The Board of Visitors’ Finance Committee met during an off-cycle meeting May 2 to hear an overview of the university’s budget process and gain context for the upcoming vote to approve the 2025 budget. The committee is expected to consider and vote on the budget when the full board reconvenes for its June meeting.
Jennifer Wagner Davis, the university's executive vice president and chief operating officer, presented an overview of the university's budgeting process to the board. During his presentation, Mr. Davis outlined three different categories of the budget that he describes, including academic departments, medical centers, and colleges at large. In its fiscal year 2024 operating budget, the university allocated $2.25 billion, $3.04 billion, and $0.7 billion, respectively, to these categories.
In his presentation, Professor Davis also compared annual inflation and tuition increases, noting that since the 2017-2018 academic year, tuition increases have, on average, been less than annual inflation. Board member James Murray said the board doesn't get enough credit for the work it does to keep tuition costs down while other universities are seeing rapid increases in tuition costs. .
“The most disheartening thing, given everything that's happened on this board over the last six or seven years, is that we haven't gotten any recognition for this,” Murray said. “It is common knowledge across the country that the cost of higher education is rising. At the University of Virginia, that is not happening, thanks in large part to our endowment. We continue to see stories of .Va being out of control.”
Trustee Douglas Wetmore disagreed, saying recent rankings by national publications prove the university is recognized for its tuition and financial aid value.
“Isn't it ranked #1 for most affordable by a national publication?” Wetmore said. “We're ranked as the best value, the best financial aid. I'm not making an argument. I'm just saying it seems like we're getting all kinds of praise for the value. is.”
The committee also discussed the university's giving methods. totaled Approximately $13.6 million has been invested as of 2023. Professor Davis said the endowment provides protection against inflation as well as the long-term sustainability of the university, and described how the endowment supports the university and supplements tuition fees and state funding. Among many other investments, this gift will help fund strategic developments such as the new School of Data Science and the Karsh Institute for Democracy, elements of President Ryan's 2030 Plan. It contains A number of long-term goals and initiatives designed to improve the university.
“that [helps] to fund the hiring of world-class faculty,” Davis said. “This gives us access to literally the best undergraduate financial aid program among public schools. [provides] Strategic funding to advance the 2030 plan. ”
Professor Davis also spoke about the history and current investments of the University's Strategic Investment Fund and discussed plans for 2030 beyond the context of the endowment. SIF is developed It will fund key initiatives in the 2030 Plan, elements known as the Grand Challenges, which are priority research areas identified in the Plan, as well as investments in scholarships and professorships. Professor Davis also spoke about the progress the University has made towards realizing the goals of the 2030 Plan, saying: opening Recent accomplishments include the construction of the School of Data Science and the nearly completed construction of the Contemplative Commons.
The presentation also included an overview of current evaluations examining cost efficiency and effectiveness in universities. These include a Commonwealth-wide study by the Boston Consulting Group, a study examining university operational efficiency and effectiveness, and a Commonwealth-wide cost efficiency study. These surveys provide universities with information about how well their budgets are being used and how effective recent investments have been.
Davis also briefly discussed budgeting issues expected to arise in fiscal year 2025, including cost increases due to inflation, safety and security, strategic planning investments, regulatory and compliance issues, and faculty recruitment and retention. explained. Davis explained that all of these issues are necessary costs that must be addressed within the budget.
Davis said the budget's next steps include continued progress on initiatives outlined in the 2030 plan and investments in faculty and student talent. Davis also informed the committee of important upcoming dates for the Finance Committee, including the state's vote on appropriating state funds for universities, tentatively scheduled for May or June. This will affect the amount of state funding the university will receive in fiscal year 2025.
The Finance Committee will reconvene when the full board meets on June 6-7.
