Contact: Anthony de Bruyn, (512) 499-4363

Date: March 11, 2004

UT System News Release

AUSTIN – Academic campuses in the University of Texas System will have to spend at least $7 billion on new and renovated buildings by 2030 to meet the needs of increased numbers of students if the state meets its goals for “closing the gaps” in higher education enrollment, a special task force reported to the Board of Regents on Thursday (March 11). The statewide cost will be at least $20 billion, the task force said.

The Capital Planning Task Force was established in September to assess higher education's infrastructure needs in the next quarter century in light of record enrollment growth and the statewide Closing the Gaps initiative. Under Closing the Gaps, the state is seeking to increase enrollment and graduation rates for all Texans as well as to bring the rates for African-Americans and Hispanics up to the rates for Anglos.

It is widely acknowledged that increased rates of participation and success in higher education are essential for the economic and social vitality of Texas, but relatively little attention has been given to the investment in new buildings and renovated facilities that must be made in order to accommodate a significantly larger enrollment,” said Woody L. Hunt, a vice chairman of the board and co-chair of the task force. “We must begin planning now to meet these needs, and we see the work of the task force as a first step toward that end.”

Vice Chairman Cyndi Taylor Krier, also a co-chair of the task force, said the report focuses “not just on spending more money but the need to spend it more wisely.” That could include finding ways to increase use of existing facilities by offering classes at lower tuition rates during off-peak hours and increasing the use of technology, she said.

“As the state focuses on public school financing for the anticipated special session of the Legislature this spring, we could help address future financial needs of both the public schools and Texas higher education by increasing dual credit and advanced placement courses and reducing the need for remedial courses in higher education,” Krier said.

The task force dealt only with capital expenditures necessary to close the gaps related to student enrollment. Additional infrastructure investments will be necessary to close the gaps between Texas and other states in academic excellence and research. In addition to new capital expenditures, annual operating costs associated with meeting the needs of an increased number of students will also rise, such as faculty salaries and utilities.

The projections of the task force are based on an estimate from the Texas State Data Center that the general academic universities in the U.T. System will need to add from 116,000 to 180,000 students by 2030 as part of the statewide Closing the Gaps initiative. Among the nine campuses, U.T. Austin is planning to hold its enrollment steady, so the growth will be concentrated at eight institutions. They are U.T. Arlington, U.T. Brownsville, U.T. Dallas, U.T. El Paso, U.T. Pan American, U.T. Permian Basin, U.T. San Antonio, and U.T. Tyler.

The space needs could be reduced through greater space utilization (reducing the average square footage per student) and by more use of distance education (via the Internet). The task force used a conservative assumption that each new student would require an average of 145 square feet of “educational and general” space. The current statewide average is 151 square feet. “Educational and general” space includes classrooms, laboratories, libraries, offices, and utility infrastructure. It does not include self-supporting facilities such as intercollegiate athletics buildings, residence halls, and parking garages.

The task force estimated that existing funding sources (such as tuition revenue bonds, the Permanent University Fund, the Higher Education Assistance Fund, and philanthropy) could pay for approximately $2.8 billion (40 percent) of the $7 billion in infrastructure needs, and greater space utilization and additional funding would be necessary to meet these future infrastructure needs.

Presentation 1:

Assessing the Need for Capital Required to Close the Gaps at UT System Academic Institutions (PowerPoint || PDF )

Presentation 2:

Potential Capital Funding Sources and Strategies to Close the Gaps at the UT System Academic Institutions (PowerPoint || PDF)

Other news from the Special Meeting of the Board