Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, April 10, 1995 TAG: 9504110077
SECTION: VIRGINIA PAGE: A1 EDITION: METRO
SOURCE: ALLISON BLAKE STAFF WRITER
DATELINE: BLACKSBURG LENGTH: Medium
Armed with $500,000 from the private Virginia Tech Foundation to use as scholarship money, the university hopes to enroll 250 out-of-state students in the fall. Their $10,152 tuition checks will boost the books by $2.5 million.
The drop in out-of-state enrollment hit a low of 649 full-and part-time students this year - 530 students in official, "full-time equivalent" student numbers. It's an expensive bite of a $12.2 million deficit the university faces next year, compounded by an $8.2 million loss in labor for much of the year from workers who are leaving under the state's Workforce Transition Act.
The good news is, the university may get a great deal of that money back - but not for some months, at least. First, Tech must pay severance packages to departed workers. The university doesn't know how many jobs the state will let it keep, although legislators at last week's veto session agreed that schools that proved jobs were needed to carry out their restructuring plans could keep the positions, said Minnis Ridenour, Tech's executive vice president.
Administrators need to figure out what they'll to by mid-June, for the sake of next year's budget.
Sunday, the Board of Visitors' finance committee reviewed a long budget proposal designed to arrest the shortfall. One $5.5 million likelihood is that departments that returned 3 percent of their budgets to the university this year will find that made permanent. They've also been asked to prepare plans showing additional cuts of 5, 7 and 9 percent.
There's also the hope of $1.4 million from the state, under a promise that several agencies may get money back if state revenues are higher than projected.
Other suggestions to stem the flow of red ink range from closing the university over Christmas to cutting programs. Layoffs also are on the list titled "Possible Long-Term Actions."
"That one is at the end of the list," said Dwight Shelton, the interim budget director. "That would be everyone's desire and hope - that we won't have to do that."
The shortfall comes from three problems: The out-of-state enrollment drop; a $4.9 million loss in state funds; and $4.3 million in unfunded state and federal mandates. Cooperative Extension faces a separate, $1.5 million deficit because of state funding losses and unfunded mandates.
A state cap on in-state tuition raises was instituted a year ago, to the rate of inflation, now 3 percent. But Tech officials say they think tuitions have gone too high anyway - and, as reflected by the out-of-state drop, may be costing the university.
Among the items the committee approved, which will be voted on today by the full board:
Raising out-of-state tuition by only 3 percent, to $10,152, recognizing that the school may have priced itself out of the market. In-state students will pay $3,500, if approved by the full board. Under state law, the university could have raised out-of-state tuition by 7.5 percent, raising $1.9 million.
"What we have to remind ourselves, if we go up 7 1/2 [percent], we would lose more than $1.9 million," said Ridenour.
Allowing the university to extend the Workforce Transition Act to administrative or instructional faculty - if the administration decides to do that. Rank-and-file state workers had two weeks, until March 31, to decide to apply for the state's buyout offer. The legislation authorizing the act allows university boards of visitors to extend the offer to faculty.
The fallout from the 253 workers who took the buyout remains cloudy. The state this week will let the university know if their departures have been approved. Workers should leave May 1.
Board members seemed wary of extending the buyout at a time so many are leaving, including more than 100 professors departing over the next year under a university-sponsored buyout.
"The reality of our situation [is], we saw an opportunity here to use the WTA as a tool to help our budget situation," said Ann Spencer, vice president of personnel and administrative services.
Workers who are laid off receive benefits under the Workforce Transition Act, which include two weeks of pay per year worked, up to 36 weeks. Tech released figures Sunday that show 117 are leaving under the severance plan. Another 186 are leaving under its retirement provision, which allows some workers to retire early with full pension.
by CNB