gets $20 million for arena; board OKs budget
University will receive $20 million to kick off its fund-raising
campaign for a proposed athletics and special events arena on
Massie Road, U.Va. President John T. Casteen III announced to
the Board of Visitors during its three-day meeting last week.
anonymous gift represents about one-third of the core funding
needed to begin the arena project, estimated to cost $125 million.
The gift, the second largest gift ever for U.Va. athletics, will
finance the planning of the project, slated for completion by
extraordinary commitment is wonderful news for mens and
womens basketball, Casteen said. The need for
a new facility is clear. The larger community will also benefit.
We are deeply grateful to the donor for expressing a firm dedication
to excellence through this gift.
from basketball, the arena could be used for concerts, major addresses
and other special events, he said.
board authorized strategic planning for a new arena in October
1998 and included it in a six-year capital spending plan this
billion budget approved
Finance Committee approved a $1.41 billion budget for the 2001-02
fiscal year, which begins July 1. The spending represents a 7.4
percent increase over the current year.
budget includes $816.3 million for the academic division, $575.6
million for the Health System, and $18.8 million for U.Va.s
College at Wise.
failure of state legislators and Gov. Jim Gilmore to agree on
a package of amendments to the two-year state budget left faculty
and staff members without a pay raise. However, Leonard W. Sandridge,
executive vice president and chief operating officer, expressed
some optimism that the current state budget would be amended in
January to provide for raises, which could be made retroactive.
No employees, however, will receive raises unless the legislature
approves them in the budget.
expect that there is a good chance that, as part of a caboose
budget, there will be some effort to bring those in this year,
University anticipated those costs in preparing the projected
budgets of the Medical Center and auxiliary enterprises, Sandridge
said, and assumed that the legislature would come up with the
funds for the rest of the employees, since the University budget
had to be built upon current revenue assumptions.
Medical Centers budget forecasts a $30 million operating
margin, representing a 4.9 percent margin of revenue over expenses.
Non-operating gains are predicted to push the net income to $39.3
million. In the current year, budget officials project a 2.2 percent
operating margin and an $18 million net income.
Larry Fitzgerald, chief financial officer for the Health System,
acknowledged that the new budget is a stretch.
you dont set the bar at 14 feet, youre never going
to jump 14 feet, he said. Were going to try.
Health System budget anticipates spending $17 million in higher
salary costs, in part to attract candidates for unfilled positions
vacancies that have caused some beds to be closed in the
past few months. It also includes $6 million for new information
technology, including $3.6 million for the Medical Centers
Integrated Health Information Management System.
cover the increased expenses, the board authorized unspecified
room rate increases of between 5 to 17 percent, depending upon
market factors. The budget also projects a 2.4 percent increase
in admissions, which would reverse a two-year decline.
the academic division, the largest source of revenue is sponsored
programs, projected to account for $222.2 million, or 27.1 percent
of total income. Tuition and fees account for $182.4 million (22.4
percent) and state appropriations $168.3 million (20.6 percent).
60 percent of the spending will go toward education and general
expenses, including instruction, academic support and student
budget includes $10.34 million in discretionary spending of new
funds identified late in the budgeting process, including $3.77
million to implement and support the new Oracle administrative
systems; $2.24 million for graduate student aid, including health
insurance, tuition adjustments and fellowships; $1.17 million
for library support; and $1 million for international distance
academic division budget projects adding the equivalent of 344
new full-time employees, including 178 paid for by research grants
and contracts. Another 67 are Facilities Management workers already
employed, but previously paid for from the Medical Center budget.
Subtracting those two categories, employment growth will be 1.4
percent, said Colette Sheehy, vice president for management and
60 percent of the U.Va.-Wise budget will come from state appropriations,
and 70.7 percent will go toward education and general purposes.
the Universitys overall $1.41 billion budget, only 12.4
percent will come from the states general fund, a figure
that inches up to 14.8 percent if reimbursements to the Medical
Center for indigent care are included. That compares to 27.1 percent
state funding in 1985-86, Sheehy said.
Finance Committee also heard a presentation from Yvonne Hubbard,
director of Student Financial Services. About 25 percent of U.Va.
students need aid, the lowest in the state for public institutions,
while 70 percent of the students at Wise need aid, the highest
in the state.
the available aid, about 28 percent is loans, which prompted board
member Terence P. Ross to question how much debt was being loaded
onto students. Casteen explained that the interest rates were
lower than conventional loans. Board member William H. Goodwin
Jr. said the board should have a discussion about applying non-allocated
endowment money to student aid.
Treasurer and U.Va. Investment Management Company President Alice
Handy gave a report on the endowment, which lost $16.7 million
as of May 31, bringing its total to $1.7 billion. Handy noted
that it has been difficult to determine where to invest money
during the past five months. Goodwin assured the board that U.Va.s
earnings are in the top quartile among 35 schools with a similar
board also heard from U.Va.s new vice president of finance,
Yoke San L. Reynolds, who outlined her long- and short-term agendas.
In the short run, she will work with the switchover of business
computers to the new Oracle program; investigate the Universitys
reimbursement for the cost of research; and modify financial reporting
to allow better comparisons with other schools. Long-term, she
wants to optimize federal reimbursements and external partnerships
and improve administration efficiency.
and Ayers address board
the undergraduate experience and moving forward the VA2020 plan
top the agendas of both Gene D. Block and Edward L. Ayers when
they assume their new posts as vice president and provost and
dean of the College of Arts & Sciences, respectively. The
two men were formally introduced to the board June 15.
said that in trying to figure out how were the No.
1 public university when were not No. 1 in any one area,
I came up with the understanding that were stronger as a
whole than individually.
with the rest of the University to make all of us stronger
is one of the goals he has set as dean of Arts & Sciences.
He also told the board that he will request that more junior faculty
be hired to teach the Colleges largest classes. He plans
to offer more graduate student fellowships as well, and to improve
classroom and lab space sooner rather than later.
He hopes to create new programs, based on students interests,
and wants students and faculty to have as much contact with him
as possible. To this end, he will schedule weekly open office
hours. He will also implement the VA2020 plan.
told the board that he will develop a timetable to carry forward
the VA2020 initiatives. He will also make a concerted effort
to bring more women and minorities to top leadership posts,
improve graduate student incentives to attract the brightest and
best, maintain outstanding libraries, improve facilities and plan
more exchange and study abroad programs to internationalize
distinguishes itself as offering a unique research experience
for undergraduates, he noted.
Block, a biologist, and Ayers, a historian, said they plan to
continue teaching and conducting research.
Robert Cantrell, vice president and provost for Health Sciences
since 1994, reported to the Health Affairs Committee for the final
time June 14, reviewing changes in health care that have occurred
both nationally and locally since his appointment.
have been interesting times, and I am reminded of the old Chinese
curse May you live in interesting times,
he joked at the outset.
in medicine have led to people living longer, healthier lives,
but those gains have come at a cost, he said, citing skyrocketing
drug prices. As the population ages, it requires more and more
expensive medical care, he said, noting that half of all Medicare
funds are expended in the last six months of peoples lives.
Yet the U.Va. Health System has remained successful, Cantrell
said, citing the growth of outlying clinics, joint ventures with
other hospitals, new departments, better technology and additional
research facilities. The campaign raised $246 million for the
Health System, he said, and the hospital has thrice been named
as one of Americas 100 best.
concluded his voice choking with emotion I
wish godspeed to you and to all those involved with the University
of Virginia Health System.
officials reported that the Medical Center is likely to fall short
of its budget targets for the current fiscal year. They blamed
labor shortages that have forced some beds to be closed for several
months, increased salary costs needed to fill those vacancies,
and higher-than-anticipated increases in drug costs.
the first 10 months of this fiscal year, the Medical Center has
an $11.2 million or 2.5 percent margin of revenues over expenses.
By industry standards, that is a very good margin, but it
is certainly not up to the goal we set for this year, Fitzgerald
board established seven new professorships, bringing the total
of endowed chairs at U.Va. to 462.
also agreed that a board member should make a presentation on
the Honor Code at student orientation sessions.