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SUCF UPDATEPresented by the
State University Construction Fundat the
PPAA Winter Conference
January 25, 2017
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CAPITAL BUDGET
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SUMMARY OF THEBUDGET REQUEST & EXECUTIVE BUDGET
Program2017/18Request
2017/18Executive
Budget5-Year
Request
5-Year Executive
Budget
Educational Facilities $800.0 $550.0 $4,000.0 $2,750.0
Hospitals 600.0 100.0 600.0 100.0
Residence Hall 0.0 0.0 200.0 200.0
Community Colleges (State Share) 81.5 53.1 401.5 213.1
TOTAL $1,481.5 $703.1 $5,201.5 $3,263.1
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MULTI-YEAR CAPITAL PLAN
• $550.0M in critical maintenance funding for 2017/18
• $153.4M is allocated to each State-operated/statutory campus
• $396.6M is provided in a lump sum for priority critical maintenance projects
• $2.75B planned over five-years, subject to the approval of the Legislature each year
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550 550 550 550 550
60
402219 290
550
1,676
215
88
160
25
450
175
100
$2,676
$550 $550 $550
$765
$148
$562
$244
$465
$650
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Proposed)
Cap
ital A
ppro
pria
tions
State Fiscal Year
Critical Maintenance (CM) Strategic Initiatives (SI) Hospitals
SUNY EDUCATIONAL AND HOSPITALCAPITAL APPROPRIATIONS HISTORY
UNpredictablePredictable
P re d i c t a b l e , d e p e n d i n g o n p e r fo r m a n c e
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WHY THE INCREASE? WHY THE LUMP? WHY $550M?
Increase Due To:• Spend-down of prior year appropriations• Limited impact on State bond cap• Advocacy
Lump Facilitates:• Allocation formula disadvantages smaller campuses• Centralized decision-making to address highest priority needs• Tighter control of spending
Reduction of $175M in spending authority over 4 years $600M annual spending target must accommodate $550M in new appropriations, plus spend down of $2B in reappropriations
• $550M - the last validated number
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TOTAL CM FUNDS NOT UNDER CONTRACT$377M not under contract as of January 11, 2017
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2016 CM
2004-2015 CM
($211M)
($166M)
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TOTAL CM FUNDS NOT UNDER CONTRACT$377M not under contract as of January 11, 2017
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2004-2015 CM ($166M)
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PROJECTED SPENDING FAR BELOW TARGETS… BEFORE THE EXECUTIVE BUDGET
$938
$770$682
$630$550
$480
$350 $350
$968
$850
$675 $685 $685$650 $630 $610
$0
$200
$400
$600
$800
$1,000
$1,200
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Milli
ons
Actual Disbursements Projected Disbursements Fiscal Plan Target
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PROJECTED SPENDING AT TARGETS… AFTER THE EXECUTIVE BUDGET
$938
$770$682
$630$575 $585 $595 $600 $600
$968
$850
$675$635
$600 $600 $600 $600 $600
$0
$200
$400
$600
$800
$1,000
$1,200
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Mill
ions
Actual Disbursements Projected Disbursements Fiscal Plan Target
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AVERAGE PROJECT VALUE, 2011-2015Millions
$9.9
$8.9 $8.5
$7.3
$4.9
$1.3
$2.3
$3.4
$1.8 $2.3
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
2011 2012 2013 2014 2015
Fund Average Project Value Campus Average Project Value
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OTHER BUDGET HIGHLIGHTS
• $55M provided through Empire State Development to support a seventh round of SUNY 2020 Challenge Grants
• $150M again provided for Regional Economic Development Council grants
• Language has been included authorizing the use of “Design/Build” contracts. Also extended for all State Agencies and Public Authorities
• Free undergraduate tuition at SUNY and CUNY
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63
ADVOCACY 2017/18 REQUEST
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CURRENT ENVIRONMENT
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THE CONSEQUENCES
• Expanded Inspector General jurisdiction Greater oversight of nonprofits and foundations created for the benefit of, or controlled by, SUNY or CUNY
• Chief Procurement OfficerState-wide, not specific to SUNY/CUNY
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NEW YORK STATE LABOR MARKET
TRENDS
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NYS LABOR MARKET TRENDS
NYS Construction Employment*
*Source: USDOL BLS
Great Recession: December
2007 to June 2009
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NYS Employment, Construction of Buildings
*Source: NYS DOL
NYS LABOR MARKET TRENDS
$57,980
$59,459
$64,645
$54,000 $56,000 $58,000 $60,000 $62,000 $64,000 $66,000
Average Wages
2015
2011
2008
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NYS Employment, Construction of Buildings Regional Changes 2011-2015
*Source: NYS DOL
NYS LABOR MARKET TRENDS
7%
8%
2%
-3%
33%
11%
13%
11%
4%
4%
-5% 0% 5% 10% 15% 20% 25% 30% 35%
Western
Southern Tier
Central
North Country
NYC
Wages Employment
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CONSTRUCTION FUND BID MARKET TRENDS
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FUND CONSTRUCTION BID TRENDSCOMPARISON OF BUDGET V. MEDIAN BID
NUMBER OF PROJECTS BIDAVERAGE NUMBER OF BIDDERS PER PROJECT
84
67
76
83
3640 41
58
40
69 9 9 8 7 6 6 5
0
10
20
30
40
50
60
70
80
90
0
100
200
300
400
500
600
700
800
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 TTD
Cou
nt
$ M
illion
s
BUDGET MEDIAN PROJECTS BID AVERAGE NO. OF BIDDERS
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POST OCCUPANCY
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13 CAMPUSES
AlfredFredoniaBrockportOswegoESFUpstateCornellOneontaPlattsburghPotsdamPurchaseOld WestburyFarmingdale
CAMPUSES VISITED & PROJECTS EVALUATED
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COMMENTS, FEEDBACK, AND LESSONS LEARNED
Specific recommendations include:
• Staffing / Stakeholders
• Communication & Collaboration
• Project Management
• Contractor Selection
• Project Specifications
• Project Schedule and Timing
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• Life Cycle Modeling (AssetWORKS)
• Construction claims management and mitigation
• Campus planning tactics going forward
• Need Design-Build contract language
• Legislative advocacy
STRATEGIC INITIATIVES
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This has been a collaborative effort. We listened, you helped.
This work will continue.
Your continued help would be appreciated.
THANK YOU.
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Questions?