Financing of Higher Education in Virginia: Analysis and Issues Spring 2013
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Financing of Higher Education in Virginia: Analysis and Issues Spring 2013
Financing of Higher Education in Virginia: Analysis and Issues Spring 2013 TABLE OF CONTENTS Page EXECUTIVE SUMMARY ................................................................................................................................................. i 1.0 TUITION AND FEES ...................................................................................................................................................... 1 1.1 1.2 1.3 1.4 2.0 STATE APPROPRIATIONS ........................................................................................................................................ 13 2.1 2.2 2.3 2.4 2.5 2.6 3.0 National Trends ...................................................................................................................................... 1 Regional Trends ...................................................................................................................................... 5 State Trends............................................................................................................................................. 8 JMU Tuition and Fee History ............................................................................................................ 12 National Trends .................................................................................................................................... 13 Regional Trends .................................................................................................................................... 15 State Trends........................................................................................................................................... 16 Financial Aid Appropriations ............................................................................................................. 23 JMU Total Operating Revenues ........................................................................................................ 24 JMU Facilities and Capital Outlay ..................................................................................................... 25 EXPENDITURES ............................................................................................................................................................. 27 3.1 3.2 Total Operating Expenditures ........................................................................................................... 27 Faculty and Staff Salaries .................................................................................................................... 32 Executive Summary The purpose of this document is to inform the JMU community about the economic factors that have and will face the University as it seeks to accomplish its Mission Statement. This summary of the financial environment for higher education for JMU, the Commonwealth, the southeast region of the U.S., and nationally has been produced annually for more than 17 years. The summary is divided into three sections that relate to the sources of funds and how they have been spent: Tuition and Fees; State Appropriations; and Expenditures. Where available and appropriate, comparisons are made to national, regional and state data. In summary: • • • Virginia continues to be a high tuition state for residents and students from outside of Virginia. Recent tuition increases to offset significant budget cuts have made higher education even less affordable for Virginia residents. The Commonwealth’s General Fund appropriations for higher education, which have historically been much less than other states, have declined at a higher rate than most other states in the last 30 years. JMU has wisely preserved expenditures for instruction during the current and previous budget difficulties. Administratively, JMU is one of the leanest public institutions in the Commonwealth. Tuition and Fees • • • • Virginia's tuition and fees are higher than corresponding national and regional charges. The Commonwealth's position as a high tuition state is reflected in national comparisons that rank Virginia 7th highest among the fifty states. According to SCHEV, for Virginia comprehensive institutions, the average tuition increase was 264% from FY1990 to FY2012 and 145% from FY2001 to FY2012 compared to the national average tuition increases in this category of 315% and 110% respectively. Tuition at Virginia’s two-year colleges increased by 261% and 176% while the national average tuition for this category increased by 249% and 96% during the same periods. Virginia is affiliated with the Southern Regional Education Board (SREB) − the nation's first interstate compact for education. Virginia has the fourth highest tuition and fees for in-state undergraduates at similar regional institutions. JMU held the third position for the last five years. Virginia’s increase (nine percent) was above the median (seven percent) for all the states. Among the Commonwealth’s 15 four-year public colleges and universities, JMU's instate tuition ranks 12th highest, required fees ranks 5th, and room and board ranks 9th. Total in-state tuition, required fees, and room and board ranks 11th and JMU’s outof-state total cost ranks 10th. In 2012-13, annual increases in Virginia for the senior institutions for in-state tuition, required fees, and room and board ranged from 2.7 percent at Norfolk State University to 7.1 percent at Virginia State University. i • • Virginia’s average in-state undergraduate charges as a percentage of per capita disposable income have exceeded the national average since SCHEV began tracking this measure. Since reaching the low point (the most affordable) of 32.2 percent in 2001-02 after several years of state mandated tuition controls, this measure of affordability (43.7 percent in 2011-12) has crept steadily higher and is higher and grew by 2.3 percent from FY2011 to FY2012. Since 2003-04 JMU’s in-state tuition and fees increased from $2,420 to $4,862 (99 percent) while increasing from $10,642 to $18,850 (77 percent) for out-of-state students. Appropriations • • • • • • • • Nationally, the majority of states have experienced inconsistent revenues – combined with significant pressures to fund a variety of critical initiatives like health care and corrections. One result of this difficult combination of factors has been a decline in the state appropriations going to higher education. The FY13 appropriations per $1,000 of personal income (a measure of the state’s ability to pay) were 18.1 percent below FY01 and 39.9 percent below FY80. Since 1980 Virginia’s appropriations declined -56 percent. In FY13 Virginia ranked 38th in appropriations per $1,000 at $4.56 ($4.57 in 2012), $1.02 below the national average of $5.58. In 1990 Virginia ranked 27th at $9.78, $0.45 above the national average of $9.33. For 2010-11, JMU would have required an additional $21.9 million in E&G operating funds to reach the median of its public national peer group or $26.6 million to reach the 60th percentile. In 2010-11, state general fund operating appropriations per FTE student in Virginia ranked near the bottom among similar institutions in SREB states. Virginia ranked 11th out of 14 states. Per-student funding for Virginia's Four-Year 3 institutions gained and lost ground against other states between 1990-91 and 2010-11. For example, in 1990-91 Virginia’s percentage of the mean SREB institutions was 72 percent. It declined to 68 percent in 2003-04, but rose to 75 percent in 2010-11. According to the data provided by SCHEV, in constant FY13 dollars, the FY13 general fund appropriation per FTE student is 56 percent of the FY89 appropriation, the non-general fund appropriations is 188 percent of FY89, and the total E&G appropriation is 101 percent of FY89. This means that the Virginia public institutions have fewer resources for operations now than they had 24 years ago (4 percent less than three years ago). The Commonwealth of Virginia appropriates nearly $1 billion annually to the fouryear institutions. A measure of the outcomes of this investment is the amount expended by the institutions for each degree awarded. The appropriation per graduate at JMU was $49,390 in 2012, the fifth lowest of the four-year institutions. In 2012, the Commonwealth of Virginia’s average of four-year institutions’ appropriations per graduates was $64,800, 31 percent higher than JMU’s appropriation per graduate. JMU’s appropriation per graduate was 39 percent lower than the U.S. average of four-year institutions’ appropriations per graduates ($68,617). ii • • JMU has grown significantly in the last two decades, and it has been necessary to increase the size of the physical plant to support instruction and the needs of students for housing, dining, recreation and student activities. Educational and General (E&G) total assignable square feet (ASF) increased at a higher rate than Regular Session (fall and spring) FTE students. Significant additional E&G space is now devoted to instruction and academic support with the addition of the biotechnology building on the East Campus, and the acquisition and remodeling of the hospital property. Since FY97 total E&G ASF per FTE student increased from 66.64 to 93.35 (27 percent). Nearly $2 billion has been appropriated for JMU in the last 20 biennia. Expenditures • • • • • • When JMU is compared to the public institutions in its national peer group (approved by the State Council of Higher Education - SCHEV), the 2010-11 data indicate that JMU is the highest institution in support of instruction. Of the Virginia comprehensive institutions in 2011-12, JMU ranks first in the percent of E&G budget spent on instruction and academic support (combined) and last in the percent of E&G budget spent on institutional support. Of the Virginia institutions, JMU again ranks last at $1,519 per FTES expended on institutional support in FY12. This figure is $42 per student less than the next lowest institution (Old Dominion University) and $2,936 less than the highest (UVA). On a per-student basis, JMU has been administratively the leanest institution in the Commonwealth for more than 20 years. In the spring of 2007 JMU and the other Virginia publicly funded colleges and universities created new faculty salary peer institutions through negotiations with SCHEV staff and other state agency representatives. In 2011-12 JMU’s position was 19th out of 25 institutions. The 60th percentile faculty salary for 2011-12 was $83,800, thereby putting JMU’s reported (to AAUP and IPEDS) average salary of $68,700 $15,100 below the objective. Salary increases for faculty, staff and administrators have mirrored the economic condition of the Commonwealth. Currently salaries are frozen at 2007-08 levels for all Commonwealth employees. In December 2010 all Commonwealth employees were given a three percent bonus. The bonus was not added to the base salary. In 2011-12, faculty and staff received a 2.00% bonus from JMU. Benefits as a percentage of salaries have mushroomed in the last 30 years due primarily to higher costs for medical insurance. For instructional faculty benefits as a percentage of total salary increased from 25 percent in 1991-92 to 32 percent in 2011-12. iii 1.0 TUITION AND FEES 1.1 National Trends Concerns over the rising costs of attending colleges and universities have been raised for many years and significantly influenced state policies regarding tuition and fees. Since 1981-82 the average cost for attending colleges and universities has increased faster than the rate of inflation as measured by the Consumer Price Index (CPI) 1. As indicated by the chart above, this trend strengthened markedly from 2000-01 to 2004-05 as states dramatically reduced general fund appropriations for public higher education in response to declining tax revenues. Colleges and universities increased tuition to compensate. Tuition and fee increases moderated somewhat in 2006-07 and 2007-08, but increased in 2008-09 through 2011-12 due to the national economic downturn that has severely restricted state tax revenues. Allocations from the American Recovery and Reinvestment Act of 2009 helped moderate tuition increases for 2009-10 and 2010-11. Factors involved in rising costs for higher education include: • • • • • • 1 Reduction in state general fund support, Increase in the costs of medical insurance for faculty and staff, Relative decline in federal student grant programs, High cost of institutionally funded financial aid, Migration of students from low to high cost disciplines, Administrative support and governmentally imposed requirements have risen, Trends in College Pricing 2012 by the College Board. 1 • • • • The need to keep pace with new technologies, Federal funding for research has not kept up with institutional expenditures for research, Program expansion, and New construction or renovation. Expanding enrollments in the 1960s and 70s permitted colleges and universities to spread fixed costs and increase total expenditures (15 percent per year from 1970 to 1975) while holding per student expenditure increases to 4.0 percent annually. In the decade of the 1980s, the rate of increase in tuition did not come down as fast as the CPI because at least in part students were paying a larger share of the costs of their education. In the public sector, more than half of the added tuition revenue from 1982 to 2011 represents increases in the share of educational costs borne by students to compensate for decreases in state general fund support. (Please see the chart above). The red line depicted above is largely represented by Tuition and Fees and reflects the upward trend. Virginia's tuition and fees are higher than corresponding national and regional charges. The Commonwealth's position as a high tuition state is reflected in national comparisons that rank Virginia 7th highest among the fifty states 2. This is still an improvement from previous years when Virginia was ranked as high as 2nd. However, the tuition and fees for non-Virginia residents continue to be among the highest in the country. The 1998 Acts of Assembly established the Joint Subcommittee on Higher Education Funding Policies to develop funding guidelines. The Subcommittee adopted higher education funding guidelines for Virginia public institutions in December 2000. The funding guidelines for operation and maintenance of the physical plant were developed and added to the higher education funding guidelines in 2001. In addition, the Joint Subcommittee adopted a fund share policy of 67/33 between general fund support and tuition revenue for base funding estimates derived by the funding guidelines in 2003. The graphic on page 4 compares JMU's tuition and fees to those of our SCHEV peer group. JMU ranked 18th highest out of 25 peer institutions. JMU's 2012-13 tuition and required fees were $8,808. This figure is below our peer group average of $19,652. However, when JMU’s figure is compared with the 15 other publicly funded peer institutions it ranked 8th highest (7th in 2007-08). The public average for 2012-13, including JMU, was $9,346. 2 2011-12 Tuition and Fees at Virginia's State-Supported Colleges and Universities, State Council of Higher Education for Virginia, July 2011. 2 Source: SCHEV 2012-13 tuition and fees annual report. The following excerpt from SCHEV’s annual tuition and fee report describes the tuition and fee rankings for the Virginia public institutions since 1989-90. In terms of in-state undergraduate tuition increases, Virginia doctoral/research institutions increased tuition by 308% from FY1990 to FY2012 and 173% from FY2001 to FY2012. In comparison, the average tuition of all states in this category increased by 357% and 132% for the same periods. For Virginia comprehensive institutions, the average tuition increase was 264% from FY1990 to FY2012 and 145% from FY2001 to FY2012 compared to the national average tuition increases in this category of 315% and 110% respectively. Tuition at Virginia’s two-year colleges increased by 261% and 176% while the national average tuition for this category increased by 249% and 96% during the same periods. While it is clear that tuition at Virginia institutions in all three categories increased at a faster rate than the national average between FY2001 and FY2012, this is primarily because Virginia public higher education experienced some of the largest reductions in state support nationally between the FY2002-04 and FY2010- 12 biennia. As a result, tuition increases were correspondingly high in order to help offset the general fund budget reductions while maintaining a satisfactory level of service to students. Virginia’s tuition and fee charges are expected to remain competitive nationally in FY2013. 3 2012-13 SCHEV Peer Group: In-State Tuition and Required Fees Source: IPEDS Average = $19,652; Public Average = $9,346 4 1.2 Regional Trends Virginia is affiliated with the Southern Regional Education Board (SREB) − the nation's first interstate compact for education. SREB was created in 1948 at the request of southern governors and acts as a clearinghouse for information on trends and issues that affect education in the south. Colleges and universities are classified according to SREB definitions based on institutional size and degree programs. Undergraduate tuition and fees in each state's universities and colleges are compared with specific groups based on SREB definitions. For example, James Madison University is considered to be a Four-Year 3 institution, offering at least 100 doctoral, masters, education specialist, or post-master's certificates and degrees distributed among at least 10 broad program areas. JMU and Radford are the Four-Year 3 public institutions in Virginia. Data for 2012-13 will be available in December 2013 and will appear in next year’s report. As the graphic below demonstrates, Virginia has the fourth highest tuition and fees for in-state undergraduates at regional Four-Year 3 institutions. Virginia was third for the previous five years. Virginia’s increase (9 percent) was above the median (7 percent) for all the states. Virginia’s eightyear increase (65 percent) was higher than the SREB median (45 percent). The smallest eight-year increase was Maryland (19 percent), and the largest was Kentucky (139 percent). 5 "Tuition and fees" refers to the annual tuition and mandatory fees charged all full-time undergraduate students. Mandatory fees do not include special fees assessed in particular programs such as music, science laboratories, or nursing. Other fees unique to given situations are not included; for example late registration fees or automobile registration fees. Mandatory fees do include health service fees, building use fees, student activity fees, and athletic fees where the fee is not optional for full-time students. Tuition and fees for in-state undergraduate students in Virginia increased less than the SREB median for Four-Year 3 institutions over the past ten years. Since 2000-01, in-state undergraduate student charges in Virginia rose 85 percent while median charges in the region went up 135 percent. Virginia’s tuition and fees are now 113 percent (less than the 151 percent in 2000-01, and down from 255 percent in 1990-91) of the SREB regional median for Four-Year 3 institutions. In 2011-12 Virginia’s in-state tuition and required fees were $879 above the regional median for comparable institutions. The chart above shows how Virginia’s changes in tuition and fees have been more variable than the SREB region institutions as a whole. 6 The following two charts illustrate Virginia’s percentage ranking for in-state and out-of-state tuition and fees as compared to the SREB institutional median (middle score). Virginia Highlights Percent of SREB Median Tuition and Fees by Residence, 2011-12 Percent of In-State Median SREB Classification Four-Year 1 Universities Four-Year 2 Universities Four-Year 3 Universities (JMU and RU) Four-Year 4 Universities Four-Year 5 Colleges and Universities Baccalaureate 6 Colleges and Universities Two-Year Colleges 117% 163% 113% 131% 165% 145% 121% Source: SREB Data Exchange, March 2013 7 Percent of Out-of-State Median 117% 171% 126% 129% 133% 162% 118% 1.3 State Trends Among the Commonwealth’s fifteen four-year public colleges and universities, JMU's in-state tuition ranks 12th highest, required fees ranks 5th, and room and board ranks 9th. Total in-state tuition, required fees, and room and board ranks 11th and JMU’s out-of-state total cost ranks 10th. In-State and Out-of-State Undergraduate Tuition, Required Fees and Room and Board for Virginia's State-Supported Institutions of Higher Education, 2012-13 Rank In-State Tuition Out-of-State Tuition Room and Required Fees Total In-State Board 1 Total Out-of-State 1 UVA $10,066 UVA $36,078 VMI $6,955 CNU $9,728 W&M $22,888 UVA $47,437 2 VT $9,250 W&M $32,552 W&M $4,792 VSU $9,680 VMI $21,568 W&M $46,662 3 W&M $8,778 VMI $26,856 LU $4,710 UVAW $9,440 UVA $21,425 VMI $41,544 4 VCU $7,943 GMU $25,154 CNU $4,328 UVA $9,419 CNU $20,300 GMU $36,444 5 GMU $7,010 VT $24,242 JMU $3,946 W&M $9,318 LU $19,338 VT $33,169 6 VMI $6,880 VCU $21,970 UVAW $3,532 UMW $8,840 VCU $18,633 VCU $32,660 7 UMW $6,468 ODU $20,101 NSU $3,320 VCU $8,748 GMU $18,300 UVAW $31,915 8 CNU $6,244 UVAW $18,943 ODU $3,229 GMU $8,680 $18,177 ODU $31,877 9 LU $6,180 JMU $18,850 RU $2,834 JMU $8,630 UMW $18,086 LU $31,668 10 RU $5,756 UMW $18,782 UMW $2,778 ODU $8,547 UVAW $17,547 JMU $31,426 11 ODU $5,221 LU $18,510 VSU $2,684 LU $8,448 JMU $17,438 UMW $30,400 12 JMU $4,862 RU $17,326 GMU $2,610 NSU $8,130 VSU $17,100 CNU $29,850 13 VSU $4,736 NSU $17,040 VCU $1,942 RU $7,881 ODU $16,997 NSU $28,490 14 UVAW $4,575 CNU $15,794 UVA $1,940 VMI $7,733 RU $16,471 RU $28,041 15 NSU $3,540 VSU $13,704 VT $1,673 VT $7,254 NSU $14,990 VSU $26,068 VT Source: SCHEV Report on 2012-13 Tuition and Fees, Appendices B and D-2. NOTES: 1. Charges listed here represent the weighted average double occupancy room charge and the maximum weekly meal plan offered, not necessarily the plan used by most students. 8 Full-Time In-State Undergraduate Student Charges, 2012-13 Source: SCHEV Report on 2012-13 Tuition and Fees, Appendix B. Annual increases in Virginia for the senior institutions for in-state tuition, required fees, and room and board ranged from 2.5 percent at Norfolk State University to 7.1 percent at Virginia State University. JMU’s percentage increase (3.9 percent) was less than the average of the other senior institutions (4.1 percent). Institution Tuition and Mandatory Fees Percent Increase Mandatory Non- Percent E&G Fees Increase Room and Percent Board Increase Total Percent Increase VSU $4,736 7.5 $2,684 - $9,680 9.0 $17,100 7.1 UVA-Wise $4,575 5.0 $3,532 5.0 $9,440 6.2 $17,547 5.6 UMW $6,468 5.0 $2,778 5.0 $8,840 4.4 $18,086 4.7 VT $9,250 3.9 $1,673 3.9 $7,254 5.8 $18,177 4.7 RBC $3,194 5.8 $1,215 4.3 $9,670 4.3 $14,079 4.7 VCCS 2,3,4 $3,721 4.6 $14 N/A $3,735 4.6 $6,880 3.9 $6,955 6.0 NA VMI $7,733 3.9 $21,568 4.5 JMU $4,862 4.7 $3,946 3.7 $8,630 3.5 $17,438 3.9 ODU $5,221 3.3 $3,229 4.4 $8,547 4.0 $16,997 3.9 UVA $10,066 3.9 $1,940 2.5 $9,419 4.2 $21,425 3.9 W&M $8,778 4.9 $4,792 0.5 $9,318 4.8 $22,888 3.9 LU $6,180 4.0 $4,710 2.6 $8,448 4.1 $19,338 3.7 GMU $7,010 3.8 $2,610 3.8 $8,680 3.3 $18,300 3.6 CNU $6,244 5.0 $4,328 4.6 $9,728 2.1 $20,300 3.5 RU $5,756 3.6 $2,834 2.5 $7,881 3.8 $16,471 3.5 VCU $7,943 4.5 $1,942 1.3 $8,748 1.2 $18,633 2.6 NSU $3,540 4.7 $3,320 - $8,130 2.6 $14,990 2.5 Avg. 4yr $6,501 4.4 $3,418 3.2 $8,698 4.2 $18,617 4.1 Avg. 2yr (RBC&VCCS)5 $3,458 5.2 $615 4.2 N/A N/A $8,907 4.6 Avg. All Insts.6 $6,143 4.5 $3,088 3.3 $8,759 4.2 $17,475 4.1 9 Full-Time Out-of-State Undergraduate Student Charges, 2012-13 Institution VT UVA-Wise VMI UMW VSU JMU UVA W&M ODU LU GMU RBC RU CNU VCU VCCS 2,3,4 NSU Avg. 4yr Avg. 2yr (RBC&VCCS) 5 Avg. All Insts.6 Tuition and Mandatory Fees Percent Increase Mandatory Non-E&G Fees Percent Increase Room and Board Percent Increase Total Percent Increase $24,242 $18,943 $26,856 $18,782 $13,704 $18,850 $36,078 $32,552 $20,101 $18,510 $25,154 $13,060 $17,326 $15,794 $21,970 $9,484 $17,040 $21,727 6.0 5.4 4.9 5.0 3.0 5.1 4.0 4.4 3.7 4.0 3.8 3.2 3.7 4.1 4.5 1.9 0.1 4.2 $1,673 $3,532 $6,955 $2,778 $2,684 $3,946 $1,940 $4,792 $3,229 $4,710 $2,610 $1,215 $2,834 $4,328 $1,942 $14 $3,320 $3,418 3.9 5.0 6.0 5.0 3.7 2.5 0.5 4.4 2.6 3.8 4.3 2.5 4.6 1.3 3.2 $7,254 $9,440 $7,733 $8,840 $9,680 $8,630 $9,419 $9,318 $8,547 $8,448 $8,680 $9,670 $7,881 $9,728 $8,748 N/A $8,130 $8,698 5.8 6.2 3.9 4.4 9.0 3.5 4.2 4.8 4.0 4.1 3.3 N/A 3.8 2.1 1.2 N/A 2.6 4.2 $33,169 $31,915 $41,544 $30,400 $26,068 $31,426 $47,437 $46,662 $31,877 $31,668 $36,444 $23,945 $28,041 $29,850 $32,660 $9,498 $28,490 $33,843 5.8 5.6 4.9 4.8 4.8 4.5 4.0 4.0 3.8 3.8 3.7 3.7 3.6 3.5 3.4 1.9 0.8 4.1 $11,272 2.6 $615 4.2 N/A N/A $16,722 3.2 $20,497 4.1 $3,088 3.3 $8,759 4.2 $31,829 4.0 Source: SCHEV Report on 2012-13 Tuition and Fees, Appendix D-2. Annual percent changes in Virginia for out-of-state tuition and required fees for the senior institutions ranged from 0.8 percent at Norfolk State University to 5.8 percent at the Virginia Tech. The following excerpt from SCHEV’s annual tuition and fee report illustrates the increasing inability of the average Virginian to afford higher education at one of the Commonwealth's public colleges or universities. For students and their parents, the cost of a college education is determined by the total charges they will have to pay relative to the level of resources available to them. One commonly cited indicator of college affordability is the relationship between total charges (tuition, all mandatory fees, room and board, and other ancillary charges) and per capita disposable income. According to the Bureau of Economic Analysis at the U.S. Department of Commerce, per capita disposable income is the income that is available to persons for spending and saving. It is calculated as personal income less the sum of personal income tax payments and personal non-tax payments (donations, fees, fines, and forfeitures) to government. Virginia’s average in-state undergraduate charges as a percentage of per capita disposable income have exceeded the national average every year since SCHEV began tracking this measure until FY2010. In 1990, Virginia’s per capita disposable income was about 6% higher than the national average. In contrast, the average total undergraduate charge (including room and board) for in-state undergraduate students was nearly 30% higher than the national norm. Nationally, total charges represented 28.7% of per capita disposable income, while the rate in Virginia was 35.6%. 10 Since reaching the low point (most affordable) of 32.2% in FY2002 after several years of state mandated tuition controls, this measure of affordability has crept steadily higher and is estimated to be at 45% in FY2013. That rate surpasses the record of 44.2% set last year and the previous least affordable record of 39.8% in FY1994 and FY1995. Further, while per capita disposable income in Virginia grew by 2.3% from FY2011 to FY2012, the average total charge at Virginia’s public four-year institutions increased by 5.9%. If the rate of increase for tuition and fees continues to outpace the rate of increase for income, affordability and access to public higher education in Virginia may be compromised. The gap between Virginia and the national average for the percentage of personal income consumed by total resident undergraduate charges has narrowed significantly over the last decade. In the mid-1990s, Virginia undergraduates were paying approximately eight percentage points more in average income to attend college full time and reside on campus. Since FY2001, the gap between Virginia and the national average generally has been two percentage points or less. It should be noted that for the first time in the past 20 years, the national average surpassed Virginia’s in FY2010, underscoring the prevalence of this growing problem nationwide. National data for FY2013 will not be available until late 2012, therefore the impact of the recent tuition and fee increases in Virginia relative to the nation has not yet been evaluated. 11 1.4 JMU Tuition and Fee 10-Year History JMU Tuition, Fee, and Room and Board Charges, 2003-04 to 2012-13 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 IN-STATE Tuition & Fees Comp. Fee Total Commuter Room & Board1 Total On-Campus $2,420 $2,638 $5,058 $2,752 $2,998 $2,724 $2,888 $5,476 $5,886 $5,966 $6,116 $6,372 $11,024 $11,592 $12,258 OUT-OF-STATE Tuition & Fees $10,642 $11,696 $12,434 Comp. Fee $2,638 $2,724 $2,888 Total Commuter $13,280 $14,420 $15,322 Room & Board* $5,966 $6,116 $6,372 Total On-Campus $19,246 $20,536 $21,694 Source: JMU Budget Office 1 Based on 19-meal plan $3,228 $3,062 $6,290 $3,420 $3,246 $6,666 $7,108 $3,556 $3,408 $6,964 $7,458 $3,734 $3,510 $7,244 $7,690 $4,182 $3,678 $7,860 $8,020 $4,642 $3,806 $8,448 $8,340 $4,862 $3,946 $8,808 $8,630 $6,756 $13,046 $13,774 $14,422 $14,934 $15,880 $16,788 $17,438 $13,174 $14,140 $15,050 $15,866 $16,946 $17,932 $18,850 $3,062 $3,246 $3,408 $3,510 $3,678 $3,806 $3,946 $16,236 $17,386 $18,458 $19,376 $20,624 $21,738 $22,796 $6,756 $7,108 $7,458 $7,690 $8,020 $8,340 $8,630 $22,992 $24,494 $25,916 $27,066 $28,644 $30,078 $31,426 JMU Tuition and Fee History 2003-04 to 2012-13 $25,000 $20,000 $15,000 $10,000 $5,000 $0 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10-11 11-12 12-13 Year 12 IN-STATE OUT-OF-STATE 2.0 STATE APPROPRIATIONS 2.1 National Trends Nationally, the majority of states have experienced inconsistent revenues – combined with significant pressures to fund a variety of critical initiatives like health care and corrections. One result of this difficult combination of factors has been a decline in the state appropriations going to higher education. The FY12 appropriations per $1,000 of personal income (a measure of the state’s ability to pay) were 19.9 percent below FY02, and 43.8 percent below FY80. In FY13 7 of the states showed positive percent increases. Sixteen states, including Virginia, had 32-year declines of at least 50 percent. The states with the greatest 32-year declines were Colorado (-73 percent), Arizona (-70 percent), New Hampshire (-67 percent), and South Carolina (-64 percent). Since 1980 Virginia’s appropriation declined -56.4 percent, which is 9.6 percent more than the national average of -46.8 percent. In FY13, Virginia ranked 38th in appropriations per $1,000 at $4.56 ($4.57 in 2012), $1.02 below the national average of $5.58. In 1990, Virginia ranked 27th at $9.78, $0.45 above the national average of $9.33. Changes in Appropriations of State Tax Funds for Operating Expenses of Higher Education per $1,000 of Personal Income FY80 to FY13 National Average -46.8 % Sources: Postsecondary Education OPPORTUNITY and GRAPEVINE, March 2013 13 The table below shows JMU’s total Educational & General (E&G) funding (tuition, E&G fees and general funds) per Full-Time Equivalent (FTE) student in relation to its national peer group for 2010-11 – the most recent year for which the data are available from IPEDS. JMU is 12th out of the 16 public universities. For 2010-11, JMU would have required an additional $21.9 million in E&G operating funds to reach the median of its public national peer group or $26.6 million to reach the 60th percentile. TOTAL FUNDING PER FTE STUDENT JMU National Peer Group, 2010-11 Data Institution Name Boston College Loyola Marymount University Hofstra University Fairfield University Texas Christian University St. John's University-New York Duquesne University Marquette University Gonzaga University Miami University-Oxford Baylor University Rowan University The University of Alabama University of North Carolina-Wilmington Ohio University-Main Campus Illinois State University College of Charleston Appalachian State University University of Northern Iowa Eastern Illinois University Truman State University James Madison University University of Wisconsin-Eau Claire Western Washington University Bloomsburg University of Pennsylvania University of Wisconsin-La Crosse 2010-11 FTE Students Tuition and Fees $13,148 $356,978,725 8,682 223,243,000 11,156 263,525,804 4,669 101,560,000 8,659 179,518,000 17,672 341,826,409 9,788 184,841,000 11,447 214,710,000 7,341 131,247,941 17,610 247,695,773 15,150 261,587,000 9,912 91,230,552 28,346 288,532,882 12,389 80,606,602 26,561 247,865,381 19,334 167,142,161 10,594 118,767,774 16,910 85,122,867 12,377 63,415,145 10,608 76,341,978 5,637 23,313,124 19,099 145,560,264 10,240 61,457,155 13,974 88,205,151 9,772 65,416,743 9,649 58,609,300 * Public Institution Total Tuition & Fees Total State Plus State Revenue per Appropriation Appropriations FTES 57,355,005 78,813,668 137,427,195 89,349,941 109,358,628 88,875,303 19,794,261 125,742,612 82,683,919 47,417,250 41,526,613 72,321,820 51,587,294 63,760,769 34,916,278 38,308,891 JMU included JMU included $356,978,725 223,243,000 263,525,804 101,560,000 179,518,000 341,826,409 184,841,000 214,710,000 131,247,941 305,050,778 261,587,000 170,044,220 425,960,077 169,956,543 357,224,009 256,017,464 138,562,035 210,865,479 146,099,064 123,759,228 64,839,737 217,882,084 113,044,449 151,965,920 100,333,021 96,918,191 Median 60th Percentile $27,151 25,713 23,622 21,752 20,732 19,343 18,884 18,757 17,879 17,323 17,266 17,155 15,027 13,718 13,449 13,242 13,079 12,470 11,804 11,667 11,503 11,408 11,039 10,875 10,267 10,044 $14,373 $17,266 Notes 1. 2. All data are taken from the 2010-11 IPEDS Finance (F1) and EF forms, the most recent data. FTE students were calculated from fall 2010 headcount data using the standard federal methodology. 14 2.2 Regional Trends During the period of 198283 through 2011-12, Virginia ranked near the top in tuition and required fees among Four-Year 3 institutions in the Southern Region Education Board (SREB) states. During this same time period, state general fund operating appropriations per FTE student in Virginia ranked near the bottom among similar institutions in SREB states. In 2011-12 Virginia ranked 10th out of 14 states. Per-student funding for Virginia's Four-Year 3 institutions gained and lost ground against other states between 1990-91 and 2011-12. For example, in 1990-91 Virginia’s percentage of the mean SREB institutions was 72 percent. It declined to 68 percent in 2003-04, but rose to 81 percent in 2010-11. 15 2.3 State Trends As the chart to the right indicates, the funding of higher education in Virginia has been greatly influenced by policy and budgetary developments. In 1988-89 non-general funds per student were about 50 percent of general funds. By 1995-96 non-general funds per student were about equal to general funds, indicating that students bore a significantly higher proportion of their total educational costs. The situation improved markedly between 1996-97 and 2001-02, but persistent budget problems have resulted in the non-general funds distribution significantly exceeding general funds appropriations to make up for the decreases in general funds. According to the data provided by SCHEV, in constant FY13 dollars, the FY13 general fund appropriation per FTE student is 56 percent of the FY89 appropriation, the non-general fund appropriations is 188 percent of FY89, and the total E&G appropriation is 101 percent of FY89. This means that the Virginia public institutions have fewer resources for operations now than they had 24 years ago (4 percent less than three years ago), but this increase was generated entirely from tuition revenue and short-term ARRA funding, not from state support. As demonstrated in the chart to the left, total E&G funding in 2003-04 was less than 1988-89 funding. By 2012-13, total funding is two percent lower than in 1988-89. However, as shown above, any increase in funding is primarily borne by students and their parents. 16 State general fund support to JMU dropped from 63 percent of the total educational and general (E&G) appropriation in 1988-89 to 47 percent in 1995-96. The percentage increased to 55 in 2001-02, but dropped to 28 percent in 2012-13. JMU’s percentage mirrored that of the other fouryear Virginia institutions. While improvement occurred Source: SCHEV between 1995-96 and 2001-02, the percentage is now the lowest in the last 25 years. Virginia’s budget shortfall resulted in this percentage declining to percentages far below those of the difficult budget years of the mid1990s. Source: SREB Data Exchange Higher education's share of Virginia's total general fund appropriation decreased from 12.7 percent in the FY70 to 9.3 percent in FY11. It was as high as 17.3 percent in FY80. Given the demands on the Commonwealth’s budget by medical costs, other mandates and the uncertain revenue stream, higher education’s proportion of the State’s budget is unlikely to improve in the foreseeable future. 17 JMU's 2012-13 general fund appropriation per in-state FTE student was $1,309 below the average of the four-year Virginia comprehensive public institutions. Its 2012-13 appropriation is $1,281 below 2001-02. Were JMU to be funded at the average for all four-year comprehensive institutions in 201213, its general fund appropriation would increase by $16.4 million. If JMU was funded at its highest year, 2000-01, the general fund appropriation would increase by $20.7 million. The Commonwealth's two Four-Year 3 institutions, JMU and Radford are in a higher SREB category than all other state comprehensive colleges and universities. In most state higher education systems, higher category institutions receive higher per-student appropriations needed to meet their more complex missions. 18 Appropriations of State Tax Funds for Operating Expenses of Higher Education per $1,000 of Personal Income FY13 National Average = $5.58 Source: Postsecondary Opportunity March 2013 19 The graphic on the previous page and the one below examine higher education funding in terms of what is generally called “effort.” This term refers to funding as measured against a state’s economic base — or its ability to generate tax revenues. The two graphics use personal income as a measure of the size of a state’s economic base. This seems to be a reasonable assumption, since most states rely heavily on personal income tax for general fund revenues. The graph on the previous page shows Virginia’s effort as compared to the rest of the U.S. Virginia appropriates $4.56 ($4.57 in FY12) to the operation of its public higher education system for each $1,000 of personal income—or $1.02 below the national mean of $5.58 ($6.30 in FY11). This level places the Commonwealth in 38th place (most to least amount per person) compared to 44th place last year. The graph presented below demonstrates the changes in the Commonwealth’s higher education effort since 1990. From a high of appropriating $9.75 per $1,000 in income in 1990, Virginia dropped to $4.56 in FY13. This represents a 53 percent decline since 1990. 20 In 2012-13 JMU's total E&G appropriation per student is $11,974 ($11,596 in 2011-12). It is ranked fourth out of the nine comprehensive institutions. 21 The Commonwealth of Virginia appropriates nearly $1 billion annually to the four-year institutions. A measure of the outcomes of this investment is the amount expended by the institutions for each degree awarded. In 2012, the Commonwealth of Virginia’s average of four-year institutions’ appropriations per in-state graduate was $62,948. This figure is 27.4 percent higher than JMU’s appropriation per graduate of $49,390, which is the fifth lowest of the four-year institutions. Of the Virginia comprehensive institutions, the expenditure per in-state graduate is $56,560. JMU’s appropriation per graduate was 39 percent lower than the U.S. average of four-year institutions’ appropriations per graduate ($68,617). Appropriations per Graduate Institution RU UMW ODU GMU JMU LU VT CNU CWM VCU NSU VSU UVA UVA-W VMI Total Associates 0 0 0 0 0 0 49 0 0 0 65 19 0 0 0 133 Bachelors 1,696 805 3,364 4,162 2,961 824 4,458 973 1,005 4,274 684 585 2,638 269 172 28,870 First Professional 0 0 0 117 0 0 81 0 83 266 0 0 231 0 0 778 22 Masters 399 225 879 2,134 572 145 991 93 316 1,291 221 120 829 0 0 8,215 Doctorate 5 0 145 121 6 0 209 0 31 206 3 3 133 0 0 862 Total Graduates 2,100 1,030 4,388 6,534 3,539 969 5,788 1,066 1,435 6,037 973 727 3,831 269 172 38,858 Expenditures Per Graduate $42,227 $45,959 $48,900 $49,311 $49,390 $54,477 $58,461 $60,520 $68,367 $68,978 $83,519 $86,414 $110,828 $116,991 $163,502 $62,948 2.4 Financial Aid Appropriations The Virginia General Assembly expressed concern about the impact of the sizable tuition increases, resulting from reduced general fund appropriations for higher education, on students’ ability to afford a college education. To offset partially the increases in tuition and fees, the General Assembly increased financial aid appropriations for public institutions. Between 2000-01 and 2012-13, the financial aid appropriations for JMU increased by 79 percent. During the 1996—2002 biennia, the General Assembly also addressed these concerns by providing funding to freeze, and then lower in-state tuition. The 2001-02 appropriations reverted to 1999-00 due to the budget impasse in 2001. In the 2004-06 biennium $6.2 million in additional funds were allocated to offset the increased tuition for students with financial need. Substantial increases occurred in the 2008-10 biennium and for 2012-13. Source: SCHEV 23 2.5 JMU Total Operating Revenues General Fund appropriations, excluding Capital Appropriations, Capital Grants, and Gifts, Other Non-Operating Revenues, and Additions to Permanent Endowments, provided 32 percent of all JMU sources of revenue in 2000-01. During 2011-12, the same sources provided 17 percent of all revenue. Correspondingly, E&G tuition and fees have risen from 22 percent to 35 percent over the same period. Fiscal Year Current Fund Revenues, 2000-01, 2008-09, 2009-10, 2010-11, 2011-12 Revenues 2000-01 2008-09 Tuition & Fees $ 48,529,185 $125,405,039 Federal Operating Grants & Contracts 9,096,016 13,695,817 State Operating Grants & Contracts 5,641,370 8,102,327 Local/Private Operating Grants & Contracts 2,292,633 4,092,994 Auxiliary Enterprises 78,002,577 125,726,142 Sales & Services of E&G Activities Other Operating Revenues 740,399 1,857,258 State Appropriations 69,793,028 80,536,598 Gifts 585,589 2,268,490 Investment Income 2,818,235 2,767,977 Other Non-Operating Revenues 0 5,076,195 Capital Appropriations 3,663,533 47,325,370 Capital Grants & Gifts 1,743,402 61,250 Additions to Permanent Endowments Total Revenues $222,905,967 $416,915,457 Source: 2011-12 Statistical Summary, Table 5-3 2009-10 2010-11 $134,362,802 $145,560,264 $158,308,773 15,078,430 15,737,013 18,275,281 7,576,678 8,518,272 6,814,347 5,203,758 133,310,463 3,931,476 141,124,616 4,492,879 149,188,562 1,145,673 69,185,644 1,025,172 1,246,947 939,760 72,321,820 806,014 778,922 1,481,005 1,355,110 68,734,632 1,051,653 878,884 12,920,005 28,533,586 484,700 21,144,336 29,849,092 5,247,607 9,868,959 33,545,316 5,639,024 40,000 $410,113,858 $445,959,192 (778,225) $458,856,200 Total Operating Revenues, FY01 and FY12 24 2011-12 2.6 JMU Facilities and Capital Outlay JMU has grown significantly in the last two decades, and it has been necessary to increase the size of the physical plant to support instruction and the needs of students for housing, dining, recreation and student activities. The table below displays the total assignable square feet reported annually to SCHEV since FY97. Educational and General (E&G) total assignable square feet (ASF) increased at a higher rate than Regular Session (fall and spring) FTE students. Significant additional E&G space is now devoted to instruction and academic support with the addition of the biotechnology building on the East Campus, and the acquisition and remodeling of the hospital property. Since FY97 total E&G ASF per FTE student increased from 66.64 to 93.35 (27 percent). Assignable Square Feet by Function, FY97 to 2011 Instruction & Academic Support, Including Libraries Research & Public Service Student Services & Institutional Support Operation & Maintenance of Plant 1997 549,897 34,428 109,218 45,333 1998 596,552 37,971 121,401 1999 601,783 44,093 2000 618,698 2001 E&G ASF Per FTES Auxiliary Enterprise Total Regular Session FTES 738,876 1,296,935 2,035,811 11,087 66.64 72,265 828,189 1,343,324 2,171,513 12,119 68.34 134,948 66,268 847,092 1,355,332 2,202,424 12,877 65.78 50,305 152,297 67,644 888,944 1,363,519 2,252,463 13,539 65.66 694,027 54,590 170,854 67,244 986,715 1,353,548 2,340,263 13,697 72.04 2002 717,442 58,568 164,489 69,631 1,010,130 1,352,102 2,362,232 13,794 73.23 2003 732,376 59,455 168,726 69,461 1,030,018 1,426,089 2,456,107 14,094 73.08 2004 710,403 80,676 149,770 71,004 1,011,853 1,450,202 2,462,055 14,457 69.99 2005 716,255 79,190 152,921 70,945 1,019,311 1,418,224 2,437,535 14,732 69.19 2006 745,298 80,722 175,166 88,213 1,089,399 1,514,332 2,603,731 14,857 73.33 2007 784,994 91,639 181,135 89,464 1,147,232 1,559,214 2,706,446 15,869 72.29 2008 805,149 93,944 194,604 91,250 1,184,947 1,545,413 2,730,360 16,115 72.44 2009 889,836 98,495 200,571 92,995 1,293,118 1,564,349 2,857,467 16,794 77 2010 903,705 96,868 204,777 94,675 1,300,025 1,676,071 2,976,096 17,077 76.13 2011 981,301 104,370 206,544 92,008 1,384,223 1,663,103 3,047,326 17,209 80.44 2012 1,213,870 109,066 209,089 99,822 1,631,907 1,769,722 3,401,629 17,481 93.35 663,973 74,638 99,871 54,489 893,031 472,787 1,365,818 6,394 27 120.70% 216.80% 91.40% 120.20% Sources: Statistical Summary Table 2-24 and Table 5-1 120.90% 36.50% 67.10% 57.70% 40.10% Fiscal Year Change Percent Change 25 E&G Total Appropriations for operating and Capital expenses have also increased significantly since the early 1970s. The table below displays the biennial appropriations. Nearly $2 billion has been appropriated for JMU in the last 20 biennia. Biannual Operating Expenses and Capital Outlay Appropriations for JMU Biennium Operating Expenses Capital Outlay 1972-74 $ 10,526,000 $ 3,740,780 1974-76 14,153,755 1,217,200 1976-78 20,241,600 145,620 1978-801 26,542,375 2,932,325 1980-82 33,687,955 2,583,850 1982-84 37,899,145 1,523,280 1984-86 43,156,920 8,210,600 1986-88 54,203,641 2,184,990 1988-90 65,086,881 12,744,995 1990-922 64,314,591 1,656,000 1992-941 57,351,203 34,310,787 1994-96 70,424,607 4,669,392 1996-98 83,908,588 1,239,505 1998-00 115,585,470 3,399,927 2000-02 138,638,018 3,206,668 2002-041 128,625,934 124,169,100 2004-06 129,713,843 0 2006-08 157,101,378 34,026,064 2008-101 168,569,834 67,951,000 2010-12 133,063,721 12,251,410 2012-14 $ 149,367,633 $ $253,056,319 1In 1978-80, $2,900,500 was authorized through a general obligation bond to be repaid by the General Fund. 2For 1990-92, the operating expenses appropriation is as contained in the revised 1991-92 Appropriation Act. 3In 1992-94, $34,260,787 was authorized through a general obligation bond to be repaid by the General Fund. 4In 2002-04, $99,919,900 was authorized through a general obligation bond to be repaid by the General Fund. 5In 2008-10, $65,126,000 was authorized through a general obligation bond to be repaid by the General Fund. Sources: Statistical Summary Table 5-2 and University Budget Management. 26 3.0 EXPENDITURES 3.1 Total Operating Expenditures As demonstrated by the chart below, financial resources remain concentrated on the university's core business — instruction. The format in which expenditure data are reported for public institutions changed for IPEDS between 2008-09 and 2009-10. Beginning with 2009-10 expenses for operations and maintenance of the physical plant are embedded in each of the major expense categories. Therefore, comparisons to previous years are no longer possible. Instructional functions detailed in the chart as instruction and academic support represented 74 percent of all expenditures in 2011-12. Distribution of E&G Operating Expenses, 2011-12 When JMU is compared to the public institutions in its national peer group (approved by the State Council of Higher Education - SCHEV), the 2011-12 data indicate that JMU is the highest institution in support of instruction (see chart on page 30). As indicated in the chart on page 31, JMU spends a smaller percent on institutional support than fourteen of its peer institutions. JMU continues to operate administrative functions efficiently in order to concentrate resources on the university's primary mission of instruction. In fact, during the budget impasses of a few years ago and the current budget challenges the university purposely preserved its instructional monies. 27 *E&G estimate excludes Research, Public Service, Scholarships and Fellowships, and Transfers. Data not available for Baylor University, Boston College, Duquesne University, Fairfield University, Gonzaga University, Hofstra University, Loyola Marymount University, Marquette University, St. John's University-New York and Texas Christian University; all private institutions. 28 Institutional Support* Expenditures as a Percent of FY11-12 E&G Expenditures: SCHEV Peers *Data not available for Baylor University, Boston College, Duquesne University, Fairfield University, Gonzaga University, Hofstra University, Loyola Marymount University, Marquette University, St. John's University-New York and Texas Christian University; all private institutions. 29 The chart presented below compares instructional/academic and institutional support for Virginia's comprehensive institutions. Of the Virginia comprehensive institutions in 2011-12, JMU ranks first in percent of E&G budget spent on instruction and academic support (combined) and last in percent of E&G budget spent on institutional support. * E&G estimates exclude Research, Public Service, Scholarships and Fellowships, and Transfers 30 The chart below analyzes institutional expenditures in a slightly different manner. Instead of examining institutional support as a percent of the E&G operating budget, this graphic displays the same expenditure category on a FTE student (FTES) basis. It could be argued that this represents a truer picture of expenditures than the percentage when comparing institutions with different educational missions — e.g., comprehensive and doctoral institutions. For doctoral-level institutions, the percent of E&G expenditures used for institutional support is lessened by their huge research budgets that are often included in their total E&G expenditures. Of the Virginia institutions, JMU again ranks last at $1,519 per FTES expended on institutional support in FY11. This figure is $42 per student less than the next lowest institution (Old Dominion University) and $2,936 less than the highest (UVA). On a per-student basis, JMU has been administratively the leanest institution in the Commonwealth for more than 20 years. 31 3.2 Faculty and Staff Salaries For more than 25 years the General Assembly has endorsed a policy that faculty should be paid at rates higher than public institutions in other states. This policy was adopted in part to ensure that Virginia institutions could be competitive for the most qualified faculty. In 1986 the first national peer groups were established for each Virginia institution. In the spring of 2007 JMU and the other Virginia publicly-funded colleges and universities negotiated new peer institutions with SCHEV staff and other state agency representatives. These replaced the second peer groups negotiated in 1997 as a benchmark in support of the public policy objective that all state colleges and universities offer competitive faculty salaries equal to the 60th percentile of a national group of its peer institutions. In 2011-12 JMU’s position was 19th out of 25 institutions. The 60th percentile faculty salary for 2011-12 was $83,800, thereby putting JMU’s reported (to AAUP and IPEDS) average salary of $68,700 $15,100 below the objective. It would cost more than $14 million to bring just full-time faculty salaries to the 60th percentile. Comparative information for 2012-13 will be available in April 2013. As demonstrated by the data shown on page 34, the salary increases since 1990-91 have at times exceeded or been less than the Consumer Price Index (CPI). Salary increases for all State employees have been affected by the vagaries of Virginia politics and the ups and downs of the national economy. The graph on page 33 displays how much more volatile salary increases in the Commonwealth have been compared to the CPI and national faculty salary increases. Due to the severe financial crisis in Virginia, 2008-09 through 2012-13 base salaries were frozen at 2007-08 rates. A few bonuses from the State and JMU have helped faculty and staff. The costs of medical insurance have increased dramatically in the last 25 years. The increase in the percentage of a faculty or staff member’s total benefits from 25 percent in 1986-87 to 32 percent in 2011-12 was primarily due to the increased costs of health insurance. The family medical plan costs have varied from $240 per month in 2004-05 to $150 in 2011-12. Legislation adopted by the General Assembly to ensure the financial health of the Virginia Retirement System (VRS) impacted base salaries for recently hired faculty and staff. On July 1, 2011 classified, AP or instructional faculty hired prior to July 1, 2010 and enrolled in VRS Plan 1 received a 5 percent base salary increase to offset the 5 percent VRS member contributions required by the General Assembly. 32 Average Faculty Salary = $79.4 (Thousands) 33 Source: Institutional Research and AAUP 34 Appropriated Salary Increases and Cost of Family Medical Coverage 1990-91 to 2011-12 Appropriated Salary Increase Year 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-031 2003-04 CPI Increase (December to December) * 6.1 % 3.1 % 2.9 % 2.7 % 2.7 % 2.5 % 3.3 % 1.7 % 1.6 % 2.7 % 3.4 % 1.6 % 2.4 % 1.9 % 2004-05 July2 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-113 2011-124 3.3 % 3.4 % 2.5 % 4.1 % 0.7 % 2.1 % 1.4 % 2.1 % Instructional Faculty 2.36 % 0.00 % 2.00 % 3.60 % 3.40 % 2.25 % 4.00 % 5.00 % 6.10 % 6.10 % 3.00 % 0.00 % 2.50 % Bonus 2.25 % 2.00 % - All Faculty 1.00 % - Additional for Full Professors 3.00 % 5.00 % 3.84 % 4.00 % 0.00 % 0.00 % 3.0 % Bonus 2.00 % Bonus Administrative Faculty 1.90 % 0.00 % 2.00 % 3.60 % 3.40 % 2.25 % 4.00 % 4.00 % 3.10 % 4.00 % 3.00 % 0.00 % 2.50 % Bonus 2.25 % Classified Staff 3.00 % 0.00 % 2.00 % 6.50 % 3.57 % 2.25 % 4.35 % 4.00 % 3.67 % 6.25 % 3.25 % 0.00 % 2.50 % Bonus 2.25 % 1.00 % 1.00 % Bonus 3.00 % 4.00 % 3.29 % 4.00 % 0.00 % 0.00 % 3.0 % Bonus 2.00 % Bonus 3.00 % 4.00 % 4.00 % 4.00 % 0.00 % 0.00 % 3.0 % Bonus 2.00 % Bonus Monthly Cost of Family Medical Plan $147 $159 $155 $170 $170 $157 $157 $157 $170 $185 $207 $218 $240 $99 $113 $127 $140 $147 $144 $144 $150 Source: JMU Budget Office and Human Resources Note: 1990-91 percentage allows for the 2 percent salary reduction in December, 1990. Since 1992-93, salary increase percentages are effective in December of each fiscal year. Effective date of change in health care cost varies from year to year. 1 In August 2002 all continuing faculty, staff, and administrators received a 2.50 percent bonus that was not added to the base salary. 2 In July 2004 JMU funded raises for all employees. The Commonwealth also funded raises for all eligible employees beginning in December 2004. 3 In 2010 a one-time 3.0 percent bonus was given to all full-time employees. The 3.0 percent was not added to the base salary and is not included in salary statistics for IPEDS and AAUP. 4 On July 1 classified, AP or instructional faculty hired prior to July 1, 2010 and enrolled in VRS Plan 1 received a 5% base salary increase to off-set the 5% VRS member contributions required by the General Assembly. In 2011-12, faculty and staff received a 2.00% Bonus from JMU. * Inflation Statistics from Bureau of Labor Statistics. http://www.bls.gov/news.release/pdf/cpi.pdf Health insurance figures from Virginia Department of Human Resources Management. Medical plan is COVA Care (includes basic dental) for Family. See DOA Payroll Bulletins for annual rates. 35 This page left intentionally blank