2011–2012 Financial Plan - Cornell University Division of Budget ...

total planned activity over the next five years representsan 11 percent reduction from the fiscal year2010-11 capital plan.Of the approved project costs, $492.7 million (30percent) is estimated to be spent by the end of the2010-11 fiscal year. If future projects proceed asplanned, the capital budget for expenditures during2011-12 will total $373.9 million, and an estimated$782.3 million will be spent over the remainingyears of the plan.Projects that have been fully authorized and are underwaymake up $977.2 million (59 percent) of thetotal capital plan. They include the Weill CornellMedical College’s Medical Research Building, therenovation of Stocking Hall and construction of anew Food Science Building, the new Human EcologyBuilding and parking garage, the constructionof Milstein Hall, and the renovation of Warren Hall.Major projects (project budgets greater than $10million) and new construction planned for theIthaca campus represent $157.6 million of projectcost. Each of these projects has design work orphases of construction already authorized. Thisgroup of projects includes the phased renovationsof Martha Van Rensselaer, the construction ofGates Hall, renovation and new space for the LawSchool, means restriction on campus bridges, andthe construction of a new teaching dairy barn.Additional capital activity not included in the twoprevious categories that is principally funded bythe State University of New York (SUNY) capitalplan comprises approximately $66 million of totalbudget and includes a variety of facilities and infrastructuremaintenance projects and upgrades forthe Contract Colleges.Ithaca campus facilities and infrastructure maintenanceand upgrades, energy conservation, administrativesystems, and college and unit programmaticrenovations and improvements make up $397.1million of planned activity.Finally, the Weill Cornell Medical College hasplans for clinical program improvements plus expansionand maintenance needs which will require$51 million in addition to the projects approved oralready underway. The key component of the clinicalplanning strategy is the Medical College’s expansionto a new practice site located on the westside of Manhattan.FUNDING SOURCESMore than half of the funding for capital projectsdepends directly on external resources (page 58).Sources of external debt financing are shown onpage 59. The use of university resources for repaymentof debt financing is reflected in the appropriateunit operating budget (page 60).Gift and grant funding, including grants fromgovernmental or private institutions, is projected at$532.6 million, or 32 percent of the total approvedcapital activity. More than 90 percent of this fundingis associated with the Medical Research Building,Gates Hall, and Milstein Hall. The estimated valueof gifts and grants in hand or pledged for approvedprojects is $477.2 million, leaving $55.4 million to beraised.New York State support is projected to fund $326.5million (20 percent) of total project costs throughthe SUNY Capital Plan. This current SUNY fiveyearplan extends to 2013. Projects to be fundedfrom the next SUNY capital plan are not includedin the university’s current capital plan. The processfor determining Cornell’s submission to the statewill take place over the next 12-18 months.Funding from General Purpose resources amountsto $443.4 million (27 percent) of approved capitalactivity. Nearly half of this amount is the MedicalCollege’s funding of the debt service for the MedicalResearch Building. Funding from unit resourcesand enterprise operations represents $346.5 million(21 percent) of planned expenditures.Capital Plan — 2011–1251