Washington Public Universities

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1 Washington Public Universities FY17 Facilities Benchmarking and Analysis May 2018 Gabby Rosas, Michael Kvalvik, Tony Cesano University of Southern University of Southern Maine University of St. Thomas University of Tennessee, Knoxville University of Texas - Austin University of Texas at Dallas University of Texas Health University of Texas Rio Grande Valley University of the Sciences in Philadelphia University of Toledo University of Vermont University of Washington University of West Florida University of Wisconsin - Madison Vanderbilt University Virginia Commonwealth University Wake Forest University Washburn University Washington State University Washington State University - Tri-Cities Campus Washington State University - Vancouver Washington University in St. Louis Wayne State University Wellesley College Wesleyan University West Chester University West Virginia Health Science Center West Virginia University Western Oregon University Westfield State University Widener University Williams College Worcester Polytechnic Institute Worcester State University Xavier University

2 Today s Agenda Review campus facility data trends from FY2012 through FY2017 Discuss how each campus has been utilizing the Sightlines data Showcase Case Studies from across the country Develop a strategy for delivering information to the Office of Financial Management 2

3 State Systems Peers 3

4 Student FTE Enrollment Trends in Washington 108K students enrolled in Enrollment Distribution 120,000 Statewide Enrollment Trends WWU 13% CWU 10% 100,000 EWU 11% 80,000 WSU 18% TESC 4% 60,000 40,000 20,000 UW 44% ** 2018** 2019** 2020** 2021** 4 *Pending collection of EWU enrollment data **Projection based on average of last 6 years growth rate

5 Users/100,000 GSF Program GSF/Student Washington Has a Higher Density than Other Systems 600 Density Factor 350 Program Space per Student A B C D E F G WA Schools H I 0 A B C D E F G WA Schools H I 5

6 % of GSF Impact of Major Renovations on the Age Profiles 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Washington Campus Age by Category 11% 17% 19% 26% 24% 35% 34% 40% 36% 42% 43% 31% 48% 50% 30% 35% 78% 38% 39% 30% 22% 44% 31% 43% 36% 47% 31% 25% 52% 30% 25% 28% 24% 36% 17% 14% 19% 22% 18% 16% 16% 12% 7% 8% 9% 12% 13% 16% 7% 3% 6% 4% Construction Renovation Construction Renovation Construction Renovation Construction Renovation Construction Renovation Construction Renovation Construction Renovation CWU EWU TESC UW WSU WWU State of Under to to 50 Over 50 WA 6

7 % of GSF Renovations Needed to Mitigate Risk Across the State 100% 90% 80% 70% 60% 50% 19% 35% Age Categories by Biennium* 28% 33% 40% 35% 36% 46% 48% Buildings Over 50 Life cycles of major building components are past due. Failures are possible. Core modernization cycles are missed. Highest risk Buildings 25 to 50 Major envelope and mechanical life cycles come due. Functional obsolescence prevalent. Higher Risk 40% 30% 30% 32% 30% 31% Buildings 10 to 25 Short life-cycle needs; primarily space renewal. Medium Risk 20% 10% 0% 29% 25% 25% 22% 21% 16% 8% 6% Renovation FY18-19 FY20-21 FY22-23 FY24-25 FY26-27 Under to to 50 Over 50 Buildings Under 10 Little work. Honeymoon period. Low Risk 7 *Projections assume no major renovations or new construction

8 Weighted Renovation Age Weighted Renovation Age Diverse Age Profile Across the State 50 Renovations Age 50 Renovation Age vs. Peers CWU EWU TESC UW WSU WWU 0 A B C D E F G WA Schools H I 8

9 $/GSF Spending Towards Facilities Have Fluctuated $8.00 Facilities Operating Budget* $7.00 $6.00 $5.00 $4.00 $3.00 UW CWU EWU WWU TESC WSU UW EWU CWU WWU WSU TESC $2.00 $1.00 $0.00 FY2012 FY2013 FY2014 FY2015 FY2016 FY *Pending collection of EWU Operating budget data

10 $/GSF Fewer Operating Resources Than Peers $10 FY2017 Operating Actuals vs. Peers $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 A B C D E F G WA Schools H I Daily Service Preventive Maintenance Utilities Peer Average 10

11 $/GSF Latest Biennium Saw Highest Spending Since FY12 $20 $18 $16 Normalized Spending by Project Type CWU EWU TESC UW WSU WWU Statewide Average $14 $12 $10 $8 $6 $4 $2 $0 Existing Space New Space 11

12 $/GSF Total Capital Spend is Similar to Peers $25 FY2017 Capital Spend vs. Peers $20 $15 $10 $5 $0 A B C D E F G WA State H I Existing Space New Space Peer Average 12

13 % of Annual Investment Target Limited Annual Stewardship Funding Across All Schools Asset Reinvestment funding is more one-time in nature and less reliable 350% 300% 250% 200% CWU EWU Funding to the Annual Investment Target TESC UW WSU WWU WA Avg Asset Reinvestment Funding Major Capital Improvements State Major Capital Minor Capital Projects (Local/Dep) Bond Funding Large Capital Projects 150% 100% 50% 0% Annual Stewardship Funding Preventive Maintenance (from Operations) Minor Capital Repair Minor Capital Projects (State Funds) Reserve Funding Minor Works Preservation Minor Works Infrastructure Preservation and Program Small Capital 13

14 Change from FY2012 $/GSF Growth in Total Backlog of Need 30% 25% 20% 15% 10% 5% 0% Asset Reinvestment Need Change over 6 Years 26% 25% 25% 17% 14% $180 $160 $140 $120 $100 $80 FY2017 Total Asset Reinvestment Need -5% $60-10% $40-15% -14% $20-20% FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 CWU EWU TESC UW WSU WWU $0 CWU EWU TESC UW WSU WWU 14

15 $/GSF Higher Asset Reinvestment Need than Other Systems 250 FY2017 Asset Reinvestment Need vs. Peers A B C D E F G WA System H I 15

16 Annual Stewardship Funding Millions Option 1: Set Stewardship Funding Levels Increase recurring funding sources to meet more of the Stewardship Target $500 $400 Annual Stewardship Funding & Targets $394 $401 $419 $440 $464 $300 $200 $100 $295 $301 $315 $330 $348 $197 $200 $210 $220 $232 $0 FY18-19* FY20-21* FY22-23* FY24-25* FY26-27* Preventive Maintenance (from Operations) Minor Capital Repair Minor Capital Projects (State Funds) Reserve Funding Minor Works Preservation Minor Works Infrastructure Preservation and Program Small Capital Annual Investment Target* Meeting 50% of target Meeting 75% of target 16 *Projections assume no major renovations or new construction

17 Billions of $ Option 2: Establish Funding Targets to Control Backlog In FY2017, the Asset Reinvestment Backlog was $3.8B $8 $7 Asset Reinvestment Need Projection Percent Change Biennial Funding Level $/GSF Biennial Project Funding $6 $5 50% Cut $171M $6.09 $4 $3 No Change $341M $12.14 $2 $1 25% Increase $427M $15.20 $0 FY2028 FY2027 FY2026 FY2025 FY2024 FY2023 FY2022 FY2021 FY2020 FY2019 FY2018 FY2017 FY2016 FY2015 FY2014 FY2013 FY2012 With 50% Cut No Change With 25% Increase With 60% Increase 60% Increase $657M $ *Projections assume no major renovations or new construction

18 Concluding Comments Compared to other systems, Washington schools are younger than the average. 54% of the space is over 25 years old, though, which is a high risk age category and can demand more facilities spending in day to day operations and capital investment. Washington is currently investing $1/GSF less than other state systems across the country in their facilities operating budgets. As a result of having older facilities and spending less in operating costs, Washington has had increasing needs for capital allocations, both at the school level and by the state. Annual needs for funding 100% of the Annual Stewardship needs across the state will reach $464M by the Biennium. The Annual Stewardship needs is the costs associated with Keeping Up with the campus needs as they age. The current Asset Reinvestment Need across Washington is $3.8B. This is captured as the estimated amount of Catch Up need to address the current needs (backlog), future renewal needs over the next 10 years, as well as the modernization and infrastructure needs. If capital funding for the schools remains consistent over the next 10 years, Sightlines estimates that this Asset Reinvestment Need will grow to $6.2B. If capital funding can increase to $657M per biennium, it is estimated that the schools would have sufficient funding to keep the Asset Reinvestment need at $4B. 18

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