The ramifications of an indefinite state budget and the University's financial status were the major themes at University President John T. Casteen, III's annual State of the University Address in Old Cabell Hall yesterday.
Casteen cited the Commonwealth's current budget impasse as a catalyst for financial change on the University's part. In response to declining state funding to the University over recent years, the University's budget this year will include tuition increases while sustaining a commitment to financial aid, Casteen said.
This year the University is receiving 8.1 percent of its funding from the Commonwealth. The amount has dropped significantly from 12-14 years ago when the University received 24 percent of its funding from the state, University spokesperson Carol Wood said.
"We are planning to carry the University forward regardless of the outcome of the state budget," Casteen said.
However, "the great deal of uncertainty in the relationship with the state" will put some degree of financial strain on members of the University community, specifically students and families with financial need and paying increasing tuition rates, Casteen said. "Raising tuition levels puts pressures on families. This becomes a major issue as we become more tuition dependent."
Since 1996, a series of state-mandated tuition rollbacks and freezes prohibited the University from increasing tuition until fall 2003, Wood said.
Nevertheless, the University aims to lessen the burden on families and students while becoming more self-sufficient in response to declining funds from the Commonwealth.
In order to maintain sufficient financial aid, the University created Access UVa, a new financial aid program, in February in an effort to provide 100 percent of qualified need.
"Access UVa is an incredible financial aid that is intended to ease the financial burden on low and middle income students," Wood said. "It is already being used as a model at other institutions across the country."
Casteen noted that University endowments have increased five-fold in the last 15 years, currently at over $2 billion.
A fundraising campaign to begin in 2005 is another significant financial source to the University, especially as the alumni population has grown and participation is at an all-time high, Casteen said.
In fact, this year marks the first in University history in which revenue from private fundraising and endowments, accounting for 8.3 percent of the University's funding, has surpassed Commonwealth funding, Wood said.
The University already has raised $400 million in the preliminary campaign and has a goal of $3 billion.
The goal "is a conservative number for this campaign," Casteen said, citing the success of the University's last fundraising campaign in the mid-90s. "We are very optimistic."
The accomplishments of the faculty are evidence of the University's strength as well, Casteen said. Over 60 faculty members were recognized in the State of the University fact book for their accomplishments this year.
"It has been a banner year for faculty accomplishment," Casteen said. "Their successes are responsible for the major successes of the University."
The University's growth and development, evidenced in construction projects around Grounds, represent the future of the University, Casteen said.
The opening of the Harrison Institute within the coming months, the construction of the John Paul Jones arena, the Aquatic & Fitness Center renovation and hospital expansion are the University's current major construction projects. The South Lawn Project and moving the Commerce School back to the Lawn are in construction plans for the near future.
"In the next seven or eight years we are making an unprecedented investment of the University infrastructure," Casteen said.
Casteen also briefly discussed issues that caused controversy at the University this year, including the proposed living wage, domestic partner benefits and animal testing.
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