The University of Virginia Board of Visitors today approved the 2016 fiscal year budget. The $3.07 billion spending plan supports U.Va.’s strategic institutional priorities, as outlined in the Cornerstone Plan: it advances total student advising, boosts top-tier faculty hires, supports strategic research and ensures that the University remains affordable and accessible for qualified students.
The budget also makes possible the Medical Center’s continued investment in Centers for Excellence and infrastructure, as well as enhanced analytic capabilities and access to data to support decision-making and quality improvement efforts.
“This budget serves as the financial road map to make the Academic Division’s strategic priorities laid out in the Cornerstone Plan a reality,” U.Va. Executive Vice President and Chief Operating Officer Patrick D. Hogan said. “These investments are essential to advance U.Va.’s mission of education, research and service. Additionally, this budget fortifies the U.Va. Medical Center’s resolute commitment to ensuring quality health care and patient safety.”
The budget is an increase of 8.4 percent compared to the current fiscal year. It funds operations at the Academic Division, Medical Center and the University of Virginia’s College at Wise.
Overall, the Academic Division budget is increasing by 7.8 percent, to $1.52 billion. It supports funding the University’s Cornerstone Plan; startup packages for new faculty in science, technology, engineering and mathematics – the “STEM” fields – and key investments in service delivery efficiencies.
The budget delivers support for financial aid, maintaining the University’s steadfast commitment to meet 100 percent of student’s demonstrated financial need. U.Va. is one of only two public schools in the U.S. to fully meet the demonstrated financial need of all undergraduate students.
The budget provides resources for more competitive faculty and staff compensation. This includes an average 4.5 percent merit-based faculty salary pool, which incorporates the 2 percent increase authorized in the state budget. The budget also offers a 2 percent salary increase for staff employees who meet expectations in their most recent performance evaluation; state classified employees will receive an additional compression adjustment of $65 per year of service.
The Medical Center’s budget is increasing by 9.3 percent, to $1.4 billion. Its operating plan was developed through a priority-based process to align resource allocations with the overarching Health System strategic goal to become the safest health system to provide and receive care. The operating plan considered providing patient care, ensuring financial stability with a view toward the financing of the Emergency Department expansion and funding the Strategic Initiative Pool to grow the three-part mission of clinical care, education and research.
The budget also contains a distribution of $3.6 million from the College and Graduate School of Arts & Sciences endowment and $7.8 million from the School of Medicine endowment, for a total of $11.4 million. These funds come from the Pratt Fund, created from the estate of John Lee Pratt, who graduated from the University in 1902 with a degree in chemical engineering. The fund supplements salaries of professors in the departments of Biology, Chemistry, Mathematics and Physics, as well as provides scholarships for outstanding students and equipment within these departments. The fund also supports research within the School of Medicine and provides scholarships for students.
The budget of U.Va.’s College at Wise is $41.3 million for fiscal year 2016. Key strategic priorities addressed through this budget cycle are growing enrollment, improving retention and graduation rates, supporting federal mandates, advancing outreach, strengthening summer programs and undergraduate research, and addressing high-need, “STEM-H” degrees. STEM-H degrees include the traditional STEM fields plus health.
The budget takes effect July 1.