Meeting of the Board of Visitors Finance Committee
March 24, 2015
Agenda
I.
ACTION ITEMS
A. Enrollment Projections
B. 2015-2016 Tuition and Required Fees for Undergraduate, Graduate, Professional
and Special Programs
C. Faculty, Staff and Student Housing Rates 2015-2016
D. Contract Rates for Dining Services 2015-2016
E. Capital Project Approvals
F. Medical Center Quasi-Endowment - Extension of Delegated Authority
G. Endowment Spending Rate
2
E NROLLMENT P ROJECTIONS
PAT 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 AT I N G O F F I C E R
UVa Enrollment Projections, Fall 2014 – Fall 2022
• Continues enrollment growth plan that started in Fall 2011 and will
Undergraduate:
continue through Fall 2018, after which enrollment levels off at 15,688
• +566 undergraduate students over the period
Graduate:
Law & Medicine:
Continuing and
Professional Studies
Off-Grounds:
• Slight decrease in projected growth, still represents positive growth
• +390 graduate students (from 4,653 to 5,043) over the period
• Law class size will decline by 102 (from 1,067 to 965) and Medicine
class size will remain level at 620 over the period
• Overall growth of 40 students (from 338 to 378) over the period
• Overall decline of 215 over the period due to discontinuation of the
Semester at Sea program and moderate growth in other programs
4
College at Wise Enrollment Projections
Total Headcount
Student Full-time Equivalent
Fall 2014
2,164
1,514
Fall 2021
2,305
1,619
• Enrollment projections forecast a 7% increase in both total
headcount and student full-time equivalent by fall 2021.
5
2015-16 T UITION AND F EES FOR
U NDERGRADUATE , G RADUATE ,
P ROFESSIONAL , AND S PECIAL
P ROGRAMS
COLETTE SHEEHY
VICE PRESIDENT FOR MANAGEMENT AND BUDGET
Undergraduate Tuition
7
Tuition Setting Context
• BOV approved the 2014-15 undergraduate tuition increase:
– In-state:
– Out-of-state:
– Blended rate:
+4.5%
+6.0%
+5.4%
• After BOV approved the FY2014-15 budget and the 2014-15 tuition
increase, the General Assembly applied a mid-year $8.2 million reduction
in base budget appropriation that we had to absorb in FY14-15
operations. This was addressed largely through one-time savings.
• The 2015 General Assembly session resulted in additional funding for
enrollment, but also mandated unplanned compensation increases for
classified staff and the acceleration of VRS funding.
8
Tuition Setting Context
• For FY 15-16 there are incremental spending requirements we
face in several key areas:
Compensation: net impact of $9.8 million after state share of funding
Safety and Support Services: $2.8 million; 13 FTE
Compliance: $1.6 million; 10 FTE
Financial aid contingency: $5.0 million; reflects anticipation of
elimination of federal Perkins Loan program
– Enhanced Library costs: $1.3 million
–
–
–
–
9
General Assembly Approved FY2015-16 General Fund Budget Actions1
UVa Academic Division
(in millions)
E&G
FY15 Base Appropriation (approved June 2014)
$127.57
$10.52
$6.73
$144.82
(8.16)
0.00
0.00
(8.16)
$119.41
$10.52
$6.73
$136.66
$1.61
0.00
0.00
1.61
Research – Cancer
0.00
0.00
1.00
1.00
Undergraduate Financial Aid
0.00
0.10
0.00
0.10
Virginia Foundation for the Humanities
0.09
0.00
0.00
0.09
$1.70
$0.10
$1.00
$2.80
$1.03
$0.00
$0.00
$1.03
Classified Staff Salary Increase (2% + $65/year of service for those with at least 5 years of
continuous service up to 30 years)
0.84
0.00
0.00
0.84
University Staff, A&P Faculty, GTA Salary Increase (2% average)
1.08
0.00
0.00
1.08
High Turnover Positions (additional 2%)
0.06
0.00
0.00
0.06
VRS Rate Increase from 12.33% to 14.22%
1.26
0.00
0.00
1.26
$4.27
$0.00
$0.00
$4.27
FY16 Appropriation
$125.38
$10.62
$7.73
$143.73
% Change – FY16 over original FY15
(1.72%)
0.95%
14.86%
(0.75%)
Less: Permanent Base Reduction (approved September 2014)
Revised FY15 Base Appropriation
Financial Aid
Research
Total
Plus Incremental Funding Included in Conference Committee Actions:
Restoration of Budget Reduction and Enrollment Growth2
Total Incremental Funding Approved
Plus State-Authorized Compensation Increases:
T&R Faculty Salary Increase (2% average)
Total Compensation Funding3
Additional funding actions not reflected above: $5.64 M for the Rotunda renovation; $1.54 M in the Higher Education Equipment Trust Fund (HEETF); $1.00 M for the Virginia Kindergarten Readiness Program
administered by the Curry School of Education (pass through from Department of Education).
1
Subject to approval by the Governor.
State share of actual and planned enrollment growth estimated at $5.3 M over the biennium.
3 State funding of compensation increases represents approximately 1/3 of total cost.
2
10
Use of Revenue Levers
Finance Subcommittee analyzed various revenue levers to fund base operations and strategic priorities.
Revenue Lever
Supporting Activity
Endowment Spending Distribution
Base Operations
Debt Restructuring
Strategic Priorities (Cornerstone
Plan and Generational Faculty
Turnover)
Organizational Excellence
Base Operations
Balance Sheet/Investment Earnings
Strategic Priorities (Cornerstone
Plan and Generational Faculty
Turnover)
Philanthropy
Base Operations and Strategic
Priorities (Cornerstone Plan,
Generational Faculty Turnover)
Tuition
Base Operations
11
Incremental FY16 Operating Requirements (Undergraduate Schools)
Salaries & Benefits
Principal Categories
(in $ thousand)
T&R Faculty Salaries and
Benefits
2014-15 UVa
Cost Base
Expected % Increase
$98,630 4.50%
2.5% from reallocations
Non-T&R Faculty, U Staff
Salaries, GTA/GRA
Classified Staff Salaries and
Compression Adjustment
110,628
34,184 2.00%
$65 per year of service up to
30 years
Retention Increase for High
Turnover PositionsB
Fringe Benefits (FB) Rate
IncreaseC
Subtotal Compensation
1% market adjustment
2% merit-pool
2.00%
Accelerate VRS contribution
rate to 90% of Board certified
79,646
rates ($3,600), Fringe Rate
increase (~1%)
$323,088
Total
2015-16
Cost
Increase
Net
Less: State
Impact on
General
2015-16
FundsA
Budget
$4,438
+1,234 FB
5,672
(3,151)
2,521
($1,027)
$1,494
4,265
(1,090)
3,175
939
(361)
1,364
(476)
179
(62)
117
4,772
(1,256)
3,516
$14,040
($4,272)
$9,768
1,466
A. FY15-16 state budget information is subject to approval by the Governor.
B. State Mandated
C. Rate increase is driven by increase in VRS employer rate ($3.6 million), assumption of unused leave payout at employee
termination ($1.0 million), FICA base increase ($0.2 million )
12
Incremental FY16 Other Operating Requirements (Undergraduate Schools)
Principal Categories
(in $ thousand)
Expected % Increase
Subtotal Compensation
Total
2015-16
Cost
Increase
$14,040
Less: State
General
Funds
Net Impact
on
2015-16
Budget
($4,272)
$9,768
Enhanced Safety & Support Services
Separate Schedule
2,760
2,760
Contractual Obligations
O&M; Res Life; Lease and
Property insurance;
communications; Managerial
Reporting
2,293
2,293
Enhanced Library Operations
Staffing and Collections
1,300
1,300
Student Life
Greek Life, OAAA, Graduation
307
307
1,550
1,550
5,000
5,000
7,300
$34,550
7,300
$30,278
Compliance
Financial Aid Contingency
FOIA, Legal, Audit, Title IX,
Clery
Anticipated elimination of
Perkins Loan Program
2.0% CPI Increase on non-personal services
TOTAL FY16 Operating Requirements
($4,272)
13
Enhanced Safety & Support Services Funding Requirements
(in $ thousands)
Upgrade UVa camera system
Police officers (6 FTE)
IT support for monitoring station (1 FTE)
Camera control operators (3 FTE)
Evaluate and update emergency phones
Police sub-station on the Corner
Ambassadors to provide additional security support
"Buddies on Call" and "Student Watch" student-led programs
Safety app for personal phones
Expand after-hours transportation system
Improved Safety Subtotal
Women's Center Counselors (3 FTE)
Sexual assault and safety education programs
Increased Counseling, Support and Education Subtotal
Enhanced Safety and Security Total (13 FTE)
FY 15-16
$160
287
55
116
20
65
1,600
10
12
150
$2,475
225
60
$285
$2,760
14
Increased Compliance Funding Requirements
(in $ thousands)
FOIA Staff + Software (1 FTE)
2015-16
$100
Auditing Staff
170
Attorney and administrative support (2 FTE)
235
Title IX and Clery Coordinators and support
(4 FTE)
550
Sexual Misconduct Investigators (3 FTE)
495
Compliance Total (10 FTE)
$1,550
15
Financial Aid Contingency
• Anticipate that US Department of Education will end Perkins Loan
Program in Fall 2015.
• Subsidized Direct Loans are used first, up to federal limits.
• Perkins Loans are then used to fill the loan gap between the Direct Loan
maximum and the $7,000 annual loan cap.
• To continue to meet 100% of student need we would need to replace the
Perkins Loan amount.
• Estimated Perkins Loan Program replacement cost:
$3.5 million
• Contingency for AccessUVa (3% of tuition grant pool): $1.5 million
16
Enhanced Library Resources
• In a set of eight peer libraries, UVa ranks last in total library expenditures
and 7th in expenditures per student.*
• Multi-year plan to enhance library resources.
• Annual inflation on collections averages 4.5 – 5.0%.
– $300K cost of inflation on electronic journals
• Need to hire “blended professionals” with more technical expertise to
manage the increasingly digital environment and increase staffing from
216 to 220
– $1 million in salaries/benefits/new positions
*Data from Association of Research Libraries FY2014 Library expenditures.
17
Incremental Operating Requirement FY16
(in $ thousands)
Total FY16 Incremental Operating Requirements
State Appropriations
Endowment Distribution
2015-16
$30,278
from slide 8
Enrollment Growth and
Operating Support
$7,200 40 bps additional distribution
$1,610
Organization Excellence Savings and Reallocations*
$12,726
Total Sources of Funds
$21,536
Excess of Uses over Sources before Undergraduate
Tuition Proposal
Comment
($8,742)
Note:
* This figure does not include the $8.2 million base budget reduction in state appropriation, which is also being absorbed in FY15-16.
18
2015-16 Undergraduate Tuition & Fee Proposal
19
2015-2016 Undergraduate Tuition & Fee Proposal
• In order to cover compensation increases and incremental base operating
needs, the University proposes a tuition and E&G fee rate increase of
3.8%.
• This equates to a base tuition rate increase of 3.9% for Virginians and an
E&G fee increase of 1.6%, and tuition rate increase of 3.9% for nonVirginians and a E&G fee increase of 0.6% for non-Virginians.
• When including other fees – Auxiliary and University Activity fees – the
total tuition and fee rate increase is 3.6% for Virginians and 3.7% for nonVirginians.
Figures do not include specific school fees.
20
Tuition Proposal to Address Net Incremental Operating
Requirements FY16
($ in thousands) Tuition
Proposal
3.9%
Excess of Uses over Sources (from slide 13)
($8,742)
Net Base Undergraduate Tuition at 3.9% including Enrollment
Growth
$8,880
Net Sources Over Uses
$138
Virginian Tuition
Increase in Virginian Tuition over FY15
Non-Virginian Tuition
Increase in Non-Virginian Tuition over FY15
$10,892
$408
$40,506
$1,518
21
University of Virginia
2015 – 2016 Undergraduate Tuition & Fee Proposal
2015-16 Proposed Tuition & Fees Rates
Virginians
2015-2016
Tuition
E&G Fees
Subtotal
Auxiliary Fees
Activity Fees
Total Tuition and Required Fees
Non- Virginians
$ Change from % Change from
FY15
FY15
2015-2016
$ Change from
FY15
% Change
from FY15
$10,892
$408
3.9%
$40,506
$1,518
3.9%
$455
$7
1.6%
$1,137
$7
0.6%
$11,347
$415
3.8%
$41,643
$1,525
3.8%
$2,071
$55
2.7%
$2,071
$55
2.7%
$50
$0
0.0%
$50
$0
0.0%
$13,468
$470
3.6%
$43,764
$1,580
3.7%
Figures do not include specific school fees.
22
Total 2015 - 2016 Price of Attendance
UVa First-Year Undergraduate
2015-16 Proposed Price of Attendance
Virginians
Non- Virginians
2015-2016
Tuition & Fees
Orientation Fee
Room
Board
Books, Travel, Others
Total Price of Attendance
$13,468
$210
$5,492
$4,560
$4,233
$27,963
$ Change
from FY15
% Change
from FY15
$470
$0
$189
$160
$76
$895
Expected % Students on Aid
2015-2016
3.6%
0.0%
3.4%
3.5%
1.8%
3.3%
34%
$43,764
$210
$5,492
$4,560
$5,462
$59,488
$ Change
from FY15
$1,580
$0
$189
$160
$56
$1,985
% Change
from FY15
3.7%
0.0%
3.4%
3.5%
1.0%
3.5%
32%
For Students on Aid
Average Grant Package
Average Net Price
Figures do not include specific school fees.
$11,551
$16,412
$16,802
$42,685
23
Academic Division
2015-16 Undergraduate Differential Tuition Proposals
2015-16 Proposed
Differential
All Students
Program
2015-2016
B.A. in Public Policy and Leadership (Batten)
$2,500
School of Engineering and Applied Science
$4,000
$ Change % Change
from FY15 from FY15
n/a
n/a
$2,000 100.0%
• Batten School proposes a differential to build out and fully implement highly interactive
pedagogical approach:
– Incoming Class of FY16:
– Incoming Class of FY17:
$2,500 differential
$5,000 differential
• Engineering differential will help expand student services and experiential learning
opportunities, and help offset start-up costs to replace retiring faculty.
• McIntire School of Commerce will continue its $5,000 differential with no increase in 2015-16
24
2015-16 Graduate Tuition Proposal
25
2015-16 Graduate Tuition Proposals
Increases range from 0.2% to 3.9%
2015-16 Proposed Tuition & Fees Rates
Virginians
Non- Virginians
Program
2015-16
$ Change
from FY15
% Change
from FY15
2015-16
$ Change
from FY15
% Change
from FY15
GSAS Ph.D. Program:
Ph.D. Year 1 – 3
$17,094
$416
2.5%
$27,574
$656
2.4%
$7,100
$172
2.5%
$7,782
$172
2.3%
GSAS Master's Program
$17,800
$648
3.8%
$28,432
$1,030
3.8%
M.S. in Data Science
$24,942
$74
0.3%
$39,684
$75
0.2%
SEAS Master's Program
$17,792
$494
2.9%
$28,046
$742
2.7%
All Other Master's Program
$17,432
$674
4.0%
$27,546
$782
2.9%
Nursing Clinical Nurse Leader
$21,716
$62
0.3%
$35,818
$62
0.2%
Ph.D. Year 4
26
2015-16 Graduate Tuition Proposals
Batten School
2015-16 Proposed Tuition & Fees Rates
Virginians
Program
2015-16
Non- Virginians
$ Change % Change
from FY15 from FY15
2015-16
$ Change % Change
from FY15 from FY15
Post Graduate Program (M.P.P.)
$25,664
$7,160
38.7%
$46,522
$13,364
40.3%
5th Year Accelerated Program (M.P.P.)
$25,664
$7,160
38.7%
$46,522
$13,364
40.3%
•
•
•
•
Allows transition to a competitive, market-based tuition aligned with peer institutions (UC
Berkeley, University of Michigan, Georgetown and Duke).
Average net price for Batten School M.P.P. students in FY15 was $7,004 for in-state students
and $12,942 for out-of-state students. – equates to a discount rate of 54%.
We anticipate a similar net price in FY16 even after this substantial tuition increase.
Over time (3-5 years), as admission to M.P.P. program becomes increasingly competitive and
Batten School’s reputation rises, we anticipate a decreased discount rate and ability to realize
net graduate tuition that aligns with peers.
27
2014-15 Graduate Tuition Proposals
Batten School
$45,000
UVA
$40,000
Projection FY16 Tuition
$35,000
$32,176
$29,962
$30,000
$25,000
$20,000
$17,188
$15,990
$15,000
$10,000
$5,000
$-
Public Peer Institutions
In-State
Out-State
in-state average
out-state average
28
2015-16 Graduate Tuition Proposals
Programs that begin academic year in May or June
2015-16 Proposed Tuition & Fees Rates
Virginians
Program
2015-16
Non- Virginians
$ Change % Change
from FY15 from FY15
2015-16
$ Change % Change
from FY15 from FY15
SEAS: Accelerated Master's
Program in Systems Engineering
$39,000
$750
2.0%
$39,000
$750
2.0%
SCPS: Post-Baccalaureate PreMedical Certificate Program
$27,816
$1,001
3.7%
$32,996
$1,030
3.2%
29
2015-16 Graduate Tuition Proposals
McIntire Graduate Programs
2015-16 Proposed Tuition & Fees Rates
Virginians
Program
2015-16
Non- Virginians
$ Change % Change
from FY15 from FY15
2015-16
$ Change % Change
from FY15 from FY15
M.S. in Accounting
$30,176
$736
2.5%
$36,520
$890
2.5%
M.S. in Commerce
$41,810
$815
2.0%
$47,376
$981
2.1%
M.S. in MIT
$44,354
$1,304
3.0%
$44,354
$1,304
3.0%
30
2015-16 Graduate Tuition Proposals
Darden Graduate Programs
2015-16 Proposed Tuition & Fees Rates
Virginians
Program
2015-16
Non- Virginians
$ Change % Change
from FY15 from FY15
2015-16
$ Change % Change
from FY15 from FY15
Full-Time M.B.A.
$58,150
$3,256
5.9%
$61,150
$3,256
5.6%
E.M.B.A.
$69,650
$2,175
3.2%
$69,650
$2,175
3.2%
G.E.M.B.A.
$74,650
$2,175
3.0%
$74,650
$2,175
3.0%
Ph.D. Students: Year 1-3
$17,164
$486
2.9%
$27,690
$772
2.9%
Ph.D. Students: Year 3+
$7,122
$194
2.8%
$7,804
$194
2.5%
31
2014-15 Graduate Tuition Proposals
Darden Graduate Programs
80,000
70,000
60,000
57,950
Average $59,666
50,000
40,000
30,000
20,000
10,000
-
32
2015-16 Graduate Tuition Proposals
School of Law
2015-16 Proposed Tuition & Fees Rates
Virginians
Program
2015-16
$ Change
from FY15
Non- Virginians
% Change
from FY15
2015-16
$ Change
from FY15
% Change
from FY15
Full-time J.D. (1L and 2L) and L.L.M.
Students
$54,000
$2,200
4.2%
$57,000
$2,200
4.0%
Full-time J.D. (3L) Students
$52,000
$2,200
4.4%
$57,000
$2,200
4.0%
33
2014-15 Graduate Tuition Proposals
School of Law
62,000
Projection FY16 Tuition
60,000
58,000
Average, $55,773
56,000
$54,800
54,000
52,000
50,000
48,000
Public Peer Institutions
* Out of State
34
2015-16 Graduate Tuition Proposals
School of Medicine
2015-16 Proposed Tuition & Fees Rates
Virginians
Non- Virginians
Program
2015-16
School of Medicine
$46,404
$ Change % Change
from FY15 from FY15
$922
2.0%
2015-16
$57,210
$ Change % Change
from FY15 from FY15
$1,120
2.0%
35
2014-15 Graduate Tuition Proposals
School of Medicine
70,000
60,000
$56,142
Average, $53,669
50,000
40,000
30,000
20,000
10,000
0
*
*
*
Washington,
Virginia,
Michigan State
University of
University of
University
*
*
*
Duke
Pennsylvania
Pittsburgh,
Emory
Michigan-Ann
University
State
University of
University
Arbor, Univ of
University
* Out state resident tuition
36
2015-16 Fee Proposal
37
2015-16 Fee Proposals
2015-16
E&G Fees
Auxiliary Fees
Total Comprehensive Fees
Student Activity Fees
$455
$2,071
$2,526
$50
Proposed Comprehensive Fees
Virginians
Non-Virginians
$ Change
% Change
$ Change
% Change
2015-16
from FY2015 from FY2015
from FY2015 from FY2015
$7
1.6%
$1,137
$7
0.6%
$55
2.7%
$2,071
$55
2.7%
$62
2.5%
$3,208
$62
2.0%
$0
0%
$50
$0
0%
2014-15
Approved
Graduate Batten
Graduate Engineering
$60
$60
Program
Architecture, Landscape Architecture, 1st year
undeclared
Urban and Environmental Planning
Application Fees
Amount of
Percent of
Increase
Increase
$15
25%
$25
42%
2015-16
Proposed
$75
$85
School of Architecture Design Technologies Fee
$ Change
% Change
2015-2016
from FY15
from FY15
$560
$140
n/a
n/a
n/a
n/a
38
2015-16 College at Wise
Undergraduate Tuition Proposal
39
2015-16 Undergraduate Tuition Proposals
College at Wise
2015-16 Proposed Tuition & Fees Rates
Virginians
2015-2016
Tuition
$ Change
from FY15
Non- Virginians
% Change
from FY15
2015-2016
$ Change
from FY15
% Change
from FY15
$5,056
$194
4.0%
$20,658
$794
4.0%
E&G Fees
$154
$4
2.7%
$786
$4
0.5%
Sub-total
$5,210
$198
4.0%
$21,444
$798
3.9%
Auxiliary Fees
$4,010
$154
4.0%
$4,010
$154
4.0%
Total Tuition and Required Fees
$9,220
$352
4.0%
$25,454
$952
3.9%
40
FACULTY, S TAFF, AND
S TUDENT H OUSING R ATES
2015-2016
R I C H K O VAT C H
A S S O C I AT E V I C E P R E S I D E N T F O R B U S I N E S S O P E R AT I O N S
Faculty and Staff Housing Rates, 2015-16
• Rents reflect market rate
• 85 housing units
• Average increase = 3.3%
42
UVa Student Housing Rates, 2015-16
Academic Division
College at Wise
Number of beds
6,890
763
Occupancy rate (fall 2014)
98%
76%
Average increase
$189 (3.4%)
$216 (3.5%)
Average double room charge
(nine-month lease)
$5,681
$6,144
* Excludes Henson Hall, the rate for which will decrease by $1,619 (25%) to incentivize occupancy during period of
nearby construction.
43
2014-15 UVa Student Housing Rates
VA Public, Peer & Selected Other Institutions Double Room Rate
$10,000
UVa = $5,492
$9,000
$8,000
Average "Peer" & Selected Others = $7,451
$7,000
$6,000
Average VA Public Schools = $5,475
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Sources: SCHEV 2014-2015 Public Institutions survey & Business Operations web-based survey
44
2014-15 UVa-Wise Student Housing Rates
VA Public, Peer & Selected Other Institutions Double Room Rate
$8,000
UVa-Wise = $6,228
$7,000
$6,000
$5,000
.... Average VA Public Schools = $5,475
- - - - Average "Peer" & Selected Others = $4,937
$4,000
$3,000
$2,000
$1,000
$0
Sources: SCHEV 2014-2015 Public Institutions survey & Business Operations web-based survey
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D INING S ERVICES R ATES
2015-2016
R I C H K O VAT C H
A S S O C I AT E V I C E P R E S I D E N T F O R B U S I N E S S O P E R AT I O N S
Dining Service Rates, 2015-16
Average increase
Meal plan rate range
Academic Division
College at Wise
3.5%
0.2%
$200 - $5,050
$193 - $4,322
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2014-15 UVa Dining Meal Plan Rates
VA Public, Peer & Selected Other Institutions Full Meal Plan Rate
$7,000
UVa = $4,560
$6,000
Average "Peer" & Selected Others = $5,093
$5,000
Average VA Public Schools = $4,304
$4,000
$3,000
$2,000
$1,000
$0
Source: Business Operations web-based survey
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2014 - 2015 UVa-Wise Dining Meal Plan Rates
VA Public, Peer & Selected Other Institutions Full Meal Plan Rate
$7,000
UVa-Wise = $4,322
$6,000
$5,000
.... Average VA Public Schools = $4,304
$4,000
- - - - Average "Peer" & Selected Others = $3,848
$3,000
$2,000
$1,000
$0
Source: Business Operations web-based survey
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C APITAL P ROJECT A PPROVALS
COLETTE SHEEHY
VICE PRESIDENT FOR MANAGEMENT AND BUDGET
Project Budget Review: Newcomb Road Chiller Plant
• Board of Visitors approved project in
2013, estimated at $11.64 million
Memorial
Gym
Site Area
Existing Cooling
Towers
UVa
Bookstore
• Unanticipated higher equipment costs
and new technologies have increased
total project cost by $3.16 million
• Installation of new energy-saving
technologies anticipated to reduce
utility costs by up to 20%
• Increase in project cost: $3.16 million
funded by cash
• Total revised project cost: $14.8 million
($3.18 from debt; $11.62 from cash)
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Electrical Grid Reliability Project
• Partnership between UVa and
Dominion Virginia Power to install
underground electrical duct bank -will improve power reliability by 90%
• Connecting Sherwood substation (DVP
transmission substation) to the Cavalier
and Alderman substations (UVa
distribution substations)
• Route to be finalized in April
• $10.0 - $15.0 million total cost funded
by debt; repayment from internal
utility rates
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University Hospital Emergency Department/
Interventional Program/Bed Tower Expansion
• Expansion and renovation of the ED;
expansion of perioperative and
interventional services; construction of
6-story tower (build out of 3 stories
and shell for 3 stories)
• Accommodate future demand/growth,
improve patient experience,
consolidate interventional services,
right-size pre-operative and recovery
areas, convert semi-private rooms to
single patient rooms
• $322.0 - $394.0 million total cost
funded by debt
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M EDICAL C ENTER Q UASI E NDOWMENT
PAT 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 AT I N G O F F I C E R
Medical Center Quasi-Endowment
• In 2008 the Medical Center established a quasi-endowment for
future acquisition or construction of capital assets.
• Board authorized additional investments up to $300 million over
the following three years.
• EVP-COO has delegated authority to approve quasi-endowment
actions, including establishments and divestments, of less than $2
million.
• Medical Center desires to continue reinvesting semi-annual
distributions, which exceed $2 million.
• Medical Center requests that authority be delegated to EVP&COO
to approve reinvestment of future endowment distributions.
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E NDOWMENT S PENDING
R ATE R ESET
PAT 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 AT I N G O F F I C E R
UVa’s Current Spending Policy
• Inflation growth within a band/“snake in a tunnel”
• Increase prior year’s payout by inflation
• Determine where payout will fall relative to market value
• If resulting pay-out is within a 4% - 6% band, no action
required by Board and pay-out is automatically increased
• The Board may take action to adjust
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Endowment Spending Rate Reset
• Based on policy and due to recent strong performance,
the FY16 distribution will be at 4.22% of endowment,
near the low end of the band, if no action taken
• Finance Subcommittee on Affordable Excellence
reviewed UVIMCO sensitivity analysis this summer
• Subcommittee recommends that the Finance
Committee take action to increase the rate by 40 basis
points, resetting it at 4.62% for FY16
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