Budget News for VCU-March 6, 2009
President Eugene Trani sent out the following mass e-mail on March 6, 2009 with an embedded link to the VCU Preliminary Analysis of Conference Report on the Budget...
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Dear Colleagues:
On Saturday, February 28, the General Assembly completed its action on the budget for the remainder of the 2008-2010 biennium. A summary of the key provisions affecting Virginia Commonwealth University and the VCU Health System can be found here: http://www.finance.vcu.edu/pdfs/Conference%20Report%20-%20Preliminary%20Analysis.pdf
The adopted budget uses the federal stimulus funding to significantly soften the budget cuts initially proposed for FY 2010. Among other things, the budget:
* Restores $20.5 million in operating funds to VCU in FY 2010 -- an amount equal to the additional cut originally proposed for FY 2010.
* Provides $1.7 million in additional need-based financial aid -- an increase of 8.5 percent above the current year.
* Restores $4 million of the $6 million cut to Eminent Scholars. VCU's share of the restored funding is about $230,000.
* Raises to $10 (from $3) the per credit hour charge to out-of-state students, requiring VCU to pay to the state an additional $1 million from tuition for state debt service.
* Includes language stating that the stimulus money was intended to mitigate tuition increases for in-state students, and that the Governor and General Assembly will review and report to the federal government the actions of the Boards of Visitors.
* Provides an increase of about $618 million in Medicaid funding statewide, essentially offsetting Medicaid-related cuts to the Health System proposed in the budget as introduced.
The budget now goes back to Governor Kaine, who has the authority to propose changes to the General Assembly during a one-day reconvened session which will take place on April 8. Given the fact that details about specific conditions and requirements for use of the federal stimulus funding are still being developed, it is possible that changes in the budget may still be proposed.
Use of the federal stimulus money to restore the $20.5 million budget cut proposed by Governor Kaine, and the substantial additional Medicaid funds provided are both very positive developments for VCU and the Health System. Nevertheless, the federal money is available for only two years. It is therefore crucial that we prepare this year’s operating budget with one eye on FY 2010 and one eye on FY 2012, when the federal funding expires.
Best regards.
Sincerely,
Eugene P. Trani
President, Virginia Commonwealth University
and
President and Chair, VCU Health System