Below is a brief description of the types of funds available for academic projects. Projects in years two through five are not considered for funding until included in the five-year plan as action-year projects.
Systemwide Revenue Bonds – Academic Program (SRB-AP)
In November 2014, the CSU Board of Trustees approved revisions to the CSU Policy for Financing Activities in order to implement capital financing authorities granted by state statute in June 2014 (Education Code Section 89770).
The authority permits the CSU to pledge its annual general fund support appropriation and any other revenues to secure CSU debt issued pursuant to the State University Revenue Bond Act of 1947 (Bond Act). Under this provision, CSU can use the existing Systemwide Revenue Bond (SRB) program in support of all forms of capital improvements and to refinance State Public Works Board bond debt. The prioritization of campus projects eligible for financing under the new authorities will remain a centrally managed function of the CSU Office of the Chancellor, which will evaluate campus needs and provide recommendations to the Board of Trustees on project priorities.
CSU Reserves (Pay-As-You-Go, or PAYGO)
The authority also allows for the use of cash on hand, whether from appropriated funds from the Budget Act, interest earnings, or other sources.
Designated Campus Reserves
Similar to CSU Reserves, a campus may use its local operating fund reserves, current year tuition fees, interest earnings, and donor funds, to support academic projects. There are two types of campus reserves. If the project is a renewal or replacement project, the campus should use ‘Campus-M’ reserves, denoting non-recurring maintenance and repair. If the project is an improvement, the campus should use ‘Campus-I’ reserves, denoting improvement.
General Obligation Bonds
General Obligation (GO) bonds are a form of long-term borrowing in which the state issues municipal securities and pledges its full faith and credit to their repayment. Bonds are repaid over many years through semi-annual debt service payments. The California Constitution requires that GO bonds be approved by a majority vote of the public and sets repayment of GO debt before all other obligations of the state except those for the public school system and public institutions of higher education.
Deferred Maintenance
The Governor’s budget may include one-time deferred maintenance funds for state agencies. Each year the CSU prepares a list of projects to submit to the Governor’s office. These funds are intended for use on projects that repair, renew, or replace existing building and utility systems.