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Financing of Higher Education in Virginia: Analysis and Issues 2014-15

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Financing of Higher Education in Virginia: Analysis and Issues 2014-15
Financing of Higher Education in
Virginia: Analysis and Issues
2014-15
TABLE OF CONTENTS
Page
EXECUTIVE SUMMARY ............................................................................................................................................... 1
1.0
TUITION AND FEES .................................................................................................................................................... 3
1.1
1.2
1.3
1.4
2.0
STATE APPROPRIATIONS ......................................................................................................................................15
2.1
2.2
2.3
2.4
2.5
2.6
3.0
National Trends ..................................................................................................................................... 3
Regional Trends ..................................................................................................................................... 7
State Trends .........................................................................................................................................10
JMU Tuition and Fee History ...........................................................................................................14
National Trends ...................................................................................................................................15
Regional Trends ...................................................................................................................................17
State Trends .........................................................................................................................................18
Financial Aid Appropriations ............................................................................................................25
JMU Total Operating Revenues .......................................................................................................26
JMU Facilities and Capital Outlay ....................................................................................................27
EXPENDITURES............................................................................................................................................................29
3.1
3.2
Total Operating Expenditures ..........................................................................................................29
Faculty and Staff Salaries....................................................................................................................34
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 and
Strategic Plan. 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
periodically for more than 20 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.
To preface:



Twenty years ago the staff at the State Council of Higher Education for Virginia
(SCHEV) began warning the institutions of a financial “perfect storm” that was
about to descend on higher education in the Commonwealth and the nation. The
“perfect storm” consisted of projected significant increases in competition for tax
dollars from health care, prisons and the Virginia Retirement System. Little did
SCHEV and the Virginia institutions recognize the impacts of the sizeable ups and
downs of the national and State economies on the ability of the Commonwealth to
fund adequately all services, including higher education. Given that for more than 30
years Virginia has been considered to be a high tuition state, the budget cuts and
significantly higher tuition and fees for Virginia students should not come as a
surprise.
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
averages. The Commonwealth's tuition ranks 6th highest among the fifty states.
Virginia has the second highest tuition and fees for in-state undergraduates at similar
regional institutions. JMU’s tuition and fees are increasing at a much higher rate than
most other schools in this region (Southern Region Educational Board – SREB)
schools.
Among the Commonwealth’s 15 four-year public colleges and universities, JMU's
total in-state cost (tuition, fees, room and board) ranks 11th. JMU’s out-of-state total
cost ranks 10th highest.
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 15 years ago.
Page 1
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 FY15 appropriations per
$1,000 of personal income (a measure of the state’s ability to pay) were 24 percent
below FY05 and 55 percent below FY88.
Since 1988 Virginia’s appropriations declined by 55 percent. In FY15 Virginia ranked
38th in appropriations per $1,000.
Regionally, in 2013-14 state general fund operating appropriations per FTE student
in Virginia ranked in the middle of SREB states. Virginia ranked 7th out of 14 states,
an improvement from three years ago.
Virginia public institutions have similar resources for operations now to what they
had 24 years ago, but this increase was generated almost entirely from tuition
revenue and short-term ARRA funding, not from state support.
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.
JMU has met SCHEV’s standards for the use of classroom and laboratory space for
more than 30 years.
Nearly $2.5 billion has been appropriated for JMU in the last 20 years.
Expenditures





When JMU is compared to the public institutions in its national peer group
(approved by the State Council of Higher Education - SCHEV), the 2012-13 data,
the last year’s data available from IPEDS, indicate that JMU is the fourth highest
institution in support of instruction.
Of the Virginia comprehensive institutions in 2012-13, 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 comprehensive institutions, JMU again ranks last at $1,776 per FTES
expended on institutional support in FY13. This figure is $270 per student less than
the next lowest institution (Radford University) and $1,065 less than the highest
(UVA-Wise), excluding VMI. On a per-student basis, JMU has been administratively
the leanest comprehensive institution in the Commonwealth for more than 20 years.
Salary increases for faculty, staff and administrators have mirrored the economic
condition of the Commonwealth with periods of zero percent increase or small
increases which have not kept up with inflation.
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 39 percent in
2014-15. Much of the increase in 2014-15 from 33 percent in 2013-14 to 39 percent
was to improve the long-term solvency of the Virginia Retirement System.
Page 2
1.0 TUITION AND FEES
1.1
National Trends
Concerns over the rising costs of higher education have been raised for many years and have
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 increased 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 2013-14 due to the national economic downturn that 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 due to other funding priorities (health, retirement
funding, prisons, etc.),
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,
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.
Trends in College Pricing 2014 by the College Board.
Page 3
Virginia Public FTE Enrollment, Educational Appropriations
And Total Educational Revenue per FTE, FY1988-2013
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
(FTES) 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 2014 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 graph shows how the proportion of the revenue to fund a student’s academic
experiences has changed dramatically since 1988.
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 6th highest among the fifty states2. 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.
2
2014-15 Tuition and Fees at Virginia's State-Supported Colleges and Universities, State Council of Higher
Education for Virginia, July 2014.
Page 4
(1)
(2)
Based on a national survey conducted by the Washington Student Achievement Council (WSAC).
Although not all public institutions are included in this survey, the averages and changes over
time at the same set of institutions offer consistency, and the large number of institutions included
provides a close approximation to state averages.
VA Charges are actual tuition and fees in FY15. Charges in other states are estimated by
applying 2013-14 national increase rates of 3.0% for doctoral, 3.21% for comprehensive
institutions, and 3.17% for public two-year colleges in preliminary 2014 national tuition and fee
survey results prepared by WSAC.
Source: SCHEV 2014-15 tuition and fees annual report.
The following excerpt and chart from SCHEV’s annual tuition and fee report describes the tuition
and fee rankings for the Virginia public institutions since 1989-90.
Over the past 15 years, tuition charges to in-state undergraduate students in Virginia largely have been greatly
influenced by the state’s economic condition. The Commonwealth restricted tuition increases during a period of
strong economic growth and allowed institutions to assess double-digit tuition increases to offset general fund
reductions when growth in the economy slowed or declined. The lack of continuity and predictability has limited the
ability of students and their families to save effectively for college and has not provided equity for students and their
parents in terms of meeting the cost of education.
*The tuition policy required out-of-state students to pay 100% of cost, but had not cost-share requirement for in-state
undergraduate students. Calculation based on the average appropriated cost of education.
**The goal of the tuition policy was for in-state undergraduate students to pay 25% of the cost. Calculation based on
the average appropriated cost of education.
***The goal of the tuition policy is for students to pay 33% of the cost. Calculation based on average guideline
calculated cost of education.
Page 5
New this year, the graphic below displays federal IPEDS data on the total cost of attendance that
includes tuition, fees, books and supplies, and room and board. The institutions selected are public
institutions in which new JMU freshmen often consider enrolling, but selected JMU instead. JMU’s
cost of attendance is $1,665 below the average.
Total Cost of Attendance3:
In-State Students Living On Campus 2013-14
Institutions Where Many JMU Freshmen Applied for Admission * and Were Accepted +
Source: IPEDS
Average = $24,405
“Total cost of attendance is the sum of published tuition and required fees (lower of in-district or in-state for public
institutions), books and supplies, and the weighted average for room and board and other expenses.”
http://nces.ed.gov/ipeds/glossary
3
Page 6
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 2014-15 will be
available in February 2016 and will appear in the next report.
As the graphic below demonstrates, Virginia has the second highest tuition and fees for in-state
undergraduates at regional Four-Year 3 institutions. Virginia was fourth for two years ago. Virginia’s
two-year increase (20 percent) was above the median (9 percent) for all the states. Virginia’s eightyear increase (77 percent) was higher than the SREB median (44 percent). The smallest eight-year
increase was Maryland (28 percent), and the largest was Kentucky (145 percent).
Page 7
"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 127 percent while median charges in the region went up 175 percent.
Virginia’s tuition and fees are now 125 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 2013-14
Virginia’s in-state tuition and required fees were $1,795 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.
Page 8
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, 2013-14
SREB Classification
Four-Year 1 Universities
Four-Year 2 Universities
Four-Year 3 Universities, including JMU and Radford
Four-Year 5 Colleges and Universities
Baccalaureate 6 Colleges and Universities
Two-Year Colleges
Percent of InState Median
Percent of Outof-State Median
116%
116%
190%
172%
126%
123%
180%
128%
145%
167%
124%
127%
Source: SREB Data Exchange, February 2015
Page 9
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 10th. Total in-state tuition,
required fees, and room and board ranks 11th and JMU’s out-of-state total cost ranks 10th. Compared
with Virginia’s most expensive institutions for out-of-state students, UVA and W&M, JMU is a
bargain.
In-State and Out-of-State Undergraduate Tuition, Required Fees, and Room and Board for
Virginia's State-Supported Institutions of Higher Education, 2014-15
In-State
Out-of-State
Required
Room and
Total
Total
Tuition
Tuition
Fees
Board
In-State
Out-of-State
Rank
1
W&M
$12,564
UVA
$40,118
VMI
2
UVA
$10,932
W&M
$34,824
W&M
3
VCU
$10,356
VMI
$29,554
4
VT
$10,197
VCU
$28,417
5
GMU
$7,562
GMU
$27,140
6
VMI
$7,498
VT
$26,228 UVAW
7
UMW
$7,146
ODU
$21,983
ODU
8
CNU
$6,962
LU
$20,700
9
LU
$6,930
CNU
10
RU
$6,440
UMW
11
ODU
$5,813
12
JMU
$5,406
13
VSU
$5,078 UVAW
14
UVAW
$5,012
15
NSU
$4,536
$8,020
CWM
$10,344 W&M
$28,000
UVA
$52,236
$5,092 UVAW
$10,340
VMI
$23,890 W&M
$50,260
CNU
$4,684
CNU
$10,314
CNU
$21,960
VMI
$45,946
LU
$4,650
VSU
$10,128
VCU
$21,716
VCU
$39,777
JMU
$4,256
UVA
$10,052
UVA
$21,425 GMU
$39,392
$3,856
GMU
$9,432
LU
$20,836
$35,972
$3,437
UMW
$9,430
VT
$19,914 UVAW
$34,842
UMW
$3,106
VCU
$9,318 GMU
$19,814
ODU
$34,688
$20,646
VSU
$2,924
ODU
$9,268 UMW
$19,682
LU
$34,606
$20,432
RU
$2,920
JMU
$9,256 UVAW
$19,208
JMU
$33,718
JMU
$20,266
NSU
$2,916
NSU
$8,624
JMU
$18,858 UMW
$32,968
RU
$19,126
GMU
$2,820
LU
$8,448
ODU
$18,518
CNU
$32,288
$18,943
UVA
$2,066
RU
$8,406
VSU
$18,130
RU
$30,452
VSU
$17,680
VCU
$2,042
VMI
$8,372
RU
$17,766
NSU
$29,220
NSU
$14,914
VT
$1,820
VT
$7,924
NSU
$16,076
VSU
$26,068
VT
Source: SCHEV Report on 2014-15 Tuition and Fees, Appendices D-1 and D-2.
Page 10
Full-Time In-State Undergraduate Student Charges, 2014-15
Institution
W&M3
VMI
UVA
CNU
VCU2
LU
VT
GMU
UMW
UVA-Wise
JMU
ODU
VSU
RU
NSU
RBC4
Avg. 4yr
VCCS
Avg. All Insts.6
Tuition and
Mandatory
Percent Mandatory Non- Percent Room and Percent
Fees
Increase
E&G Fees
Increase
Board1 Increase
$12,564 19.3/2.8/0%
$5,092
3.2
$10,344
5.4
$7,498
5.9
$8,080
9.5
$8,372
3.5
$10,932
4.5
$2,066
3.4
$10,052
3.4
$6,962
6.2
$4,684
3.2
$10,314
3.6
$10,356
4.0
$2,042
0.0
$9,318
2.6
$6,930
7.4
$4,650
-4.9
$9,256
4.3
$10,197
5.1
$1,820
3.9
$7,924
3.6
$7,562
4.7
$2,820
4.9
$9,432
4.9
$7,146
5.7
$3,106
7.0
$9,430
3.4
$5,012
4.4
$3,856
4.0
$10,340
3.5
$5,406
5.9
$4,256
4.5
$9,196
3.6
$5,813
5.8
$3,437
3.3
$9,268
4.0
$5,078
3.5
$2,924
1.6
$10,128
1.2
$6,440
5.8
$2,920
1.0
$8,406
3.1
$4,536
19.1
$2,916
-14.6
$8,624
3.0
$3,718
7.9
$1,340
133.4
$8,680
13.0
$7,290
4.4
$3,641
2.3
$9,360
3.5
$4,066
5.2
$14
0.0
N/A
N/A
$6,890
4.5
$3,292
3.7
$9,318
4.0
Total
$28,000
$23,890
$23,050
$21,960
$21,716
$20,836
$19,941
$19,814
$19,682
$19,208
$18,858
$18,518
$18,130
$17,766
$16,076
$13,738
$20,291
$4,080
$18,952
Percent
Increase
10.8/3.9/2.7%
6.2
3.9
4.3
3.0
3.1
4.4
4.8
4.8
3.8
4.5
4.4
1.9
3.7
3.1
17.4
4.4
4.6
4.9
(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.
(2)
The Tuition and mandatory E&G fees for resident undergraduates will increase by 4% in 2014-15. Tuition for credit hour
undergraduate students is calculated on a sliding per credit hour basis with a 50% discount for 15 and more credit hours
per semester.
(3)
The 2014-15 tuition and mandatory E&G fee for first-time freshmen and transfer students is $12,564, an increase of
19.3%. Tuition for sophomore students remains at $10,531, a 0% increase. The charge for junior and senior students is
$9,182, an increase of 2.8%. The college adopted guaranteed tuition for incoming in-state undergraduate students in
2013-14. The tuition charged in their freshmen year is frozen for all four years of their undergraduate attendance.
Source: SCHEV Report on 2014-15 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 1.9 percent at Virginia State University to 10.8 percent at the College of
William and Mary. JMU’s percentage increase (4.5) was slightly above the average of the other senior
institutions (4.4 percent).
All higher institutions are searching for ways to manage tuition changes. Both the College of William
and Mary and Virginia Commonwealth University have instituted new differential charging
processes. See footnotes above. JMU so far has only begun to charge students taking College of
Business and Nursing courses higher per credit fees due to the high costs of these programs.
Page 11
Full-Time Out-of-State Undergraduate Student Charges, 2014-15
Institution
UVA
W&M
VMI
VCU
GMU
VT
UVA-Wise
ODU
LU
JMU
UMW
CNU
RU
NSU
VSU
RBC
VCCS 2,3,4
Avg. 4yr
Avg. All Insts.6
Tuition and
Mandatory Fees
$40,118
$34,824
$29,554
$28,417
$27,140
$26,228
$20,646
$21,983
$20,700
$20,266
$20,432
$17,290
$19,126
$17,680
$14,914
$13,676
$9,904
$23,795
$22,383
Percent Increase
6.0
3.9
5.3
3.6
4.8
3.0
4.0
3.9
7.1
3.5
4.1
5.1
4.8
2.3
4.2
2.9
1.9
4.8
4.6
Mandatory NonE&G Fees
Percent Increase Room and Board Percent Increase
$2,033
$5,092
$8,020
$2,042
$2,820
$1,820
$3,856
$3,437
$4,650
$4,256
$3,106
$4,684
$2,920
$2,916
$2,924
$1,340
$14
$3,641
$3,292
3.4
3.2
9.5
0
4.9
3.9
4.0
3.3
-4.9
4.5
7.0
3.2
1.0
-14.6
1.6
133.4
0
2.3
3.7
$10,052
$10,344
$8,372
$9,318
$9,432
$7,924
$10,340
$9,268
$9,256
$9,196
$9,430
$10,314
$8,406
$8,624
$10,128
$8,680
N/A
$9,360
$9,318
3.4
5.4
3.5
2.6
4.9
3.6
3.5
4.0
4.3
3.6
3.4
3.6
3.1
3.0
1.2
13.0
N/A
3.5
4.0
Total
$52,203
$50,260
$45,946
$39,777
$39,392
$35,972
$34,842
$34,688
$34,606
$33,718
$32,968
$32,288
$30,452
$29,220
$27,966
$23,696
$9,918
$36,796
$34,993
Percent Increase
5.4
4.2
5.7
3.2
4.8
3.2
3.8
3.9
4.6
3.7
4.2
4.3
3.9
0.5
2.8
10.0
1.8
4.2
4.4
Source: SCHEV Report on 2014-15 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 0.5 percent at Norfolk State University to 5.7 percent at the Virginia
Military Institute.
Page 12
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 (BEA) 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 the government.
Chart 7A below shows that 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
with the exception of FY2006 and FY2010. In 1990, Virginia’s cost share of per capita disposable income
was 6.3 percentage points higher than the national average. Nationally, total charges represented 28.3% of
per capita disposable income, while the rate in Virginia was 34.6%. Since reaching the low point (most
affordable) of 31.7% in FY2002—after several years of state mandated tuition controls, this measure of
affordability has crept steadily higher and is estimated to be at 46.9% in FY2015. This rate surpasses the
record of 45.6% set last year. Further, the BEA data show per capita disposable income in Virginia
declined by 0.2% between FY2013 and FY2014. However, the average total charge at Virginia’s public
four-year institutions increased by 4.4%. 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 will be further
compromised.
Page 13
1.4 JMU Tuition and Fee 10-Year History
JMU Tuition, Fee, and Room and Board Charges, 2005-06 to 2014-15
10 Year
Percent
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Change
IN-STATE
Tuition & Fees
Comp. Fee
Total Commuter
Room & Board1
Total On-Campus
$2,998
$2,888
$5,886
$6,372
$12,258
$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
$5,104
$4,072
$9,176
$8,873
$5,406
$4,256
$9,662
$9,196
$6,756
$13,046 $13,774 $14,422 $14,934 $15,880 $16,788 $17,438 $18,049 $18,858
OUT-OF-STATE
Tuition & Fees
$12,434 $13,174 $14,140 $15,050 $15,866 $16,946 $17,932 $18,850 $19,582 $20,266
Comp. Fee
$2,888
$3,062 $3,246 $3,408 $3,510 $3,678 $3,806 $3,946 $4,072 $4,256
Total Commuter
$15,322 $16,236 $17,386 $18,458 $19,376 $20,624 $21,738 $22,796 $23,654 $24,522
Room & Board*
$6,372
$6,756 $7,108 $7,458 $7,690 $8,020 $8,340 $8,630 $8,873 $9,196
Total On-Campus $21,694 $22,992 $24,494 $25,916 $27,066 $28,644 $30,078 $31,426 $32,527 $33,718
Source: JMU Budget Office
1
Based on 19-meal plan
80%
47%
64%
44%
54%
63%
47%
60%
44%
55%
JMU Tuition and Fee History
2005-06 to 2014-15
Page 14
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 employee retirement funds, health care and
corrections. One result of this difficult combination of factors has been a decline in the state
appropriations going to higher education. SCHEV staff warned institutions more than 20 years ago
about these likely declines in higher education appropriations due to the other mandated initiatives.
The FY15 appropriations per $1,000 of personal income (a measure of the state’s ability to pay) were
18 percent below FY05, and 41 percent below FY88. In FY15 22 of the states showed positive percent
increases. Twelve states, including Virginia, had 28-year declines of at least -50 percent. The states
with the greatest 28-year declines were Colorado (-65 percent), Arizona (-65 percent), Pennsylvania (58 percent), and South Carolina (-57 percent). Since 1988 Virginia’s appropriation declined -55
percent, which is 14 percent more than the national average of -41 percent. In FY15 Virginia ranked
38th in appropriations per $1,000 at $4.38 ($4.95 in 2010), $1.17 below the national average of $5.55.
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
FY88 to FY15
Virginia
-55%
National
Average
-41%
Source: GRAPEVINE, May 2015
Page 15
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 201213 – the most recent year (FY 2013) for which the data are available from IPEDS. JMU is ranked 11th
out of the 16 public universities. For 2012-13, JMU would have required nearly $22 million in E&G
operating funds to reach the median of its public national peer group.
TOTAL FUNDING PER FTE STUDENT
JMU National Peer Group, 2012-13 Data
Institution Name
Boston College
Loyola Marymount University
Hofstra University
Fairfield University
Texas Christian University
Gonzaga University
Marquette University
Duquesne University
Baylor University
Miami University-Oxford *
Ohio University-Main Campus *
Rowan University *
The University of Alabama *
University of North Carolina
Wilmington *
Illinois State University *
College of Charleston *
University of Northern Iowa *
Appalachian State University *
Eastern Illinois University *
James Madison University *
Truman State University *
Bloomsburg University of
Pennsylvania *
Western Washington University *
University of Wisconsin-Eau
Claire *
University of Wisconsin-La
Crosse *
$56,177,263
119,234,646
95,697,109
140,699,910
96,878,528
Total Tuition &
Fees Plus State
Appropriations
$373,091,572
245,661,000
269,507,583
111,056,000
224,315,000
137,509,000
228,808,000
191,421,000
298,091,000
324,512,852
402,860,223
199,014,136
527,642,764
189,920,895
Total
Revenue
per FTES
$27,735
27,067
27,010
25,761
24,076
21,830
21,213
20,466
19,550
19,396
17,433
17,161
16,740
14,902
189,117,793
133,935,670
65,107,140
100,533,732
74,282,421
169,763,877
28,015,354
73,201,164
82,664,239
19,809,777
87,662,815
128,597,134
44,051,100
79,018,980
38,722,022
33,525,055
271,782,032
153,745,447
152,769,955
229,130,866
118,333,521
248,782,857
66,737,376
106,726,219
14,472
14,461
14,140
13,707
13,613
12,940
11,396
11,197
14,042
10,126
110,885,904
70,084,429
40,052,232
33,331,110
150,938,136
103,415,539
10,749
10,213
9,940
69,014,498
18,685,935
87,700,433
8,823
FTE
Students
$13,452
9,076
9,978
4,311
9,317
6,299
10,786
9,353
15,248
16,731
23,109
11,597
31,519
12,745
Tuition and Fees
$373,091,572
245,661,000
269,507,583
111,056,000
224,315,000
137,509,000
228,808,000
191,421,000
298,091,000
268,335,589
283,625,577
103,317,027
386,942,854
93,042,367
18,780
10,632
10,804
16,716
8,693
19,226
5,856
9,532
State
Appropriations
Page 16
2.2
Regional Trends
During the period of 2002-03
through 2013-14, 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. By 2013-14
Virginia improved its relative rank
to 7th out of 14 states.
Per-student funding for Virginia's
Four-Year 3 institutions gained
and lost ground against other states between 2000-01 and 2013-14. For example, in 2000-01 Virginia’s
percentage of the mean SREB institutions was 83 percent. It declined to 68 percent in 2003-04, but
rose to 92 percent in 2013-14. The gains shown by Virginia are not necessarily due to improved
economic situation, but rather to significant declines in the other SREB states. South Carolina’s higher
education system is now one of the most poorly funded in the country.
Page 17
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 nongeneral funds (mostly comprised
of tuition and fees) were 34
percent of total general funds. By
1995-96 non-general funds were
about half of total appropriations,
indicating that students bore a
significantly higher proportion of
their total educational costs. The
situation improved markedly
between 1996-97 and 2001-02 as
the national economy improved,
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. Non-general
funds now represent 69 percent of total appropriations.
According to the data provided by SCHEV, in constant FY15 dollars, the FY15 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 similar resources for operations now to what they had
24 years ago, but this increase was generated almost 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
2015-16, total funding
has
recovered
somewhat, but is still
lower than the high of
$13,694 in 2006-07.
However, as shown
above, any increase in
funding is primarily
borne by students and
their parents.
Page 18
State general fund support
(state dollars) to JMU dropped
from 63 percent of the total
educational
and
general
(E&G) appropriation in 198889 to 47 percent in 1995-96.
The percentage increased to
55 in 2001-02, but dropped to
27 percent in 2015-16. JMU’s
percentage mirrored that of
the other four-year Virginia
institutions.
While
improvement
occurred
between 1995-96 and 200102, the percentage is now
Source: SCHEV
close to the lowest in the last
28 years. It should be noted that JMU derives a higher percentage of its total appropriation from
tuition and fees due to the fact that non-Virginia students’ education is not supplemented by the
Commonwealth. Virginia’s budget shortfall resulted in the percentage of general fund declining to
percentages far below those of the difficult budget years of the mid-1990s.
Source: SREB Data Exchange
Higher education's share
of Virginia's total general
fund appropriation decreased
from
12.7
percent in the FY1970 to
9.4 percent in FY2013. It
was as high as 17.3
percent in FY1980.
Given the demands on
the
Commonwealth’s
budget by medical costs,
prisons, other mandates,
and
the
uncertain
revenue stream, higher
education’s proportion
of the State’s budget is
unlikely to improve in
the foreseeable future.
Source: SREB Data Exchange
Page 19
JMU's 2015-16 general fund appropriation per in-state FTE student was $1,105 below the average of
the four-year Virginia comprehensive public institutions. Its 2015-16 appropriation is $893 below
2001-02 in actual dollars ($3,581 adjusted to 2015). Were JMU to be funded at the average for all fouryear comprehensive institutions in 2015-16, its general fund appropriation would increase by more
than $18 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.
Page 20
Appropriations of State Tax Funds for Operating Expenses of
Higher Education per $1,000 of Personal Income FY15
$-
$2.00
$4.00
$6.00
$8.00
$10.00
Wyoming
$14.00
$11.68
New Mexico
$11.60
North Carolina
$10.08
Alaska
$9.79
Mississippi
$9.78
North Dakota
$9.49
Arkansas
$8.87
Hawaii
$8.65
Alabama
$8.09
Nebraska
$8.05
Utah
$8.02
Illinois
$7.99
West Virginia
$7.47
Georgia
$7.37
Kentucky
$7.10
Idaho
$6.53
Indiana
$6.48
Oklahoma
$6.29
Kansas
$6.08
California
$6.05
Iowa
$6.01
Tennessee
$5.95
Montana
$5.80
Louisiana
$5.76
Texas
$5.60
Maryland
$5.58
Minnesota
$5.47
South Dakota
$5.46
South Carolina
$5.45
Delaware
National Average = $5.55
$5.28
Florida
$5.00
Connecticut
$4.97
New York
$4.95
Maine
$4.86
Wisconsin
$4.66
Washington
$4.54
Michigan
$4.45
Virginia
$4.38
Nevada
$4.36
Ohio
$4.35
Oregon
$4.24
New Jersey
$4.10
Missouri
$4.09
Massachusetts
$3.70
Arizona
$3.62
Rhode Island
$3.45
Vermont
$3.11
Colorado
$3.00
Pennsylvania
New Hampshire
$12.00
$2.73
$1.75
Sources: Postsecondary Opportunity and Grapevine May 2015
Page 21
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 $4.38 ($4.57 in FY12) to the operation of its public higher education system for each
$1,000 of personal income—or $1.17 below the national mean of $5.55 ($6.30 in FY11). This level
places the Commonwealth in 38th place (the higher the number, the poorer the funding).
The graph presented below demonstrates the changes in the Commonwealth’s higher education effort
since 1990. From a high of appropriating $9.78 per $1,000 in income in 1990, Virginia dropped to
$4.38 in FY13. This represents a 55 percent decline since 1990.
Virginia Appropriations of State Tax Funds for
Higher Education per $1,000 of Personal Income
$14
4.57
4.56
4.41
4.38
2013
2014
2015
4.86
2011
2012
4.95
2010
5.66
6.46
6.19
5.79
2006
2008
5.74
2005
2007
5.48
$6
2004
5.94
7.26
7.86
6.73
1998
2001
6.59
1997
7.61
6.32
1996
2000
6.58
1995
7.13
6.78
1994
7.08
7.63
9.78
$8
$4
2009
2003
2002
1999
1993
1992
$-
1991
$2
1990
Dollars
$10
8.90
$12
Fiscal Year
Source: Postsecondary OPPORTUNITY and Grapevine, May 2015
Page 22
Total E&G Appropriation
Per FTE Student 2014-15 and 2015-16
2014-15
2015-16
11,585
$11,665
$12,452
11,973
12,632
$12,518
13,017
$12,912
13,374
$13,355
$13,638
13,633
13,729
$13,643
$13,954
15,000
13,955
19,079
20,000
$18,692
25,000
10,000
5,000
0
VMI
JMU
UMW
NSU
LU
UVA-W
CNU
VSU
RU
Virginia Comprehensive Institutions
Source: SCHEV
In 2015-16 JMU's total E&G appropriation per student is $13,955 compared to $11,974 in 201213. It is now ranked second out of the nine comprehensive institutions. In 2009-10 JMU was ranked
sixth.
Page 23
The Commonwealth of Virginia appropriates nearly $1 billion annually to the four-year institutions to
support E&G functions for Virginia students. A measure of the outcomes of this investment is the
amount expended by the institutions for each degree awarded. In 2013-14, the Commonwealth of
Virginia’s average of four-year institutions’ appropriations per in-state graduate was $23,472,
compared to $19,511 for JMU. Of the Virginia comprehensive institutions that include JMU, the
expenditure per in-state graduate is $24,566.
Appropriations per Virginia Graduate, 2013-14
Institution
Associates Bachelors Post Bacc. First Prof. Masters
GMU
4,333
363
99
2,188
UMW
19
912
4
215
JMU
2,955
13
589
RU
22
1,692
10
348
CNU
987
84
ODU
3,582
808
LU
879
140
VT
45
4,358
120
84
960
VCU
31
4,398
184
285
1,211
CWM
1,070
89
306
UVA
22
2,587
54
209
808
VMI
241
NSU
78
742
152
VSU
3
537
15
131
UVA-W
275
4-Year Total
220
29,548
763
766
7,940
General Fund
Post
Appropriations
Master Doctorate Total
Per Graduate
148
7,131 $
16,276
1,150 $
17,218
9
12
3,578 $
19,511
6
26
2,104 $
20,654
1,071 $
22,857
13
126
4,529 $
22,921
8
1,027 $
22,997
33
215
5,815 $
24,167
41
221
6,371 $
24,312
14
41
1,520 $
25,226
24
128
3,832 $
31,189
241 $
34,573
5
977 $
41,426
7
693 $
43,531
275 $
47,046
148
929
40,314 $
23,472
Page 24
$7,961
$8,061
2014-15
2015-16
$7,559
2013-14
$7,407
2012-13
$7,130
2011-12
$6,725
2010-11
$6,463
2008-09
$6,087
2007-08
$5,456
2006-07
$5,041
2005-06
$4,737
2004-05
$4,471
$4,078
2002-03
2003-04
$3,981
2001-02
$4,133
2000-01
$3,981
1999-00
1998-99
$3,383
Thousands
The Virginia General Assembly
James Madison University
State Aid Appropriations
is very concerned about the
$10,000
impact of the sizable tuition
$9,000
increases resulting from reduced
$8,000
general fund appropriations for
$7,000
higher education on students’
$6,000
ability to afford a college
$5,000
education. To partially offset the
$4,000
increases in tuition and fees, the
$3,000
General Assembly increased
$2,000
financial aid appropriations for
$1,000
public institutions. Between
$0
2000-01 and 2015-16, the
financial aid appropriations for
JMU almost doubled in amount.
Fiscal Year
During the same time period,
financial aid appropriations increased by nearly 150 percent.
$6,725
Financial Aid Appropriations
2009-10
2.4
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 as
a result of the Commonwealth’s 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. Annual
increases of between one and five percent continued between 2011-12 and 2015-16.
$169
2013-14
$186
$167
$146
2010-11
2012-13
$146
$75
2002-03
2009-10
$73
2001-02
$97
$112
$75
2000-01
$89
$72
1999-00
$80
$66
$100
$83
$120
$60
$40
2015-16
2014-15
2011-12
2008-09
2007-08
2006-07
2005-06
2004-05
$0
2003-04
$20
1998-99
Millions
$140
$126
$160
$135
$180
$159
$200
$177
Virginia State General Fund Student Aid Appropriations
Fiscal Year
Source: SCHEV
Page 25
2.5
JMU Total Operating Revenues
Government appropriations, primarily from the Commonwealth, excluding Capital Appropriations,
Capital Grants, and Gifts, Other Non-Operating Revenues, and Additions to Permanent
Endowments, provided 30 percent of all JMU sources of revenue in 2000-01. During 2013-14, the
same sources provided 16 percent of all revenue. Correspondingly, E&G tuition and fees have risen
from 23 percent to 35 percent of total revenues over the same period.
Fiscal Year Current Fund Revenues, 2011-12 to 2013-14
Revenue Source
2011-12
Tuition & fees
$158,308,773
Government appropriations
68,734,632
Government grants & contracts
34,958,587
Private gifts, grants & Contracts
5,544,532
Investment Income
878,884
Other E&G revenues
42,018,455
Total E&G revenues
$310,443,863
Other Auxiliary revenues
$141,124,616
Total Revenues
$451,568,479
Source: 2014-15 Statistical Summary, Table 5-3
2012-13
$169,763,877
79,018,980
33,258,526
5,396,969
1,683,369
65,217,660
$354,339,381
$149,188,562
$503,527,943
2013-14
$177,989,678
82,188,926
32,279,779
6,874,215
785,908
45,785,510
$345,904,016
$162,183,276
$508,087,292
2014 Percent
Core
Revenues
51%
24%
9%
2%
0%
13%
100%
2014 Core
Revenues per
FTE Student
$8,864
4,093
1,608
342
39
2,280
$17,227
$8,077
$25,304
Page 26
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 66.6 to 90.2 (35 percent). In fall 2016 the addition of the new health sciences
building next to the Student Success Center will add significant instructional space that was removed
with the demolition of Massanutten Hall.
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
66.6
72,265
828,189
1,343,324
2,171,513
12,119
68.3
134,948
66,268
847,092
1,355,332
2,202,424
12,877
65.8
50,305
152,297
67,644
888,944
1,363,519
2,252,463
13,539
65.7
694,027
54,590
170,854
67,244
986,715
1,353,548
2,340,263
13,697
72.0
2002
717,442
58,568
164,489
69,631
1,010,130
1,352,102
2,362,232
13,794
73.2
2003
732,376
59,455
168,726
69,461
1,030,018
1,426,089
2,456,107
14,094
73.1
2004
710,403
80,676
149,770
71,004
1,011,853
1,450,202
2,462,055
14,457
70.0
2005
716,255
79,190
152,921
70,945
1,019,311
1,418,224
2,437,535
14,732
69.2
2006
745,298
80,722
175,166
88,213
1,089,399
1,514,332
2,603,731
14,857
73.3
2007
784,994
91,639
181,135
89,464
1,147,232
1,559,214
2,706,446
15,869
72.3
2008
805,149
93,944
194,604
91,250
1,184,947
1,545,413
2,730,360
16,115
72.4
2009
889,836
98,495
200,571
92,995
1,293,118
1,564,349
2,857,467
16,794
77.0
2010
903,705
96,868
204,777
94,675
1,300,025
1,676,071
2,976,096
17,077
76.1
2011
981,301
104,370
206,544
92,008
1,384,223
1,663,103
3,047,326
17,209
80.4
2012
1,213,870
109,066
209,089
99,822
1,631,907
1,769,722
3,401,629
17,481
93.4
2013
1,131,291
110,916
289,415
104,431
1,636,053
1,756,637
3,392,690
17,727
92.3
2014
1,121,981
114,604
264,906
105,450
1,606,941
1,757,657
3,364,598
17,823
90.2
Change
572,084
80,176
155,688
60,117
868,065
460,722
1,328,787
6,736
23.5
Percent
Change
104%
233%
143%
133%
117%
36%
65%
61%
35%
Fiscal
Year
E&G
Total
Sources: Statistical Summary Table 2-24 and Table 5-1
Page 27
Appropriations for operating and Capital expenses have also increased significantly since the early
1970s. The table below displays the biennial appropriations. Nearly $2.5 billion has been appropriated
for JMU in the last 22 biennia (44 years). Adjusted to 2015 dollars, the total operating and Capital is
more than $3.5 billion.
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
2014-16
158,627,408
0
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.
Page 28
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. Functions detailed in
the chart below as instruction and academic support represented 74 percent of all expenditures in
2013-14.
Distribution of E&G
Operating Expenses, 2013-14
When JMU is compared to the public institutions in its national public peer institutions (approved
by the State Council of Higher Education - SCHEV), the 2012-13 (most recent year available for all
institutions) data indicate that JMU is the fourth highest institution in support of instruction (see
chart on page 28) within the public institutions. As indicated in the chart on page 29, JMU spends a
smaller percent on institutional support than seven 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.
Page 29
*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. Private institutions report financial data to IPEDS using a different form.
Page 30
Institutional Support* Expenditures as a Percent of FY12-13
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.
Page 31
The chart presented below compares instructional/academic and institutional support for
Virginia's comprehensive institutions. Of the Virginia comprehensive institutions in 2012-13,
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
Page 32
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 ranks second at $1,776 per FTES expended on institutional
support in FY13. This figure is $2,544 per student less than $4,320, the highest (VMI). On a perstudent basis, JMU has been administratively one of the leanest institution in the Commonwealth for
more than 20 years.
Page 33
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
2013-14 JMU’s position was 17th out of 25 institutions. The 60th percentile faculty salary for 2013-14
was $83,600, thereby putting JMU’s reported (to AAUP and IPEDS) average salary of $72,100
$11,500 below the objective.
Seventeen of the peers, including JMU, are public institutions. Arguments have been made that JMU
should not be compared to private institutions that typically have larger endowments and charge
higher tuition and fees, thus being able to provide higher salaries than public institutions like JMU.
The average salary of the public institutions in our peer group is $72,230 which is considerably less
than the private institutions’ average of $92,700.
As demonstrated by the data shown on page 34, the salary increases since 2003-04 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 variability of JMU’s salary changes have been much higher (2.52 percent vs. 1.07
percent for the CIP), as measured by the standard deviation of percentage changes since 1990-91).
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. In 2013-14 the
Commonwealth and JMU were able to allocate funds for a fairly substantial (8.1 percent) increase
over 2012-13.
Benefits as a portion of salary have been increasing for many years, but the contributions to VRS
have increased considerably in the last two years to improve the financial viability of VRS. In 200304 benefits as a proportion of salary were 30 percent and by 2014-15 had grown to 39 percent.
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.
Page 34
Average Faculty Salary = $79.7 (Thousands)
* Public Institutions
Page 35
Annual JMU Faculty Average Salary Percent Changes
Compared to Inflation (CPI) and National Average Salary
Changes, 2003-04 to 2014-15
6.00%
5.00%
3.00%
2.00%
1.00%
0.00%
JMU SALARY INCREMENT
INFLATION
14-15
13-14
12-13
11-12
10-11
09-10
08-09
07-08
06-07
05-06
-2.00%
04-05
-1.00%
03-04
Percent
4.00%
NATIONAL INCREMENT
Sources: Institutional Research. Bureau of Labor Statistics, and AAUP
Page 36
Appropriated and JMU-Funded Salary Increases and Cost of Family Medical Coverage
2003-04 to 2015-16
Appropriated Salary Increase Plus JMU Adjustments
Year
2003-04
CPI Increase
(December
to
December) *
1.9 %
2004-05
July2
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-113
2011-124
2012-13
2013-14
2014-15
2015-16
3.3 %
3.4 %
2.5 %
4.1 %
0.7 %
2.1 %
1.4 %
2.1 %
1.7 %
1.5 %
0.8 %
Instructional
Faculty
2.25 %
2.00 % - All Faculty
1.00 % - Additional
for Full Professors
3.00 %
4.00 %
3.84 %
4.00 %
0.00 %
0.00 %
3.00 % Bonus
3.00 % Bonus
4.00 % Bonus
5.50 %
2.00 %
2.00 %
Administrative
Faculty
2.25 %
Classified Staff
2.25 %
1.00 %
1.00 %
Bonus
3.00 %
4.00 %
3.29 %
4.00 %
0.00 %
0.00 %
3.00 % Bonus
3.00 % Bonus
4.00 % Bonus
4.00 %
0.00 %
2.00 %
3.00 %
4.00 %
4.00 %
4.00 %
0.00 %
0.00 %
3.00 % Bonus
3.00 % Bonus
4.00 % Bonus
2.00 %
0.00 %
2.00 %
Monthly
Cost of
Family
Medical Plan
$99
$113
$127
$140
$147
$144
$144
$150
$150
$165
$220
$230
$235
Source: JMU Budget Office and Human Resources
Note:
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.
Page 37
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