This reprint from our Analysis of the 1993-94 Budget Bill discusses the problem of deferred maintenance in state facilities. State agencies that control significant state assets have developed a deferred maintenance backlog totaling $820 million. In general, this backlog has occurred due to the underfunding of ongoing maintenance and special repair projects and the redirection of monies budgeted for maintenance to other activities. Failure to address this backlog will shorten the useful life of state facilities and result in more costly expenditures for renovation or replacement. We make recommendations to prevent any further redirection of maintenance funding and to require the state agencies to prepare multi-year strategies to properly address their maintenance and to eliminate deferred maintenance backlogs.