Board adopts $1.44B budget
concerns about state funding cuts and stagnant faculty salaries,
the Universitys Board
of Visitors approved a $1.44 billion operating budget for
2002-03 at its May 30-June 1 meetings.
academic division will get $835.8 million, or 57.8 percent of
the total. The Medical Center is set to receive $587.6 million,
or 40.8 percent, and the College at Wise, $19.7 million, or 1.4
the proposed budget represents a 1.9 percent hike from the current
fiscal year, which ends June 30.
W. Sandridge Jr., executive
vice president and chief operating officer, explained during
the Finance Committee meeting May 30 that the University is coping
with a $25.4 million reduction in state funds and the second year
without base salary increases from the state.
tuition and fees, which the board approved in April, will make
up for roughly half of the reduction, Sandridge said. Tuition
and fees account for $207.5 million, or about 14.1 percent, of
the projected total revenues of $1.47 billion.
M. Thompson, one of four new board members, asked what impact
the salary situation is having on faculty turnover.
no real evidence of a serious exodus, Sandridge said. But
theres no question were having to work hard to counter
offers from other institutions.
tried to set aside the resources to deal with serious cases,
committee chair William H. Goodwin Jr. and board member Terence
P. Ross raised questions about some of the Health Systems
figures. Admissions are projected to increase by 894 patients,
from 26,643 this year to 27,537 in 2003, counter to declines over
the past several years.
also wondered if enough had been planned for pharmaceutical costs,
which Chief Financial Officer Larry L. Fitzgerald said are budgeted
to rise 6.1 percent.
think you are extraordinarily conservative on the expenditures
side and extraordinarily liberal on the revenue side, Ross
said of the centers budget.
and R. Edward Howell, vice president and chief executive officer
of the center, explained that admissions are being brought in
line with the trend in peer institutions. In addition, U.Va. in
the past had to turn away patients, a situation that now wont
be necessary because of added staff and more capacity through
shorter hospital stays.
said the budget includes $12 million in reserves to deal with
costs and revenues that dont match expectations. Goodwin
concluded by expressing confidence in Howells ability to
make the budget work.
Center employees to get bonuses, not leave
Center employees will share in the state-approved 2.5 percent
bonus plan, but will not receive the option of taking extra time
in presenting the bonus plan to the Board of Visitors Health
Affairs Committee, said offering paid leave was not an option,
because the hospital is a round-the-clock operation. Under state
law, the Medical Center has the autonomy to oversee its own compensation
employees and employees rated needs improvement in
their most recent evaluation are ineligible for the bonus, Howell
said. The bonus will be paid to the remaining 4,272 Medical Center
employees Aug. 23. The cost to the Medical Center will be $4.5
million, including taxes, according to a fiscal impact statement
supplied to the board.
changes Med Center retirement plan
board also approved changes in the Medical Center retirement plan
that are projected to save the Medical Center about $1,305 per
employee. Beginning with employees hired in October, the Medical
Center will reduce its contribution to each employees retirement
plan from 8 percent to 4 percent of salary, and lengthen the vesting
schedule the amount of time each employee must participate
in the plan to be eligible to receive the Medical Centers
contributions upon his or her departure from one to two
years. On the other hand, the Medical Center will match 50 percent
of each employees own contribution to a maximum of an amount
equivalent to 4 percent of the employees pay, up from a
$480 maximum previously.
changes do not affect current employees.
dean outlines vision
Medical School dean Dr. Arthur Tim Garson Jr. presented
his vision of the future, mapping for the board a 10-year projection
of trends. Garson predicted an increase in the number of hospital
patients as baby boomers age, but also a shortage of doctors and
nurses. Heart disease and cancer will remain threats, but other
diseases will be eradicated.
will allow people to live long enough to get another disease,
Costs to the community could increase, as could the number of
uninsured patients, and there may be a greater gap between what
is medically possible and what is affordable.
Medical Schools task is to determine what must be taught
and how to teach it, he said. The competition among schools will
be in producing better doctors and innovations, stressing specialization
and collaboration, both within and outside the medical field,
role is to supply models for excellence for the rest of the country
in providing superior patient care, creating a distributed network
and providing greater use of electronic data, Garson said.
who has already spent a planning weekend with Howell, said the
school should provide growth and recognition opportunities for
master teachers, offer a masters program in public health
and generate major clinical programs.
he suggested the University needs an orthopedic chair and hematology/oncology
chief. He stressed that there would need to be strong fund raising
to support his vision.
down, expenses up
his report, Fitzgerald noted that discharges are below last year
and the current budget and expenses are over budget and soaring
over last years costs. Labor costs are higher than budgeted,
though the Medical Center has greatly reduced its use of contract
E. Nick Carter, vice president of operations at the
Medical Center, said an eight-bed short-stay unit would be available
starting in June as a way of reducing costs. He also said each
job vacancy was being evaluated before it is being filled.
drinking drying up?
it comes to how much U.Va. students think their peers drink, the
gap between reality and perception is shrinking. And students
are actually drinking less than three years ago, according to
the U.Va. Department
of Student Healths yearly surveys.
seems to be making a difference at the University? Chalk it up
to a form of reality check called social norms marketing,
which Patricia Lampkin, interim vice
president for student affairs, described to the boards
Student Affairs and Athletics Committee May 31.
downward trend is definitely encouraging, she said. Social
norms marketing is based on the premise that young people
usually want to keep up with what their peers are doing, yet their
perceptions are often out of line with actual behavior.
Affairs staff has promoted the survey results in a public relations
campaign that includes lively advertisements in the Cavalier
Daily. They show that students arent drinking as much
as they think they are. In 1999, students thought their peers
were downing about nine drinks a week, when in actuality theyd
drink about six. By 2002, both those numbers had decreased from
the perception that student peers were consuming about 4.5 drinks
to the reality that its about 3.5.
complete list of Faculty Actions.