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Report on State Funding Reductions and VCU’s Budget Outlook. Board of Visitors November 12, 2009. State support for VCU has declined substantially . . . Since FY 2008, state E&G operating support has been reduced $66.5 million.
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Report on State Funding Reductions and VCU’s Budget Outlook Board of Visitors November 12, 2009
State support for VCU has declined substantially . . . • Since FY 2008, state E&G operating support has been reduced $66.5 million. • $9.7 million in FY 08 (plus another $1.2 million cut which was effective for FY 10) • $10.2 million in FY 09 • $20.2 million in FY 10 (offset by $20.5 million in stimulus funds) • $25.2 million in FY 10 (Sept., 2009, offset by about $11.8 million in stimulus funds) *Subject to appropriation during the 2010 session.
In FY 10, VCU is slated to receive $25.3 million less state support than in FY 00, despite enrolling 8,955 more students (+38 percent) . . . Note: Actual expenditures from VCU financial statements for FY 2000-09; estimated expenditures for FY 2010.
Since FY 2001, VCU has been cut $4,149 per in-state student -- more than any Virginia institution except VMI . . . Percent Reduction in State Support per In-state Student, FY 01 – FY 10 Source: SCHEV data.
At the same time, VCU has restrained increases in tuition and required fees . . . • VCU’s tuition and fees are and have been the lowest among the Virginia doctoral institutions plus JMU. They are also lower than T&F at VMI, Longwood, and Christopher Newport, and are about equal to those at Mary Washington. FY 2010 Tuition and Required Fees for Resident Undergraduates
Low and declining state support, along with moderate tuition and fees have resulted in substantial resource deficiencies. VCU is well below resource levels at similar institutions nationally . . . • National data show that for FY 2009, VCU had $4,202 per student less in resources than other public, high/very high research institutions that offer medical degrees. With $4,202 in additional resources, VCU’s FY 2009 operating budget would have been $116.3 million higher. Source: IPEDs, FY 2009.
State funding guidelines estimate VCU’s FY 2010 funding deficiency at about $88.2 million* -- highest among Virginia’s four-year institutions . . . Funding Deficiency for FY 2010 Calculated by SCHEV (October, 2009) * Source: SCHEV. Note: Total is under-stated because FY 2010 resources are compared to FY 2009 enrollment.
Resource constraints have become increasingly serious. Constraints show up in . . . • Faculty Salary levels, which are losing ground; • Steady declines in the percentage of tenure-track faculty; • Rising student-faculty ratios; • Low numbers of graduate assistantships, and low stipends for doctoral students; • Declining staff:student ratios for support employees; and • Numerous other areas.
Faculty salaries at VCU are low, compared to its peers . . . Virginia peers (Fall 2009): • National Peers: SCHEV estimates that VCU faculty salaries in FY 2010 lie at the 33rd percentile among its 25 national peers – more than $6,000 below its peer average.
The proportion of tenure and tenure-track faculty has steadily declined over the past decade . . . Tenured and Tenure-track Faculty as a Percent of All Full-time Faculty, FY 97 - FY09
Student-Faculty ratios have risen . . . Student-Faculty Ratios, Fall 2000-2009 • In Fall 08, the average ratio for the other Virginia doctorals was 14.8:1.(W&M: 11-1; GMU: 15-1; UVa: 15.2-1; Va. Tech: 16-1; ODU: 17-1)
Teaching and Research Faculty per 1,000 FTE Students GTAs per 1,000 FTE Students have increased, but the number of FT teaching and research faculty and adjuncts per 1,000 students have declined significantly . . . • An additional 560 FT teaching and research faculty and 372 adjuncts would be required tomatch FY 99 ratios. (Some of the decline in adjuncts has been offset by the increase in GTAs, which have grown 247 more than enrollment growth alone would have demanded.)
Support for graduate students is relatively low . . . • VCU’s stipend for doctoral students in medical colleges ranked 60th among • 84 survey responders in 2008.
The number of FT classified staff, and hourly and student workers per 1,000 students has also declined over the past decade . . . Employees per 1,000 Headcount Students • Although enrollment may not be the best measure of service demand for all functions, data show clearly that non-faculty staffing is significantly leaner than it was in FY 99.
To deal with resource constraints, operations have been regularly re-evaluated and efficiencies implemented . . . Examples: • Instruction • Used faculty early retirement incentives to shift resources to high need programs • Used faculty workload and productivity data to balance workload, and allocate reductions • Fully utilizing Blackboard to house homework, timed quizzes, and tests; and, post course materials; • Increased the number of courses taught on-line • Student Advising • Consolidated services for first year students into one unit, improving service to the students • Centralized review of transcripts and other services for transfer students • Academic Support • Put schools on block schedule for undergraduate, three-credit hour courses maximizing class slots • Centralized scheduling of classrooms, to maximize utilization of space • Recaptured several rooms used as lounges or labs and turned them into large classrooms -- consolidating smaller class sections • Expanded the number of Friday night and Saturday classes and changed course mix to include required lower-level courses. • Libraries • Partnered with sister institutions to purchase and share scientific and scholarly journals • Installed self-service circulation checkout stations • Implemented online renewal systems for books • Made additional room for students by installing compact shelving, purchasing digital editions of books and journals, replacing old furniture with newer furniture designed to seat more students in the same amount of space • Shut down separate library server room, transferring servers to university computer center
Operations have been regularly re-evaluated and efficiencies implemented (cont’d) . . . examples: • Research • Redirected state equipment funding to shared core laboratories • Implemented on-line system for faculty award submissions • Continuously teach faculty how to effectively use the new system’s resources • Developed on-line training on grant compliance for faculty Principal Investigators • Undergraduate Admissions • Combined Similar Mailings • On-Line Admissions Application • Records & Registration • Discontinued Print Material-Schedule of Classes; Class Rosters • On-Line Graduation Application • Early Alert Grade Notification • Banner Online Grading • Enrollment Services • Document Imaging • Web-Based Access to Student Information • Financial Aid • Electronic Delivery of Alternative Funds • Student Accounting • Redesigned Refund Process • University Student Health Services • Electronic Health Records
Operations have been regularly re-evaluated and efficiencies implemented (cont’d) . . . examples: • Residential Life & Housing • On-Line Payment System • On-Line Student Housing Selection and Registration System • University Student Commons & Activities • Web-Based Reservation System • Web-Based Time Keeping System • Business Services • Invoice Imaging: invoices are imaged and electronically linked to the University's financial system • Integration of Procurement and Financial Systems • Cooperative Procurement Contracting (VCU and 8 other institutions) • Systematic Review of University's Vendor Purchases • Contract Templates for common contracts • Employee Training through web-based systems • Facilities Management • Design Assist (Mechanical/Electrical contractors on board at start) • Building Information Modeling (Building System Modeling during design) • Laser Mapping of Building Utilities • Facilities Design Standards • LEED Silver Standard for Building Construction • Construction Manager at Risk Program • Commissioning of Mechanical Systems • Pre-qualified Contractors and Material Testing Firms
Operations have been regularly re-evaluated and efficiencies implemented (cont’d) . . . examples: • Purchase of Natural Gas Supplies in the Futures Market • Benchmarking Facilities Management against Peer Institutions • Benchmarking Sustainability Program • Integrated Central Mechanical Electrical (CME) Group • Zone-Based Organization of Physical Plant Crews • Work Order Tracking and Management System • Just In Time (JIT) Purchasing of Supplies • Computerized Bar Code System for Fire Protection Systems • Consolidation of Hazardous Material Storage • Human Resources • Single Semi-Monthly Pay Cycle • Automated ePAF Processes • PeopleAdmin (Paperless Position Description and Recruitment/Application Processing) • HireRight (Online Background Checks Initiated by Department Personnel Administrators For New Hires) • Document Imaging (Paperless Files and Processing Using Imaged Documents) • eW2 (Paperless Tax Forms) • Pay Cards for those who will not use Direct Deposit • Online HR Training and Orientations • Technology Services • Call Queue Monitors at Help Desk • Virtual Server for Specialized Desktop Scientific and Mathematical Software • Remote Monitoring of Classroom Technology
Operations have been regularly re-evaluated and efficiencies implemented (cont’d) . . . examples: • Videoconferencing • Centralized Desktop and Server System for Security, Operating Systems And Applications Management • Central Management of Web-based Content • Server Virtualization • Storage Area Network (SAN): Central Management of Data and Storage • Centralized Network Management of 2,000 Network Devices from a Central Console • Test Scanning • Automated Leave Processes • "Tech Squad" Of Students To Improve Classroom Technology Support • Laptop Checkout Program • Virginia Virtual Computing Lab (with GMU, JMU and W&M)
Recent budget reductions only exacerbate these trends, increasing pressure on all VCU operations . . . • To reduce VCU’s operating budget in FY 10 by $13.4 million, actions will include: • Reducing personnel costs/services $7.8 million • Shifting costs to other fund sources $2.8 million • Reducing planned spending (e.g., travel, equipment, other) $2.1 million • Other actions $0.8 million • To absorb the $13.4 million, VCU will eliminate an additional 91 positions by the end of FY 11, including 37.5 instructional faculty positions.
Over the next three to four years, state budget pressures will be severe. The State will be unable to commit significant resources to higher education . . . • Federal stimulus funds expire at the end of FY 2011. State revenues will not grow sufficiently to offset their loss. • Pressures on the state budget will be compounded by rising health care costs, enrollment growth in K-12 and higher education, and pressure to meet other existing state commitments. • Additional budget cuts are likely – if not in FY 2011, then almost certainly in FY 2012. • The central question is whether VCU can continue to absorb additional budget reductions, whether VCU2020 objectives should be fundamentally revised, or whether basic principles regarding tuition policy and practices should be re-considered.
VCU’s E&G budget is driven by compensation, equipment, and plant costs . . .
Over the past six budgets, priorities set in VCU 2020 have been adhered to . . . E&G Budget Allocations, FY 2005-2010 * BOV-approved budgets before FY 2008, FY 2009, and FY 2010 state budget reductions of $66.5 million.
