Paying for Space: A Brief Framing the Issues and Opportunities in Capital Finance for Higher Education in California

The capital financing needs for the public institutions in California are immense and overwhelming, and neither the state nor the institutions have a coherent plan for addressing them. The current ad hoc and episodic approach to funding may be the best that can be done under the current circumstances, but without a better approach, the situation will only continue to deteriorate.

The state has to protect its substantial, 100-year investment in public facilities for higher education. A systematic approach to paying for renovations, repairs, and deferred maintenance is needed, beginning with decisions about revenue sources and ways to establish funding priorities. Plans also must be made for increasing capacity to accommodate rising enrollment demand for higher education. 

In this report, we explore the diverse and interrelated facets of the California higher education capital finance challenge.