Tuition and fees: How is my tuition determined?
Tuition and fees are the financial costs that students pay to attend the university. They help cover the costs of many aspects of life at Virginia Commonwealth University that directly affect the success of students: paying professors, providing student support services, maintaining buildings, ensuring safety and security, and many more. But just because you see it here on campus (e.g., new buildings) doesn’t mean the university used your tuition and fees to buy it. We’ve listed several key facts to help you understand how tuition and fees are determined at VCU.
Examine, analyze and balance key variables
First and foremost, VCU’s administration and Board of Visitors are thinking about what it takes to offer students the very best education possible. To do this, they examine and balance significant variables that affect the university’s instructional budget, officially called the Educational and General (E&G) Programs Budget:
- Projected enrollment
- Required resources (e.g., faculty needed to teach courses, changed costs for utilities, fringe benefits for faculty and staff, IT contracts)
- Revenues from the state
The amount of tuition is determined based on this analysis.
Currently, tuition and fees make up more than two-thirds of the university’s E&G budget, while state funds make up approximately 27 percent.
There’s an approval process
Traditionally, the final part of the university’s budget process for the upcoming academic year begins when the governor announces the budget in December, and it continues into January when the Virginia General Assembly convenes. It’s not until later in the spring, typically, when the final budget for the commonwealth is approved that final allocations for institutions are known. For FY 2019, the General Assembly called for a special session to extend budget discussions. As a result, VCU has developed its budget based on the assumption that there would be no new growth in state revenue and therefore assume that no new funding would be approved for VCU.
Three university committees provide input to the budget process: the University Budget Advisory Committee, the Student Budget Advisory Committee and the Budget and Strategic Planning Committee. UBAC members include academic leadership and faculty and staff representatives, and is co-chaired by the vice president for finance and budget and the provost. This past year VCU established the Student Budget Advisory Committee to increase student involvement in the budget planning process. The Budget and Strategic Planning Committee meets monthly to consider budgetary issues and is responsible for final recommendation to the University Cabinet. The final university budget, which includes the rates for tuition and fees for the following academic year, is approved by the VCU Board of Visitors in mid May.
Why does tuition increase?
The university’s instructional budget is primarily supported by tuition, fees and state appropriations. Deep declines in state support for higher education have shifted the funding burden to students and their families. As VCU’s enrollment significantly increased over the past 15 years, state support dramatically declined. In 2001, almost two-thirds of the budget came from state funds; today, state support is 27 percent.
VCU also faces increases in unavoidable costs such as commitments for academic program improvements, teaching and research faculty professional advancement, utilities, and building and grounds maintenance.
VCU’s commitment to student success drives budgeting decisions
Despite the funding limitations the university has faced, VCU continues to move forward guided by the goals set forth in Quest for Distinction. The university’s success in improving the four- and six-year graduation rates are attributed to strategic investments that increase financial aid (institutional and externally funded), target advising and increase faculty recruitment and retention. Continued progress in these areas is a priority in the budget for the upcoming year despite reductions in state funding.
To support these commitments, as well as to address mandatory and unavoidable costs, the university will increase tuition and fees by 6.4 percent for resident undergraduate students (including a 4.9 percent increase for in-state undergraduate mandatory fees). The additional resources will provide new funding of more than $6 million for student financial aid and more than $3 million for faculty hires. An investment of $6 million will provide a critically needed salary increase for faculty (3 percent) and University Staff (1.5 percent). Additionally, this budget makes investments in the university’s infrastructure ($2.8 million), including facilities maintenance, improved safety, compliance and funding of contractually based increases – such as journal costs for VCU Libraries. The budget also includes required funding of $3 million for VCU’s share of state-mandated fringe benefit increases.
Review the university’s FY 2019 budget plan for more details.
Keeping you and your family informed
The VCU Board of Visitors and the university’s administration will always inform VCU students and families of any pending increases in tuition and fees as soon as that information is available. In the spring of 2018, VCU SGA and BOV student representatives held an open forum on tuition with Karol Kain Gray, VCU vice president for finance and budget, to present the proposed budget and tuition for 2018-19. We curated and posted the questions and answers discussed at the information session to the News section of this site.