How is a University student's tuition determined and where does it go?
As the University's two-volume budget reveals, tuition comprises about 22 percent of the total revenue for the 1999-2000 fiscal year, a number weighing in at $719.9 million.
The tuition cost for Virginia residents is determined first at the state level in the Governor's Office.
"It starts with the governor and legislators who set broad tuition legislation," said Colette Sheehy, University vice president for management and budget.
The Board of Visitors, which must approve tuition, then looks at factors such as national and state rank of the school as well as how many tax dollars the state will provide to the school, Sheehy said.
Last year, the Board moved to cut Virginia residents' tuition by 20 percent from the previous year.
When Gov. James S. Gilmore III (R) took office two years ago, he froze in-state tuition, keeping it at the current level until further legislation is passed.
The freeze on in-state tuition most likely will last at least for the next two years, until Gilmore's term as governor ends, Sheehy said.
Although tuition for in-state students was lowered by 20 percent last year, the tuition at Virginia public higher education institutions is higher than any other state in the country, the only exception being Michigan public schools, she said.
She added that, while Virginia public schools are more expensive than other state universities, Virginia "provides quite a bit of student aid."
Configuring out-of-state tuition
Determining the price of tuition and fees for non-Virginia residents is more complicated and subject to increases on a yearly basis.
"The proposal [for out-of-state tuition] comes from my office before it goes to the" Board in February or March, University Budget Office Director Melody Bianchetto said.
The Board then decides, based on the increases in faculty salaries, what the tuition for the next academic year will be.
When deliberating on tuition hikes, the board considers factors such as increases in faculty salaries and how much of the increase will be funded by state appropriations.
"Right now the burden of cost increases, to the extent that it is not met by tax dollars, falls to out-of-state students," Sheehy said.
The tuition from non-Virginia residents must make up for increases in instruction that is not covered by state appropriation.
For example, over the past two years, the state has had a goal to raise faculty salaries to the 60th percentile as compared to a group of peer institutions.
"The state didn't fund 100 percent, so a large portion had to come from tuition," Bianchetto said.
Because in-state tuition cannot be increased, funding must come from out-of-state tuition hikes.
Last year, the Board decided to increase out-of-state tuition by 5 percent to help offset the costs of increasing faculty salaries.
She added that she expects the in-state tuition will stay constant and the out-of-state tuition will continue to increase "as long as we're competitive."
Where does the money go?
According to the 1999-2000 budget, student tuition and fees constitute only 22 percent of the total revenue used to support all educational and general activities.
Money allotted to the Educational and General Activities Fund is used to pay for instruction, research and public service, academic support, student services, instructional support, student aid, and operations and maintenance.
"Tuition and fees aren't specifically dedicated to [one department] but to all [education and general] activities," Bianchetto said.
This means that the $151.9 million accrued from student tuition and fees are not even enough to cover the $207.5 million price tag for instruction - about one-third of the Educational and General Activities Fund. Instruction costs cover faculty salaries. In addition to student tuition and fees, the remaining expenditures are compensated by state appropriations, gifts, endowments and sales.
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