MINUTES OF A MEETING OF THE EXECUTIVE COMMITTEE
OF THE BOARD OF VISITORS OF VIRGINIA COMMONWEALTH UNIVERSITY
April 21, 1988
A meeting of the Executive Committee of the Board of Visitors of
Virginia Commonwealth University was held on Thursday, April 21, 1988,
at 11:15 a.m. in the University Meeting Center.
Present were Messrs. Farinholt (Rector), Berry, Gregory, Lipman,
and Wurtzel; Dr. Holland; and Mrs. Abady. Absent was Mesdames Epps and
Whittemore; and Mr. Morris. Also present were Drs. Ackell, Connell,
Dewey, Ruch and Wilson; Messrs. Bruegman, Cribbs, Kudless and Ross; and
Mrs. Price.
Mr. Farinholt called the meeting to order.
The 1988 Legislative Highlights were presented. Mr. Bruegman
stated that the University fared well on the operating side of the
budget but the capital outlay side was somewhat disappointing.
Dr. Ackell introduced the presentation of the 1988-90 Consolidated
Budget Plan. He stated that when Secretary Finley addressed the Board
last year, -he predicted there would be no wholesale increase in posi-
tions; faculty salaries would be competitive nationally; and focus
would be on the Commonwealth Centers, International Education and Eco-
nomic Development.
Dr. Ackell reported that VCU's operating budget plan for the next
two years is based on the outcome of the General Assembly's recent
actions. The Governor and the General Assembly will fine-tune the
budget for the second year of the biennium in the 1989 Session of the
General Assembly. The major issues will be salary increases for
1989-90; capital outlay appropriations from lottery proceeds; and indi-
gent care and medicaid reimbursements. It is expected that there will
be no new major program initiatives in the 1989 Session.
Dr. Ackell stated that the highlights of the Budget Plan include:
. The Governor's recommendations for 8.77% faculty salary
increases and a substantial increase in discretionary student
aid funds.
. No discretionary funds in terms of additional staffing and
related dollars were provided to VCU by the General Assembly.
Dr. Ackell reported that only 1% of the budget is available for
program enhancements. These funds are available only because of real-
location of resources from increased enrollment and excess tuition
revenue. Reallocations were made to restore cuts in essential pro-
grams, like the Honor's Program; to meet critical staffing needs for
instructional programs; to implement the purchasing action plan; and to
provide necessary support to the Advancement Division.
Dr. Ackell stated that VCU's budget dilemma is not very different
than that of many of its sister institutions. The State funding formu-
la for Higher Education is in need of an overhaul. The present formula
is enrollment dependent and is based on national guidelines that are
now nearly 15 years old. This is like saying VCU should be 90.5% of
average. Additionally, the funding formula does not recognize the
complexity of the institutions and the presence of a large Academic
Health Center. VCU is proposing no increase in tuition for in-State
undergraduate, graduate and medical students. This was possible
because of an adjustment of an inequity in the State tuition funding
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formula as it applies to VCU which permitted a shift of funds from
tuition requirements to the State General Fund.
Mr. Bruegman introduced Mr. Cribbs for the Consolidated Budget
Plan presentation. Mr. Cribbs highlighted some of the more significant
points including:
Actual Fall 1987 headcount enrollment increased 3.5% to
• 20,485 from Fall 1986. FTE enrollment estimates for 1987-88
are 4.5% above actual 1986-87 levels. Annual FTE enrollment
for 1987-88 should reach 16,246.
Headcount and FTE enrollments are projected to continue to
•
increase in 1988-89 (16,363/FTE) and 1989-90 (16,438/FTE),
although at slower rates.
The University's total revenues will approximate $521,894,000
for 1988-89 and $538,422,000 for 1989-90.
State General Funds support Educational and General Programs,
Student Financial Assistance and the University Hospitals,
and will account for $167,098,000 or 32.0% of total revenues
in 1988-89 and $172,697,000 or 32.1% of total revenues in
1989-90.
Tuition and Fees support Educational and General Programs,
Auxiliary Enterprises and University Funds, and will account
for $48,069,000 or 9.2% of total revenues in 1988-89 and
$48,453,000 or 9.0% in 1989-90.
State General Funds are projected to increase by 9.8% in
1988-89 over 1987-88 levels and 0.8% in 1989-90 over 1989-90
levels.
Nongeneral Funds are projected to increase 4.5% in 1988-89
over 1987-88 and 0.9% in 1989-90. 88% of the total
Nongeneral Funds revenue is derived from tuition.
The University received $2,828,331 for 1988-89 and $2,964,285
• for 1989-90 as legislative enhancements.
Mr. Cribbs presented the Proposed Tuition and Fees Charges for the
1988-89 Academic Year. He stated that the tuition strategies used
included:
4
Maintain the current tuition rate for residential undergradu-
ate and graduate students and for residential and nonresiden-
tial first professional medical students.
Increase the tuition rate for resident and nonresident first
professional dentistry students to partially contribute the
Nongeneral Funds increase approved by the legislature for
dental curriculum revisions.
Increase the tuition rate for nonresident undergraduate and
• graduate students to continue to move toward compliance with
the 3:1 tuition funding policy of the State.
Maintain the current tuition rate for post-baccalaureate
• certificate students in Patient Counseling.
The Fee strategies included:
Set the University Fee rate sufficient to support approved
^ operating levels for activities supported by the Fee.
Set the University Fee rate sufficient to establish a sinking
fund for construction costs of Student Commons II.
Set the University Fee rate sufficient to establish a fund to
support the development of recreational and athletic facili-
ties and provide for technological improvements.
Continue policy of charging part-time evening students a
reduced University Fee rate.
Mr. Cribbs noted that the tuition charge for a full-time under-
graduate resident student will not increase while the University Fee
will increase from $390 to $480 or 23.1%. The total charges for a
Virginia resident living on campus will be $5,555 representing a 4.1%
increase.
Following a discussion, on motion made and seconded, the 1988-90
Consolidated Budget Plan and the Proposed Tuition and Fees Charges for
the 1988-89 Academic Year were approved.
On motion made and seconded, the Committee convened into executive
session to discuss certain personnel matters involving the performance
of identifiable employees or faculty of VCU, and to discuss the evalua-
tion of performance of departments or schools of VCU where such matters
regarding such individuals might be affected by such evaluation, and to
discuss the condition, acquisition or use of real property, and to dis-
cuss matters relating to gifts, bequests and fund-raising activities,
and to discuss special awards as authorized by Section 2.1-344 a(1),
a(2), a(7) and a(8) of the Virginia Freedom of Information Act.
Following executive session, on motion made and seconded, the
Board approved the recommendation of the Student Affairs Committee for
the recipient of the Board of Visitors' Scholarship Award.
The meeting was adjourned at 1:15 p.m.
Approved:
