Merced university expands into the future while its budget shrinks

The University of California Merced its expanding its campus at a time of budget cuts by bringing in private developers on a 40-year contract. As part of an "availability payment" contract, the developers are responsible for part-financing and maintaining the new buildings, incentivising them to ensure a high standard for decades. The $3.6 million deal will allow the campus to double its capacity and accommodate 3,000 extra students.