The Higher Education Committee of the State Building Commission recommended to indefinitely defer the request.
The building commission March 30 will consider the 2009-11 capital budget, which includes dozens UW System construction projects to be financed by $498 million in tax dollars.
The Carlson renovation was recommended for deferral because "there are just too many projects and not enough money," said Peter Maternowski of the Division of State Facilities.
The College of Business Education in July will move out of Carlson Hall into the newly constructed Hyland Hall. UW-Whitewater had hoped to update Carlson and use it to consolidate the College of Letters and Sciences, which is housed in three buildings.
"Part of the building has been remodeled already, and it's come out fantastic. The infrastructure is good, but we need to bring it up to date, both mechanically and technology wise," said UW-Whitewater Vice Chancellor Randy Marnocha.
UW System Vice President David Miller called the Carlson renovation "a highly deserving proposal." The building should be remodeled when it's vacant, making the work less expensive and less disruptive, he said.
The renovation request could return to the committee later in the year as part of the UW maintenance and repair budget. But approval then would depend on the amount of funding available and the priorities of the UW Regents, Maternowski said.
The committee did recommend the $8.5 million renovation of Fischer and Wellers dormitories at UW-Whitewater. The projects will be financed by dorm fees at no cost to taxpayers. Renovations to the 210-bed Fisher Hall would be completed during the summer of 2012 and Wellers' renovations the following summer.