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Budget amendment could cost state universities millions

Tuesday, February 2, 2010; 11:13 PM | 5 | | Print

Correction: This article has been modified from its original version. SGA President Brandon Carroll was misquoted when referring to the state's budget. The corrected quote reads, "The state has a $4 billion deficit and they refused to raise taxes."

A budget amendment proposed by former Virginia governor Tim Kaine would transfer $19 million of projected funds from public universities to the state if it passes.

Kaine included as an amendment to his 2010-12 budget a proposal that would move money from student fees in the higher education auxiliary fund, which supports public universities, to the general fund, which supports the state’s various needs.

The proposed reduction would take about $600,000 from Virginia Tech. Nearly 60 percent of the proposed transfer of funds would primarily impact the University of Virginia, James Madison University, George Mason University and Radford University.

In the overview section of the budget, Kaine’s office said “tuition (for public universities) will likely rise in this biennium” because of this transfer.

SGA president Brandon Carroll said the transfer of money would be “like a reverse tax on students.”

The amendment, set down on Jan. 11, “includes a proposed transfer of $18.8 million in fiscal year 2011 which represents 5 percent of higher education auxiliary enterprise balances (dorm, dining hall and related operations).”

Carroll intends to lobby strongly against Gov. Bob McDonnell’s acceptance of the amendment.

“The state has a $4 billion deficit and they refused to raise taxes,” he said. “So they’re taxing students.”

More than 50 Tech students will be in Richmond today for “Hokie Day,” a lobbying day sponsored by Virginia21, a non-profit lobbying organization that works in the General Assembly on behalf of higher education.

This day allows students to connect with state lawmakers and initiate conversations about policies relevant to higher education.

Carroll hopes to be able to converse with lawmakers about the proposed amendment, in order to take it out of the budget.

Carroll said he hopes McDonnell takes the tax out of the budget and leaves the money for student use.

“The state makes $1.39 on the dollar for every dollar they invest in higher education,” Carroll said. “That’s a 39 percent return on their investment for every student. If that’s not an incentive for higher education, I don’t know what is.”

A finalized budget should be available some time in June 2010.

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Brandon Carroll #1 | February 3, 2010 @ 12:20 AM | Flag Comment

They refused to raise taxes, so they are doing a reverse tax on students by taking money to which they are not entitled to* (instead of refusing to cut taxes)

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Jsmith #2 | February 3, 2010 @ 9:23 AM | Flag Comment

Anyone who followed Kaine knows he can't refuse a tax hike. Thank God and Greyhound he's gone, hopefully never to return. The universities, of course, have the same problem. I see no discussion here of the schools tightening belts -- instead they pass the bill along to parents -- like me -- of state university students.

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anon #3 | February 3, 2010 @ 12:01 PM | Flag Comment

@Jsmith: Virginia Tech COULD tighten its belt, but then it would fall EVEN LOWER in the amount it spends on each student when compared to its peers. If you want VT to be ranked highly (and your degree to be more valuable) you would advocate for more finances. VT is in the bottom in endowment, faculty salaries and student spending when compared to our successful peer schools (Berkeley, Cornell, Wisconsin, Texas AM, UNC, Penn State etc.).

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Shell Game #4 | February 3, 2010 @ 1:00 PM | Flag Comment

Nobody likes higher taxes, but of course they are going to pass it on. The other choices: fewer state workers (cops, dmv, teachers), shorter hours or higher fees (utilities, autos, cigarettes). If you want lower taxes, more services and no pain....then vote for drilling. I don't think Virginia has Alaska type oil reserves though...

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Anonymous #5 | February 3, 2010 @ 6:04 PM | Flag Comment

The lobby day is sponsored by the Virginia Tech alumni association and NOT Virginia21.

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