More Big Tuition Hikes Ahead for UVa

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.


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21 responses to “More Big Tuition Hikes Ahead for UVa”

  1. Peter Galuszka Avatar
    Peter Galuszka

    U.Va. is still one of the best public university bargains in the U.S.If you want to keep U.Va.’s quality, one has to pay. I have been a U.Va. parent so I have had skin in the game.
    Don’t like U.Va.? Consider my alma mater, Tufts University, a private school in Massachusetts that ranks about U.Va. level in academic scores. Tuition and fees? $44,600.
    Yep, U.Va. is a bargain either in our out of state.

  2. reed fawell III Avatar
    reed fawell III

    I am fearful here. This is not good news. It augers a split between factions. And apparently one side at least is willing to drag it out into the public. Most unfortunate, if this proves to be the case.

  3. Yes, UVa is a bargain compared to other universities. That’s why it will fare better than the others when the higher ed bubble collapses. But that’s no justification for jacking up its tuition at a rate significantly faster than Virginians’ incomes are growing.

    If UVa wants to go private, then it should just say so. Make the plunge, give up the state support and charge what the market will bear. Then the commonwealth can reallocate what it spends on UVa to other public institutions with the goal of keeping their tuitions affordable.

    1. DJRippert Avatar
      DJRippert

      Berkeley, in-state: $12,834.
      UNC, Chapel Hill: $7,694.
      U of Michigan, Ann Arbor: $8,884 (school of engineering)

      A bargain my ass. You guys need to stop drinking the Kool Aid.

  4. reed fawell III Avatar
    reed fawell III

    This latest move would indicate a trend toward giving up its strength (low tuition relative to competition) while failing to deal with its weaknesses (administrative and institution bloat), and move aggressively into the future.
    The fear was that current President was unwilling to face this reality.

    If true, this report suggest that this issue has not been internally resolved. And also that perhaps there are those willing to take the struggle public, which most likely will inflame already flayed nerves

  5. DJRippert Avatar
    DJRippert

    I think I see a pattern. Back in early 2012, before the forced resignation and subsequent restoration of Ms. Sullivan, Sullivan had a run in with Bob McDonnell. McDonnell sought to cap the amount of tuition that could be used to fund student aid. Sullivan opposed this cap. The matter was covered in the Cavalier Daily:

    http://www.cavalierdaily.com/article/2012/02/sullivan-rejects-limit-on-aid-2#comment4805

    Gov McDonnell correctly believed that using tuition funds from one group to support the tuition needs of another group was the provence of elected officials rather than appointed bureaucrats. Sullivan, a collaborator, co-author and confidante of uber-libtard Elizabeth Warren, disagreed. Sullivan sought authority for deciding how much to “tax” one group of students in order to subsidize another group of students.

    Lo and behold, Sullivan survived the attempt to fire her and now presents a budget requiring dramatic tuition increases including a bizarre jump in the costs for returning third and fourth year students.

    Has an emboldened Ms. Sullivan decided that she actually does have the authority to set de-facto tax rates on one group of students in order to promulgate her mission of social justice for another group of students?

    This whole situation remains very, very fishy.

    1. reed fawell III Avatar
      reed fawell III

      I agree with you completely, Don.

  6. Sullivan can do this all by her lonesome? who else has to approve?

  7. reed fawell III Avatar
    reed fawell III

    That very question is one important reason why this move publicly holds the potential to be so provocative, and damaging.

  8. In the last year, UVA has built a huge, covered football practice field and finished at least one massive new academic building by covering it with a copper roof.

  9. Damn place was never the same after Hereford retired. That’s what we get for allowing them to hire presidents who aren’t alumni of The University, it started with ending Easters and has inexorably led to this.

  10. If ever Sullivan could make painful cuts to spending it is now, while she has popularity. Instead, this proposal risks alienating current students & future applicants, the constituents who matter most. It would seem her best political move would be to cut spending to allow increase to faculty pay and hold tuition flat. She should spend some of her capital while she still has it.

    1. reed fawell III Avatar
      reed fawell III

      Now that’s a plan!

  11. reed fawell III Avatar
    reed fawell III

    This strikes me has a huge step with great potential consequences for the university and all its constituents, not least its future students.

    Apparently this step may well be contrary to the public views expressed by the Rector. Perhaps too others on the board. I assume we don’t know this for a fact, but only as a distinct possibility. Whatever, one assumes the President has some clear insight into the views of the board on this matter.
    What she may or may not know regarding the board will speak volumes.

    In any case, her move would be appear to be popular with the faculty. And perhaps it is opposed by the board, or substantial parts of it.

    If so, she’s possibly picking a public fight that backs the board into a corner should they disagree. One they cannot afford to lose. It’s hard to believe the President would do this. If she is, a lot of dots will fall into place.

  12. so.. was it every figured out what the process is for increasing the tuition?

    I would think the BOV would have to approve it and perhaps the Gov and GA.

    Sullivan can put the ball in play but aren’t other players involved in final approval?

    also.. UVA is not the only University that plays the tuition game. Although folks can find other less expensive Universities, one can also find other pricey ones and for many Universities these days – it’s all about supply and demand….

    yes… each University has a “brand” and they know how much demand there is for their “product” and they know how much more the market will allow them to increase the price….

    nothing inherently evil about it. Each institution sees money as the fuel for it’s operations and the more money the more they can offer in the way of things that people want.

    Not sure when Universities transitioned to quasi-corporations selling a “product” but I suspect it coincides with the advance of big-time College sports.

  13. reed fawell III Avatar
    reed fawell III

    Commenting on University of Virginia’s draft four year financial plan, Larry asks: “so.. was it every figured out what the process is for increasing the tuition? I would think the BOV would have to approve it and perhaps the Gov and GA. Sullivan can put the ball in play but aren’t other players involved in final approval?”

    In key paragraph of the draft plan, the University President Teresa Sullivan wrote:

    “SAVINGS FOR STRATEGIC GOALS
    These are just a sampling of the steps the University
    will take as it secures productivity and efficiency
    savings of at least 1.0 percent annually. These savings
    will help fund a strategic pool devoted to addressing
    the President’s and the Provost’s highest priorities.”

    These words written into the plan are pregnant indeed.

  14. Ghost of Ted Dalton Avatar
    Ghost of Ted Dalton

    Or perhaps U.Va. is taking a broader view of the future.

    IMO, you are not likely to have 50 real “universities” left by 2050. The idea of a 4 year college experience is going to be for the “elites” while others will use online learning an other forms of higher education.

    Those 50 universities will be fine. I think the University of Virginia will be one of those. To be one of those, you are going to have to provide a “Cadillac” of a college experience for mom and dad to pony up. Perhaps greater investments in faculties and facilities is the way to position yourself as a university. If middle class parents can’t afford it, so be it, but if you’re one of the “last 50 standing”, I think the “experience” both from a faculty and student experience will be outstanding.

    I say this as a “Double Hoo.” I went to U.Va. and U.Va. Law. I came from a middle class background. I think it’s quite depressing to see U.Va. basically become Harvard….privatized in everything but name and serving as a playground to the elite. However, I see the way things are going economically and educationally in the future. If U.Va. is going to survive as an “academical village” it’s going to have to position itself to be one of those top 50 schools in the nation.

    1. I agree, the strategy you outline — position yourself to become one of the elite 50 or so survivors, appealing to the wealthy — may be what Sullivan has in mind. But, then, she should come right out and say it.

      I think a good case can be made to let UVa go private. In fact, if I have time, I might play devil’s advocate and make that case in a blog post.

  15. reed fawell III Avatar
    reed fawell III

    Please note on page 99 of President Sullivan’s draft plan for the University of Virginia’s future the following statement:

    “The University will establish the Strategic Investment Fund effective July 1, 2013, to support the University’s strategic plan, scheduled for completion in fall 2013. Drawing on the fund, the University will be able to immediately build momentum for parts of the plan as soon as they are finalized. In addition, the fund will give the University the flexibility to seize opportunities as they emerge to advance its academic mission. This is especially important during this critical period in the University’s history.

    Governed by the President and the Provost, the Strategic Investment Fund will be used to support the following areas of emphasis: Selective hiring of key faculty, Start-up of new programs in high-potential areas, Collaborative projects that maximize existing synergies, Sponsored program and research opportunities, Streamlining and efficiency initiatives, Investments in the 21st-century curriculum, The seeding of innovative, paradigm-changing ideas, Development of pedagogical knowledge, methods, and processes.

    … The fund’s advisory council, including the Chief Operating Officer, faculty members, and other stakeholders, will advise the President and the Provost
    on the use of monies in the fund …

    … The Strategic Investment Fund is one element in a comprehensive University strategy to move forward from a position of strength as higher education undergoes its most profound change in half a century. Its purpose is not simply to help sustain the University during the next decade but to strengthen its distinctive qualities as it enters its third century.”

    These above provisions raise QUESTIONS –

    1. Why are these provision of President Sullivan’s draft plan for the University of Virginia’s future not an attempt to wrest control of the university’s future away from its Board of Visitors?
    And,
    2. Are they not attempt to vest that power into the University President and Provost in lieu of the Board of Visitors, effective July 1, 2013. Thus, do they not strip that power over strategic planning and implementation from Virginia’s Board of Visitors as of July 1, 2013?
    And,
    3. Does it not also establish an advisory group to advise the President and Provost on the strategic decisions guiding the universities future, effective July 1, 2013, and provide that this advisory group will include the university’s “Operating Officer, faculty members, and other stakeholders”?

    Doesn’t this not gut the current governance system of the University?

    It is hard to see why not. For example, the Oxford dictionary defines the verb GOVERN as follows. “Conduct the policy, actions, and affairs of (a state, organization, or people) with authority …

    1. Very good point, Reed. A cynic might observe that Strategic Investment Fund = slush fund.

    2. reed fawell III Avatar
      reed fawell III

      For more background on why this is happening, see article and comments (esp. last three comments) found at:

      https://www.baconsrebellion.com/2013/09/has-college-enrollment-peaked.html#comments

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