September 2023

Higher Education

Enacted Budget Shifts $3.2 Billion in Higher Education Capital Projects From Cash to Debt Financing

(In Millions)

  Project Costa Debt
Projects Shifted in January    
CSU Bakersfield Energy Innovation Center $83.0 $5.5
CSU San Diego Brawley Center 80.0 5.3
CSU San Bernardino Palm Desert Center 79.0 5.3
CSU Fullerton Engineering and Computer Science Hub 67.5 4.5
CSU University Farms 75.0 5.0
CSU San Luis Obispo Swanton Pacific Ranch 20.3 1.4
Subtotals $404.8 $27.0
Additional Projects Shifted in May Revision    
CSU student housing construction projects $655.2 $52.0
UC student housing construction projects 490.0 33.5
UC Berkeley Clean Energy Project 249.0 16.7
CSU Humboldt polytechnic transition 201.0 16.0
UC Riverside campus expansion project 154.5 10.3
UC Merced campus expansion project 94.5 6.3
CSU University Farms (removed) -75.0 0.0
Subtotals $1,769.2 $134.8
Additional Projects Shifted in June    
CCC student housing construction projects $1,010.7 $78.5
Modifications Made in Septemberc    
Intersegmental student housing projects (UC) $236.8 $17.2
Intersegmental student housing projects (CCC) -236.8 -17.0
Totals $3,184.9 $240.5
a Reflects state cost of project (excluding nonstate costs). To generate near-term budget solution, the state rescinds upfront one-time General Fund for these projects (that is, it rescinds the amounts shown in this column).
b The universities are to issue systemwide revenue bonds. Community college districts may issue local revenue bonds or wait for a state financing alternative to be developed as part of the 2024-25 budget process. Beginning in 2023-24, the state provides ongoing General Fund augmentations to cover estimated debt service costs (that is, it provides the amounts shown in this column).
c Under the final budget agreement, UC is to sell revenue bonds for the full cost of three intersegmental student housing projects (Merced, Riverside, and Santa Cruz). Under the June budget agreement, UC and each of the partnering community college districts were to sell revenue bonds separately for each of their respective portions of those projects.