With aid from the American Recovery and Reinvestment Act federal stimulus package, the Virginia General Assembly’s revised budget will provide the University with $10.7 million, helping offset Governor Tim Kaine’s recommended $23.1 million general fund cut, University spokesperson Carol Wood said. The stimulus dollars could reduce projected tuition increases.
Legislators voted yesterday on the governor’s vetoes to various bills, none of which will affect higher education funding, at the General Assembly’s reconvened session. The net effect of the expected ARRA contribution will be a $12.4 million reduction of the University’s 2009-10 budget, she said. The stimulus funding will be provided during two years as temporary relief, Wood said.
Because the stimulus funds are only for two years, however, the funding cannot be built into the University’s base budget, University Executive Vice President Leonard Sandridge said, noting that University schools and departments already have planned for the 2009–10 budget reductions.
The funds likely will result in less significant tuition increases, which Sandridge said probably will be lower than the projected increases expected in the University’s six-year plan.
“Although the governor placed no restrictions on tuition and fee increases, the ARRA [stimulus] funds are to be used to mitigate increases in tuition and fees,” Sandridge stated in an e-mail, adding that tuition will be set April 14 and voted on at the June Board of Visitors meeting.
Tuition is normally approved at the April Board meeting, which occurred last week, but Wood said the decision was delayed to give the General Assembly time to approve the state budget.
Sandridge said the federal funds help to alleviate fiscal problems but do not rid the University of all its financial concerns.
“While the stimulus money helps, the University faces numerous unavoidable costs, such as AccessUVa, the operations and maintenance costs of new facilities coming online, and utilities,” Sandridge stated. “It is estimated that approximately one-third of the undergraduate in-state tuition increase will fund in-state need-based financial aid.”
The $10.7 million the University will receive is part of $4.8 billion in federal funding allocated to the commonwealth, Wood said. Kaine designated $983 million for education efforts from kindergarten through higher education; $126.7 million of the commonwealth’s total allocation was specifically set aside for higher education, Wood said.
The $4.8 billion also included a separate category for public safety and other government services like education. The state received about 9,000 proposals to fund various projects, Wood said. The University submitted about 20 proposals, she added.
Kaine has decided to put a hold on the open bidding process, however.
“At this point [the funding] will not be rewarded,” Wood said, “and he’s going to hold that money until he’s sure where the economy is going.”
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