February 17, 2021

The Board of Visitors of the University of Virginia held an electronic meeting at 12:00 p.m. on Wednesday, February 17, 2021 for a workshop and to hear public comment on the proposal for tuition and fee increases for academic year 2021-2022. James B. Murray Jr., Rector, presided.

Participants were Whittington W. Clement, Robert M. Blue, Mark T. Bowles, L.D. Britt, M.D., Frank M. Conner III, Elizabeth M. Cranwell, Thomas A. DePasquale, Barbara J. Fried, Robert D. Hardie, Babur B. Lateef, M.D., C. Evans Poston Jr., James V. Reyes, and Mazzen Shalaby.

Also present were M. Elizabeth Magill, Jennifer Wagner Davis, Huda Aden, William Ashby, Melody S. Bianchetto, Sim Ewing, Adam Daniel, Susan G. Harris, Timothy J. Heaphy, Donna P. Henry, Megan K. Lowe, and Debra D. Rinker.

Speakers for the public comment session were Ella Tynch, Levi Schult, Allison Buehler, Bianka Warrick, Gray Webbert, Hannah Koizumi, Anna Calhoun, Colette McCord-Snook, Madeleine Poche, Anthony Guy Lopez, Thomas Phillips, Hania Abboud, Maille Bowerman, Jacob Wartel, V. Layne Berry, Grace Gyamfi, and Madison Perry.

Educational Workshop

Rector Murray opened the meeting and welcomed the participants. He said the University has held similar meetings over the past few years to solicit input on tuition and fees decisions. One of the most important issues the Board of Visitors considers every year is setting tuition. He introduced the 13 other members of the Board who attended the meeting.

Mr. Murray began the workshop portion of the meeting on the considerations that go into determining the level of tuition and fees. He acknowledged that 2020 was a particularly tough year for students, parents, and the administration of the University – a psychologically and financially troubling year. Providing online classes has been costly, but probably most costly to the university is the lost revenue, with many areas of the University that support the educational enterprise shut down. He said the biggest cost is personnel. To avoid extensive layoffs the University instituted a hiring freeze and faculty and staff did not receive raises. Many employees took pay cuts. He commended leadership for keeping the University on a solid financial footing and said the Board was grateful for the tremendous amount of work that has gone into keeping the university operating and solvent.

Mr. Murray said the presenters would address plans for next year and the costs associated with those plans. Board members are committed to keeping tuition increases at a minimum and using every other source of revenue whenever and wherever they can; tuition is the last lever they pull. He introduced the workshop presenters and said the public comment would follow. He outlined the rules for public comment. He asked that anyone who wanted to have their comments on the public record should submit them in writing at the email address in the notice of the meeting. He assured participants that the Board will read everything that is submitted. Mr. Murray then asked Ms. Magill, Executive Vice President and Provost, to present.

Ms. Magill spoke about the overall strategic direction of the school and the values the administration thinks about as they work on issues related to tuition. She outlined the strategic goals of the 2030 Plan and said the fundamental purpose of their budget and financial planning is about advancing the strategic objectives of the University. Any budget worth its salt balances priorities and tradeoffs and strategic choices to move the institution in a particular direction. The 2030 Plan envisions a university that is both great and good, that is academically excellent, operating at the highest levels of research, accessible and affordable education, a commitment to public service, as well as a University that is thinking about excellence in the service of doing good for the wider world. Getting there means evaluating all of the university's resources and its cost levers and building a plan that paves the way. In the end, all of the sources of funds available to the University play a role. Tuition is an important component of that plan. It is also one that directly affects students and families.

Ms. Magill said a key source of strength for the university and one of the foundations of the strategic plan is the outstanding value proposition that the University represents: immensely talented students and faculty, a world‑class education that is recognized in the country and in the world for its strength and its breadth, and one of the top graduation rates in the country. Graduates have high job placement rates and are very competitive for admission to the best graduate and professional schools if they choose that for their future. She said UVA is one of two public universities that meets 100% of the students' demonstrated financial need, which is a core value of the institution.

Ms. Magill said the University always strives to minimize the tuition increases. The Board's published guidelines call for educational inflation plus 1%, which this year would be a total of 3.1%. She emphasized that for any student on financial aid, any increase in tuition would be covered by an increase in aid, assuming that the student's eligibility remains unchanged.

Executive Vice President and Chief Operating Officer Jennifer Davis explained UVA’s commitment to providing 100% of need for undergraduates. For in‑state Virginia families with incomes under or equal to $30,000, the University provides grants that cover tuition, fees, room, and board. Virginia families with incomes under $80,000 receive grants totaling tuition and fees. Over the past 30 years, the responsibility of funding higher education has shifted from the taxpayer, i.e. the state, to students and families. Over the same period of time, this combined investment from students and from the state, if adjusted for inflation, is less than what was appropriated in 1990‑1991. In-state funding of undergraduate tuition has not kept pace so now there is a deficit of about $3,600 per student. This means is that the University is working with fewer resources. Approximately 42 cents on every dollar are allocated directly to fund faculty salaries and benefits. Thirty‑five cents of each dollar covers academic support such as technology, advising, and library support. Eight cents of each dollar provide financial support for graduate teaching assistants. Five cents of each dollar are used to maintain academic space. The last 10 cents support general administration.

Ms. Davis said challenges include maintaining academic quality but also affordability and access. The public notice of a tuition increase stated the increase would be between 0 and 3.1%. The 3.1% represents the Higher Education Price Index (HEPI) plus 1%, which is in the six‑year state-approved plan. One percent roughly generates about $3.2M and 3.1% generates $9.9M. Increases this year besides the pandemic costs include merit compensation increases. The General Assembly has proposed between 3.0% and 3.5% but so far has not appropriated the funds to fully cover this increase. The cost to UVA is between $33M and $38M. Faculty and staff have stepped up in incredible ways; last year there was no compensation increase and, in some cases, pay cuts. In addition, utility prices are going up with an average increase of 5.7% in this coming year. These are in addition to the increased costs related to the pandemic which were approximately $142M in costs and lost revenue this year. There will be some additional expenses in fiscal year 2022.

Ms. Davis said they are also proposing increasing required fees by up to $114. The key component of this increase is for Student Health: $75 of the $114. There are also increased costs related to Newcomb Hall and recreational facilities.

Chancellor Donna Henry gave an overview of the College at Wise. The value proposition revolves around service to students in the Commonwealth and in the Appalachian region. The College at Wise serves students from lower socioeconomic areas who might not have access to affordable higher education and they were awarded a “most bang for the buck” designation from Washington Monthly magazine. The College at Wise’s software engineering program is recognized nationally for its accessibility to students and is one of the best programs for students to go on and do good work, which is needed in the Commonwealth and across the country.

Chancellor Henry said their goal is to provide one‑on‑one attention to students, giving them access to faculty who can help them be successful and move forward in the world and so keeping tuition low is important. They have a program that provides for students who come from families making $40,000 or less that covers all tuition and fees.

Vice Chancellor Sim Ewing said the College at Wise tuition rates are 22.8% below the average cost for tuition and fees. This has been a directive since the college was founded in 1954—always focused on accessibility. The "Within Reach" program is having great success for Virginia students. He said the College at Wise is looking at between 0 and 3% in tuition increases this year. Each percent costs the students about $59. Each percentage increase in fees costs the student about $50. Combined together, a 3% increase would be $325, which would still keep the College at Wise the most affordable in the Commonwealth. The largest component of auxiliary fees goes to support intercollegiate athletes because they do not have television money and distributions. The fee also allows the continuation of the iPad initiative. Other items include the student health clinic and student facilities and services such as student mental health and student affairs, intramurals, and recreation.

Public Comment

Mr. Murray asked Ms. Harris to announce each speaker. There were 17 speakers, 16 of whom are current UVA undergraduates. The 17th is an alumnus.

The comments of each of the speakers are summarized below.

1. Ella Tynch: Second-year in Arts and Sciences studying government and potentially double majoring in elementary education. She expressed concern about the burden on her family of paying for college tuition. Her parents pulled money from her sister’s college fund to cover her expenses. She has incurred thousands of dollars of debt and will go into public education which is not a lucrative field. She works three jobs. She is currently in North Carolina as a caregiver for her great aunt who is suffering from dementia. She had big dreams when entering UVA of joining different clubs, joining student government, and getting involved in things that suit her interests, but she has had to work instead. Families are also working with less. Any increase is a big increase on the individual level.

2. Levi Shult: Fourth-year student from Charlottesville. He asked that UVA keep tuition at the current level because students, especially low income and first generation, cannot afford an increase. Many students have lost their jobs because of the pandemic. UVA will be judged by those most directly affected. He was able to find work as a delivery person because he has a car, but most students do not have a car.

3. Allison Bueller: She is on the Student Council Legislative Affairs Committee and a second-year in the College of Arts & Sciences studying French. She is from South Carolina and so out-of-state. She is concerned about increasing the amount of loans she must take out because her father was diagnosed with brain cancer six years ago and the family has medical debt. Her sister has just recently started attending a graduate program. A tuition freeze would temporarily ease the burden of college on their finances while her mother searches for another job.

4. Bianka Warrick: A current student at UVA and vice chair of the Legislative Affairs Committee. She cited statistics from a Student Council survey: 31.7% of the middle‑class student survey participants said that the pandemic would affect their ability to pay tuition for the 2020‑2021 and 2021‑2022 academic years, and 41.7% said maybe. Additionally, 14.5% of the middle‑class survey participants said that the pandemic would impact their enrollment at UVA, and 32.4% answered maybe. She asked that UVA not raise tuition this year.

5. Gray Webbert: Undergraduate Engineering student. She said other universities have chosen to freeze tuition and UVA should do the same. An increase of 3.1% for an Engineering student is $668. Her mother has been out of work since the quarantine. She is paying for college herself with the help of scholarship money. She said 42% of UVA students report that they or their families struggle to pay tuition this year and 69% fear they would have to pay more for tuition next year.

6. Hannah Koizumi: A fourth-year in the Batten School and a chair of the Student Council Legislative Affairs Committee. She said Student Council did surveys to find the financial need of students in the face of the pandemic: 68% of Hispanic or Latinx students reported that their family faced difficulty paying tuition this year; 64% of Black or African-American students reported the same. Of the Asian or Asian‑American students, 58% reported the same. Greek rush was allowed to happen, putting all in danger – Greek life is a majority White institution, and many students are losing jobs because of the shutdown put in place as of yesterday. She said she knows not all of this falls within the jurisdiction of the Board of Visitors, however, the Board can control tuition increases.

7. Anna Calhoun: A second-­­­­­year on the Student Council Legislative Affairs Committee. She cited the same statistics as reported above. UVA has a great deal of resources and more of an ability to “bounce back” from the pandemic than households.

8. Colette McCord Snook: A third‑year undergraduate studying Kinesiology and Spanish. She said throughout the course of the pandemic, it has been made abundantly clear that the university values financial gain over the health and well‑being of students and staff and the greater community. While this does not come as a surprise with the extent to which higher education is entrenched within our capitalist society and founded on inaccessibility, it is disappointing and disgusting nonetheless. Currently, the long‑term pool is at $9.9B and the short term is around $211.4M, although it continues to increase year after year. Given the precedent that has been set with regards to increasing the endowment distribution in times of need and the increase in endowment funds that have occurred, a tuition hike does not appear to be necessary. The University can use other sources of revenue and does not need to raise tuition. The tuition and cost of higher education is burdensome so the university should not use that unequitable position as a point of reference.

9. Anthony Guy Lopez: An American Indian and an alumnus who graduated in 2009. He said UVA offers nothing to American Indians—no degree program or point of contact within UVA. It's rare that there are any American Indian faculty. They have asked the president to create a commission or a committee or an advisory board that would advise on policy matters regarding American Indians.

10. Madeleine Poche: A third-year at UVA. She said she has good financial aid and her parents’ employment was not affected by the pandemic. That is not typical, and the Board should freeze tuition because many students and families are struggling.

11. Thomas Phillips. A first‑year student on the Student Council Legislative Affairs Committee. More statistics from the survey: 64.9% of first‑generation or low‑income students reported that they or their families faced financial difficulties paying tuition this year. This is 19.1% higher than the percentage of non‑first generation and low‑income students asked the same question. Of the first generation or low‑income students, 78.5% reported that COVID-19 has forced them to significantly change their spending. This is 19.3% higher than the percentage of non‑first generation and low‑income students asked the same question. He said they fully appreciate the circumstances in which the Board is working, and this is a very difficult situation and tough choices have to be made. The purpose of speaking is not to badger members of the Board but to provide information. He said they hope the University will freeze tuition.

12. Hania Abboud: A third-year undergraduate student in Civil Engineering. She supports a tuition freeze until 2023. Several students she knows are struggling to meet their basic needs and to find jobs or to keep their current jobs. The students who usually work over the summer and winter breaks to save up for the school year were either out of work this year or had reduced hours. This will only continue in the coming months with the pandemic. Increasing tuition only exacerbates the students' financial situations. She did not sign up for online education and was hoping to get in‑person lab experience and grow her critical thinking skills through hands on learning and become a well‑rounded technical engineer. She is unable to access resources that she is paying for due to the pandemic and COVID restrictions. She is not getting the training she needs in order to succeed as an engineer.

13. Maille Bowerman: A first-year in the College of Arts & Sciences. Increasing tuition will harm students financially and mentally. It is asking students to take out even more loans that will keep them in debt for years to come and postpone potential graduate plans, postpone owning houses and starting adult lives and families because they have to pay off these loans. Students face restricted social gatherings and online classes and the increasingly stressful state of global affairs which all are contributing to feelings of isolation, loneliness, anxiety, depression, and even trauma. Students who have to work multiple jobs to pay off their tuition bills and pay off loans will stress more about this debt and they will be forced to devote less and less time to their academics. It is particularly unconscionable considering the size of this University's endowment.

14. Jacob Wartel: Tuition and the coronavirus spike are related. One of his roommates works multiple jobs, one in a grocery store, because while tuition went up last year, his financial aid did not. At the end of January, he got COVID, not because he was irresponsible but because he was a frontline worker providing for the community. His roommate had symptoms and the other roommates, including himself, contracted COVID. There is a crisis and UVA should be lowering tuition or at the very least committing to years of tuition freezes like other peer institutions have done.

15. V. Lane Berry: A fourth-year undergraduate student studying Computer Science and linguistics. She read the UVA mission statement and said UVA’s status as a public university and the commitment to accessibility for students of all backgrounds is what she loves most about the school. She asked the Board to reaffirm their universal dedication to excellence and affordable access and show that their support of a collaborative diverse community truly is unwavering. The partially virtual university has not afforded her the same quality of education that she was receiving beforehand. Since her first year, she has taken 18 to 19 credits a semester, as well as working as a teaching assistant and doing research. She has to cut back and drop her research project this year. She has friends who have dropped majors or minors and had to go to work to support their families. Others had to move home without reliable internet service. They are all learning less. With a tuition raise, some students will have to leave UVA and others will have to take on additional jobs.

15. Grace Gyamfi: A fourth-year student. She said she has been on financial aid for some time and she is grateful, but many other students are struggling to pay tuition. Some must make choices about whether to go to school or to take care of their families. The Board has a choice as to whether or not student voices matter.

15. Madison Perry: A third-year in the College of Arts and Sciences studying Economics and Mathematics. She worked two jobs in the summer because her restaurant job took a hit, much like so many others, due to the pandemic. She spoke about her father being a veterinarian without paid sick leave and he had a sinus infection that caused him to be out of work for a week and a half. They thought it was coronavirus and that was difficult for her family. Over the past year, she has taken out more in private loans than ever before. If tuition is the last lever that the board wants to pull, then why has tuition gone up every year for decades now? UVA has taken austerity measures to recoup the losses in housing and dining and the costs associated with online learning. She is not getting the full value of her tuition right now.

Rector Murray thanked the speakers and assured them the Board is listening and is aware of the hardships that families face. The University is doing all they can to manage costs. He said they would not take any action on tuition and fees until March 5 and the decision will be affected by what the General Assembly does with regard to appropriating money for employee compensation increases. The Board awaits word from the General Assembly and the Governor on a final budget.

Mr. Murray encouraged those who would like to have their comments in the formal record to submit them in writing to respond_uva_tuition@virginia. Written comments received through February 24, 2021 are appended to these minutes.

The meeting was adjourned at 1:12 p.m.

Respectfully submitted,

Susan G. Harris

Secretary

SGH:ddr

Attachment: Written Comments Spreadsheet

These minutes have been posted to the University of Virginia Board of Visitors website.

http://bov.virginia.edu/public-minutes