According to the Office of Budget and Financial Planning, the budget is up 3 percent from last year's approximate budget of $970 million. In its authorized budget document for 2008-09, a summary of the operating and capital budget prepared annually, budget planners have outlined appropriations for "salary increases, base budget adequacy, new capital outlay for several high priority projects, and student financial assistance."

"As Virginia Tech grows, so does the budget, across the board," said spokesman Mark Owczarski.

Expansions of the university, from building structures to faculty members, account in part for the growing budget.

More buildings need more utilities, older buildings are in need of renovations, greater student enrollment warrants more faculty members and salary increases are all a few of the major factors pushing the budget past the $1 billion mark. In addition to these tangibles, other elements add to the cost.

Rising prices in energy are another factor. Increasing fuel cost have affected almost every commodity, through production and transportation. From Hokie Stone to dining hall food, everything has changed.

A reason for greater student enrollment is the demographic trend of the Commonwealth regarding college-age citizens.

"Virginia has more students graduating from high school than in recent years," Owczarski said.

The growing budget also includes increases in financial aid services for students.

This is attributed to the need to "attract a diverse group of students to Virginia Tech, because as costs go up it becomes harder on low income families," Owczarski said.

Student Financial Assistance will come in the form of state General Fund support for undergraduate scholarships, graduate fellowships, soil scientist scholarships and the multicultural academic opportunity program, according to the ABD 2008-09.

"Virginia Tech, like all Virginia public universities, gets funding from three sources: Commonwealth of Virginia General Fund, tuition and fees, and private philanthropy and other sources," said Owczarski.

The state will provide 26 percent of the school's budget this year, $268 million from the Commonwealth General Fund. This allotment has decreased since last October's midyear budget adjustment by the Governor and his advisory councils, which counted Virginia's shortfall in revenue for 2008 as $339.3 million.

Institutions of higher education will face a reduction in General Fund appropriations, to the tune of $21.2 million, a reduction of between 5 percent and 6.4 percent.

Students' tuition and fees will make up almost $270 million, or 27 percent of the pie.

The third major tributary, accounting for the remaining 47 percent and $486 million, is a collective of revenues from the following: federal funds, sales and services, financial assistance for education as well as general programs and other income.

Other state universities in Virginia are experiencing similar expansions in their budgets, but with different trends.

At the University of Virginia, for example, the total budget for 2008-09 will be $2.2 billion, an increase of 5.4 percent from last year. However, that cost will be met largely by "patient revenues" from the medical center, which will cover 43.9 percent of the total budget.

Only 16.2 percent of UVA's budget will come from tuition, and 8.2 percent from the Commonwealth General Fund.