WM "State of College" Touches on Financial Future

By Amber Lester Kennedy Thursday, November 10, 2011

Vice President for Finance Sam Jones named salary increases and undergraduate student financial aid as the College of William and Mary’s highest priorities in a letter that was included in President Taylor Reveley’s “State of the College” released Tuesday.

Writing about the financial challenges the college has faced, Jones said the college was able to “catch its breath after three years of state funding reductions.” That doesn’t mean its challenges are firmly in the past, however; he said it is only diversity of funding that provides the college any financial stability.

State funding has declined to 14.8 percent of the college’s total budget. Jones said the college has made up for losses with revenue from tuition and fees; self-supporting auxiliary activities, such as food service, grants and contracts; and private giving. The endowment value has continued to rebound since fiscal year 2010, he said, and by June 30, the consolidated value of endowments supporting the college totaled $624.7 million.

Jones also explained how the college is planning in the long-term. On July 1, the college submitted an initial draft of a six-year plan to the state in response to the recently passed Higher Education Opportunity Act. The initial draft was discussed with a state-wide review committee and approved by the Board of Visitors in September.

The six-year plan is rooted in the state’s “commitment to having a distinctive ‘public ivy,’” the goals set out in its own strategic plan and the objectives of the legislation, Jones said. It acknowledges the state will continue to provide both operating and facilities support, but the college cannot expect a restoration of funds lost since 2008. “As a result, College-generated revenue, private support and a focus on cost-effective service delivery must provide the resources necessary to our success,” Jones said.

The college wants to manage its growth and continue to be small in size and scale; it will continue to guarantee at least 65 percent of its students are from Virginia, Jones said. Its number one priority is giving support to its faculty and staff who haven’t had any salary increases in the past few years, he said. The next highest priority is undergraduate student financial aid, followed by support for the increased enrollment, the marine science major and graduate financial aid.

In fiscal year 2011, the college had an operating revenue of $289.9 million and operating expenses of $277.5 million. Its largest revenue source remains tuition and fees, providing 40.5 percent of funds. Its largest expenditure is instruction costs, which total $89.9 million, or 32.4 percent of the operating budget.

Read the full financial report here and Reveley’s “state of the college” here.