VIII-10.10 - POLICY ON FACILITIES RENEWAL FOR AUXILIARY AND
NON-AUXILIARY CAPITAL ASSETS
(Approved by the Board of Regents, May 1, 1992; Revised and
approved by the Board of Regents, December 9, 2005)
1. Subject to limitations established by law, the Board of
Regents is empowered to maintain the capital assets under
its jurisdiction, including land, structures and
infrastructure, for auxiliary and non-auxiliary programs.
2. Facilities renewal is the planned renovation,
adaptation, replacement, or upgrade of the systems of a
capital asset during its life span such that it meets
assigned functions in a reliable manner.
3. Institutional spending for facilities renewal shall be
targeted at 2% of the current replacement value (RV) of all
institutional capital assets. The allocation of funds and
the selection of projects shall be approved through the
operating budget process with the support of $15 million per
year in Academic Revenue Bonds (for State buildings only)
appropriated among institutions based on their pro-rata
share of replacement value. Operating funds shall be
enhanced as follows at each institution until the 2% of
replacement value spending level is reached:
a. Institutions will increase operating expenditures (from
all sources) at an (annual 5-year average) increment of
2/10th of 1% of replacement value. Where tuition represents
less than 25% of the State-supported budget, the increment
for FR will be implemented at 50% of the aforementioned
b. To close the gap further, the Regents may require ½ of
1% of the replacement value (RV) of any new building be
allocated annually from the institutional operating budget
as part of the cost of building start-up.
4. Institutions shall provide information on the amount of
funds and their use to enable the Chancellor to monitor and
report on the progress of the facilities renewal program on
an annual basis to the Regents.
5. After approval of the budget request by the Board, the
request for State funds to the Governor shall not be less
than the previous fiscal year unless there are Systemwide
funding constraints. The Chancellor may recommend to the
Board an institution's one-time only exception from policy
or may recommend amendments to an institution's budget
request to meet the facilities renewal policy, following
recommendations by the President.
6. Furthemore, the Regents will approve an annual Capital
Budget request to the State that includes, at a minimum, the
FY2006 level of funding for building renovation and
replacement ($70 million) adjusted for inflation.
Policies of the former University of Maryland, included in a
report titled Critical Capital Needs, fall 1985, which
highlights facilities renewal requirements for non-auxiliary
The Campus Funds Construction Program for non-auxiliary
facilities and policy for the University Funded Construction
Program for auxiliary facilities.
Policy of the former Board of Trustees of State Universities and
Colleges, included in a report titled Facilities Management: A
Comprehensive Plan, as approved by the Finance and Management