Capital maintenance funds are state-appropriated dollars expended on infrastructure repairs or enhancements or projects within buildings necessary to maintain the facility in good repair. Prior to 1973 institutions were expected to pay for such expenditures from capital outlay savings or operating dollars. In 1973 the Tennessee Higher Education Commission recommended that a formula allocation be made to each institution for a maintenance and campus improvements fund, based on the total gross educational and general square footage at the campus.
Over time, the system changed from a general appropriation of dollars to submission of specific project requests. Projects in this category are annually submitted as part of the overall capital request and follow the same approval path as capital outlay funds. These funds, however, are not paid for by capital bonds issued by the state, as are (in general) capital outlay projects.