Current through Register Vol. 35, No. 18, September 24, 2024
A.
Reviewing and recommending: In reviewing and recommending capital project
requests, the higher education department will be guided by the general
criteria listed below. Specific determinants for evaluating the projects may
vary from year to year as the immediate capital needs of the institutions
evolve and as requirements for code compliance are revised. These influences
will be explained each year in the capital project recommendations document
prepared for the New Mexico legislature. In general, the higher education
department will give preference to the following types of projects:
(1) projects which are strongly related to
instructional programs and which support an institutions mission and particular
role;
(2) projects to provide high
quality educational settings which represent up-to-date technologies;
(3) projects which are necessary to
accommodate enrollment growth;
(4)
projects to address major health and safety problems and elimination of
physical barriers to handicapped persons;
(5) projects resulting from unforeseen
conditions that if uncorrected would result in major property
deterioration;
(6) projects to
renovate facilities or to make wise use of other existing resources whenever
feasible and economical;
(7)
projects to improve utilities systems or building energy efficiency that will
result in rapid capitalization of initial costs and long-term reduction of
energy costs;
(8) projects for
which there is no other available or more appropriate funding source, such as
building renewal and replacement funds, local bonds, revenue bonds, auxiliary
revenues, or research revenues.
B. Projects eligible for capital outlay
recommendation: Capital outlay projects which are primarily used to support the
following activities are eligible for consideration by the higher education
department for state funding:
(1) Instruction:
Instructional space includes classrooms, laboratories, other teaching
facilities, and office space for faculty deans, and instructional department
heads and related clerical staff.
(2) Library: All activities necessary to
operate libraries are eligible.
(3)
Administration services: All activities related to student services or
institutional administration are included in this category (e.g., admissions,
administrative vice presidents, comptroller, computer center, dean of students,
maintenance work shops, placement services, university architect, vocational
director).
(4) Research: Only
four-year institutions may submit requests for state funds for capital outlay
projects to house research activities which will enhance fulfillment of the
institution's mission. All sponsored research and organized research units,
including administration and management of research activities, may qualify for
support.
(5) Public service:
Institutions may submit requests for state funds for capital outlay projects to
house public service activities. Eligibility under this category is limited to
sponsored public service activities and organized public service units, such as
public broadcasting services, small business development centers, and
cooperative extension services. See Subsection C of 5.3.9.8 NMAC below for
activities not eligible for state funding.
(6) Physical plant: Circulation and support
space, such as halls, restrooms, and mechanical equipment rooms, for buildings
housing eligible activities will be included in all capital outlay projects. In
addition, the following types of projects are eligible for consideration:
stand-alone utility structures such as heating and cooling plants, electric
substations, and utility tunnels; physical plant shops offices and storage
areas; and site improvements for infrastructure systems such as roads, parking
lots, drainage or storm sewers, water or wastewater, telecommunications cables,
or heating/cooling loops.
(7)
Multi-use facilities: Capital projects with buildings that house more than one
activity, one or more of which are eligible for state funding, may be
submitted. However, only space devoted to eligible activities may be considered
for state funding. A plan for funding the ineligible space from non-state
sources must be included with the proposed project. For individual projects
with common space used for both eligible and ineligible activities, state
funding will be prorated based upon the percentage of time and amount of space
allocated to eligible activities; the balance must be supported from other
sources. (See the proration formula in Subsection D of 5.3.9.8 NMAC.)
(8) Land acquisitions: Land to be used for
eligible activities will be considered for state funding.
C. Projects ineligible for capital outlay
recommendation: Capital outlay projects which are primarily used for the
following activities are not eligible for higher education department
recommendation:
(1) Non-instructional
athletics, such as intercollegiate sports. Examples of ineligible facilities
are Pan American center at NMSU and the UNM arena.
(2) Recreational or entertainment events, for
either students or the general public. Single purpose auditoriums such as
Popejoy hall at UNM are ineligible.
(3) All auxiliaries, such as bookstores, golf
courses, student unions, student housing, etc. These operations are not
eligible for state funding and are expected to be fully self-supporting and
self-liquidating from the revenues generated by their operations.
D. Proration of funding: When a
multi-use building will be used for both eligible and ineligible activities,
the funding request must be prorated between state and other sources according
to the amount of time and space devoted to eligible vs. ineligible activities.
For example: A new fine arts building is being proposed with a total of 70,000
gross square feet (GSF) at a cost of $80/GSF, for a total of $5,600,000. Net
assignable square feet (NASF) within the building will be 56,000. Of this
amount, 35,000 NASF will be used by activities eligible for state funding;
15,000 NASF will be multi-use 60 percent of the time for eligible activities
(instruction) and 40 percent of the time for ineligible activities (community
concerts); and 6,000 NASF is ineligible. To determine the portion of the total
capital project that is eligible for consideration for state funding, the
following formula is used:
(1)
(ES
+ (MU x EU)
NASF x GSF x cost per GSF = State funding for eligible
space
(2)
(35,000 + (15,000 x .60)
45,000 x 70,000 x $80 = $4,400,000
(3) ES = Eligible net assignable square
feet
(4) MU = Multi-use net
assignable square feet
(5) EU =
Eligible use (percent of available time used for eligible activities)
(6) NASF = Net assignable square
feet
(7) GSF = Gross square
feet
E. Exceptions for
two-year colleges: Space for certain functions that are ineligible for state
funding at four-year institutions, such as bookstore operations, food services,
community services, and student social, cultural, recreational activities, may
be included as a portion of capital projects submitted by two-year colleges.
The rationale for this exception is that two-year colleges usually do not have
large-scale auxiliary enterprises which can provide an adequate revenue stream
for financing auxiliary facilities. These exceptions apply only if a two-year
college has provided the required local match of 25 percent as described in the
following Subsection F of 5.3.9.8 NMAC.
F. Required local match: For two-year
institutions, the higher education department requires local matching
participation in the amount of 25 percent of the total cost for each project or
group of projects. However, the higher education department may waive or reduce
the 25 percent matching requirement if the institution is not authorized to
issue local general obligation bonds, is at maximum bonding capacity, or has
already contributed from local sources at least 25 percent of all construction
costs, including the cost of the proposed project.
