VCU Board of Visitors approves 2001-02 budget

By Melissa Jones

RICHMOND, Va. – Virginia Commonwealth University’s board of visitors today (May 18) approved the university’s 2001-02 revised budget plan that continues the freeze on Virginia undergraduate tuition, supports VCU Life Sciences and calls for increased funding for recruitment and enrollment efforts. The newly approved budget serves as an update to last year’s original biennial budget projections.

The budget projects revenues of $627.8 million and expenditures of $625.5 million for fiscal year 2001-02. Budgeted revenues represent an increase of 6 percent over the 2000-01 budget and 5.1 percent over 2001-02 original budget plan estimates. Budgeted expenditures represent an increase of 5.9 percent over the 2000-01 budget and 5.2 percent over 2001-02 budget plan estimates.

The 2001-02 budget holds steady the $1.8 million in support for VCU Life Sciences that was approved last year. The foremost of VCU’s strategic priorities, VCU Life Sciences will integrate diverse disciplines from across the university’s two campuses and comprehensively involve all levels of faculty and students in the pursuit of life sciences education and scholarship.

"The rapid pace of scientific discoveries makes our commitment to VCU Life Sciences all the more critical," said VCU President Eugene P. Trani, Ph.D. "By building on the university’s traditional strengths, VCU is uniquely positioned to equip its students to meet the current and future demands of the ongoing life sciences revolution."

The budget update adds $2.7 million above this year’s budget for strengthening campus research. The budget also supports student enrollments and programs with nearly $2.9 million in new funding for enrollment and recruitment initiatives.

The new budget maintains support for university priorities set out in last year’s budget, including new School of Engineering faculty, operation of the School of Engineering Clean Room and the Student Computer Initiative.

Because the 2001 General Assembly adjourned without approving an amended budget for the 2000-02 biennium, the budget passed by the 2000 General Assembly remains in effect until June 30, 2002. No provisions currently exist to address salary increases for faculty, administrative and classified staff in 2001-02.

Higher education institutions were exempted by the governor from operating budget reductions and freezes on hiring and discretionary spending. They were not, however, exempted from the freeze on capital projects, and, as a result, VCU’s planned $1.9 million Phase One library renovations have been put on hold.

The VCU Health System is also exempt from related reductions, and VCU officials expect that $25 million in anticipated indigent care funding to the health system from the state will remain in place.

The updated budget includes a continued freeze on tuition for resident undergraduates at VCU and a 4 percent increase for all nonresident students, resident graduate and first-professional students. The annual technology fee — VCU’s only required instructional fee — will remain at $41 for full-time students. Approved increases to some mandatory campus fees are lower than last year – 4 percent for the student health fee and 2.1 percent for the university fee, which supports student programs and facilities, intercollegiate athletics and student recreational programs. In addition, for 2001-02, housing rates on VCU’s Medical College of Virginia Campus will increase by 4.2 percent and rates on VCU’s Academic Campus will increase by about 6 percent.

Revenue sources to support new initiatives include additional revenue from enrollment growth and overhead on grants and contracts, tuition increases and $1.1 million in budget reallocations from all executive levels across the university.

Total sponsored programs awards at VCU are projected to reach $122 million for 2001-02. Sponsored programs include research projects, training grants and similar activities funded by governmental and private agencies for specific purposes. VCU aims to increase its awards substantially over the next five years.

For the first time, as part of the budget development process for 2001-02, VCU officials have projected long-range operating budget revenues and expenditures through fiscal year 2006. The board of visitors requested the inclusion of these long-range financial projections as they provide a critical link between the operating budget, strategic initiatives and capital infrastructure plans.