University administrators and Gov. Mark R. Warner announced yesterday their concern over a proposed in-state tuition cap, which could jeopardize already emaciated revenue for higher education.
The House of Delegate's tuition proposal would cap in-state undergraduate tuition increases at 9 percent, while the Senate is proposing a cap of 5 percent or $800, whichever is less.
"I think with the Senate's cap it would be pretty tough to meet all of our expenses," said Colette Sheehy, University vice president for management and budget. "The House proposal is more generous and we would probably just be able to cover our costs."
The General Assembly currently is working on a final budget proposal in conference committee, which should be completed either today or tomorrow, barring any major conflicts, Politics Prof. Larry J. Sabato said.
The Senate's proposal might force the University to cut in-state tuition if the University is not able to apply its spring $385 surcharge to both semesters when calculating next year's tuition rate, Sheehy said.
It is too early to tell if tuition caps might result in the University needing to re-freeze hiring and discretionary spending, she said.
Tuition caps fit with the Republican-dominated General Assembly's ardently anti-tax philosophy, Sabato said.
"These legislators want to go home and say to their constituents, 'we saved you a ton of money,' and here's another way they can do it," Sabato said. "This is an election year."
If Democrats controlled the Assembly they would likely raise "sin" taxes on cigarettes and alcohol, which would create more money for higher education, and probably not support tuition caps, Sabato added.
Though the Board of Visitors technically has the legal authority to set the University's tuition and fees, and feels it should retain that right, there is little they can do to counteract Richmond's whims, Board Secretary Alexander "Sandy" Gilliam Jr. said.
"Anything printed in the appropriations act supercedes the [legal] code of Virginia," Sheehy said.
After 1996, Virginia's public colleges and universities lost their ability to raise in-state tuition, Gillam said.
"Under the previous governors, there was a freeze put on tuition, and the idea is commendable that you want to keep tuition down," he said. "But the problem is no money was appropriated to make up for the loss."
The General Assembly first froze in-state tuition in 1996, and then rolled it back by 20 percent in 1999. In-state undergraduate tuition and fees currently stand at $4,980, including the spring surcharge, as compared to $20,190 for out-of-state students.
Warner, who allowed for the lifting of the tuition freeze last year, is leery of imposing caps again, said Kevin Hall, deputy press secretary for the Governor.
"I think it's fair to say at this point the governor is not convinced that it would be a good idea to limit colleges and universities by arbitrarily capping tuition increases," Hall said.