The Virginia state legislature has decided to increase capital fees for out-of-state students who attend Virginia colleges and universities.
Out-of-state students, who comprise about one-third of the University community, currently pay a fee that funds capital-related projects at their schools. The fee increase for the next academic year is less than 1 percent of what out-of-state students are currently paying in total tuition and fees, said Dan Hix, finance policy director at the State Council of Higher Education for Virginia. The current fee for out-of-state students at the University is $347, and the proposed amount for next year will be $568 for regular session students.
"The state does not provide tax money to support the education of out-of-state students," said Colette Sheehy, vice president for Management and Budget. "There is no similar policy when it comes to paying for capital construction and renovation. However, from time to time, the state has chosen to assess a fee to out-of-state students to help pay the debt service on bonds used to construct or renovate facilities at institutions of higher education."
This fee covers construction and renovation projects and recently has been used at the University for projects such as Rice Hall in the Engineering School, the South Lawn Project, Ruffin Hall and additions to the Nursing School, Sheehy said.
When the state does not have enough tax money to pay for and maintain these projects, it is forced to use fees. For resident students and families, the least objectionable way of raising money for these projects generally is to increase the fees for out-of-state students, Hix explained.
"It [the fee increase] is beneficial to U.Va. because it assesses a portion of the cost of capital construction to out-of-state students," Sheehy said. "In-state students pay for capital through their families' tax payments, which in turn help pay the debt service on bonds issued by the state to support capital projects. If out-of-state students were not assessed this fee, it could mean larger budget reductions for the University."
Statewide, the revenue generated by this fee will increase from just less than $14 million to more than $21 million, said Kristen Nelson, director of Communications and Government Relations at the State Council of Higher Education.
Sheehy acknowledged that the downside of this fee increase, however, is that it makes an out-of-state education at the University more expensive.
Third-year College student Nina Freed, who comes from Maryland, said this fee should not be the sole responsibility of out-of-state students.
"We're already paying a lot more than in-state students, so it seems like for upkeep of the University, we shouldn't be more responsible for that than in-state students," she said.
Laura Santini, a first-year College student from Puerto Rico, agreed with Freed.
"In my opinion, everyone should pay it because one, they would get more money, and two, everyone attends the University and they get the same benefits and same privileges," she said.
On the other hand, Joel Susaya, a second-year College from Connecticut, said this small increase is relatively insignificant when compared with the overall cost of tuition and fees for out-of-state students at the University.
"I pay pretty much double what in-state students pay; I don't think an increase like that is going to make it that much worse," he said.
Susaya also said he understood the reasoning behind the fee increase.
"It's easier for the school to charge people who are coming here from out of state an extra 150 or so dollars than it would be to get a tax increase in the state of Virginia to get the funds," he said.\nThe fee will not have any effect on the University's in-state versus out-of-state ratio, Sheehy said.
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