Board of Visitors meetings
line between public and private funding of the Universitys
operations is shifting in a small but significant way.
the first time, revenues from private sources gifts, and
endowment income exceed the state appropriation,
said Leonard W. Sandridge Jr., executive
vice president and chief operating officer, in briefing members
of the Board of Visitors Finance Committee on the Universitys
proposed 2003-04 operating budget.
State funds make up about 8.1 percent, or $130.9 million, of the
Universitys proposed $1.6 billion budget while spending
that will come from endowment income and gifts accounts for about
8.3 percent, or $134 million.
noted in the May 21 meeting that since 1985-86, the states
share of U.Va.s budget has decreased from 27.1 percent to
9.6 percent for the current year, and that decrease is expected
to continue into the coming fiscal year.
Its the lowest that Ive ever seen it,
committees discussion came on the same day that the State
Council of Higher Education for Virginia reported the need for
a consistent, reliable statewide higher education funding policy.
education support is on a slippery slope what took years
to build, we stand to lose
and it will take a long time
to rebuild a nationally reputable system of higher education,
Dr. Carl N. Kelly, SCHEV chairman, said in a release accompanying
decrease in state funding is expected to be partially offset by
increased tuition and fees, which will account for 15 percent,
or $242.8 million, of anticipated revenues.
largest slice of the income pie will come from patient revenue,
expected to contribute 42.1 percent, or $680 million, toward operating
costs. Grants and contracts account for 15.1 percent, or $245
board members asked about the Medical
Centers budget, which accounts for 42.1 percent, or
$665.4 million, of the overall proposed budget. Sandridge expressed
confidence in the anticipated operating margin and pointed out
that occupancy of beds in the Medical Center has been extraordinary.
are as full as weve ever been for the last four years,
he said. In addition, two new modular operating rooms are scheduled
to be up and running this summer.
It is a sound budget, a conservative budget, Sandridge
If its not broken ...
With 27 separate foundations and
a central development office, U.Va. has by far the most
complex [fund-raising] structure in public higher education,
the Universitys top fund-raiser told the Board
of Visitors External Affairs Committee on May 23.
an eye toward an upcoming $3 billion campaign, the committee heard
the pros and cons of the Universitys peculiar set-up, but
took no action to modify it.
have the best dysfunctional program in the country, said
Robert D. Sweeney, senior vice president for development
and public affairs. It works great, but you wouldnt
want to design it that way.
comparison, most public universities have one fund-raising foundation
to serve their entire institution; only the University of North
Carolina-Chapel Hill has as many as a dozen foundations, Sweeney
system has its drawbacks and benefits, Sweeney and others said.
strong point of our model is that we have development officers
who know their particular unit so well, Sweeney said. Big
gifts are often dependent on building a relationship between a
donor and a researcher or faculty member, he noted, and school-based
development officers are in the best position to facilitate such
central development office serves as a management company, integrating
the disparate foundations work in an effort to make fund-raising
efforts appear seamless to potential donors, Sweeney said, while
offering efficiencies of scale.
central office can also help strengthen the operations of less-established
foundations, he noted, and can guide donors from one jurisdiction
to another. Still, political tensions do occasionally arise among
the various units, and between the units and the central development
office, said John B. Jack Syer, executive director
of the U.Va. Alumni
unit has the capacity to engage its best and brightest volunteers,
who often identify closely with their particular unit, he said.
They dont want to give up control. Cooperation
is more the rule than competition, Sweeney said.
member Susan Y. Syd Dorsey raised another potential
flaw in the foundation-based model: the difficulty in making appeals
to distinct constituencies that cross school boundaries, such
as women and international students, both groups whose numbers
are rising among alumni.
the University on track to raise $240 million in cash flow this
fiscal year, no one was offering ideas for alternate structures
like watching a dog walk on its hind legs, said rector Gordon
F. Rainey Jr. The amazing thing is that it can walk at all.
selected for studio art building, other board action
Boston architectural firm was selected by the boards Building
and Grounds Committee to design the $12.5 million studio art building.
the full board approves, Schwartz/Silver Architects Inc. will
develop plans for the three-story structure, which will provide
teaching studios for painting, sculpting and photography, faculty
offices, gallery space and studios for visiting faculty.
Among other actions taken May 23, the committee:
Selected RMF Engineering Inc. of Baltimore for designing improvements
to the main heating plant, a project that will total $50 million
to improve emission controls and upgrade equipment.
OKd architectural design guidelines for the performing arts
center at the corner of Massie Road and Emmet Street. The $47
million project will house a performance hall, faculty offices,
classrooms and other space for the music department.
Approved architectural design guidelines for the Rouss Hall addition
and renovation. The $43 million project will provide a new home
for the McIntire School of Commerce and additional space for the
College. Committee members agreed not to demolish Varsity Hall,
a historic building located behind Rouss Hall, but to get more
information before deciding where to move it.