The Virginia Joint Legislative and Audit Review Committee released its final report on the costs of higher education in Virginia on Monday. The report analyzed the institutions’ graduation rates and sources of revenue, among other areas of interest, for fiscal years 2002 through 2012.
Along with the College of William & Mary and Virginia Tech, the University ranks among the top 20 schools nationally for graduation rates. But according to the report, that success has come at a high cost.
“The state’s public institutions are also, on average, among the nation’s most expensive for students,” the report reads. “In FY 2012, Virginia had the fifth highest net cost in the country. The average net cost of attendance for all in-state students attending Virginia’s public four-year institutions far exceeds the southeast regional and national averages.”
The report noted that while spending has increased statewide at Virginia’s public institutions, most of the spending has been on non-academic expenses.
“Total institutional operating spending per student increased 24 percent, accounting for inflation, between FY 2002 and FY 2012,” it said. “Auxiliary enterprises accounted for 56 percent of the total increase in inflation-adjusted, per student spending.”
Auxiliary expenses include varsity athletics, student residences and dining facilities, and recreational facilities.
A University press release Monday said these expenses lead to “increased student engagement, leadership development and graduation and retention rates.”
Virginia’s public universities have had to rely more on tuition revenue as state funding has decreased.
“The increase in net tuition revenue varied substantially across institutions, but on average, the additional tuition revenue has exceeded the declines in state operating funding over the long term,” the committee report said. “Since FY 1998, net tuition revenue increased $4,177 per student, exceeding the $2,831 decline in state funding per student.”
In the press release, University President Teresa Sullivan said the University is committed to streamlining its operations "without sacrificing academic quality."
"Improving the efficient and effective use of all resources is a top priority of U.Va., and we remain committed to continue targeting greater efficiencies while maintaining a high standard of academic excellence,” she said.
The JLARC report notes 16 recommendations to improve efficiency at higher education institutions statewide. Among these are mandatory training for Board of Visitors members on financial matters, capping the amount of tuition revenue spent on athletics and setting a statewide measure of capital prioritization.
University spokesperson Anthony de Bruyn said the University’s Organizational Excellence initiative, established in the summer of 2013, has similar goals as those outlined in the JLARC report.
“It seeks opportunities to enhance the University's stewardship of all its resources — from financial to facilities to technological to human resources — and align its processes, technology and people to support institutional priorities,” de Bruyn said in an email.
The press release also said officials were concerned that the recommendations would limit the autonomy of the state’s higher education institutions as granted to them in the Restructured Higher Education Financial and Administrative Operations Act of 2005.
Patrick Hogan, University vice president and chief operating officer said state institutions have used the autonomy they received under the 2005 act to achieve greater operational efficiency.
“We hope that the General Assembly and governor maintain their commitment to allowing institutions to continue to operate under the terms outlined within the act,” Hogan said.
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