approves new agreement with state
Board of Visitors considered
issues related to the University's future at its Oct. 5 and 6
meeting, approving a six-year pilot performance agreement with
the state and hearing that athletics can't continue as is without
board also discussed student demand for information technology,
which still outpaces U.Va.'s ability to offer enough computer
joins pilot program
Board of Visitors approved an Institutional
Performance Agreement between the University and the state
that addresses major funding over the next six years, as well
as quality and accountability issues.
Governor's Blue Ribbon Commission on Higher Education recommended
in its final report that the state move away from using strategic
plans toward using the institutional performance agreements. U.Va.
is one of five Virginia institutions that has agreed to participate
in a pilot IPA program.
institutional performance agreement could give U.Va. a long-term
plan for capital outlay projects, [as well as] increased managerial
autonomy over our routine business processes," Colette Sheehy,
vice president for management and budget, said after the Oct.
5 finance committee meeting.
of the primary financial aims of the IPA is to increase the proportion
of the University's budget provided by state appropriations from
the current level of 26.9 percent to 30.3 percent in 2005-06,
and to decrease the proportion provided by tuition and fees from
25.6 percent to 20.5 percent in that period.
goal is to increase "education and general" expenditures
by about $240 million between fiscal year 2001 and fiscal year
2006, a 48 percent increase over the approved budget for the current
fiscal year. Of that $240 million increase, 63 percent would be
funded by the state.
IPA anticipates maintaining faculty salaries at the 60th percentile
of the benchmark salary group approved by the State
Council of Higher Education for Virginia. U.Va. salaries had
reached the 48th percentile last year.
plan also foresees a significant increase in funds for new faculty
hires, because the level of state appropriations should rise once
the state restores base budget adequacy -- that is, funding guidelines
based on the number of students that were in place before the
"We don't know what will happen after the submission Oct.
6 or the extent to which the state will agree with the terms proposed
in the agreement," Sheehy said. "This is a new process
for both sides, and I imagine that the specifics will emerge as
we work through the process."
financial forecast 'dismal'
the status quo in athletics may produce an annual Athletic Department
budget deficit of $10 million and a cumulative shortfall of $44
million by 2010, Carolyn M. Callahan, chair of Virginia 2020's
fifth commission, told the Student Affairs and Athletics Committee.
a Curry School
professor and the University's faculty representative to the National
Collegiate Athletic Association, offered an interim report on
her commission's findings. A final report, to include recommendations
for new sources of revenue, is due to the board in January.
we have found is not good," Callahan said. "The [financial]
outlook for the next 10 years or so I would say is dismal."
In 1997, only 43 percent of NCAA Division I-A schools turned a
profit, while 53 percent reported a deficit. Today, even high-profile
programs at the universities of Michigan and North Carolina are
facing financial crises, Callahan noted.
year, U.Va.'s budget broke even, said Director of Athletics
Terry Holland. A year earlier, there was a $250,000 deficit, which
was covered with reserve funds. Few reserves are available to
cover future deficits, Callahan said, and shoe and clothing contracts
are being reduced across the country. Revenues from television
and radio broadcasts "are probably at their limit,"
she said, while costs are expected to continue to increase "if
we wish to remain competitive at the same level" -- among
the top 10-20 athletic programs in the country.
commission is looking for ways to maintain that level of excellence
within the framework of a balanced budget.
position is that everything is on the table," Holland said,
including the possibility of discontinuing one or more of the
University's 24 varsity sports.
hope not to have to do that," Callahan said, who added that
one goal will be to establish an endowment for athletics.
his remarks to the committee, Vice
President for Student Affairs William H. Harmon said that
approximately 95 percent of incoming first-year students participated
in a summer orientation session this year, said. Nationally, a
75 to 80 percent participation rate is considered good, he noted.
parents than expected have accompanied their children to the sessions,
he added, contributing to a summertime economic boost for the
Also, an explosion in the number of student organizations has
led to a space crunch in Newcomb Hall, and Student Council is
pushing for a new student activities center, Harmon said.
of Oct. 6, there were 404 registered student groups, he said.
Ninety-one sought office space in Newcomb, but only 38 could be
accommodated, he said.
has met with Student Council to review its proposal for a new
facility. "I was impressed with their presentation,"
Info-tech demand booming
University is scrambling to meet skyrocketing demand for information
technology classes, both from computer science majors and students
who just want an adequate amount of literacy, officials told the
Educational Policy Committee.
Enrollment in Computer Science 110 -- an introductory computer
literacy course for non-Engineering students -- jumped from 187
students during the 1997-98 school year to 360 in 1999-2000, said
Vice President for Research and Public Service Gene D. Block.
This fall, there was a 99-student waiting list for the course.
number of computer science majors has more than doubled over the
last decade, from 136 in the 1989-90 academic year to 282 last
year. But, he noted, the number of faculty has risen only slightly
in the same interval, from 19 to 22.
Some faculty lines have been reallocated, Block said, and the
University is seeking federal and foundation support. In addition,
Vice President and
Provost Peter W. Low has provided an additional $100,000 per
year from his discretionary budget to support additional sections
of popular computer courses.
board members appeared dissatisfied. "If I interpret what
you've said, we haven't done much," said William H. Goodwin
Jr. "We really have no excuse not to offer it to any student
who wants this."
Board member Terrence P. Ross noted that 15,000 computer jobs
are vacant in Northern Virginia alone.
University's first proposed Institutional Performance Agreement
with the state calls for an additional $330,000 and 3.5 faculty
positions to support additional introductory-level classes, said
Shirley L. Menaker, associate provost for academic support.
The board also heard reports from two students who participated
in the Faculty Senate's Harrison Awards program for undergraduate
research. David Britts, a third-year Engineering student, worked
with associate professor Pam Norris in her aerogel lab, exploring
how fibers might reinforce the lightweight materials enough to
make them useful as insulators. Britts' work may lead to additional
funding for the lab, Norris said.
Johnson, in her fourth year in the five-year teacher education
program, worked with Curry School associate professor Margo Figgins
to survey minority high school students about their attitudes
toward teaching careers. Her findings will be presented to Curry
School faculty later this month, and at a national conference
later this year.
The Harrison Awards program received 165 applications for grants
last year, and 25 winners were selected, said Faculty
Senate president-elect Robert Grainger. The Senate is ccurrently
seeking proposals for next year's projects.
Center holding steady
Health System's financial
report before the Board of Visitors Oct. 6, showed that the operating
income of $4.5 million was consistent with expectations for the
first two months of the fiscal year. Associate Vice President
for Finance Larry Fitzgerald said it was partly due to three factors:
higher than expected patient volume; an increase to hospital charges
which average 6 percent; and a higher than expected case mix index,
which refers to the severity of patient illnesses. An additional
Medicare payment to the Medical Center will bring in $3 million
more in net revenue this year.
Fitzgerald and Dr. Robert Cantrell, Vice President and Provost
for Health Sciences, mentioned that the Medical Center is still
experiencing a staff shortage. Attempts to recruit nurses overseas
yielded few results, because other countries are also short on
nurses, Cantrell said.
the Health System's Performance Improvement Project, which began
in January, has generated almost $14 million in savings and revenue
ideas toward the $28 million target, Chief Operating Officer William
E. "Nick" Carter Jr. reported. The steering committee
has approved proposals to save $8.3 million since June, with some
of them already implemented. Carter pointed out that ideas are
not just rubber-stamped. "We backed away from $2 million
in cost savings, because we felt it would not be correct to implement
those ideas," due to possible negative effects on patient
care and quality of work-life concerns, he said.
of the initiatives that have produced savings include: renegotiating
contracts for pharmaceutical and operating room supplies; maximizing
reimbursements from drug companies for indigent care drug programs;
and reducing late charges.
steering committee tabled cost-cutting ideas in two areas where
the Health System is above the norm: the Health System spends
almost double that of other hospitals on its retirement contribution
and spends more for its infection control program.
"We decided it would not be prudent to take something away
from employees," Carter said. That applies even to potential
employees, with the present difficulties in recruiting. And when
it comes to infection control, U.Va.'s rate is better than comparable
hospitals, so no one wanted to change that, he said.
A working group on the University's Greek system is focusing
on ways to strengthen ties between the University and fraternities
and sororities, said board member Gordon F. Rainey. Several
Greek houses are seeking new renovations, but such programs
may come with increased accountability, he said, citing a "need
for cultural change." A final report is due in January.
As of June 30, the University's endowment grew by $479 million
to $1.74 billion, U.Va. Treasurer
Alice Handy reported.
new endowed professorships were established, bringing the total
number to 450. They are: the Joseph Weintraub Bank of America
Professorship in Law; the Teresa Heinz Professorship in Sustainable
Communities in the School of Architecture; the Edmund H. Henderson
Professorship in Education; the Novartis U.S. Foundation Professorship
in the Curry School of Education; the Thomas A. Saunders III
Family Professorship in Nursing; and the Madeline Higginbotham
Sly Professorship in Nursing.
The value of the University's sponsored research has increased
by 48 percent between 1996 and 2000, from nearly $160 million
to more than $200 million, Block reported. The largest shares
of the broad-based increase came from the National Institutes
of Health and from private foundations, he said.
The board increased the limit for Medical Center procurements
and sole-source justifications to $50,000, and revised procedures
for emergency procurements.
Dr. Cantrell announced that Cole Hendrix, associate vice president
for community relations, will resign as of Jan. 1.
board passed a special resolution commending L. Jay Lemons,
who will be leaving his post as chancellor of U.Va.šs College
at Wise at the end of the year to take the helm of Susquehanna
University in Pennsylvania.