Friday, October 10, 2008
University budgets taking a hit
Va. Tech and Radford U. will see a 5 percent drop in their budgets, likely leading to position cuts.
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BLACKSBURG -- Reductions of 5 percent to 7 percent in state funding to public universities announced Thursday will force colleges such as Virginia Tech and Radford University to use hiring freezes, cash reserves and cuts to auxiliary programs and discretionary spending to get by this year.
Large-scale staff reductions and midyear tuition increases -- methods used to cope with cuts of more than 20 percent early this decade -- are off the table for now.
Thursday's cuts are on the low-end of the three contingency plans outlining the impacts of 5 percent, 10 percent and 15 percent reductions in state support that universities sent to Richmond last month. But Tech spokesman Larry Hincker said he couldn't put too positive a spin on a 5 percent reduction in state general fund support that will trim $8.8 million from the university's budget.
"It will have an impact, as will all the other reductions in the state," he said. "As we have in the past, we will do everything possible to make reductions in areas where we minimize the impact on the quality of academic programs."
At Tech, that will likely mean spreading cuts to auxiliary areas of the university such as dining and judicial affairs, using unallocated funds in the current budget and cutting positions through attrition. Faculty and staff, as with other state employees at universities and elsewhere, will also have to wait until at least July to receive 2 percent pay raises expected to be given in November.
With the cuts coming in the middle of the academic year, course offerings and programs can't be touched this year, Hincker said. But that could change next fiscal year, with the state anticipating a budget shortfall of $1.5 billion. Cutting student enrollment next year at Tech, which had its largest entering class ever this fall, is also a possibility.
Hincker was short on specifics Thursday because the contingency plans were general assessments. He said President Charles Steger hopes to meet with university leaders next week to request specific plans from individual departments. The process should take about three weeks, Hincker said.
State support to Virginia universities has been dropping for more than a decade. Nationally, Virginia ranks 36th among state tax support for higher education per $1,000 of income.
Radford University also received a 5 percent cut, shrinking its budget by $2.5 million.
"For this fiscal year, some positions will be eliminated and the filling of some positions delayed," said Donna VanCleave, vice president for finance and administration. That will generate about a third of the needed savings, according to a news release from the university.
Before the governor's announcement, VanCleave indicated that a 5 percent cut wouldn't mean layoffs. But the post-announcement news release seemed to leave that possibility open, saying that "should any full-time employees be laid off," they would be eligible for severance benefits.
Radford will delay some technology purchases and reduce discretionary funding. The university still plans to open its master's of occupational therapy and doctorate of physical therapy programs on schedule next fall. The core curriculum overhaul that's been in the works for roughly a year won't be affected, either, VanCleave said.
At Virginia Military Institute in Lexington, which faces a nearly $1 million reduction in its general fund, spokesman Stewart MacInnis said officials at the institute believe they can meet the cuts fairly painlessly and without layoffs.
"We do have contingency plans," MacInnis said. "We're looking at maybe deferring some vacant positions, managing travel expenses and very closely monitoring purchases to make sure we don't spend anything that isn't essential."
Jay Conley contributed to this report.






