Campus Operations Financial Alignment

Campus Operations is aligning service delivery with associated costs. As a result, three areas will be reviewed and communicated. Changes will take effect on September 1, 2025.

Changes will occur in three areas:

1. Building Services: Campus Operations provides general upkeep and maintenance services for buildings.

Campus Operations has audited current service arrangements and are adjusting to reflect appropriate billing responsibilities based on organizations. Colleges, schools, and units, including self-supporting auxiliary units and external entities (e.g., independent coffee shops) may incur charges for services previously provided without cost. Additionally, some services that were billed in the past may no longer be charged. 

2. Service-level Agreements for Equipment: Service-Level Agreements (SLA) are formal agreements between a service provider and a client that define the specific services to be provided and the responsibilities of both parties. Implementing SLAs will clarify expectations between Campus Operations and our partners, including the type of service and responsibility for costs associated with specific work. Updated SLAs for specialized maintenance (e.g., lab equipment) will reflect actual usage and maintenance requirements, ensuring transparency and fairness.

3. Annual Rate Adjustments: Campus Operations charges for some services at an hourly rate, such as program management. Colleges, schools, and units may notice annual updates to account for rising costs. These updates are typically announced annually in the spring to allow for budget planning.

In the past, agreements regarding services and associated costs have been inconsistent. These updates address those inconsistencies, rising operational costs, and organizational changes. Additionally, our adoption of UTWorks, a new work management software, has highlighted the need for consistent billing practices. These changes are designed to ensure services are billed based on usage, space, and resources required to deliver them.

Campus Operations will provide cost estimates to aid in your budget planning purposes through a Service and Operations Cost Dashboard (available in February). These estimates are based on historical costs. Future billable costs may be different, but we are providing these estimates as a starting point in your planning. Campus Operations will send a notification when the dashboard is available to support during this transition. 

Campus Operations provides building maintenance, custodial, landscape, waste removal, code compliance, fire prevention, replacement and renewal (R&R), and utility services.

For E&G areas, these services are centrally funded by the University.

Units that are self-supporting, an auxiliary, or external entities are required to reimburse Campus Operations for services based on space designations and/or applicable rates. Utility costs are based on commodity consumption, generation, and distribution.

For colleges, schools, and units, Campus Operations also offers services for specialized or programmatic equipment, as well as planning, design, and construction. These services are billed to colleges, schools, and units based on labor, materials, and equipment costs. Costs for planning, design, and construction projects depend on the scope and size of the project.

The level of service will remain consistent, but billing for services will be more accurately aligned with minimum required standards.

These changes are occurring because of multiple factors, all of which have revealed a misalignment between financial practices and operational services. In the past, agreements around services and how they were paid for have been inconsistent. Campus Operations is adjusting now to address those inconsistencies, rising operational costs, and organizational changes. Additionally, Campus Operations recently adopted UT Works, a work management software that has highlighted our need for consistent practices. The changes are intended to ensure that services are billed based on usage, space, and resources required to deliver them.  

Colleges, schools, and units may incur charges for services based on space designations or types of equipment that were not previously provided without cost. Conversely, some services that were previously billed may no longer be charged, depending on the updated billing structure. This adjustment will help better align costs with the services utilized by your unit.

These changes will be fully implemented in September 2025.

Campus Operations is working with colleges, schools, and units to communicate upcoming changes and help them prepare for the adjustments. Additionally, a detailed billing framework will be provided to ensure transparency and understanding of how costs are allocated.

Yes, Campus Operations will offer training sessions and resources to ensure that all units understand the new billing structure and how to interpret charges. 

Yes, rising operational costs and inflation may result in increases to existing service rates. These increases will be adjusted annually and will be communicated well in advance to ensure adequate preparation.

Yes, you can view a glossary of terms here.

Space designations are how we classify campus buildings based on their use and purpose. We use space designation to determine how to charge for services.

Space is one of our most important campus resources. The Office of Academic Space Planning & Management (ASPM), under the Provost’s Office, works with Campus Operations and campus partners to ensure that space is assigned appropriately, used efficiently, and reported accurately. Data collected from University departments and units is crucial for facilities planning, indirect cost analysis, and to meet federal and state reporting requirements. All University departments and units are responsible for providing this accurate data for the spaces they own and/or occupy to ASPM. Learn more about space designations in this glossary.

Space designations are defined by The Higher Education Coordinating Board (THECB). THECB's mission is defined as "to work with the Legislature, Governor, governing boards, higher education institutions, and other entities to help Texas meet the goals of the state's higher education plan, working to provide the widest access to higher education in the highest quality in the most efficient manner."

• Educational and General (E&G) space – Space used for teaching, research, or the preservation of knowledge, including the proportional share used for those activities in any building or facility used jointly with auxiliary enterprise, or space that is permanently unassigned. E&G space is supported by state appropriations.
• Non-Educational and General (Non-E&G) —Space not used for teaching, research, or the preservation of knowledge. This includes areas dedicated to auxiliary enterprises, administrative functions, or any other activities not directly related to educational or general purposes. Note, non-E&G space is not defined by the Texas Higher Education Coordinating Board. These spaces are traditionally self-supported.
• Assignable space – Areas within the institution’s walls of rooms on all floors of a building assigned to, or available for assignment to, an occupant or use, excluding unassigned space. Space can be Assignable E&G or Assignable Non E&G.
• Non Assignable space  - Space that is not assigned as it is used to support the overall building operations. This includes restrooms, elevators, circulation areas such as hallways and lobbies, stairways, custodial service storage spaces, and mechanical areas, all of which are not assigned directly to a specific owner. Spaces that are not included above, but directly serve offices, classrooms, laboratories, etc., are classified with the appropriate corresponding code.
• Unassigned space - Areas within the institution’s walls of rooms on all floors of a building that are not assigned to, or available for assignment to, an occupant or use and are not considered non-assignable space. Space can be unassigned E&G or unassigned Non-E&G.
• Vacant - Similar to unassigned space, vacant space refers to areas that are currently not in use due to renovation or other circumstances. Spaces are not assigned to, or available for assignment to, an occupant or use and are not considered non-assignable space.

Calculations are based on space data, which we receive from the Office of Academic Space Planning and Management, under the Provost’s Office. This data is pulled in the fall of each year.

• If Educational and General space is more than 75% of the overall building space, it is classified as non-billable.
• If Non-Educational and General space is more than 75% of the overall building space, it is classified as billable.
• If Educational and General space is between 25% and 75% of overall building space, it is classified as partial and requires split billing.
• If Non-Educational and General space is between 25% and 75% of overall building space, it is classified as partial and required split billing.

Non-assignable space, such as mechanical spaces, hallways, and restrooms, is removed first. The remaining space is determined to be E&G or Non-E&;G according to the Higher Educational Coordinating Board’s definitions. This is then reported to the legislature. Campus Operations checks for anomalies and vacant spaces. Any changes are noted and documented.

Partial funding applies to buildings where 25.01% to 74.99% of the space is designated as educational and general (E&G). These buildings are eligible for partial replacement and renewal (R&R) funding based on the percentage of E&G space.

Systems or services serving a specific room(s) or floors are be billed based on their respective space designation. Systems in buildings that serve the overall building are billed according to the overall designation.

While it might seem appealing to reduce costs by cutting back on certain services, it's important to understand that there are essential legal, safety, maintenance, and insurance requirements that mandate the full set of minimum services. These services are crucial for ensuring legal compliance, protecting the building's value, and safeguarding the health, safety, and well-being of building occupants. Therefore, these services are billed at a minimum level and cannot be altered or eliminated.