The Council on Ontario Universities Committee on Capital Financing presents this brief on the system's capital base and makes specific recommendations regarding formula funding that it sees as necessary for future planning; rental of space; renovations of existing facilities to safeguard the resources of the system; alterations required by the system to accommodate physical plant to changing enrollment patterns, changing curriculum, and changing approaches to patterns of learning and teaching; and new construction. An estimate of the cost of implementing the recommendations is included. (JMF)