U.Va. endowment performance second
Board begins discussions on 2004-05 tuition
By Lee Graves
treasurer Alice Handy presented a report on the University endowment
Friday that was both swan song and tour de force.
who is leaving her post of 29 years at the University to pursue
personal business interests, has guided the endowment to elite
status, and for that she received a long and loud ovation from
the Board of Visitors
The endowment stands at more than $1.8 billion. The one-year return
of 9.2 percent for pooled funds stands second only to Harvard
among the nations 30 largest universities.
H. Goodwin Jr., chairman of the Finance Committee, thanked Handy
for her years of service and said both her performance and that
of the endowment have been outstanding by any measurement.
said that decisions made by the board in 1974 to invest 75 percent
of the fund in equities has paid off handsomely. In looking at
the cumulative endowment performance, $1 million invested in 1974
is worth $38.1 million this year. Income from the endowment distribution
per share went from $10 per share in 1974 to about $115 per share
in 2003, far more than the $45 per share if the University had
stuck with the investment in bonds.
we were able to invest more aggressively, with the boards
support, you now have $115 [per share] to spend, Handy said.
another money matter, the board began preliminary discussions
about the tuition picture for the 2004-05 academic year. There
are many variables, including the level of funding from the state,
but Colette Sheehy, vice president for management and budget,
laid out the basic pricing policy in considering tuition.
First, the University wants a tuition structure that will help
it reach its goals for salaries and for base budget adequacy over
the next four years. Second, the policy should take into account
both in-state and out-of-state market factors while recognizing
the public nature of the University. Finally, beginning next year
U.Va. will offer 100 percent of demonstrated need for financial
aid to all undergraduates.
board will not act on tuition until April, and the topic is expected
to be on the agenda again at its February meeting. To frame the
discussion, Sheey presented a range of possibilities. The best-case
scenario, which depends on adequate state funding, would be for
undergraduate tuition to increase a total of $510 per student,
which amounts to 11 percent for in-state students and 2.5 percent
for out-of-state. The worst case, Sheehy indicated, would be an
increase of $1,035 per student, a 22.5 percent hike for in-state
undergrads and 5 percent for out-of-state undergrads.
member John O. Wynne stressed that it is important that the board
try to avoid setting double-digit tuition increases for in-state
Payne, also on the board, agreed. This year is particularly
important to moderate in-state increases, he said.
the Law School and the Darden Graduate School of Business Administration
expect to set out-of-state tuition to meet the market rate of
peers and build in a $5,000 discount for in-state students.
surcharges for medical students are expected to continue, with
first- and second-year in-state students paying a $2,500 surcharge,
and third-years paying $1,000. A set difference between in-state
and out-of-state tuition will be considered.