David Hanson, VP of Finance & Administration at Virginia Commonwealth University, discusses how senior leadership at VCU was able to use data-heavy arguments to make the case to the board to restore their capital investment capacity and invest in projects that will lower operating costs and release savings for re-allocation across a rapidly growing and diverse campus.

1. CASE STUDY:
VIRGINIA COMMONWEALTH UNIVERSITY

2. VCU Campus Profile
VCU is a major, urban public
research university that
continues to grow in scope,
stature and achievement.
• Founded: 1838
• Located: Richmond, VA
• Number of Buildings: 183
• Total GSF: 7,130,000
• Students: Over 31,000

3. VCU Campus Challenges
Creating a Bridge to Future Capital Allocations
• Growing Campus Space and Population
• Significant Capital & Operating Funding Cuts
• Refocusing Capital Investment Priorities
• Refocusing Operating Activities
• Planning for the restoration of capital investments

4. VCU’s Campus Continues to Grow
Despite Space increase, Campus density remains more than 37% higher than peers
35%
30%
25%
20%
15%
10%
5%
0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Change from FY03
Growth in Space and Student Population
Growth in Space VCU Growth in Students VCU

5. Despite New Construction, an Older & Aging Campus
50
45
40
35
30
25
20
15
10
5
‐
Years
Renovation Age
Peer Age

6. State Funding Reduced Consistently from 2007
State
Maintenance
Reserve
reduced 48%

7. The Increasing Capital Backlog

8. Reduced Capital & Growing Backlogs Require a
Sharp Focus on Project Selection
Total Project Mix FY2003 ‐ FY2012
13%
46%
30%
8%
3%
Bldg. Envelope
Bldg. Systems
Space
Code
Infrastructure

9. Reduced Budgets yet Improved Service
Service Outcomes 2009 to 2012
• Overall inspection up 8%
• Maintained strong cleanliness
• Improved grounds scores
• Lowered mechanical scores
• General Satisfaction has fallen as
service schedules were extended.
• Communication of these service
changes were known.

10. Current Plans to Restore Capital Investments
• Alter the expense side of the campus P&L to free
up investment resources.
• Increase use of public / private partnerships to
build space that addresses housing needs and
releases campus space for academic purposes.
• Target increases in philanthropy
• Review institutional policy towards its risk profile
• Continue to make the case at the legislative level