With budget cuts for higher education likely to continue in the next few years, state-supported universities across the country have reached a critical juncture in terms of planning for future reductions. Though the economy is starting to show signs of recovery, most state budgets remain lean and the effects of funding cuts often linger. Consequently, a number of Virginia's public universities are exploring options to bring in more revenue.
The College of William & Mary is considering increasing the number of students in its incoming freshman class by 50, a move that will bring in about $500,000 of additional revenue, minus financial aid costs. At Christopher Newport University's Board of Visitors meeting Feb. 22, officials discussed raising the number of out-of-state students by more than 10 percent.
Meanwhile, as part of a comprehensive plan developed in 2006, the University is adding 1,500 students during 10 years: 1,100 to its undergraduate population and 400 to the graduate schools. University spokesperson Carol Wood said the main motive was not budgetary. "The University has embraced a strategy of moderate growth ... primarily from a need to grow research opportunities," Wood said. She added that the increase in students is targeted toward certain areas, including the natural and physical sciences, the arts, undergraduate business and nursing.
Nevertheless, the University still must cope with enduring budget shortfalls. During the past 20 years, the University's state funding has been slashed from 25 percent to the current all-time low of 6 percent. And just since the 2007-08 fiscal year, appropriations from the state general fund have been reduced by $51.5 million. Fortunately, during President John T. Casteen, III's tenure, the University has nurtured diverse revenue streams to offset dwindling state funding. These include state support, philanthropy, endowment, patient and auxiliary revenues, tuition and federal grants, Wood said.
Although the University's decision to add students may have not been caused by budget woes, that is still one method to bring in more operating revenue. As the Board of Visitors reasoned, it also may expand research opportunities that bring more recognition to the University. Still, the consequences of too much growth do not make this option particularly attractive, and the Board should be hesitant to embrace a philosophy of continuous growth in the size of the University's student population. The University has marketed itself successfully as an institution with the resources of a large-sized research university but also with the intimacy of a smaller liberal arts school. Drifting toward higher growth would likely dilute the University's academic reputation and also cause the institution to lose its distinctive appeal among state universities.
A more attractive alternative to continuous growth would be to consider adjusting the University's ratio of in-state to out-of-state students. The reasons for increasing the number of out-of-state students - about a third of the undergraduate population - are compelling. The overall higher quality of out-of-state applicants would strengthen the University's academic reputation. These students pay higher tuition which helps to subsidizes the lower costs of in-state tuition. More out-of-state students would increase the diversity of the student body and help create a stronger national presence for the University. Although it is reasonable for a state university to accept more in-state applicants than other students, lowering this percentage slightly would not detract significantly from the advantage that Virginia residents hold in the admissions process.
The most difficult part of this move would be selling the idea to legislators, who have the authority to set limits on the number of out-of-state students. Should the University look to increase the number of out-of-state students, however, it would have a strong case. The state has decreased funding from Virginia public colleges for decades, and colleges must be given the flexibility to recoup the money in the least disruptive manner possible. Additionally, such flexibility with these ratios likely would raise the academic profiles of Virginia's flagship universities, attracting top-notch students to Virginia from across the country.
Although no move like this is without its drawbacks, this plan is one of the few that carries with it numerous positive side effects.
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