UVa set to lose $23 million in state funds over 2 year

The University of Virginia will lose roughly $23 million in state funding over two years under state budget cuts proposed on Wednesday by Gov. Timothy M. Kaine.
The proposed $23 million loss includes a $10.6 million, or roughly 7 percent, state-funding cut made to UVa’s budget in October as Kaine tried to partially close an estimated nearly $3 billion shortfall in state revenue projections.
Wednesday’s proposal would account for an additional $12.4 million loss, or about 8 percent. Together, both cuts would account for 15 percent of the roughly $160 million in state money that makes up UVa’s academic operating budget.
Leonard W. Sandridge, UVa’s executive vice president and chief operating officer, said that while the school is not planning on layoffs to deal with loss, it is also looking to manage its work-force size and costs through attrition. Employee salaries and benefits make up roughly two-thirds of UVa’s operating budget.

“We have no plans at this point for layoffs, but the situation nationally is one that it would simply be dishonest of me to say that we don’t have to look at this going forward; month to month and quarter to quarter, it is a very difficult period,” Sandridge said.
He added there will be no mid-year tuition increase, and that any increase considered next spring would depend, in part, on the final form the budget cuts take after they are filtered through the General Assembly.
On the employment side, UVa has 185 positions it is actively trying to fill, but there is no figure immediately available of how many positions would remain open, Sandridge said. However, he added that in some cases duties associated with jobs left unfilled will be shifted to existing employees.
“It is inevitable that some of our classes will be larger,” he said. “And, candidly, it will be a challenge to maintain our normal level of services to all of our customers.”
Sandridge said he did not expect UVa would be giving raises to academic staff and faculty, which is line with Kaine’s budget proposal calling for the nixing of raises for state employees through 2010.

Sandridge said he did expect raises for some UVa Health System employees, but that that too would be limited.
“Obviously we are building a situation we will have to fix at some time because salaries to some degree will be falling below market [price],” Sandridge said. “Although, in fairness, I don’t know of many employers that are able right now to be making substantial increases in salaries.”
He added the budget cuts will mean maintenance on some buildings would likely be put off and that faculty travel will be limited.
Colette Sheehy, UVa’s vice president for management and budget, said the recent budget cut proposals likely would not stop state-supported capital projects that have reached the construction phase.

However, Sheehy said, projects still in the detailed planning and pre-planning stages likely will be put on hold should the proposed cuts take effect.
Virginia’s Community College System, which represents the state’s 23 community colleges, was also outlined on Wednesday to take a $40 million cut over two years.
Of that $40 million, roughly $19 million is what Kaine cut from the system’s budget in October. Of that $19 million, Piedmont Virginia Community College gave up nearly $450,000.
A spokeswoman for PVCC said Piedmont President Frank Friedman would be part of a conference call today with VCCS Chancellor Glenn DuBois to hear how the latest $21 million in proposed cuts would affect community colleges.
Kaine proposed the revised biennial budget in a speech to a joint meeting of the House Appropriations, House Finance and Senate Finance committees in Richmond.
The General Assembly will take up the budget cut issues when it convenes next month.