Chapter 4: Capital Financial Plan

A CFP outlines a location’s six-year capital investment strategy (the current fiscal year and next five years); it identifies proposed projects, funding sources, and priorities needed to advance academic, research, and public service goals. A CFP presents proposed capital projects, public-private partnerships, and acquisition of real property to achieve the goals of the location’s strategic and academic plans and the LRDP. Its scope outlines the capital projects and funding needed for location growth, infrastructure renewal, housing, hospital and clinical space, seismic and life safety improvements, as well as other capital needs. In connection with other plans, a CFP aligns projects with the physical development envisioned in the LRDP and guided by the PDF. See Bylaws of the Regents of the University of California; Charter of the Finance and Capital Strategies Committee, Appendix C; and Regents Policy 8103: Policy on Capital Project Matters.

A CFP presents a comprehensive, multi-year view of proposed capital projects and the financial strategies required to implement them. It serves as the bridge between academic and physical planning and the capital budgeting process. Each location prepares a CFP that identifies near- and long-term capital needs, funding sources, and project priorities in support of the academic and strategic plan goals. The CFP integrates information from the LRDP and the PhDF, aiming that projects are both programmatically justified and physically and financially feasible. By aligning anticipated resources, such as State funds, external financing, gifts, and reserves, with capital needs, the CFP helps decision-makers assess affordability, debt capacity, and sequencing of projects. The systemwide CFP, compiled annually by UCOP, provides a unified view of the University’s capital needs and informs the Regents and the State about UC’s capital priorities.

While specific content may vary by location, a CFP typically includes:

1. Introduction and Purpose. Explain the purpose of the CFP, its relationship to the academic and strategic plans, and LRDP.
2. Planning Context. Summarize the location’s goals; physical planning context; and other drivers influencing capital needs, such as seismic priorities, sustainability objectives, or housing demand.
3. Capital Needs and Priorities. Identify near-term and long-term capital priorities, including new construction, renewal, infrastructure, and deferred maintenance projects. Discuss how projects support the location’s goals.
4. Funding Plan and Sources. Outline anticipated funding sources for each project, such as State funds, external financing, gifts, grants, auxiliary revenues, and campus funds. Indicate assumptions and constraints related to each funding source.
5. Proposed Project Lists. Provide list of proposed projects within the six-year period (current fiscal year and next five years. The identified funding list includes fund sources and the budget; the funding not identified list only includes estimated budget.
6. Summary Tables and Graphics. Include summary tables that show total capital investment by fund source, program type, and time period. 

Each campus compiles the narrative and data for its CFP and submits it to the UCOP for review. Prior to FY 2023–24, the CFP was a standalone document; beginning in FY 2024–25, its information is incorporated into the University of California Consolidated Capital Report. The UCOP prepares the Regents item requesting the Regental approval of the CFP. The CFP remains in effect until it is replaced by a new CFP. Since the CFP is updated annually, there is no separate process for amendments.