approves endowment payout of almost $14 million
of Visitors' responses to a rosy financial picture contrasted
with its scrutiny of some of the University's financial structures
at the June 15-17 meeting.
board approved the distribution of an increase of 30 percent of
this year's endowment income to pour up to $13.6 million more
into the deans' coffers and authorized up to $3 million to be
used for Medical Center personnel initiatives, along with approving
a $1.26 billion budget for 2000-01.
members also reviewed whether the Health
System has enough autonomy from the state to be competitive,
and whether the University's foundations are too independent from
their administrative oversight.
Alice Handy reported that the endowment stood at $1.67 billion
as of May 31. The University typically increases the payout on
the endowment by 4 percent annually to keep pace with inflation.
This year, despite the volatility of the market, U.Va.'s endowment
has performed exceedingly well, increasing in value over 35 percent
for the year, allowing an increase of 30 percent in the income
distribution, she reported.
can sustain this because of the performance of the endowment,"
Leonard W. Sandridge, executive vice president and chief operating
officer, told the board, which approved the $13.6 million distribution.
These funds will go to chaired professorships, scholarships and
fellowships and be available for other purposes to be determined
by the deans, said Colette Sheehy, vice
president for management and budget, in a later interview.
"The distribution will also allow us to establish a science and
technology venture fund [a recommendation of the Virginia
2020 Science and Technology Commission], contribute to the
costs of the Integrated Systems Project and provide start-up funds
for new faculty."
outlined U.Va.'s 2000-01 operating budget at the meeting. The
$1.26 billion bottom line is up 4.8 percent, or $58.1 million,
from last fiscal year. Of the total, $752 million goes to the
Academic Division, $487.5 million is for the Medical Center, and
$18.6 million is earmarked for the College at Wise.
accounts for 21.1 percent of all Academic Division revenue, Sheehy
said. State general funds come to 22.1 percent, and sponsored
programs bring in 26.6 percent. Auxiliary enterprise revenues,
gifts, endowment income and revenues from other sources make up
the remaining 30.2 percent of the revenue budget. Expenditures
are projected to increase by 4.2 percent, or $30.5 million, she
Medical Center's budget is proposed to increase by $24.6 million,
or 5.3 percent, in 2000-01, and the budget for U.Va.-Wise is expected
to increase by $1.2 million, or 7 percent.
University's overall budget is largely driven by personnel costs,
Sandridge told the board. Salaries and state-approved pay raises
make up roughly 65 percent of the total operating expenditures
in the Academic Division, Sheehy noted.
The Medical Center's operating margin is projected to be 4.9 percent
in fiscal year 2000-01, exceeding the board's 4 percent target.
The center's operating revenue is projected to be $512.6 million,
and its operating expenses $487.5 million, making its projected
net income $30.5 million.
William E. "Nick" Carter Jr., senior associate vice president
for operations, attributes the operating margins for the current
year and next year, which are higher than that of 1999, to better
management practices, especially containing costs.
Due to these improvements, the board authorized the Medical Center
to establish a $1 million fund for professional development and
training of health care providers, and to spend up to $2 million
to hire and retain critical personnel. This $2 million will augment
the $2 million approved by the board for this purpose in April.
Carter said the Medical Center is looking to hire 110 health care
professionals as soon as possible, to meet key personnel shortages.
and retaining good people is crucial," said Sandridge, who is
very concerned about the nursing shortage and 23 percent turnover
rate. The board backed these initiatives "in recognition of the
hard work of our employees and our strong financial results,"
he and Carter wrote in a June 15 memo to all Medical Center staff.
public authority status not preferable
U.Va. Health System would have little to gain by seeking public
authority status, a consultant told the Board of Visitors' Health
Affairs Committee. Board members and Health System officials had
questioned whether such status would enable U.Va. to be more competitive
in the health care marketplace.
1996, the General Assembly granted the University increased autonomy
and flexibility in some administrative and financial areas. Meanwhile
in Richmond, the Medical College of Virginia, seeking similar
benefits, chose a different route and was granted status as a
public authority -- its own legal entity.
its report, the Richmond firm of Reed, Smith, Hazel and Thomas
concluded that neither system has an inherent advantage, and that
most of the specific concerns raised by U.Va. officials can be
addressed under the current codified autonomy system.
upon interviews with dozens of key administrators, the consultants
found that many of them could be better informed about the codified
autonomy system, in order to take better advantage of provisions
already in place, said Lane Kneedler, who presented the report.
consultants suggested that the Board of Visitors examine the possibility
of constituting a subsidiary board, much like that at the University's
College at Wise, to more closely oversee Medical Center operations.
Its ranks would include members with more specialized health care
report also suggested the Health System administrators review
procurement procedures to ensure that they are taking full advantage
of the autonomy they have been granted; continue to seek the authority
from the General Assembly to keep the interest on revenue the
Medical Center generates, which would amount to $5 million per
year; and study to what extent some functions of the Health Services
Foundation, which handles physician billing, and the Health Sciences
Center could be combined.
recommendation -- the hiring of a full-time chief executive officer
-- is already being implemented. University President John T.
Casteen III recently announced that the University is conducting
a nationwide search to fill the newly created position.
Foundations in the spotlight
of U.Va.'s 26 related foundations, and the creation of a 27th
to benefit the College
and Graduate School of Arts & Sciences, dominated the External
Affairs Committee meeting.
The foundations, separate legal entities which support the mission
of the University, have come under increased political scrutiny.
While they allow the University greater efficiency and flexibility
in many areas, and provide a legal firewall to protect its liability,
they are not under the direct control of the University, said
Sandridge. Nonetheless, the University is often held politically
responsible for their actions.
foundations operate under a policy that includes guidelines for
fundraising, hiring and retention, investment management, procurement
and financial reporting, Sandridge said. The Board of Visitors
and the president each appoint one member of each foundation's
governing board, and the board annually affirms the entire list
of foundation board members.
The Board of Visitors also receives annual compliance reports
and must ratify the creation of new foundations and any significant
changes to the mission of existing ones, Sandridge said.
think the policy works well. It serves the Board of Visitors well
and it serves the foundations well," he told the board. "I think
the foundations feel that your participation is reasonable and
board members, however, expressed concern with the foundations'
accountability, and suggested creating a central office or administrator
to coordinate their activities and facilitate communication with
the board, which Sandridge agreed is "a good idea."
noted that the University
of Virginia Foundation was created to be an umbrella organization
that would fill a similar role, providing support and coordination
for the rest. "It does for several of the smaller foundations,
but it has not taken off to the extent that we foresaw," he said.
that backdrop, the board gave the go-ahead to establish the 27th
University-related foundation, to provide fund-raising support
for Arts & Sciences. Vice President for Development Robert D.
Sweeney said he believes it could raise $20 million in its first
year of operation.
Board member Terence P. Ross cast the only vote against forming
the new foundation, suggesting that it prove that it can raise
the money first.
might be the best report I've ever brought to you," Vice President
for Development Robert
D. Sweeney said in updating the board on the status of the Campaign
for the University. Through 10 months, this fiscal year has already
been the best in the campaign's five-year history, with $162 million
raised and $200 million in sight, he said. In April, the campaign
surpassed $1 billion in outright support -- not including future
pledges -- and Sweeney projected that the overall total could
reach as high as $1.25 billion by Dec. 31.
University's campaign will also receive a "Circle of Excellence
Award" from the Council for the Advancement and Support of Education
for the fourth straight year, a distinction no other university
can claim, Sweeney said.
New professorships and residence hall name approved
board established two new endowed professorships, bringing the
total number to 444. It also named the new residence hall on Alderman
anonymous benefactor has given the School of Nursing its largest-ever
outright gift, $1 million, to endow the new Centennial Distinguished
Professorship in Pediatric Nursing.
generous donor has set a new standard for School of Nursing development,"
said Nursing Dean Jeannette Lancaster. "More importantly, this
gift will have a major impact on the education and research in
the area of pediatrics that we can provide nursing students."
Pediatric health care has long been a strength of the University
Health System, which includes both the Children's
Medical Center and the Kluge
Children's Rehabilitation Center. Income from the Centennial
chair's endowment will enhance those strengths by allowing the
school to compete for a leader in the field of pediatric nursing
when the formal search process begins in the fall.
A new endowed chair in pediatrics was also created, the Robert
J. Roberts Professorship, in memory of the former chair of the
department and director of the Children's Medical Center, who
died in January 1997.
professorship has been funded with gifts and commitments from
the pediatrics department, the Charles A. Dana Foundation and
the Office of the Vice President and Provost of the Health System.
newest first-year dormitory, under construction in the Alderman
Road dormitories area, will be named Woody House in honor of the
late T. Braxton Woody, an alumnus and member of the faculty in
Romance languages for 43 years. While serving as assistant dean
of the College, Woody was tapped in 1968 to head the committee
that studied and later recommended full coeducation.
Sheehy said that phase one of the planned University Groundswalk,
which will include a bridge and connecting walkway across Emmet
Street to the Lambeth Colonnade, is scheduled to be completed
by fall of 2002. She also mentioned that another pedestrian bridge
is being planned over University Avenue to connect the Carr's
Hill precinct with Central Grounds near the Chapel.
then introduced a discussion on Arts Precinct design issues, which
Casteen said would be the first of many talks about how to approach
the challenges facing the University as it plans buildings for
this "transitional area" on Grounds. He warned that the University's
general design guidelines might not always apply. He explained
that the needs of the buildings -- in particular the natural light
demanded in a studio art building -- would have to dictate their
said that he had been studying studio art buildings at other universities
and that University Architect Pete Anderson had been compiling
a collection of photographs from around the country. "I think
this is going to be fun to work through," Casteen said, "but it
also poses issues different from what we've dealt with before."
information technology initiative proposed
University should create a new cross-disciplinary center combining
computer and information sciences and engineering, said computer
science professor Anita Jones, who chairs the Virginia 2020 Science
and Technology Planning Commission.
to the Board of Visitors' Educational Policy Committee, she said
her commission is recommending in its report to Casteen a plan
to create a new set of "bridge" programs that would allow students
to take courses in different schools for new majors. The emphasis
would draw from U.Va.'s strengths in computer science and information
technology and fulfill the commission's objective of increasing
excellence and leadership in science and technology education
and information sciences and engineering (CISE) has emerged as
a "substantial intellectual discipline" that fuels advances in
hardware and software, but also can be applied to every academic
discipline, she said.
University is presently limited, however, in resources and the
number of faculty devoted to the new discipline, Jones said.
proposed retooling the Shannon Center for Advanced Studies, which
was originally established to recruit world-class faculty but
has languished without funding in recent years, as a good place
through which to coordinate the effort. Because it doesn't belong
to any one school or department, it would be a place for new faculty
to work together across disciplines (they would still be hired
into departments). A physical location is needed, she said, adding
that a new building in the Engineering School dedicated to CISE
is a top priority, but another facility will probably be needed
that is connected with Arts & Sciences.
The way data can be retrieved, presented and manipulated electronically
is creating a new form of scholarly research. Bridge programs
that combine courses from different schools in using emerging
technologies might be similar to the kind of projects begun through
the Institute for Advanced Technology in the Humanities. New undergraduate
and graduate majors in computer science could be established between
Arts & Sciences and the Engineering
School; right now there is neither a BS degree in computer
science, nor a related program in Arts & Sciences.
love to see a Bachelor of Arts program where you have a double-major
in computer science and another subject," Jones said. More information
technology courses are needed that go beyond the skill-oriented,
short courses offered by ITC
and the library, such as the introduction to media studies course
money were not an issue, how soon could this get going?" asked
board member William H. Goodwin Jr.
a lot we could do in the next two years," Jones replied.
members expressed concern that students are not able to enroll
in existing computer science and information technology courses,
which Jones said were oversubscribed.
President for Develoment Robert D. Sweeney sounded an enthusiastic
note, saying that donors may be interested in supporting this
kind of initiative.
Senate takes up diversity and leadership
This year, the Faculty
Senate will pursue a theme that emphasizes two other major
initiatives by Casteen: diversity and leadership, said incoming
Faculty Senate chair Patricia H. Werhane, Ruffin Professor of
University began a year-long effort to study diversity issues
after the February conference on "Charting Diversity," and Casteen
recently established the Women's Leadership Council, following
a recommendation from the 1999 Task Force on the Status of Women.
Along those lines, the Senate "aims to raise awareness that excellence,
leadership and diversity are all Ćof a piece,' and that diversity
is not merely about gender or race," Werhane said.
Students' drinking behavior changing
Reporting on the progress of the Alcohol Task Force, William H.
Harmon, vice president for student
affairs, called its work to reduce irresponsible drinking
behavior "a good thing for the University community. . . . many
people have been working to curtail the custom and we're beginning
to see some signs of change."
He noted that individual students as well as student groups have
been supportive of the need for a culture change, and that many
have become involved in the work of the task force. Harmon listed
changes that have been made in a number of key areas, including
policy, education, enforcement and substance-free events. In the
works are a Web site that will serve as an ongoing source for
data on the status of substance use and abuse at the University;
a guide to alcohol-free activities at U.Va. in the Charlottesville
community; a parents' guide on college drinking; a new designated
complying with Blue Ribbon Commission's recommendations
F. Rainey Jr., the U.Va. board member on the ad hoc committee
that reviewed the Governor's Blue Ribbon Commission on Higher
Education Report, said that the group had done a detailed review
of the recommendations and concluded that "with one exception,
we're in full compliance."
exception involves the recommendation that "each institution's
budget requests to the Governor and General Assembly should be
accompanied by a certification by the board of visitors that it
has reviewed and considered the request ..." The timing of the
state budget and the schedule of U.Va. Board of Visitors meetings
has made it difficult to incorporate time for board members to
look at the budget. It was decided that a copy of the final budget
would be mailed to each member of the board for review.
the 73 Commission recommendations, Rainey said that a dozen applied
to boards of visitors. He went through all 12, noting what was
being done now and what might be done in the future to further
enhance compliance. He referred several recommendations -- including
one regarding core curriculum and another on grade inflation --
to the educational policy committee for future discussion.
Dean: Research drives Medical School ranking
Dr. Robert M. Carey, dean of the School
of Medicine, estimated that in for his school to order to
break into the national top 20, it would need to increase its
annual National Institutes of Health research funding from $68
million last year to approximately $120 million.
The school generally ranks between 25th and 30th in the U.S. News
and World Report magazine national rankings. A top-20 ranking
would enhance the University's ability to recruit and retain top
faculty and students, Carey said.
$120 million goal is attainable, he said, if the University builds
another medical research building, labeled "MR6," which is currently
in the planning stages. He estimated that a specially fitted building
of approximately 180,000 square feet would cost about $50 million.
A request to the General Assembly for construction money for MR6
has been unsuccessful for the past two sessions, Carey said.
In other business:
the Blue Ridge Hospital property was transferred to the U.Va.
Real Estate Foundation; and
the board approved issuing bonds for construction projects at
the Darden School, the
National Radio Astronomy Observatory
and the College at Wise;
design for the Monroe Lane student residence project was approved;
(The building on Jefferson Park Avenue will replace the Gildersleeve
Apartment building with a larger, more flexible student residence
the board approved the Virginia Department of Transportation
(VDOT) agreement for the Emmet Street Bridge project. (Since
U.Va. received $1 million federal grant -- to be administered
by VDOT -- the University must request by board resolution that
VDOT establish an urban system highway project for the construction
of the pedestrian and bicycle bridge over Emmet Street.)
This year's College
at Wise Samuel R. Crockett Award went to former board member
Champ Clark, who Chancellor Jay Lemons called "a beloved person
in Southwest Virginia."
-- Rebecca Arrington, Anne Bromley, Dan Heuchert and Carol
Wood contributed to this report.