Statement by VCU President Michael Rao Regarding Proposed Budget Amendments

By Pamela DiSalvo Lepley
Division of University Relations

The Governor’s budget amendments delivered to the General Assembly today propose, with the beginning of the 2011-2012 fiscal year, to effectively withhold one half of the funds generated by VCU’s tuition increase approved by the Virginia Commonwealth University Board of Visitors in April.

The proposed action directly affects VCU’s ability to continue providing a quality education and ensure that students graduate on time. Even with the tuition increase, VCU’s tuition and fees are below the average of Virginia’s 15, four-year public universities and colleges.  Further, while VCU will have lost nearly one third of state funding targeted for instruction between 2008 and 2012, it is recognized nationally as one of the leanest and most efficient research universities in the United States.

We understand and support the Governor’s commitment to keeping college tuition affordable for Virginia students. At the same time, we know the Governor understands the negative impact on Virginia colleges from severe state funding cuts in recent years coupled with the loss of federal stimulus money next year. We appreciate his efforts to reverse state funding cuts and to include funding for the VCU Massey Cancer Center as reflected in his budget amendments.

Because we share the governor’s concern about tuition increases, the context of VCU’s tuition increase is important.   

VCU’s Board of Visitors made the difficult decision to approve the increase in April based on specific stark financial realities, none of which have changed. The loss of federal stimulus money combined with significant state reductions in financial support set the table for the board’s action. VCU faces a $42.4 million funding cliff between this and next fiscal year – the largest of any state university in Virginia.  A significant part of the tuition increase addresses this gap.

VCU is proud to be committed to Virginia students and teaches more in-state students than any other university in the state.  VCU does not rely on out-of-state students who pay higher tuitions – something that other universities use to subsidize their budgets and soften the impact of state cutbacks.   

VCU has cut costs to the bone over the past several years, so much so that the reductions undermined the quality of instruction. This was a tipping point for VCU.  We understood that the increase would be a burden on many students, but was necessary to be able to provide the courses students need to graduate on time.

It also was needed to ensure the quality of internationally recognized, economy-lifting programs such as medicine, engineering, arts, dentistry and VCU’s largest major, biology. None of these programs is low cost, but the jobs they create have high, lasting returns -- the kind of programs recommended by the Governor’s Commission on Higher Education Reform and supported by VCU.

VCU’s mission as a leading research university must be sustained, and we will work tirelessly with the Governor’s team and General Assembly members during the session to resolve this budget issue in the best interests of our students, their families and the future of the Commonwealth.