As students and faculty return to campuses across Utah, a quiet revolution is underway in how the state funds and builds its higher education facilities. Since 2019, Utah has shifted from a reactive, year-to-year funding model to a strategic, forward-thinking approach that provides a stable financial foundation for capital projects. This change, initiated by Senate Bill 102 (2019 General Session), has given institutions the predictability they need to plan for the future, ensuring that buildings and infrastructure keep pace with the state’s growing educational needs.
The Blue Print
Before 2019, higher education institutions would submit capital facility proposals to the Building Board and the Legislature each year, hoping for a green light. This process often led to uncertainty, making it difficult for schools to plan for major expansions or renovations. The outcome of each legislative session determined whether a project would move forward, leaving institutions with little ability to budget for long-term construction plans.
Passed during the 2019 General Session, S.B. 102, “Higher Education Capital Facilities,” fundamentally changed this process. The bill established a dedicated funding stream for capital projects, ensuring a stable source of revenue that institutions could rely on. This legislation created two new dedicated funds: the Higher Education Capital Project Fund and the Technical Colleges Capital Projects Fund.
The Utah Board of Higher Education is responsible for distributing these funds based on a set of objective criteria designed to reward performance and address the most pressing needs. These criteria include:
- Enrollment: The number of students at an institution.
- Performance Metrics: The institution’s overall performance as described in Utah Code 53B-7-706.
- Projected Growth: The anticipated increase in the student population.
- Square Feet per Student: The existing space available per full-time student equivalent.
- Facility Age and Condition: The age and state of existing buildings.
- Space Utilization: How efficiently academic and off-campus facilities are being used.
S.B. 102 also introduced a new classification system for projects:
- Dedicated Projects: These are projects funded by the new dedicated capital project funds. Institutions receive an allocation and can use these funds to either build new facilities or save the money over time to fund a larger project in the future.
- Nondedicated Projects: These projects request or use state funds from a source other than the dedicated capital project funds. Nondedicated projects can also be funded through a combination of sources, including donations, federal funds, and other state appropriations.
In addition to these categories, some projects—typically those for housing or parking—are funded through a third path: the use of bond proceeds. In these cases, the institution uses revenue generated from user fees (e.g., rent or parking fees) to pay off the bonds.
The Budget
One of the most significant benefits of the dedicated funding model is its transparency and predictability. These ongoing amounts were established in the 2021 General Session through intent language included S.B. 3, “Appropriations Adjustments” (Item 332), which promised a total of $120 million for higher education capital projects starting in FY 2023, contingent on revenue projections.
The most recent legislative session, however, saw a slight reduction in these amounts. For Fiscal Year (FY) 2026, the legislature appropriated $95.6 million to the Higher Education Capital Project Fund and $17.9 million to the Technical Colleges Capital Projects Fund ($6.5 million reduction from FY 2025). This reduction is a direct result of the projected revenue forecast for the upcoming fiscal year.
Even with this slight decrease, the new funding model provides a clear picture of how funds are allocated. For degree-granting institutions, the funds are distributed according to the criteria outlined in S.B. 102, while technical colleges receive funds based on projects they submit for review and approval by the Utah Board of Higher Education.
The Build-Out
The chart below describes how the dedicated funds were allocated to degree-granting institutions for FY 2026 and how those allocations, combined with existing balances and approved projects, impact each school’s overall capital budget.
As seen in the table, the new system allows institutions to “bank” their allocations, accumulating funds over several years to support major construction projects. This long-term planning ability is a key feature of the new model.
During the 2025 General Session, the Legislature approved a total of 12 dedicated and nondedicated projects across eight campuses. In addition to construction funding, ongoing Operations and Maintenance (O&M) funding was appropriated for five of the approved projects. These funds will be used to support the day-to-day operations of the new buildings once they are completed. The table below describes the projects greenlighted in the 2025 General Session:
Details on project size, scope, costs, and funding sources available in the Division of Facilities Construction and Management (DFCM) 5-Year Construction Plan Book.
The passage of S.B. 102 has created a sustainable and predictable framework for funding higher education capital investments in Utah, which is also flexible enough to allow legislators to consider current revenue projections. By tying funding allocations to objective performance and demographic metrics, the Legislature has not only provided institutions with the tools to plan for the future but also created incentives for schools to meet their core missions. This innovative approach ensures that as Utah’s population and economy continue to grow, the state’s higher education infrastructure will be ready to support the next generation of students.