Thursday, October 9, 2014
Vol. 125, Issue 14
Breaking down the University budget University holds $5 billion endowment, projects $2.8 billion 2015 budget as student enrollment continues to climb
College to revamp Board of Visitors meeting curriculumrecap after 40 years PAGE 3
University to extend Fifth Congressional same-sex partner benefits district race breakdown PAGE 3
TheLove journey of Khalek Connection: Shepherd Nathaniel and Darnisha PAGE14 6 PAGE
400
Academic Division Revenue Sources
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Amount of money in millions
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Op Ba era lan tin ces g C ash Ex pe nd ab le Sta Gif te ts Ap p r op En do ria wm tio ns en tD ist rib uti Sa on an les & dO S Sp ther ervic on es sor ed Pro gra ms Tui tio na nd Fe es
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Academic Division Expenditures
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Anne Owen | The Cavalier Daily
Whatonit’sHerlike to ToHUMOR: Write Love Arms wearawareness a wolf T-shirt holds week PAGE 12
Q&A: BehindontheCall scenes Musicians bringof drama show tunes department to local patients PAGE 15
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Amount of money in millions
600
Amount of money in millions
In July, Forbes magazine listed the University as the 19th richest school in the country, with an endowment just surpassing $5 billion — good for the fifth richest public school in the nation. Handling the annual budget, managing the endowment, and making sure payments are actually dispersed proves an extensive operation. The approved budget for the current fiscal year — which began July 1 — calls for $2.8 billion in spending — a number higher than the GDP of more than 30 countries. And, though cuts from state appropriations in September lessened this year's total revenues, the budget continues to grow each year. Where It Comes From Operating budget revenues are broken down into three categories: the Medical Center, the Academic Division and the College at Wise. Wise accounts for less than 2 percent of revenues. The rest are almost squarely divided between the Academic Division and the Medical Center. The bulk of the University income made through the Medical Center comes from patient revenues, which accounted for about 45.2 percent of the total operating budget this fiscal year. Tuition and fees come in second at 19.2 percent of revenues. The Academic Operating Budget receives $1.47 billion across seven categories, primarily coming from student tuition and fees (36.4
percent). To support increased un- erating Budget this fiscal year. The dergraduate enrollment in the class endowment, which is controlled by of 2018, the budget includes an the University of Virginia Investincrease in $6.6 million from tu- ment Management Company, saw ition revenues and $1.1 million of a 19 percent return on its long-term support from the Virginia General investments for fiscal year 2014, Assembly as compared to last year's exceeding the 13.4 percent benchfigures. mark set last fiscal year. “When you look at the Aca“The 19 percent return for the demic Division, the 11 schools and fiscal year represents participation all the support operations, then in the equity market rally with dituition would supply the largest of versifying positions in credit, real any other single revenue source,” assets, fixed income and cash,” said said Colette Sheehy, vice president Lawrence Kochard, chief executive for management and budget. officer and chief investment officer. Other significant sources of “Our short and long-term perforrevenue for the Academic Operat- mance compares favorably versus ing Budget include sponsored pro- our policy benchmark.” grams, at 19.3 percent, and UniverThe portfolio consists of two sity sales and services, an umbrella pools, the Short Term Pool and category which contributes 12.5 the Long Term Pool. The Short percent. Term Pool remains highly liquid — State appropriations to the Uni- meaning it can be easily converted versity make up 10.3 percent of the to cash — in the form of easily sold 600 Operating Academic Divisionstocks. Revenue Academic Budget folTenSources percent of the revenue lowing the $8.1 million reduction from the Short Term Pool goes implemented for fiscal year 2015. directly to University foundations 500 In the past fiscal year, the Univer- such as the Alumni Association, the sity received $9,518 per in-state Jefferson Scholars Foundation and student 400 — significantly less than the Rare Book School. the University of North Carolina, The Long Term Pool is more which received $22,131 per student diverse, and is comprised of eq300its state government, and the uity, real estate and fixed income. from University of Michigan, which re- The funding for the Long Term ceived 200$13,887 per in-state student. Pool comes primarily from dona“It really goes to the state’s policy tions and the long-term operating and approach to funding higher ed- reserve, and returns on investment 100 ” Sheehy said. “Certainly in are allocated to University-related ucation, North Carolina, they fund higher foundations, long-term operating education better than they do in reserves and back into the endow0 ” Virginia. ment. The Endowment The Board of Visitors calculates One major source of annual revenue for the University is the endowment, which contributed see BUDGET, page 23 10.7 percent of the Academic Op-
Op Ba era lan tin ces g C ash Ex pe nd ab le Sta Gif te ts Ap pro En pri do ati wm on en s tD ist rib uti Sa on an les & dO S Sp ther ervic on es sor ed Pro gra ms Tui tio na nd Fe es
Associate Editor
Amount of money in millions
Katherine Wilkin