the state educational institution.

Any annual operating savings realized by Purdue University and Indiana University in excess of the annual debt service requirements on bonds issued shall be used to fund basic research for the Indiana Innovation Alliance.

The amount of bonds outstanding for Ivy Tech Community College at any time for qualified energy savings projects, other than refunding bonds and exclusive of costs described in sections 3 and 4 of this chapter, may not exceed forty-five million dollars ($45,000,000). Bonds issued under this section are not eligible for fee replacement.

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