Financial Master Plan
While these are major critical issues for the main campus buildings, seven other categories of additional capital expenses will also be required if Amherst is to continue to function at an acceptable level. Health and Safety requirements including sprinklers and fire alarm loops will require about $40 M, utility upgrades that include required repairs to the old steam plant, replacing antique steam lines, and essential electrical repairs come in at $34.3 M. The campus roadways, as anyone who drives around campus recognizes, have deteriorated to the point that $12.3 M is required to restore them. Various athletic and recreation facilities on campus are old and in poor repair requiring some $10.3 M in renovation and replacements. The campus farms will need $8 M of facilities renovation to remain viable in support of research and instruction. Finally, to accommodate the increased student population and support the extensive repair and renovation, we will need to spend $16 M to add one building for swing space and one auditorium to the campus inventory.
The total additional investment in capital, repair, and renovation involved here, not included in the budget projections because no source of revenue to fund these investments over the period of this budget plan currently exists, is approximately $415.3 M. Attached to this budget plan are tables illustrating these issues, but a detailed, building by building, inventory of all these projects is available from the campus.
It would be comforting to imagine that these expenses are optional, that they involve enhancements to campus space, or that they put the campus ahead of the repair and renovation curve. Unfortunately, this is not the case. These are essential in the sense that if we do not find a way to deal with these issues, we will continue to close portions of our facilities, we will be unable to continue to teach science courses that require laboratories, we will be unable to ensure the health and safety of our students, faculty, staff, and visitors. The campus has no escape from these physical facilities issues. We will need to find a way to sustain an addition to the already heavy debt load and capital repair budget of $52 M projected for 2008 and beyond. It will take another $41 million in annual debt service or equivalent annual capital renovation, repair, and replacement expenditures during the period of this budget projection to make significant progress on these issues. Given the time lag between decision and implementation in capital projects, the institution will need to commit to these projects within the next year or so if it is to have any chance of meeting these requirements.
In the event the resources cannot be found to address these issues, the trustees, system administration, and campus will need to reevaluate the mission of UMass Amherst.
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