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Board OKs midyear student surcharge
By Lee Graves
The
Board of Visitors nailed
down one probability last week to help deal with a swirl of questions
about funding: Students can expect to see a surcharge tacked onto
their spring semester tuition bills.
The
unprecedented action came amid a shifting shell game of budget
cuts facing all state institutions. Gov. Mark R. Warner is expected
to provide details in a televised address on Oct. 15, but until
then the board has authorized the tuition surcharge.
No
cap was set, although $500 was mentioned repeatedly during Friday’s
Finance Committee meeting.
Colette
Sheehy, vice president
of management and budget, said that $1.68 million of revenue
is generated per $100 of surcharge applied to all students. Some
of that amount would be put back into financial aid, which the
board approved to help needy students with the increase.
Surcharges,
already assessed students in the medical, law and Darden schools,
are a means to raise revenue without technically hiking the rate
already established for tuition and fees.
U.Va.
is operating with $13.8 million less in general funds than budgeted
this fiscal year due to a $25.4 million cut by the state. The
reduction will grow to $33.8 million with a 15 percent cut.
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HEALTH
PLAN INCREASE
The administration is increasing employee contributions
to monthly health plan premiums, effective in January, the
following amounts:
Single
Up $2 to $17 month
Employee +1 Up $5 to $108 total
Family Up $10 to $206 total
Double state Up $5 to $110 total
The
University also is increasing its employer contributions
to the level paid by the state. Co-payments will be introduced
for some services.
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Rector
John P. Ackerly III suggested that if conditions get worse the
board could consider selling real estate or borrowing money “to
preserve and maintain the valuable characteristics of this University.
… I don’t believe anyone on this board wants the core
attributes of this number one University damaged,” he said.
Generating
revenue through a surcharge is one way to protect that core mission.
Board member Terence P. Ross, however, expressed concerns about
the surcharge coming in the middle of the year and about its impact
on students who must work to pay the bills.
Board
members also debated whether the surcharge would be an across-the-board
flat fee or have flexibility. The resolution ultimately was worded
“that the surcharge may or may not be applied in like amount
to all categories of students.”
In
another matter, the administration is increasing employee contributions
to monthly health plan premiums, effective January.
U.Va.
also is increasing its employer contributions to the level paid
by the state. Co-payments will be introduced for some services.
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