The following message was shared with all faculty and staff on September 22, 2025:
Dear Colleagues,
We have heard your concerns about the rising costs of delivering capital projects and the impact of recharge rates on departmental budgets. In response, we are making important changes that will lower costs and ease the financial burden on individual projects.
As stewards of UC Berkeley's historic and complex campus, we remain committed to ensuring our facilities support the groundbreaking teaching, research, and public service that define this university.
Lowering Project Costs
Beginning this year, the recharge rates for capital projects are being reduced. This change is possible because we are now providing more central funding for Capital Strategies' planning and project management teams—the groups that manage campus planning, environmental and design review, and construction. By shifting more of these operating costs to central funding, we are lowering the financial burden that has historically fallen on individual projects.
In practical terms, this means that fewer of your project dollars will be directed toward covering the costs of central administrative functions. Instead, more of your resources can go directly toward the facilities and improvements that advance your teaching, research, and programmatic priorities. This shift represents a more equitable and transparent funding model—one that reflects our shared commitment to making campus renewal efforts as efficient and cost-effective as possible.
Eliminating the Capital Renewal Fee
Effective June 2025, the Capital Renewal Fee has been eliminated. While the fee was originally established to generate a reliable stream of funding for renewal needs, in practice it often created unintended challenges.
For centrally funded projects, the fee essentially meant the university was charging itself—adding unnecessary complexity to already constrained budgets. In donor-funded projects, the fee could create friction by appearing as a "double charge" for donors who were already investing in the renewal of Berkeley's facilities through the 2.5% philanthropic assessment for non-research gifts.
By eliminating the Capital Renewal Fee, we are removing this source of duplication and complexity. Going forward, projects will be easier to plan, donors will have a clearer line of sight into how their contributions are applied, and faculty and departments will benefit from simpler, more predictable project budgets.
Importantly, eliminating the fee does not reduce our commitment to campus renewal. Renewal funding continues through other, more equitable and transparent mechanisms.
Investing in Strategic Renewal
Moving forward, UC Berkeley's renewal efforts will be powered by the 2.5% philanthropic allocation and increased campus funding. These funds are being used to address urgent infrastructure needs and enhance research, learning, and campus life, while preserving the university's historic character.
Recent efforts have included:
- Replacement of more than fifty autoclave units, significantly strengthening research safety and compliance.
- Essential upgrades to the Anthropology and Art Practice Building and Philosophy Hall, improving safety and enhancing the academic environment.
- Renewal of historic buildings, including the exterior of Stephens Hall, window replacement at North Gate Hall, and exterior repairs of South Hall.
- Revitalized outdoor spaces, including the restoration of Wickson Bridge and the renewal of Dwinelle Plaza.
Looking ahead in FY26, renewal efforts will be advanced through several key funding programs:
- Refresh Programs: targeted improvements to scientific equipment, landscaping, and elevators.
- Renewal Projects: major systems such as HVAC, plumbing and electrical.
- Renewal Programs: classrooms, ADA access, and educational technology services.
- Whole Building Renewal Planning: advancing long-term building renewal strategies.
Planned projects in the coming year include:
- Scientific equipment upgrades, such as fume hood replacements in Morgan and Wellman Halls, and compressor replacements in the Lawrence Hall of Science.
- Elevator renewals at O'Brien Hall, and Moffitt and Doe Libraries.
- Major exterior maintenance at Mulford and Haviland Halls.
- Campus refresh projects, including the Hearst Field Annex restrooms, Zellerbach Hall mezzanine flooring repairs, and green roof maintenance at Li Ka Shing Hall.
View the full list of FY26 projects.
Learn more about the Capital Renewal program on the Facilities Services website.
Building Momentum Together
Aging infrastructure presents unique challenges, but by preserving our historic structures, aligning funding strategies, reducing costs, and prioritizing renewal, we are creating safer, more sustainable, and more inspiring spaces for our community. This work is central to maintaining Berkeley's excellence and ensuring that our facilities fully support your teaching and research.
Thank you for your partnership in these efforts. We are optimistic about the path ahead and look forward to sharing continued progress on campus renewal with you.
With appreciation,
Rich Lyons
Chancellor
Ben Hermalin
Executive Vice Chancellor and Provost
Marc Fisher
Vice Chancellor for Administration
Sally McGarrahan
Associate Vice Chancellor, Facilities Services
John Arvin
Associate Vice Chancellor, Capital Strategies