The Pennsylvania State University
5 Year Capital Plan

September 17, 2004

BOARD APPROVES 2005-06 CAPITAL BUDGET REQUEST,
HEARS UPDATE ON PENN STATE'S FIVE-YEAR CAPITAL PLAN

University Park, Pa. - Penn State's Board of Trustees today (Sept. 17) received an update on Penn State's $945 million capital construction plan for the next five years. The board also authorized the University to request $71.89 million from the Pennsylvania legislature to fund capital budget projects beginning next fiscal year.

Penn State's capital budget funds new construction and renovation projects at all 24 Penn State locations across the Commonwealth.

"While we have made significant strides over the past several years to address our space needs, we have a need to continue to build new space and renovate our existing buildings," said Penn State President Graham B. Spanier. "Because our capital funding needs exceed our capital funding resources, we have had to make difficult choices among many high priority needs."

Despite being one of the nation's largest universities and among the top 10 institutions in research expenditures, Penn State lags well behind its peers in terms of adequate instructional and research facilities. An aggressive five-year construction plan - which includes nearly $500 million for educational facilities and almost $300 million for medical projects - should alleviate some of those concerns and modernize the facilities available to students and faculty.

Highlighting the more imminent educational and general (E&G) projects at University Park will be major additions and renovations to Henderson and Moore Buildings and construction of a health services building and a second life sciences building. Also on tap is a renovation to Swift Building at Penn State DuBois and a new classroom building at Penn State Worthington Scranton.

Other large-scale E&G projects planned to begin design from 2005 to 2009 are a new classroom building at Penn State Berks, a new office building and library depository at University Park, and renovations for Ferguson Building at University Park. As can be seen by these projects, the University is making a significant commitment to renewing its facilities.

Among the major endeavors is the $297 million five-year plan for the Penn State Milton S. Hershey Medical Center to build a new children's hospital and a cancer center, along with the building and infrastructure upgrades required to support these new facilities. The timing of these projects is dependent on the availability of philanthropy as well as federal and special state support.

An estimated $121 million for housing and food services renovations or additions is planned by the end of the decade. The plan also calls for $36 million in athletic and recreation facilities additions and upgrades - including a new or renovated baseball stadium and an improved softball stadium.

The five-year capital plan is subject to change as priorities are revised and emergent needs arise. The plan also is contingent upon state and federal funding and the University's ability to raise targeted funds through philanthropy. At present, the state has committed only to the first $40 million included in the plan.

The fiscal 2005-06 capital budget request approved by the board includes $53.5 million for construction projects and $18.39 million for original equipment.

Five projects comprise the sum of this year's capital budget request of $53.5 million for new construction and renovation. They include: $15.7 million in additional funds for the Moore Building addition and renovation at University Park; $6.7 million in additional funds for the classroom laboratory building at Penn State Berks; $1.4 million in additional funds for the administration and classroom building at Penn State Delaware County; $14.7 million for a general office building at University Park; and $15 million for an addition to the Computer Building at University Park.

The $18.39 million request for original equipment covers building furnishings, seating, laboratory equipment, moveable office partitions and other non-fixed items to help make new or newly renovated facilities complete and in compliance with federal and state regulations.

Each year at this time, Penn State updates its overall five-year capital plan and presents a capital budget request to the Board of Trustees for approval. Following approval by the Board, the request is submitted to the Commonwealth Department of Education for further consideration by the state legislature. The capital budget request is an integral component of Penn State's capital planning process and consists of those projects for which the University is seeking authorization for subsequent funding by the governor.