Meeting of the Board of Visitors
November 14, 2014
J OINT L EGISLATIVE A UDIT AND
R EVIEW C OMMISSION (JLARC)
S TUDY OF H IGHER E DUCATION
PAT R I C K D . H O G A N , E x e c u t i v e V i c e P r e s i d e n t a n d C h i e f O p e r a t i n g
Officer
COLETTE SHEEHY, Vice President for Management and Budget
JLARC Study Overview
• HJR108 (2012 Session) directed JLARC to:
• Study the cost efficiency of institutions
• Identify opportunities to reduce cost of higher education
• Included 15 four-year, public institutions
• Reviewed both academic and non-academic activities and programs,
funding sources and uses, opportunities for greater efficiencies
• Considered 14 items related to the cost and operations of public higher
education
• Institutional quality not a primary factor
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JLARC Study Timeline
2012 General Assembly Session
HJR108 adopted by the General Assembly
June 10, 2013
Report 1: Trends in Higher Education Funding, Enrollment, and Student
Costs
September 9, 2013
Report 2: Review of Non-Academic Services and Costs at Virginia’s
Public Four-Year Higher Education Institutions
December 9, 2013
Report 3: Review of Academic Spending at Virginia's Public Higher
Education Institutions
October 14, 2014
Report 4: Support Costs & Staffing at Virginia's Higher Education
Institutions
November 10, 2014
Report 5: Addressing the Cost of Public Higher Education in Virginia
2015 General Assembly Session
Possible legislative action
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Report 1: Trends in Higher Education
Average Statewide
U.Va
More than 200,000 *
More than 24,000
Instructional spending as percent of total spending**
(FY2011)
33%
30%
State revenue as a percent of total revenue (FY2011)
15%
7%
Tuition and fees as a percent of total revenue (FY2011)
23%
18%
Auxiliary enterprises as a percent of total revenue (FY2011)
14%
5%
Undergraduate students using loans (FY2012)
52%
29%
6-year graduation rate*** (FY2012)
63%
93%
Enrollment (FY2012)
* Total undergraduate and graduate students across all institutions.
** Other spend on research, academic and institutional support functions, auxiliaries (e.g., student housing, dining, athletics,
intramural recreation, and fitness facilities)
*** Ranks 2nd among all states. Nationwide average is 50%.
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Report 2: Non-Academic Services and Costs
Average Statewide
U.Va
Growth in auxiliary enterprise* revenues (FY2003-FY2012)
91%
51%
Percent of tuition and fees used for athletics (FY2013)
12%
5%
Percent of tuition and fees used for recreation/fitness
facilities (FY2013)
2.8%
2.3%
Student housing rates (FY2012)
$4,844
$4,946
Student dining rates (FY2013)
$3,860
$1,550-$4,250
88%
19%
Growth in institutional debt service per FTE student
(FY2005-FY2012)**
* Auxiliary enterprises included athletics, recreation/fitness facilities, student dining, housing
** Includes debt related to Education and General projects (classrooms, administrative offices) and auxiliary enterprise projects.
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Report 3: Academic Spending
Finding
U.Va. Strategy/Approach
Instructional Spending
Average instructional spending per student decreased
by 6.9% at Virginia research institutions
Instructional spending per student is 32% above
national average for public research institutions
Research
$1.2 billion in total research expenditures in FY2011 (37th
among all states in research per capita)
$292.1 M in total research expenditures in FY2011 (2nd in
state behind Virginia Tech)
Faculty Composition
Adjuncts and GTAs represent 37% of T&R faculty in
Virginia (56% nationwide)
Adjuncts and GTAs represent 40% of T&R faculty.
Reduced proportion of adjuncts and GTAs by nearly 6%
between FY2005 and FY2012.
Faculty Compensation
Average faculty salaries declined between FY2005 and
FY2012 while overall spending on salaries and benefits
increased 17%
In FY2012, faculty salaries were $12,200 below the 60th
percentile goal, prompting the Board to approve goal
to increase compensation to compete with peers
Faculty Workloads
No single measure of faculty workload.
Faculty expected to be engaged in teaching, research,
and public service.
Competitive with AAU peers
Space Utilization
SCHEV classroom utilization guideline is 24 hours per
week
Classroom utilization was 25 hours per week in FY2012,
an increase of 2 hours per week over FY2010 due to
increased emphasis on classroom utilization and
enhanced space management capability
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Report 4: Support Costs & Staffing
General Support Functions
Procurement
Information Technology
Facilities Management
Efficiency Opportunity
U.Va. Strategy
Spans of control
Assessing organizational structures and managerial effectiveness
with goal of increasing spans of control
Administrative salaries
Implemented market-based, merit compensation plan
Staff levels
Continue leveraging economies of scale while supporting
Academic Division, Medical Center, Wise, Southwest Va. Higher
Education Center
Institution-wide contracts/Limit procurement
choices
Multi-year strategic sourcing plan (e.g., office supplies, IT
hardware and peripherals, travel, expenses, dining)
Cooperative procurement
Virginia Higher Education Procurement Cooperative
Virginia Association of State College and University Procurement
Professionals negotiate cooperative contracts
Increased automation
Automating workflows, enhancing data access, decrease
transactional activities
Server co-location and virtualization
Server consolidation, co-location, and virtualization
Hardware and software procurement
Included in multi-year strategic sourcing plan
Energy conservation
Retro commissioning, lighting upgrades, water conservation
Zone maintenance
On-going effort started in 1996
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Report 5: Cost of Higher Education
Average Statewide
U.Va.
Change in state operating funding per in-state student (FY1998FY2012)
-33%
-39%
Change in net tuition revenue per student (FY1998-FY2012)
67%
101%
Percentage of funding below the state’s cost–share goal for instate students (FY2014)
-16%
-14%
7%
5%
18.6%
9.4%
Percentage of monthly income used for student loan payments
8%
6%
Percentage of need met with grant aid (FY2013)
32%
58%
Virginia Student Financial Assistance Program (VSFAP) funding –
percentage of student need met
43%
77%
Percentage of tuition and mandatory fees used to pay debt service
(FY2013)
Facilities Condition Index (FY2011)
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Conclusion
• Agree with many of JLARC observations and findings, which are
consistent with findings and opportunities identified through recent UVa
Benchmarking Study and other organizational assessments
• Primary concerns:
• Across-the-board recommendations
• Potential erosion of Restructuring authorities and institutional autonomy
• Overall, quality not considered
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