Whatcha gonna do about it?
by James A. Bacon
University of Virginia President Teresa Sullivan has developed a four-year financial plan that would jack up base tuition by 2.5% to 3.5% annually. Moreover, her plan would boost McIntire School of Business tuition by $5,000 yearly above the base rate, the School of Engineering tuition by $2,000, and the tuition for other students by $2,000 annually in their third and fourth years. The latter charge is designed to cover the higher cost of “smaller class sizes, rigorous capstone courses, global learning opportunities, career placement and internships and increased research opportunities.”
Currently, UVa charges returning in-state students $12,014 a year in tuition and fees. The combined effect of all the adjustments will be a 4.7% annual increase for in-state students and 3.0% for out-of-state students over four years. Reminder: The Consumer Price Index in 2012 was 2.1% and is running less than that so far in 2013.
Wow. That boggles the mind. Did Sullivan learn absolutely nothing from her firing/rehiring episode last year? Or does she feel that the political tide has turned so much in her favor that she can deliver an Italian chin flick to her critics?
The Board of Visitors’ finance committee is expected to discuss the plan next week. There could be fireworks. Rector Helen Dragas had told the Washington Post earlier this month that she opposed further tuition increases. While tuition has nearly doubled since 2004, the economy has left many Virginia families with declining incomes.
And what does Sullivan propose to do with the money? Writes the WaPo:
University leaders plan to invest in the “significantly underfunded” library, modernize the school’s technology to support online learning and set aside millions in a “strategic investment fund” that could be used to recruit or retain star faculty, finance partnerships with private companies or support new programs or collaborations.
There is no indication that Sullivan is contemplating a restructuring of academic programs. However, according to her plan, which is posted to the Board of Visitor’s website and is available here, she does expect to generate operational efficiencies of $7.4 million in FY 2013 and to achieve additional productivity savings on an ongoing basis. Those savings from procurement, human resources, student service and administration will go to a “strategic pool” of funds to address the administration’s highest priorities.
Otherwise, a quick review of the plan suggests that Sullivan is determined to avoid the hard choices (other than milking the students) in favor of doubling down on Business As Usual. Apparently, the plan does give a nod to online learning, but that is only a small component of a larger $18 million Information Technology initiative that includes enhanced security, big data, computationally intense digital scholarship, and analytics.
Furthermore, it appears that Sullivan remains oblivious to the larger challenge of affordability and access, other perhaps than for the poor. Of the $83 million coming from four years of tuition increases, only $8.5 million will be plowed back to student aid.
Brace yourselves for for another bruising round over the future of higher education at Virginia’s flagship institution.
Note: I have re-written significant portions of this post after reviewing Sullivan’s report. My original version was based upon Washington Post reporting that was either inaccurate, incomplete or confusing.
