BOV APPROVES OPERATING BUDGET; HEARS REPORT ON ENROLLMENT GROWTH
The Board of Visitors approved the 2003-04 operating budget and plan and heard a report on the university's enrollment growth proposal at its June 17 meeting.
The total university budget of $262.7 million is an increase of 4.4 percent over last year's operating budget. Despite the significant reduction in general fund appropriations, the overall increase is primarily attributed to the anticipated non-state-supported expenditures in increased student loan funds and auxiliary services, such as University Village debt service and operations of the Ted Constant Convocation Center) despite the significant reduction in general fund appropriations.
In his presentation to the board, Robert Fenning, vice president for administration and finance, said, "When you lose 21 percent of your state funds over a biennium, it's challenging to say the least. Our concern has to be with the continuing effects on programs and strategic initiatives." Fenning cited the recent State Council for Higher Education "Condition of Higher Education Funding in Virginia" report which noted that a greater proportion of ODU's education and general fund goes toward instruction and academic support as compared to the other institutions while ODU remains one of the least funded doctoral institutions in the state.
The majority of the budget � $140.2 million � is allocated for educational and general programs, which include instruction, research and sponsored programs, public service, academic support, student services, institutional support and operations and maintenance of the physical plant. The remainder of the budget � $122.5 million � is allocated for auxiliary services, grants and contracts, gifts and discretionary, scholarships, and student loan funds/direct federal lending.
As a result of the actions taken by the governor and the General Assembly in the 2003 session, the university's educational and general fund appropriate decreased from $143.5 million in 2002-03 to $134.2 million in 2003-04. Despite the reductions, the state budget includes funding for salary increases of 2.25 percent for faculty, classified employees and hourly staff effective Nov. 25, of which approximately 50% is funded with tuition and fee revenue.
The educational and general programs budget revenue mix changed from fiscal year 2003 to fiscal year 2004 due to an additional $3.9 million in budget cuts for the second year of the biennium. Now a greater portion of the university's educational and general budget is supported from student tuition and fees than from state general funds.
The revenue generated from the tuition and fee increase was used to address budget reductions in instructional programs, research and library support, fund unavoidable cost increases such as insurance, leases and technology infrastructure replacement, financial support to attract and retain well-qualified students, provide funds to address the financial needs of the neediest students, and investments in institutional priorities and strategic initiatives such as faculty positions, consolidated student labs, capital campaign, admissions recruitment and marketing.