VCU stimulus money only temporary reprieve
VCU received $20.5 million in stimulus money for the 2010 fiscal year, which started July 1. Funding came under the condition that the money be used to support education and reduce the need to raise tuition. The university originally planned on a $20.5 million budget reduction for this year.
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VCU received $20.5 million in stimulus money for the 2010 fiscal year, which started July 1. Funding came under the condition that the money be used to support education and reduce the need to raise tuition. The university originally planned on a $20.5 million budget reduction for this year. The university will receive another $20.5 million in stimulus money next year.
The Board of Visitors met May 14 and 15 to discuss how the stimulus funds would be dispersed. Pam Curry, associate vice president for finance and administration, said the board was able to raise tuition by a fairly minimal amount.
“If we hadn’t had that 20 million on such short notice, The Board of Visitors would have had to look at a much higher increase,” Curry said.
John Bennett, the senior vice president for finance and administration, said despite the help, there are around $9 million in unavoidable costs that VCU will face.
Among these costs, Bennett said, are the operational costs of new buildings including the medical sciences building, health and life sciences engineering lab and the addition to the dentistry building. Most costs include library materials, particularly the most expensive specialized journals.
Although the stimulus money offers some temporary reprieve from anticipated budgetary cutbacks, the stimulus money will run out after two years. Curry said the Board of Visitors has yet to devise a detailed plan concerning how to handle the budget after the stimulus money runs out, while still handling the unavoidable costs for the next two years. However, Curry said the board is developing spending proposals to phase out its reliance on the stimulus money.
Curry said the board plans to avoid spending all of the stimulus money within the next two years, allowing for more time to devise an efficient budgetary plan. According to Curry, VCU will be investing in energy-saving technology to reduce long-term costs.
Bennett said the board will have only two options when it comes to accounting for costs and preparing for 2012 when the stimulus money will no longer be available: raising tuition over the next three years or making budget cuts.
“We will try and keep tuition as low as possible,” Bennett said.
In an April interview, former University President Eugene P. Trani said he is concerned about VCU’s budget.
“That’s my biggest concern for the future is funding . The stimulus money is two year money. It’s not permanent money,” Trani said.
Curry said VCU would likely cut some course sections.
“Every seat will be filled,” Curry said.
Despite the cut, Curry said the board is striving to keep cuts as far away from the classroom as possible.
However, because cuts to other areas of the university, such as travel, phone usage, training, paper usage and maintenance fees, have already been addressed, students will begin to be affected.
Gov. Tim Kaine announced Aug. 19 he might have to cut funding to services, among which public education is included. Virginia’s budgetary deficit includes $1.2 billion from this fiscal year and $300 million from the previous fiscal year. Consequently, Curry expects VCU to incur further budgetary cuts.
