VCU has approved a $1.5 billion budget. (Jack Jacobs photo)
VCU plans to cut spending by 5 percent in the coming fiscal year.
The university’s Board of Visitors approved a $1.5 billion budget Wednesday and expects that dozens of jobs will be affected by its efforts to balance the budget amid increased costs and an unclear outlook on state funding.
To address a budget shortfall of $24.5 million, Virginia Commonwealth University expects to freeze hiring or not renew contracts for 100 to 150 positions, university CFO Karol Gray said. She said no layoffs were planned.
“The cuts are going to be hard for us to do” Gray said during her budget presentation to the board. “I’ve already, on the administrative side, frozen positions. I’ve held back two senior positions in finance and budget. We’ve made significant cuts to the president’s office. Most of the reallocations will be based on decisions we make strategically for personnel and nonpersonnel expenses; travel, conferences, how you provide supplies to the units. All of that’s going to be looked at.”
Karol Gray
VCU had to address more than $50 million in new expenses in its budget planning, including a 5 percent salary increase for faculty and staff as well as inflationary pressures and operational expenses.
Despite some new revenue, such as $13.4 million in state money to help cover the salary bump and $12.3 million created by the tuition and fees hike the board approved in May, the university was still left with a budget gap.
However, the school could revisit its budget in the fall and tweak the cuts based on how the state’s budget shakes out.
Lawmakers haven’t yet finalized a new budget for Virginia. The university’s budget is based on the state’s existing two-year budget approved last year. Any new state-provided funding would reduce VCU’s need to trim its budget but not eliminate the shortfall entirely.
“If we come up with a better picture from the House or the Senate, we will realign our budget cuts based on performance, based on strategic initiatives, based on areas that are academically growing,” Gray said.
The budget the board approved goes into effect Saturday, the first day of the 2023-2024 fiscal year. The budget includes funds for faculty promotions and adjunct compensation increases as well as new financial aid funding.
VCU’s budget projects $732.4 million in revenue, including $445 million in tuition and fees as well as $264 million in state funding.
VCU Health report
Also at Wednesday’s meeting, the board further reviewed VCU Health’s costly exit from a real estate project that would have redeveloped the Public Safety Building in downtown Richmond.
The board held a nearly three-hour closed session before its budget vote to discuss the after-action report produced for the health system by an outside law firm to analyze the deal. The exit has cost VCU Health at least $80 million, including the tab for demolishing the now-city-owned building despite the development project being scrapped.
In an open presentation after the closed session, VCU Health interim CEO Marlon Levy gave a brief overview of new policies to be implemented at the health system as a result of its experience with the nixed project.
Those changes include but aren’t limited to: the use of project management teams with members from multiple departments; the use of third-party advisers on major property transactions; creation of financial projections regarding development projects; and specific discussions of exit strategies for future projects.
Levy said VCU Health leadership plans to formally recommend that the health system’s board create a real estate-dedicated subcommittee to review and approve projects and would operate under the board’s existing finance and property committee.
The after-action report was reviewed and released to the public by the boards of the university and health system earlier this month. The university and health system are separate entities with some shared leadership.
VCU has approved a $1.5 billion budget. (Jack Jacobs photo)
VCU plans to cut spending by 5 percent in the coming fiscal year.
The university’s Board of Visitors approved a $1.5 billion budget Wednesday and expects that dozens of jobs will be affected by its efforts to balance the budget amid increased costs and an unclear outlook on state funding.
To address a budget shortfall of $24.5 million, Virginia Commonwealth University expects to freeze hiring or not renew contracts for 100 to 150 positions, university CFO Karol Gray said. She said no layoffs were planned.
“The cuts are going to be hard for us to do” Gray said during her budget presentation to the board. “I’ve already, on the administrative side, frozen positions. I’ve held back two senior positions in finance and budget. We’ve made significant cuts to the president’s office. Most of the reallocations will be based on decisions we make strategically for personnel and nonpersonnel expenses; travel, conferences, how you provide supplies to the units. All of that’s going to be looked at.”
Karol Gray
VCU had to address more than $50 million in new expenses in its budget planning, including a 5 percent salary increase for faculty and staff as well as inflationary pressures and operational expenses.
Despite some new revenue, such as $13.4 million in state money to help cover the salary bump and $12.3 million created by the tuition and fees hike the board approved in May, the university was still left with a budget gap.
However, the school could revisit its budget in the fall and tweak the cuts based on how the state’s budget shakes out.
Lawmakers haven’t yet finalized a new budget for Virginia. The university’s budget is based on the state’s existing two-year budget approved last year. Any new state-provided funding would reduce VCU’s need to trim its budget but not eliminate the shortfall entirely.
“If we come up with a better picture from the House or the Senate, we will realign our budget cuts based on performance, based on strategic initiatives, based on areas that are academically growing,” Gray said.
The budget the board approved goes into effect Saturday, the first day of the 2023-2024 fiscal year. The budget includes funds for faculty promotions and adjunct compensation increases as well as new financial aid funding.
VCU’s budget projects $732.4 million in revenue, including $445 million in tuition and fees as well as $264 million in state funding.
VCU Health report
Also at Wednesday’s meeting, the board further reviewed VCU Health’s costly exit from a real estate project that would have redeveloped the Public Safety Building in downtown Richmond.
The board held a nearly three-hour closed session before its budget vote to discuss the after-action report produced for the health system by an outside law firm to analyze the deal. The exit has cost VCU Health at least $80 million, including the tab for demolishing the now-city-owned building despite the development project being scrapped.
In an open presentation after the closed session, VCU Health interim CEO Marlon Levy gave a brief overview of new policies to be implemented at the health system as a result of its experience with the nixed project.
Those changes include but aren’t limited to: the use of project management teams with members from multiple departments; the use of third-party advisers on major property transactions; creation of financial projections regarding development projects; and specific discussions of exit strategies for future projects.
Levy said VCU Health leadership plans to formally recommend that the health system’s board create a real estate-dedicated subcommittee to review and approve projects and would operate under the board’s existing finance and property committee.
The after-action report was reviewed and released to the public by the boards of the university and health system earlier this month. The university and health system are separate entities with some shared leadership.
smdh, $1.5 B – unreal – I hope people realize that most students are STILL in remote classes, and tuition keeps going up. Why?
A little off topic but I wish VCU invested in having its own college football program years ago and even now. All of that money they have wasted over the years on unbuilt properties. Potentially could have been a football stadium possibly where the diamond area or Coliseum is to establish a fan culture downtown 🏟.
AGREE – Rams football is undefeated – but seriously, football would be great.
College football would do serious damage to VCU’s Title IX numbers.
That stadium would be packed to the max. Wishful thinking. I believe it would be a success but we’ll never know lol
This is not correct. Students are back in the classroom. Some lecture classes have online options. This notion that most students are in remote classes is false.
My son is a current student and most of his classes are optional in classroom or remote.