About Related Party Debt
In addition to its primary borrowing vehicles, the University also has other outstanding long-term debt obligations, as listed below:
Currently, the University has approximately $430.7 million* outstanding through the California Infrastructure and Economic Development Bank (CIEDB), which financed the costs of a Neurosciences Building at the San Francisco campus (issued in 2010), a research facility for the Sanford Consortium for Regenerative Medicine at the San Diego campus (issued in 2010), and a Department of Psychiatry Youth and Family Center (2130 Third Street) at the San Francisco campus (issued in 2017). For the bonds related to the Neurosciences Building and 2130 Third Street, the University is required to make base rent payments through a capital lease that equal the debt service on those bonds. For bonds related to the Sanford Consortium project, the University is required to make any debt service shortfall on those bonds through a debt service payment agreement. In addition, the University has other third party, non-recourse debt for housing projects.
The University has approximately $1.3 billion* of outstanding third-party housing debt (i.e. debt issued by a party other than the University but for a project in which the University has an economic interest) under its Financing Trust Structure (FTS) credit. The FTS credit was created to reduce the financing cost of non-core projects, but with a smaller impact on the University’s debt capacity (debt issued under the FTS credit is not counted against the University’s debt capacity on a 1:1 basis). Currently the projects in the FTS are housing projects at the Irvine, Riverside and Davis campus. The bonds are secured solely by gross revenues of the projects financed.
*Bonds outstanding as of July 31, 2019
The University of California is the public institution of higher education designated by the State of California in its Master Plan for Higher Education for the training of individuals for the professions, for the awarding of doctoral degrees in all fields of human knowledge, and for the conduct of research. Since it was chartered in 1868, the University has conferred approximately 2,460,000 higher education degrees, as of June 30, 2017. The University’s administrative offices are located in Oakland, California.
The University is governed by a 26-member Board of Regents, 18 of whom are appointed by the Governor and approved by a majority vote of the State Senate (currently for a 12-year term), one student Regent, who is appointed by the board to a one-year term, and seven ex officio Regents who are members of the board by virtue of their elective or appointed positions. The ex officio Regents are the Governor of the State, Lieutenant Governor of the State, Speaker of the Assembly, State Superintendent of Public Instruction, President of the Alumni Associations of the University, Vice President of the Alumni Associations of the University, and the President of the University.
Classes began at Berkeley in 1873 and the University currently operates general campuses located in Berkeley, Davis, Irvine, Los Angeles, Merced, Riverside, San Diego, Santa Barbara and Santa Cruz; a health science campus located in San Francisco; and laboratories, research stations and institutes, affiliated schools, activity locations, and a statewide Division of Agriculture and Natural Resources. The University operates a cooperative extension program reaching into nearly every area of the State and numerous public service programs. The Education Abroad Program of the University is offered at many different host institutions around the world.