The West Virginia University Board of Governors approved a $938 million fiscal 2012 budget Friday (June 3), a 4 percent increase over the previous year, providing increased financial increased aid to students and granting pay raises.
“This budget is good news because it is a reflection of WVU’s continued growth and stability,” Vice President for Administration and Finance Narvel Weese said in presenting the budget. “Unlike many of our peers and neighbors who are facing drastic cuts and loss of funding, WVU’s financial outlook is stable and it is well positioned to implement the University’s 2020 strategic plan.
“While some increases in tuition and fees are necessary, they are among the lowest anywhere,” he said. “We are benefiting from strong and conservative growth through the last few years, which helps keep those increases to a minimum level.”
Key elements of the Fiscal Year 2012 budget include:
- A salary improvement program that provides base salary increases for employees effective September 1, 2011.
- A 4.95 percent tuition increase, among the lowest of any of WVU’s peers across the country, and a smaller increase in housing and dining services. The budget also includes a 2.5 percent increase in institutional financial aid for students.
- Funding to support implementation of the University’s strategic plan as well as a capital budget of $279 million to support various facility improvement projects.
In addition to $314.8 million from tuition and fees, revenue includes $210 million from state appropriations and $219.1 million, a 4.3 percent increase, from grants and gifts.
The Board, in its annual meeting in Charleston, also approved a $279 million, multi-year capital improvement plan to support the 2020 Strategic Framework for the Future. The plan includes $68.9 million for previously announced capital projects with the rest for additional projects on the Morgantown campus.
The budget, which covers the main campus as well as Potomac State College of West Virginia University in Keyser and West Virginia University Institute of Technology in Montgomery, takes effect July 1.
Salary increases
The budget includes $436 million for pay, including $15 million for raises.
A temporary raise granted to University employees on Jan. 1 will expire on June 30 and the new base pay raise will take effect Sept. 1.
The budget fully funds the classified staff salary schedule three years ahead of a deadline mandated by the 2011 Legislature. Classified staff will receive either: 1) a salary based on the employee’s placement in job title and years of service as of Oct. 1, 2010, 2) a 3.5 percent increase or 3) $1,296, whichever is greater.
This plan ensures that after Sept. 1 classified employee’s paychecks, after the base raise, are equivalent to or greater than their current paychecks.
A 4 percent pool of funds will finance raises, based on merit, for faculty; faculty equivalent, academic professionals; and non-classified employees.
At Friday’s meeting, President Jim Clements said the base salary improvement package for faculty and staff is essential to “moving salaries in a competitive direction and maintaining a world-class university.” He thanked the Legislature and governor for investing in higher education, when many states are reducing education budgets, and thanked WVU’s financial team for “balancing WVU’s many priorities.”
Tuition and fees
Even with the increases, WVU will continue to have the lowest cost of its peers as identified by the Higher Education Policy Commission, with the tuition and fee increase among the smallest. Those with smaller percentage increases still have higher totals than WVU.
Tuition and fees on the Morgantown campus will increase $268 to $5,674 for the academic year for in-state students and $842 per semester to $17,844 for out-of-state students. (Specific costs is higher for some colleges because of special fees.)
At Potomac State College, the in-state increase is $172 to $3,058 while at WVU Institute of Technology, the increase is $180 per semester to $5,344. For out-of-state students, Potomac State will increase $244 to $8,990 and WVU Tech will increase $180 to $13,444.
Housing and dining services will also increase 3.5 percent. Depending on location, annual room and board will range from $7,306 to $10,954. The most common option – double room and 19-meal plan – will cost $$4,202 per semester.
Institutional financial aid will also increase to $92.5 million.
Capital budget
The Board also approved a $279 million budget for major capital projects and a $200 million bond issue to partially fund the projects.
Previously announced projects, totaling $68.9 million, included in the budget are:
- White Hall renovations, $33.3 million
- New student health facility, $18.8 million
- Augusta Square acquisition, $11 million
- Student recreation fields, $3.6 million
- Purchase of 992 Elmer Prince Drive, $2.2 million
The Board also gave approval for an additional $159.5 million for the following new buildings:
- $81.1 million, agricultural sciences
- $41.4 million, advanced engineering research
- $20 million, College of Physical Activities and Sports Sciences
- $7.1 million, greenhouse
- $1.7 million, renovation of Visitors Resource Center
- $1.2 million, renovation of space at the Jackson & Kelly building in Morgantown
An additional $50.6 million was included for projects still in the formative stages. The projects are primarily improvements on the Evansdale campus.
The bond issue will be paid for by tuition and fee revenues and income generated by the facilities. (Board member Ellen Cappellanti recused herself from the bond vote.) The West Virginia Higher Education Policy Commission must approve buildings costing more than $15 million as well as the bond issue.
The Board also voted to request permission from HEPC to invest up to $40 million with the WVU Foundation. The current limit is $29 million, but the cap was increased under Senate Bill 603 during the latest session of the West Virginia Legislature. The Foundation offers investment vehicles not otherwise available to the University.
Also reported to the Board
- The first three quarters of fiscal 2011 have been financially strong, with revenue up by 6 percent and expenses up by only 2.9 percent.
- Applications are 6 percent ahead of this time last year, led by significant increases in out-of-state and international applicants. Additionally, applications from students with high test scores are up as well.
For other Board action, including the decision on a revision of the alcohol policy, see related story.
-WVU-
jb/06/03/11
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