Meetin eting g of th the Bo Board d of Visit itor ors s Fina nance nce Commi mmitt ttee ee Ju June 12, 2015
Agenda I. CONSENT AGENDA Slides 4 A. 2015-2016 School of Continuing and Professional Studies Out-of- State Tuition B. Compliance with Veterans Access, Choice and Accountability Act of 6 2014 C. Property Disposition – Luttrell Estate 8 II. ACTION ITEMS 10-74 A. 2015-2016 Operating Budget B. Multi-Year Capital Program Update, 2016-2022 75-81 III. REPORTS 82-92 A. Six-Year Plan 2
2015-2016 S CHOOL OF CONTINUING AND PROFESSIONAL STUDIES OUT - OF - STATE TUITION PAT H O G AN E X E C U T I V E V I C E P R E S I D E N T A N D C H I E F O P E R AT I N G O F F I C E R
2015-2016 School of Continuing and Professional Studies Tuition • The 2015-2016 fees rates for non-Virginians in the School of Continuing and Professional Studies were incorrectly recorded in the resolution approved by the Board in March as the same rate as Virginian students. • The corrected rates are as follows: 2015-16 Proposed Tuition & Fees Rates Virginians Non- Virginians Program $ Change % Change $ Change % Change 2015-2016 2015-2016 from FY15 from FY15 from FY15 from FY15 Undergraduate (per credit $362 $13 3.7% $864 $29 3.5% hour) Community Scholars (per credit $361 $12 3.4% $1,292 $45 3.6% hour) National Criminal Justice Command College Program $5,760 $242 4.4% $13,306 $661 5.2% (total program cost) 4
C OMPLIANCE WITH V ETERANS A CCESS , C HOICE AND A CCOUNTABILITY A CT OF 2014 PAT H O G AN E X E C U T I V E V I C E P R E S I D E N T A N D C H I E F O P E R AT I N G O F F I C E R
Compliance with Veterans Access, Choice and Accountability Act of 2014 • The Veterans Access, Choice, and Accountability Act of 2014 provides greater access to higher education by granting in- state tuition rates to certain veterans and their eligible dependent family members. • Required by the U.S. Department of Veterans Affairs to verify our intent to comply with the law in order to continue participation in veterans’ benefits programs (e.g., Post-9/11 GI Bill, the Montgomery GI Bill). 6
P ROPERTY D ISPOSITION – L UTTRELL E STATE PAT H O G AN E X E C U T I V E V I C E P R E S I D E N T A N D C H I E F O P E R AT I N G O F F I C E R
Property Disposition – Luttrell Estate Five parcels of land totaling approximately 148 acres in Tishomingo County, Mississippi Mr. Luttrell’s estate has obtained five contracts to sell the parcels for a cumulative gross sales price of $290,500 The sale of these properties allows the University to comply with the donor’s wishes to establish an endowment to fund an annual scholarship to be awarded to a ROTC cadet 8
2015-2016 O PERATING B UDGET
UNIVERSITY OF VIRGINIA 2015-2016 Operating Budget Overview 10
University of Virginia 2015-2016 Operating Budget (expenditures in millions) 2014-15 2014-15 2015-16 Annual Budget Increase $ Increase % Annual Budget Projection Academic Division $ 1,423.5 $ 1,409.5 $ 1,519.8 $ 110.3 7.8% Medical Center* 1,280.7 1,381.6 1,510.5 128.9 9.3% UVa-Wise 41.4 42.6 41.3 (1.3) (3.0%) Total $ 2,745.6 $ 2,833.7 $ 3,071.6 $ 237.9 8.4% *Includes Culpeper Regional Hospital. 11
2015-2016 Operating Budgets Academic Division College at Wise Medical Center 12
ACADEMIC DIVISION 2015-2016 Operating Budget 13
FY 2015-16 Operating Budget 2014-15 Annual 2015-16 Annual (in 000s) Increase $ Increase % Budget Budget Sources Tuition & Fees $ 493,815 $ 505,129 $ 11,314 2.3% State Appropriations 144,822 144,737 (85) (0.1%) Sponsored Programs 224,877 221,571 (3,306) (1.5%) Facilities & Administrative Cost Recoveries 59,600 59,585 (15) 0.0% Endowment Distribution 157,126 173,122 15,996 10.2% Expendable Gifts 127,706 129,480 1,774 1.4% Sales & Services and Other 222,722 244,751 22,029 9.9% Total $ 1,430,668 $ 1,478,375 47,707 3.3% Uses Instruction $ 380,067 $ 415,635 $ 35,568 9.4% Research & Public Serv. 291,292 295,656 4,364 1.5% Academic Support 146,868 149,100 2,232 1.5% Student Services 45,763 46,208 445 1.0% General Administration 95,320 95,433 113 0.1% O&M of Physical Plant 108,734 110,653 1,919 1.8% Financial Aid 106,285 106,335 50 0.0% Auxiliaries 167,289 172,383 5,094 3.0% Internal Debt Service/Transfer 81,841 83,475 1,634 2.0% Total $ 1,423,459 $ 1,474,878 $ 51,419 3.6% Net Sources in Excess of Uses (Before Strategic Priorities) $ 7,209 $ 3,497 ($ 3,712) (51.5%) $ 44,900 Strategic Priorities $ 18,370 14
FY 2015-16 Operating Budget 2015-16 Annual (in 000s) 2014-15 Forecast Increase $ Increase % Budget Sources Tuition & Fees $ 494,706 $ 505,129 $ 10,423 2.1% State Appropriations 136,275 144,737 8,462 6.2% Sponsored Programs 226,308 221,571 (4,737) (2.1%) Facilities & Administrative Cost Recoveries 60,871 59,585 (1,286) (2.1%) Endowment Distribution 164,007 173,122 9,115 5.6% Expendable Gifts 129,194 129,480 286 0.2% Sales & Services and Other 228,494 244,751 16,257 7.1% Total $ 1,439,855 $ 1,478,375 $ 38,520 2.7% Uses Instruction $ 366,394 $ 415,635 $ 49,241 13.4% Research & Public Serv. 303,212 295,656 (7,556) (2.5%) Academic Support 150,906 149,100 (1,806) (1.2%) Student Services 42,041 46,208 4,167 9.9% General Administration 88,203 95,433 7,230 8.2% O&M of Physical Plant 106,324 110,653 4,329 4.1% Financial Aid 103,568 106,335 2,767 2.7% Auxiliaries 167,529 172,383 4,854 2.9% Internal Debt Service/Transfer 81,319 83,475 2,156 2.7% Total $ 1,409,496 $ 1,474,878 $ 65,382 4.6% Net Sources in Excess of Uses (Before Strategic Priorities) $ 30,359 $ 3,497 $ (26,862) $ 44,900 Strategic Priorities $ 18,370 15
Key Budget Elements Budget Element Previously Approved by/ General Assembly Reviewed with BOV Action Total state appropriations of $144.7 million Accelerated VRS employer rate from 12.33% to 14.22% Classified staff salary increases of 2% University Staff salary increases of 2% (+1% market adjustment) Faculty salary increases of 2% (+2.5% from internal reallocations) Tuition, fees, housing, and dining rates Reset endowment distribution rate to 4.62% (+40 bps) Enrollment levels for 2015-2022 Incremental funding of $8.2 million for enhanced safety and support services, library operations, student life, compliance, and other contractual obligations Reduced loan caps for in-state students and financial aid contingency Organizational Excellence Target Savings of $12.7 million Sponsored research growth of 1% (based on known awards) Sales and services increase of 2.5% Expendable gift growth of 2.5%; new gifts to endowment of $25 million OTPS increase of 2.0% 16
Multi-Year Financial Plan Assumptions: Sources FOR REFERENCE (As of March 23, unchanged and consistent with operating budget) ONLY Category Assumption Inflation • 2.5% (modified HEPI) Enrollment • BOV approved, no growth after FY17-18 Undergraduate Tuition • After FY15-16, increase by inflation + 1% (equivalent to 3.5%); assumes no extraordinary General Assembly actions which require institutional funding to implement. The one exception is in FY18-19, assumes 4.65% increase to fund planned state-mandated VRS rate increase. Graduate, Professional • Grad and SOM tuition: FY15-16, 0.2-3.8% annual increase; average 3.5% growth thereafter School Tuition, and Special • Law & Darden tuition: FY15-16, 3%-6% annual increase; 3% annual growth thereafter. (Self-sufficiency programs status is maintained.) State Appropriations • FY15-16 reflects state appropriation approved by General Assembly • Increases will fund state share of authorized salary and benefit changes Research Funds • Federal funding for grants and contracts remains at current rate • Federal F&A rate remains at 58% Endowment Distribution • 40 basis point spending increase from 4.22% to 4.62% balances market risk and stays within BOV- approved band • Assumes 7.5% rate of return Gifts • Expected 2.5% annual growth resulting from alignment with the Cornerstone Plan • Assumes annual new gifts to endowment of $25 million Other • Auxiliary Enterprises Revenue: annual growth rate of 2.5% • $10 million per year in SOM/Medical Center gainsharing 17
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