MINUTES UNIVERSITY ADVISORY COUNCIL ON STRATEGIC BUDGETING AND PLANNING February 24, 2000 PRESENT: Richard Bambach, Vernon Boggs, Laurie Coble, Dan Dolan, Dixon Hanna, Delbert Jones, Peter Kennelly, Vera Kidd, Susan Magliaro, Peggy Meszaros, Minnis Ridenour, Verna Schuetz, Dwight Shelton, Larry Thompson, Mike Vorster, Lisa Wilkes, Dennis Wnorowski ABSENT: David Ford, Scott Hurst, Pat Hyer, James Lang, Michael O'Brien, Don Waldron, Peter Zippelius 1. CALL TO ORDER Peggy Meszaros, Senior Vice President and Provost, called the meeting to order at 3:00 p.m. 2. REVIEW AND APPROVAL OF JANUARY 27, 2000 MINUTES Peggy Meszaros noted that the minutes from the January 27, 2000, meeting have been electronically approved, sent to University Council, and posted on the web. 3. OVERVIEW OF STATE BUDGET Minnis Ridenour, Executive Vice President, distributed a summary of the state biennial budget requirements for 2000-2002. The budget developed by the institutions identified institutional requirements totaling $731 million for the operating budget and approximately $806 million for the capital budget. Both the House and Senate have recommended funding for the equipment trust fund, faculty salaries, and operating support. The institutions, through the Council of Presidents, requested that full funding be provided for the top three priority capital projects at each institution. Some of these projects have been included in the General Obligation Bond recommended by the House. For the Tobacco Settlement, both the House and the Senate removed the $22 million in operating and $29 million in capital from the Governor's budget. Virginia Tech is still working with the Tobacco Commission to obtain the full funding set forth in the Governor's Plan. 4. 2000-2002 BUDGET FOR VIRGINIA TECH: HOUSE AND SENATE RECOMMENDATIONS Dwight Shelton, Associate Vice President for Finance and Budget, reviewed the operating and capital amendments for the 2000 Legislative Session. In Agency 208 (University Division) both the House and Senate have recommended funding for addressing critical operating needs such as staffing, operations, ADA programs, and libraries. They have also provided support for research and development opportunities for key industries, unique military activities, and faculty salaries. The House provided additional money for the Equine Medical Center, Rural Prosperity Study Commission, additional Equipment Trust Fund purchasing power, and graduate student financial aid. The total Senate action is $3.8 million for 2000-2001 and $5 million for 2001-2002. The total House action is $5.4 million for 2000-2001 and $6.7 million for 2001-2002. In Agency 229 (CE/AES Division), the House and Senate recommended funding for faculty salaries and The Plan to Service Virginia Agriculture, Human and Natural Resources. The total Senate action is $661,297 for 2000-2001 and $920,471 for 2001-2002. The total House funding is $733,051 for 2000-2001 and $956,128 for 2001-2002. For capital projects, both the House and Senate recommended funding for additional maintenance reserve, football fields, expansion of Lane Stadium, and renovation of instructional facilities. Total recommended from the Senate is $33.6 million; the House recommendation total is $24.3 million. 5. PROPOSED 2000-2001 TUITION AND FEES Minnis Ridenour reviewed the proposed 2000-01 tuition and fees that will be presented at the March Board of Visitors meeting. The Governor has recommended that tuition for in-state undergraduates be capped for 2000-2002. The university proposes an increase of 2.4 percent in tuition for out-of-state undergraduates and a 2.5 percent increase for all out-of-state graduate students. Additionally, the in-state graduate tuition rates are proposed to increase by 2.4 percent. The comprehensive fee is proposed to increase 2.5 percent while a 5.3 percent increase is proposed for room rates and a 3.9 percent increase is proposed for board rates. The parking fee is proposed to increase $10 for faculty and staff and $6 for students in 2000-01. The nature of Virginia Tech's programs requires higher tuition compared to most other Virginia schools. By keeping comprehensive and housing fees low, however, Virginia Tech can offer a very competitive complete package. As for dormitory satisfaction, the on-campus rooms have a high occupancy rate. In addition, there is a waiting list for returning students to live on-campus, which would indicate a positive housing experience. Good management and timely improvements have helped keep housing fees low. On the issue of parking, a suggestion for high occupancy vehicle (HOV) parking was discussed. Minnis Ridenour recommended that suggestions be forwarded to the Parking Committee for consideration. 6. OTHER BUSINESS Richard Bambach, Faculty Senate President, raised a concern about the conditions of some classrooms. Peggy Meszaros, Senior Vice President and Provost, discussed the funding of classroom renovation projects and the review of classrooms that has been conducted. Dr. Meszaros will visit the classrooms with Dr. Bambach. There being no further business, the meeting adjourned at 4:10 p.m.