THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, April 13, 1995 TAG: 9504130442
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY ALLISON BLAKE, ROANOKE TIMES AND WORLD-NEWS
DATELINE: BLACKSBURG LENGTH: Medium: 76 lines
Virginia Tech is searching for ways to whittle down a deficit estimated at $12.2 million next year, and all options are on the table, administrators say.
Tech President Paul Torgersen said this week that the school's money shortage crept up on the university as it grappled with other pressing problems - such as the threatened loss of $14 million to Virginia Cooperative Extension Service, which is run by Virginia Tech. The money was restored during the recent legislative session.
Education Professor Don Creamer said next year's shortfall caught him, and a lot of others, by surprise.
``A novelist couldn't have cooked up more dramatic circumstances to get the institution to confront itself,'' Creamer said.
This year's university budget stands at $474.6 million, with $221 million going toward instruction. Of that, $119 million comes from tuition and fees; the rest comes from the state.
Tech has lost more than $40 million in state funding since 1990.
``I just believe people felt we were through these reductions,'' said Minnis Ridenour, the university's executive vice president.
He outlined several reasons for the projected deficit:
A $4.3 million shortfall from a 530-student drop in out-of-state enrollment over the past five years, plus tuition breaks for grad students.
$4.9 million lost because of reduced state funding.
$4.4 million in unfunded mandates and priority fixed costs for such items as satellite feeds for distance learning classes, and compliance with the Americans with Disabilities Act.
That adds up to a $13.6 million deficit. But that was reduced by $1.4 million through several measures, including a new $35 recreation fee from students.
Now, to balance the books, everything is on the table - from departmental cuts to closing the school over Christmas. Administrators believe they've identified ways to get the deficit down to $4 million.
During a meeting Monday, Tech's Board of Visitors supported the administration's plans to balance the budget, and eliminate the rest of the deficit, by July 1.
All departments on campus will permanently forgo 3 percent they returned to campus accounts as a one-time deal, saving $5.5 million.
A new effort is being launched to recruit out-of-state students. Plans include a $500,000 merit scholar program paid for by the private Virginia Tech Foundation, intended to draw 250 out-of-state students - who, if they come, would add $2.5 million to the books.
The school also is pledging that undergraduate lectures will be taught by faculty - including distinguished faculty members.
Each of the university's colleges is preparing plans that would show further cuts of 5 percent, 7 percent and 9 percent for next year.
During a Monday afternoon meeting on the budget, which attracted more than 500 faculty and staff members, physics professor Alfred Ritter asked about the rumors of furloughs.
``We're looking at all possible solutions,'' said Provost Peggy Meszaros.
The president of the staff senate, Wyatt Sasser, asked about the potential for layoffs.
Meszaros responded: ``It's premature to say what the potential solution is going to be.''
The shortfall comes amid growing morale problems at the school, where 253 rank-and-file state workers earlier jumped on a buyout offered by the state, the Workforce Transition Act.
In addition, 115 faculty members have taken a separate, Tech-sponsored buyout plan. And Tech's Board of Visitors on Monday cleared the way for the school administration to offer the Workforce Transition Act to faculty, if the school chooses to do so.
KEYWORDS: BUDGET VIRGINIA TECH by CNB