Commonwealth colleges and universities received a bit of a reprieve on Saturday after Gov. Tim Kaine announced state spending reductions of 6.25 percent as opposed to earlier requests of 7.5 percent for state institutions of higher education. This request for diminished spending follows a $641 million revenue shortfall in the current budget period that will end June, 30 2008.
Kaine spokesperson Kevin Hall said the budget shortfall is partially the result of weakened housing and retail markets.
"Virginia plans its budget in two-year increments" based on current economic conditions, Hall said. "It was based on economic assumptions that did not pan out."
According to Hall, the first indication of an economic slowdown came as early as May.
"By August, the governor and budget team knew it was going to be serious," Hall said.
Many areas of the Commonwealth's economy and programs will be affected by the new policies.
"Where possible, we wanted to leave public schools, public safety and public health alone," Hall said. "We wanted to minimize the impact on people."
Public colleges and universities, however, will not escape the burden of the budget shortfall.
"All of [Virginia's] state universities and colleges, including the community college system, receive $2.1 billion a year combined," Hall said. "We asked those recipients to come up with ways of dealing with about $100 million less."
The University "will need to cut $9.5 million, which represents 6.25 percent of our tax appropriation," according to Leonard Sandridge, University executive vice president and chief operating officer.
The proposal for coping with this reduction is still being developed by University officials.
"We have gone to all of the operating units at U.Va., and we've talked to the presidents of all operational areas to ask them to come up with a reduction plan," Sandridge said. "All persons in charge of operations at the University will have a say in the matter."
The University's final plan will be completed and sent to the governor's office before the end of the semester, according to Colette Sheehy, University vice president for management and budget.
The plan will be "a joint decision," Sheehy said. "On the academic side, the provost will decide in conjunction with the deans; on the administrative side, the executive VP will decide in conjunction with the VPs that report to him."
According to Sheehy, a $2 million contingency fund, originally intended for the implementation of a system to replace ISIS, will now be reverted back to the Commonwealth.
Sheehy noted that although the plan to replace ISIS will go ahead, budget cuts "will force us to think of some other strategies for funding it."
Sheehy added that classes will not be cut, but some positions may be left vacant, and the purchase of equipment may be delayed.
"We are not anticipating layoffs; we are not anticipating the actions we will take will adversely affect students," Sandridge said. "We're looking at operations that cost us less money than projected in past years, and we'll use that money toward other programs. We want to protect our customers, students and the faculty."
-- Matt Dickey contributed to this article
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