Budget, tuition rise head BOV agenda

A possible rise in tuition and other budgetary issues dominated Friday's Board of Visitors meeting, while future construction projects played a supporting role during presentations made to the board.
The board spent the majority of the meeting listening to the specifics of the budget, its impact and its casual relationship with the chance that tuition could rise as much as $200 for in-state undergraduate students. The board also was introduced to the idea that they should be the ones who set the price of tuition again now that the tuition freeze could be lifted.

Before exiting as governor, James Gilmore cut $273 million from Virginia higher education in his proposed budget , which translated into a $1.3 million reduction for JMU's general fund appropriations in the current fiscal year and a 6 percent cut in its operating budget, according to a Jan. 10 article in The Breeze and presenters at the BOV meeting. In addition, Gilmore unfroze tuition but required that a total of $9,507,417 of that extra tuition money be reverted, or given back to, the state's general fund in the next two years.

Tuition reactions and possible solutions

In terms of a rise in tuition where the money collected would not be used at JMU, but reverted back to the state, JMU President Linwood Rose said, "That is obviously a policy decision that we aren't very pleased with. I don't think our students and their parents will be very pleased with all of us knowing that we have to give all [that money back to the state] as we cope with the problems of a downward spiral in the economy. To [disproportionately] burden specifically our students and their parents with that responsibility is something we are going to have to speak against. I will do that with the opportunities I have."

Rose and Phyllis Palmiero, executive director of the State Council for Higher Education for Virginia, advocated a university governing board setting tuition.

According to Palmiero, she is advocating coming to a meeting of the minds with the legislature about letting the Board of Visitors set tuition beyond the parameters proposed by the state legislature.

"Each institution is in a different situation, and setting a fee or increase of $200 is probably not the best way that each institution deal with this fiscal situation," she said.

She also discussed the needs of students who receive financial aid. "We do believe that financial aid needs to be part of that equation so that as tuition rises, there is aid to provide access to those who might not otherwise be able to attend or who would have certainly a more severe impact."

Junior Thaddeus Glotfelty, BOV student representative, analyzed the budget situation's impact on tuition from a student perspective. "The governor will end the freeze on tuition, and the university estimates a tuition hike of $120 a year for in-state students and $600 for those out of state will be needed to cover the reversion."

Glotfelty also commented about the personal effect these changes may have on students. He said, "The university may face hard times for a few years, but it is important to remember those few years are fully one-half of a student's time in college. Thus it is of the utmost importance to ensure student well-being."

Budget reactions

In efforts to adjust JMU's budget, Rose assured the board that JMU's instructional side will not be directly impacted by the changes in this year's budget.

"Our staff has been working on that, and let me tell you everything we do is pointed to the instructional mission of this institution," Rose said. "When we look at how we were making these cuts, what we did first was subtracted that amount of money that is devoted to the instructional purpose of this university — that amount was subtracted from the $66 million educational and general budget and then the 2 percent was applied to everything else. There are cuts in academic affairs but not cuts that relate to the instructional mission of that division, so we have preserved that function of the university for this year."

Palmiero studied other parts of the state budget. "There are little things hidden in the budget that we need to make sure that [people] are aware of," she said.

Palmiero pointed out the less-obvious challenges the budget posed for JMU, such as a 50-percent reduction in the maintenance reserve. JMU utilizes the maintenance reserve for facility up-keep. In reaction to the reduction, she said, "We can't be criticized then two years from now that our facilities are falling apart."

Charles King, vice president for administration and finance, analyzed the challenges before JMU in terms of the overall impact the changes will have on the institution. "For JMU we will have to reduce our budget," he said. "This will be very, very painful for JMU. We will have to make some hard decisions about the services we provide in this institution."

Proposed budget amendment

Board members unanimously passed one budget amendment in the last order of business in the open session of the meeting.

The amendment would "provide the General Assembly the vehicle that if funds are available that they would be able to minimize our 6 percent budget cut," King said.

There was no debate on the bill before it was voted on.

The budget even affected the number of amendments brought up before the board.

"Typically, at this meeting we would [usually introduce more] budget amendments, but we've realized the revenue situation," King said. "We think it would be foolish to bring several budget amendments to or for you today."

Construction

The Callahan-Chichester capital plan, also known as "Building Virginia's Future," provides JMU with $126.3 million in capital, or construction, funds.

Rose said he was satisfied with the amount allocated to JMU in the still-pending Callahan-Chichester capital plan.

"If I were to look at this distribution of dollars and judge it by what has happened in the past, I would say that the total amount of money that JMU might bring home would be $75 or $80 million instead of $126 million," Rose said.

"For someone who has been up and down the road to Richmond as many times as I have or [former JMU President] Ron Carrier before me or Charlie King often with me, and we come back with less than we had hoped or maybe just what we thought this institution should have, it is extremely gratifying this time to come back with more than our share numerically than you might expect," Rose said.

The money will go toward nine projects such as the construction of a center for the arts, music recital hall, renovations to Miller and the Harrison Annex, as well as projects on the east side of campus.
The physics and chemistry departments will be moved into their own building on the CISAT part of campus, according to King. After the two majors vacate Miller, psychology will utilize the extra space along with geology, which will remain in Miller.

Rose summarized the capital funding when he said, "This is nine capital projects that will make a huge difference for this university."

Board member Pablo Cuevas discussed another construction project during his Athletic Committee report. The track in Bridgeforth Stadium will be removed this semester, according to Cuevas.

Construction will begin in 2003 and the new facility's projected completion is in 2004. The track will be relocated to the east side of campus.

Glotfelty said, "The Athletic Department has raised $5 million in private donations and hopes to raise an additional $4 million in the next 18 months in an effort to build a new athletic facility, which is to be built just beyond the end zone of Bridgeforth Stadium. As I understand it, the new facility will increase our athletes' ability to compete and encourage recruitment. It follows that the increased success of our teams will benefit the stature of the university's athletic program while bringing in added revenue."

He questioned how students would respond to the upcoming renovation of the stadium. "Whether the student body believes this is $9 million well spent, considering the issues regarding tier III and IV sport teams — those teams that receive little to no funding in an effort to comply with Title IX and due to budgetary concerns — will be discovered in the days to come," he said.

Glotfelty did support the construction efforts on campus overall. "I wholeheartedly support President Rose and the Board of Visitors in the desire to dramatically improve not only the infrastructure but increasing classroom space and renovating some of our more antiquated buildings."

Glotfelty also supported the amount proposed to be given to the school for construction. He said, "In brief, JMU is recommended to receive $126.3 million of a possible $1.2 billion for higher education in the state of Virginia. This is the largest amount suggested for any university in the Commonwealth, which is all the more important considering the recent recognition JMU has received by the General Assembly as the most under-funded university in the Commonwealth. This windfall cannot help but be good for the university, just as the construction projects cannot help but improve it."

SCHEV's priorities

During her presentation to the board, Palmiero outlined the importance of the State Council of Higher Education for Virginia's priorities and why they are important. She mainly urged the board to stay focused on the future, which is SCHEV's primary goal.

She expanded on these ideas when she said, "This is important and funding the basics is an absolute essential. We often get so honed in on this and barred down, we don't set our sights to the future, and I mean 'we' meaning SCHEV, legislature, the executive. We get so focused on fixing what happened then or making better the maintenance of the facility in the existing that we don't really take our plan out longer."

She advocated that the institution, executive branch, the legislature, the state council and BOV come together and come up with five goals for higher education.