Summary

Maintenance and Repair/Maintenance and Operation (M&R) (M&O): M&R is the routine work required to preserve the functionality of a building. This is an operating budget requirement.  The University dedicates about $27 million per year to this category in its operating budget.  M&O is similar but is an expanded category that includes operations of facilities such as janitorial, security, related staff, etc.  With operations included, UA spends about $72 million per year in this category.  M&O and M&R are sometimes used interchangeably (they should not be) but the important fact to remember about them is that they are the day to day operating budget items addressing facilities.

Renewal and Renovation (R&R): This category represents the scheduled replacement of worn out building components that extend the useful life of a facility.  R&R is nationally recognized as a capital budget item. Projects that would fall under R&R include upgrading for code and safety, replacement of heating and ventilation systems, roof and flooring replacement, and renovation/remodeling to meet program needs.

Deferred Maintenance (DM):  This category represents the backlog of facility maintenance needs that result when R&R has not been completed as necessary.  The failure to keep up with R&R is a result of lack of funding.  As a result the backlog has grown to nearly $700 million.

Here’s the Problem:  The public and some in the legislature think the university has deferred maintenance because it (UA) has neglected its M&R responsibilities and subsequently used the money it should have used for upkeep on other things.  In fact, the opposite is true.  President Hamilton has mandated that the university will maintain a funding commitment to maintenance and repair no matter what level of funding is available for the operating budget.

Unfortunately, the requests in the capital budget (the only mechanism available to address DM and R&R) have remained mostly unfunded.  In fact, with 6 million square feet of facilities under roof and $1.7 billion in facilities assets UA needs about $40 to $50 million per year just to keep up.  Since 2000, UA has requested an average of $63 million per year from the legislature in R&R, but received only an average of $12 million.  Some years have gone unfunded completely which has caused a rapid increase in deferred maintenance.  

Since 2000 the legislature has averaged appropriations of $23 million per year for new facilities.  The legislature has preferred a policy of building new facilities over maintaining existing ones.

Status:  The $50 million needed annually to maintain 6 million square feet is confirmed by national standards.  With less than one-fourth of the annual need being funded, it is no surprise that over $700 million backlog has materialized. Given the size of the deferred maintenance backlog, it isn’t realistic to presume it will be fully funded in any one year.   However, systematic reductions must begin immediately, and annual appropriations for R&R must be maintained to ensure that the University doesn’t take one step forward and two back each year.  

It is realistic to assume the state will make maintenance of existing infrastructure a priority and that the responsible plan put forward by the University will be funded annually beginning in FY09.   

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For Information Contact:
Pete Kelly, Director, State Relations
450-8006/465-2382