Because of the recent state budget freeze, the University will not be able to use its non-general or private funds for construction around Grounds.
The House of Delegates and Senate clashed over provisions in the proposed budget regarding the car tax. The House wanted to keep the tax cut at 70 percent, and the Senate wanted to see the tax cut reduced to 50 percent.
"Because the General Assembly couldn't agree on an budget bill we couldn't receive permission to build these non-general funds buildings," University spokeswoman Louise Dudley said.
A state law requires all public funds, whether appropriated by the Commonwealth or privately donated, to be approved by the General Assembly. Since no budget was passed, the use of private funds for capital projects was not approved. Thus, until the General Assembly passes a budget, no privately donated funds can be used for the start of construction and renovation at the University.
"A total of $132 million non-state [funded] projects were held up because [the General Assembly] didn't agree," Dudley said.
Twenty-five projects, including a new Materials Science building, a Commerce School addition and the renovation of Garrett Hall, are affected by the budget freeze. All were to be funded by non-general grants.
"The state must approve the appropriations for both general and non-general funds for capital projects," said Nancy Rivers, University director of State Governmental Relations.
The restrictions on non-general funds for capital projects was a budget freeze consequence, said Colette Sheehy, Vice President of Management and Budget.
"It is not because the Assembly didn't support the spending of the non-general funds but because spending could not be approved if the budget did not pass," Sheehy said.
The University is working to solve the problems posed by the halt in the budget legislation.
"I am very optimistic that the governor will try to solve this situation," said Leonard W. Sandridge, executive vice president and chief operations officer.
There are two ways the non-general and general funds could be used. First, the General Assembly could reconvene and pass a new budget. This could occur if Governor James S. Gilmore III (R) called a special session or the General Assembly convenes under a two-thirds vote.
Secondly, the University could appeal to Gilmore for permission to use the private funds.
Unless the Assembly reconvenes, the balanced budget Gilmore issued March 12 will be used until next year. If this occurs, University can receive approval to use the non-general funds through the appeals process.
Gilmore spokesman, Kevin Sheridan, said the governor will call the General Assembly back into session if it appears that it will agree to keep the car tax cut at a 70 percent.
"We're working with the governor's staff to understand the possibilities involved with solving this problem," Rivers said.
Despite the current lack of funds from the state budget freeze, the Board of Visitor's Buildings and Grounds Committee passed its 2002-2008 plan for construction and renovation projects around Grounds and the U.Va.-Wise campus.
The six-year plan will be submitted to the state for approval.
In December 2001, Gilmore's staff will review the Board's plan. The six-year plan's cost totals $947.7 million. This includes improvements for the "Academic Division, the Medical Center, and the College at Wise."
General funds total $337.3 million while, non-general funds total $610.4 million.
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