The University's budget is set to see more reductions - estimated to be between $2.4 million and $7.1 million - on top of the $14 million cut passed by the General Assembly this April for the next fiscal year.
The Office of the Governor notified the University of these cuts Friday and asked the University to develop an updated budgetary plan, which is due to Gov. Bob McDonnell by Nov. 5.
This is the fourth year University administration has had budget reduction strategies in place, said Melody Bianchetto, assistant vice president for budget and financial planning.
"We've been holding positions vacant, not laying anyone off and have been able to produce savings," she said, adding that the budget office is looking for similar strategies for this latest cutback. The office plans to take supplies, travel, technology, and deferred maintenance into account when drafting the University's new financial plan.
During the short term, adjuncts may fill professor vacancies, Bianchetto said. It also is possible that students will see fewer sections and larger classes, Bianchetto said. Nevertheless, she noted that departments will work to ensure there are enough classes for registered majors.
The Center on Budget and Policy Priorities - a nonpartisan research and policy institute - predicted that beginning next fiscal year, state governments will encounter a total budget shortfall of $160 billion, a minor improvement from this year's $191 billion.
Because the University relies heavily on private donations, however, it may feel less of a blow. As of Oct. 14, the institution has raised more than $2.2 billion of the $3 billion capital campaign that is set to end in December 2011.
"When we kicked off, there were clear initiatives for which the funding was going. A lot went toward building," University spokesperson Carol Wood said. Significant portions of the revenue generated from the campaign will support specific schools and University priorities, as well.
Some public universities have not been as lucky in keeping specific programs afloat. In Missouri, Gov. Jay Nixon mandated that the Department of Higher Education assess all academic programs at the state's public institutions. As a result, University of Missouri Provost Brian Foster released a list of 75 "underperforming" programs Oct. 1 now up for realignment or elimination. Louisiana State University, State University of New York at Albany and University of Illinois at Urbana-Champaign are facing similar struggles.
The University was forced to eliminate Rhetoric Communications during the early 1990s and nuclear engineering about seven to 10 years ago, but cutting programs is a last resort, Bianchetto said.
"Usually, we're doing that for strategic changes based on demand and what fits into our portfolio," Bianchetto said. "There will be different priorities, and we'll have to adjust to this. There is no way to completely absorb [budget cuts] without there being some impact."
As a precaution, the University considered the federal stimulus package "one-time money" for "one-time initiatives," Wood said. Instead of tying the money to faculty or staff positions, much of the sum was allocated to medical research and projects already underway such as the South Lawn Project, which was completed this summer and dedicated Oct. 22.
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