The University's capital needs historically have been met with both state- and non-state funds.

Non-state funds from gifts, grants, debt financing and other sources are typically used to support student and faculty housing, parking, athletics, recreation and other student-funded facilities, medical centers and sponsored research programs.

State funds, including State General Obligation (GO) bonds, which require voter approval, and lease revenue bonds, which do not, have been the primary sources of funding for core academic activities - that is, general campus and health sciences education facilities - since the mid-1980s.

The last voter-approved GO bond measure for higher education was in 2006 and provided state funding for two years. Funding in 2008-09 and 2009-10 reflects the absence of such bond funds and the more restricted use of state lease revenue bonds.

The availability of GO bond funding for state-supported projects in future years as a reliable and significant source of funding for capital needs is a major issue for the University. The University estimates that it will need more than $1 billion per year over the next five years to address its most pressing facilities needs for core academic activities, such as new research and other instructional facilities to support growth in general campus and health sciences programs, correction or replacement of seismically deficient facilities, renewal or replacement of building systems, and improvements to campus utility systems.

Source: UCOP Budget and Capital Resources

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