CMU has $5.7 million in deferred maintenance budget; fund larger than other universities
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The university’s deferred maintenance fund trumps that of other universities, but it’s still half the amount needed to finance all the “big-ticket” maintenance issues on campus.
Such projects are typically the replacement of building and utility systems, including roofs, sidewalks and heating-ventilating-air conditioning, said Linda Slater, director of Plant Engineering and Planning. Central Michigan University’s current deferred maintenance budget is $5.7 million.
Steve Lawrence, associate vice president of Facilities Management, said the CMU Board of Trustees has never decreased the deferred maintenance fund and what it receives is generous compared to most universities.
“(The $5.7 million) is much better than many universities have,” he said, “and we’re very fortunate that our budget is as big as it is.”
The fund is a $200,000 increase from previous years, said David Burdette, vice president of Finance and Administrative Services.
Burdette said the budget is one of the single most important positive aspects about budgeting at CMU, as it plays a strong role in maintaining the buildings and the infrastructure.
“I’m very proud of (the amount allocated) because it’s a positive statement from the board of trustees and president that they care about the infrastructure and buildings of this campus,” he said. “We will protect that deferred maintenance budget. It’s really important, not only for current students but for future students.”
Lawrence said the average age of campus buildings is about 40 years.
The fund’s mechanics
Carol Haas, director of Financial Planning and Budgets, said the deferred maintenance fund is like a replacement program so campus facilities do not deteriorate.
“Items have a useful life of so long and you really ought to plan to replace (them) during that time frame,” she said. “Sometimes you can’t do that and then it becomes a deferred maintenance item.”
To extend the time before systems need to be replaced, Slater said, Facilities Management works to implement day-to-day maintenance like roof inspection and repair, filter changes, bearing changes and parking lot crack sealing.
Seven entities on campus participate in preparing and prioritizing the list of projects, which are funded and completed each year, she said, including Athletics, University Recreation, facilities operations, grounds, Plant Engineering and Planning and Residence Life.
“Facility condition assessments of buildings and utilities prepared by architectural and engineering firms are a key input to this process,” Slater said.
Projects and funding
When prioritizing projects, Lawrence said they address the most serious things first, like roof replacement and safety issues, so none of the projects that roll into future years become hazardous.
Slater said the project prioritization process is very inclusive because it gives her team a better perspective of which projects need to be addressed first.
“We get different perspectives and it really helps us get to the right priorities,” she said.
Slater said the next big project on the books is to redesign and replace the heating-ventilating-air conditioning system in Anspach Hall.
Lawrence said the amount of projects completed each year varies depending on how expensive they are.
Barrie Wilkes, associate vice president of Financial Services and Reporting, said most other universities that run into budget problems often look to cut deferred maintenance funds to solve or help solve the issues — but not at CMU.
“Our board has been very firm that they aren’t going to (cut the deferred maintenance budget),” he said. “They are going to continue to support deferred maintenance.”
Haas said if funds are not allocated to deferred maintenance projects, then the list grows and the facilities will deteriorate.
“So you really have to keep up on it so the facilities don’t deteriorate and cost you more in the end,” she said. “If you let something go so bad, then it could end up costing you more in the end to fix what’s deteriorated plus any other subsequent damage.”
To stop deferred maintenance from growing, Haas said Facilities Management needs closer to $12 million a year. However, she said CMU doesn’t generate enough revenue to increase the deferred maintenance budget.
“We are making strides to keep deferred maintenance from growing ... although we do have needs that exceed that,” Haas said. “They don’t even have enough funds to do just normal maintenance. The needs are always greater than the funding.”
