West Virginia University’s Board of Governors today (April 4) approved a package of tuition and fee increases of 9.5 percent for residents and 10.9 percent for out-of-state students for the 2003-2004 academic year. They also endorsed a voluntary classified staff severance package estimated to save the University more than $13 million over eight years, with some 225 employees expected to participate.

The proposals now go before the Higher Education Policy Commission for approval at its April 24 meeting.

Under the tuition plan, undergraduate state residents would pay $1,774 per semester, or $154 more than last year, and tuition for out-of-state students would increase from $4,855 per semester to $5,384.

The severance proposal applies only to full-time, benefits-eligible classified staff on the payroll as of June 30, 2003, with 15 or more years of service at WVU . The plan has two voluntary exit deadlinesJune 30, 2003, and Jan. 15, 2004with different incentives, and eligible participants would have until mid-June to declare their intentions. If an employee chooses to sever, however, he/she would not be eligible to return to work at the University.

Those opting for the June 30 exit date would receive 100 percent of their 2002-2003 annual base salaryup to a maximum of $45,000paid out over eight years, or 96 consecutive monthly payments, less applicable withholdings.

Those exiting Jan. 15, 2004, will receive 100 percent of their 2002-2003 annual base salaryless $5,000up to a maximum of $40,000over the same eight-year span, less applicable withholdings.

The plan is expected to receive legislative approval this spring, and is not being offered to faculty due to increasing enrollment projections.

Both the tuition increases and voluntary employee incentive plan are being proposed to meet a 13 percent reduction in state appropriations this yearalong with mandated increases in insurance costs (PEIA and BRIM ) and other mandated costs amounting to approximately $28 million, WVU President David C. Hardesty said.

“In summation, we have a major budget shortfall to address,”Hardesty told the board,”and have been working for months on just how to accomplish this monumental task.”

Even with estimated new revenue of approximately $15.7 million due to early enrollment projections of another record freshman class (4,200-plus) and the proposed tuition and fee increases, Hardesty said WVU still has to find increased revenues or reduced costs totaling about $13.4 million to balance the budget.

To do that, Vice President for Finance Scott Kelley outlined some cost containment and revenue generating measures that are expected to bring the budget into balance.

Estimated savings for the Morgantown campus (including Health Sciences) in the amount of $11.3 million will be realized through the following means:

• Severance plan savings$915,000

• Standardize contracts and pursue exclusivity of other contracts$1.2 million

• Eliminate subsidy to service centers$400,000

• Consolidate Environmental Health and Safety$107,000

• Reduce subsidy to Extended Learning$100,000

• Improve records retention/storage$100,000

• Reduce automobile usage$50,000

• Utility savings$150,000

• Improve scholarship coordination/financial aid efficiency$500,000

• Additional revenue from Coke contract$900,000

• Additional revenue from ATM contract$150,000

• Reduce operating budgets$4.65 million

• FY 2004 Process Action Team (PAT) savings at HSC $748,000

• Pending cost reductions and revenue enhancements at HSC $1.36 million

Kelley said that even with these measures, the administration will be soliciting additional ideas for cost containment and revenue generating tools from faculty, staff and students. To do this, he asked that employees send their ideas to an email account e_suggestionbox@mail.wvu.edu or mail them to: Suggestion Box, Office of the President, P.O. Box 6201.

At the same time that WVU is dealing with reductions in appropriations and cutting costs, the University must also invest in the future, Hardesty told the board, in asking for their approval of two capital projects involving the Department of Intercollegiate Athletics and Student Housing.

The panel unanimously approved the two plans:

• A lease-purchase of Madison House, a former 225-bed nursing home at 445 Van Voorhis Road, at a cost of $4.3 million to meet future student housing needsexpected to be at 136 percent occupancy this fall. Funding for the facility would be generated through student housing and residence life fees.

• Revisions to the Mountaineer Field North End Zone Stadium Suite project to include a club lounge area (640 additional seats) and relocation of the scoreboard and speakers bringing the project from $8 million to $11 million. It will be solely funded by the athletic department through existing operating funds, private donations and bond sales, and is expected to significantly enhance revenues and help keep this department totally self-sufficient.

BOG Chairman Hank Barnette reaffirmed the board’s directive to the president”to take all appropriate actions to increase revenues and to decrease expenses”in light of the budget deficit.

“As President Hardesty’s report indicates, he and his leadership team have carefully presented a strategic way to manage this financial situation through a variety of cost-saving initiatives and growth areas, while still keeping true to the academic mission of this University,”

Barnette said.”These decisions are not easy ones, and we know he will keep us appraised of further progress and, of course, we will continue as a board to deal directly with matters that require our attention. We have every confidence that President Hardesty and his staff will accomplish their objectives.”

Hardesty also noted that their were successes this legislative session that parallel WVU ’s strategieslegislative authorization to raise in-state tuition (with policy commission approval of compliance criteria); flexibility measures that will lead to cost savings from passage of HB 2224 ; authorization to make Potomac State College a division of WVU by July 2005; and some special funding for health sciences to mitigate the budget shortfall.

And even though tuition at WVU will increase, Hardesty added, it continues to do so at a rate less than the national average of similar institutions, remaining a”best buy”in the national market area in which it competes.

A national comparison of 2002-2003 flagship universities by the Washington Higher Education Coordinating Board lists only seven of these schools with lower tuition and fees than WVU and only eight with lower nonresident tuition and fees than WVU .

In fact, schools in many competing states raised tuition in mid-year (WVU did not), and other states have recommended increases of as much as 41 percent.

And, importantly, under the Capital Campaign, WVU has increased its institutional student scholarship support from $4.7 million to $7.2 million a year, supplementing the state’s Higher Education Grant program, the PROMISE scholarship and federal aid programs.

“The trend we’re seeing in most places across the country is a shifting from state dollars to tuition dollars. At WVU , tuition is only one part of a multi-faceted strategy to close the shortfall between decreased appropriations/increased insurance and health costs,”Hardesty added.

Other components of WVU ’s tuition and fee increase package approved today include:

• Graduate student fees for state residents will increase by $170 to $1,952 per semester. Non-resident graduate fees will increase by $546 to $5,554. Students in the health professions will also see increases.

• Two new college-specific fees were adoptedone for the Davis College of Agriculture, Forestry and Consumer Sciences to enhance laboratories and classrooms and the other for the state’s only clinical doctorate in audiology program, currently undergoing a program change.

• Residence hall room rate increases will range from $62 to $83. The cost of meal plans will also increase.

• At Potomac State College of WVU , state resident fees will increase by 2.1 percent, or $23 to $1,119 per semester. Nonresident fees will increase by 4.5 percent, or $163 to $3,786. Metro fees for out-of-state students in bordering counties will increase by 9 percent, or $165 to $1,998. Special student fees will also be applied to bring charges in line with those at WVU . Also, residence hall and meal plan rates will increase slightly.

• WVU at Parkersburg in-state community college students will pay $36 more per semester or 4.65 percent. Nonresident community college students will pay 13.35 percent more. Resident baccalaureate students will pay $48 more, or $1,083, and out-of-state baccalaureate students will pay $129 more, or $2,862. That is a 4.64 percent and 4.72 percent increase, respectively.

• At WVU Institute of Technology, in-state undergraduates will pay 9.5 percent more for resident and nonresident undergraduate and graduate students. An increase of 3.5 percent will be in place for resident community and technical college students and a 9.5 percent increase for nonresident students. This amounts to $145 more, or $1,678 per semester for residents; out-of-state undergraduates will pay $364 more, or $4,196. Special student fees will also be applied accordingly and residence hall and meal plan rates will also increase slightly.

The board also commended by resolution WVU ’s efforts to strengthen campus preparedness and maintain a positive campus climate during the war with Iraq.

Barnette also noted that the president’s four-year review is under way and will be formally brought before the panel at its June meeting.

In other action, the BOG approved:

• the existing faculty salary policy, including provision that faculty promotion in rank be rewarded with a 10 percent increase in salary

• selection of an external auditor, Deloitte and Touche LLP

• the recommendations of the Program Review Committee

• the revision of the mission, vision and values statements for the Community and Technical College at WVU Institute of Technology

• revisions to the phased retirement plan

• entering the report of the institutional graduate and professional fee waivers for spring 2003

• renewal of reciprocity agreement between WVU at Parkersburg and Washington State Community College in Ohio