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
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