Why does the University have to reduce its budget?
Several factors have influenced the need to reduce the budget. Those factors include:
- declining state support (We have lost $30 million in base funding from the state)
- enrollment pressures and pricing (need to stay competitive and affordable)
- increasing operating costs (Obligations such as PEIA and wvOASIS expenses)
How much do we have to reduce the budget by?
By the end of Fiscal Year 2017, we need to reduce our spending by $27 million. At the end of Fiscal Year 2020, we have to reduce our spending by an additional $18 million for a total reduction of $45 million annually.
How are we going to reduce the budget?
The University and its units will reduce the budget by reducing expenditures and generating revenue. Each unit/college/school will review different ways those measures might be taken. For example, reduced travel may be implemented for a unit. Other measures may include streamlining of services, reallocating talent and looking at ways to generate more revenue within a unit.
Does that mean we will no longer invest in University priorities?
No, it actually means the opposite. We need to be more strategic on where we reduce our spending and spend the savings. For example, we will continue to create quality academic programming at WVU. We also will continue to work toward adjusting for compression and inversion in faculty/staff salaries. This budget challenge does not mean we stop what we are doing. In fact, it means we need to push onward but with a critical eye on what we are spending and the monies we are generating.
Has each unit received its reduction?
Yes, every unit on campus has received its assigned reduction. University leadership has been working to create ways that those reductions can be met.Does this mean people will lose jobs?
We will always strive to preserve our talent. However, we will be looking at ways we can become more efficient and effective. This may mean the elimination of some outdated jobs, but could also mean the creation of new opportunities. Each unit must assess its strengths and needs and determine the best course of action.
Does this mean there will be no raises in the coming years?
The University wants to be sure we can reward employees in future years. In the 5-year budget plan, a salary increase program allots for a 3% raise pool in Fiscal Years 2018 and 2020.
Will you be raising tuition?
The University is committed to keeping tuition affordable for all students. The 5-year plan allows for a 5% tuition increase for resident and nonresident students through Fiscal Year 2021. However, a variety of factors (i.e., increased enrollment and retention) could influence the number to be less. Each year the percentage will be assessed. The University also will continue to increase student aid each year with a $7 million investment in FY2017 and $5 million annually thereafter.
Where can I get more information?
The web site will be continually updated with information and can be found at here at http://bureaucracybusters.wvu.edu. Also, watch for updates in Enews, as well as upcoming Campus Conversations.
How can I ask a question or provide feedback?
You can ask a question or make a suggestion at http://bureaucracybusters.wvu.edu/submit-a-new-idea.
What is the University’s budget (revenue sources and expenditures)?
The University’s total budget is $1 billion. Our sources of funding include tuition and fees (35%), State appropriations (16%), Grants/Contracts (29%), Auxiliaries (13%) and Other Revenues and Appropriations (7%). Expenditures of the budget include Salaries and Wages (46%), Supplies and Services (21%), Benefits (14%), Utilities (3%), Scholarships and Fellowships (5%) , and Depreciation and Amortization (8%) and Debt Service (3%).
Where does my tuition money go?
Tuition dollars combine with State appropriations and other unrestricted revenues to form the pool of dollars that support central appropriations. Specifically, tuition dollars help to support faculty/academic staff salaries, academic facilities (modern classrooms/laboratories), academic supplies such as lab materials, and the Libraries, to name a few.