BOV discusses tuition increase
By Camille Thompson
Flat Hat Asst. News Editor
The College's Board of Visitors considered budget options at a Financial Affairs meeting Monday, discussing issues such as raising tuition and reviewing a five-year investment plan for the College, according to the William and Mary News.
"We are barely able to provide what is essential to the mission of the College," said Chair of the committee Ronald L. Tillett. "We are out of realistic options."
Tillett, a former Virginia secretary of finance, also pointed out that the College's fiscal flexibility was limited by a legislative cap on tuition increases, a required percentage of in-state students and a limit on the number of students the institution can accommodate, according to the William and Mary News.
Also affecting the fiscal situation is the language Gov. Mark Warner introduced into the state budget guaranteeing that state employees will receive a 2.25 percent salary increase. In order to become effective, the General Assembly must accept this language when it considers the governor's adjustments in April.
The College must deal with $3 million in-state-mandated budget cuts for fiscal year 2003-3004, Vice President for Finance Sam Jones said, according to the William and Mary News. Tuition increases, budget cuts or a combination of the two could be used to deal with the budget cuts.
The current tuition of $2,950 is only $60 above the tuition charged in 1996, Jones said. The BOV examined one option that would raise tuition for in-state undergraduates by $668 over the 2002-2003 level, resulting in a total increase for the coming year of $3,618. This raise is in accordance with the General Assembly's directions.
The tuition increase will generate $6.1 million in revenues; about $2.2 million of that would be used to compensate for the $3 million budget reductions, $1.6 million would be allocated for salary increases and $1 million would be used to increase student financial aid. The College will still have to cut approximately $800,000 from the budget even if the tuition increase is adopted, William and Mary News reported.
Jones reviewed a five-year strategic investment plan.
"This plan does not provide funding for new initiatives, but for on-going operations," Jones said, according to the William and Mary News. "We estimate that the budget that we will eventually present to the full board will fund only $1.7 million of the $6,4 million investment called for in the plan. These are certainly difficult times."
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