Shocking: VA is actually giving more money to UVA this year

[Globalist]

<p>After close to 2 decades of cutting funding to UVA from 25% to a mere 8% of the University’s operating budget, the Commonwealth of Virginia is actually covering 15% of the budget for the next 2 years. </p>

<p>

It was a good year. The State budget includes $149 million for UVA’s Academic Division for FY 2006-07—a figure that accounts for 15 percent of UVA’s academic budget. An additional $18.8 million was given for research, along with $47 million for capital projects. The UVA Medical Center took home $25 million in State money for a new cancer center.</p>

<pre><code>All told, UVA is raking in nearly $240 million in State money for the next two years.

“In terms of funding from the budget, this has been a relatively strong year for UVA,” says Delegate Rob Bell (R-Albemarle). “In terms of research deals, this has been one of the better years,” he says, referring to the Cancer Center as the “crown jewel.”

Bell says any money granted to UVA as a boon for Charlottesville. “UVA is the economic engine for the entire region, and the area’s single largest employer by a pretty large margin,” Bell says. Delegate David Toscano (D-Charlottesville) cites repeated studies showing that each dollar spent on the University generates a “multiplier” effect. “It reverberates in the community,” he says, “creating more jobs, economic activity and ultimately millions of dollars of impact.”

</code></pre>

<p><a href=“http://www.c-ville.com/index.php?cat=141404064432695&ShowArticle_ID=1830507060590306[/url]”>http://www.c-ville.com/index.php?cat=141404064432695&ShowArticle_ID=1830507060590306&lt;/a&gt;&lt;/p&gt;

[NerdyUSCgurl]

<p>UVa, deserves alot of money because it’s a great school!</p>

[melli]

<p>Good to see that states are recognizing the importance of education more. =)</p>

[cavalier302]

<p>Approximately how much in additional endowment funds would UVA (or any school need) to reap that kind of return? I realize that UVA’s endowment stands in the low-mid $3billion range, but the state funding gives the effect of having a larger endowment. Anyone with a financial background know this?</p>

<p>

Good to see that states are recognizing the importance of education more. =)

</p>

<p>I don’t even know what that means.</p>

[barrons]

<p>The typical endowment cash payout is 4.5-5.0% of the balance so an extra $20 Million in funding would equal about $400 to $450 Million in endowment.</p>

<p>Also Globie, I think you are using different base year summaries to compare the % of funding from the state. One includes all functions including the Medical Center operations which are essentially self-funding and the other just the academic division which is the core of the university. Newspaper writers tend to be horrible in using numerical data. The comparable numbers for the academic division show state funding went from 13.4% to 13.8% of total revenues from 2005 to 2006. Capital funding has to be separated from operating but they had a large increase in that for 2006 over 2005. That means new buildings and better rehab/maintenance.</p>

<p><a href=“http://www.virginia.edu/budget/2006-2007%20Budget%20Summary.pdf[/url]”>http://www.virginia.edu/budget/2006-2007%20Budget%20Summary.pdf&lt;/a&gt;&lt;/p&gt;

[cavalier302]

<p>Is that the payout that the school puts towards operations, or what the net return? Many schools seem to see returns much larger than that each year, UVA included.</p>

[barrons]

<p>What they put into operations. They usually like to plow some of the returns back into a larger investment base. Makes up for the down years which seem to come sooner or later.
The budget shows about $88 million in endowment payout as revenue. Given the total of over 3 Billion or so that seems low. Some of it probably goes to capital projects, student aid etc. and does not show as regular revenue.</p>