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Budget update

President Taylor Reveley sent the following budget update to the campus community on Feb. 27, 2013. - Ed.

Dear William & Mary Community,

Last weekend, the General Assembly completed its amendments to the Commonwealth’s 2012-14 operating and capital budgets. The news is good. Governor McDonnell has 30 days to review and approve, or veto, the Assembly’s actions.

The legislators provided additional funds to support base salary increases for faculty and staff—the first base salary increase authorized by the state in six years. With this action, the budget now includes a 3 percent base salary increase for faculty. For staff the budget includes a 2 percent base salary increase and, for classified staff with 5 to 30 years of service, another $65 per year of service in recognition of salary compression. It appears these increases will be effective late this July. We have requested clarification of which option applies to professional faculty. To the extent the state permits flexibility (not yet clear), merit will drive salary determinations at William & Mary. In addition, I anticipate the Board of Visitors, as it has done in the past, will provide funds for base salary increases beyond those authorized by the state. This will be my strong recommendation.

We are still reviewing benefit rate changes on both the College as an employer and all of us as employees. It appears that health insurance costs will again increase. At this time, we do not expect any change in Virginia Retirement System rates or benefits. As with salaries, the state pays only a third of the cost of any increase in benefit costs. The university must cover the balance from its own sources of revenue, tuition especially.

The Assembly has provided modest new operating funds ($746,000) to help pay for enrollment growth, student financial aid, base operations, and the study of collaborative opportunities between William & Mary and Eastern Virginia Medical School. VIMS received a specific allocation for expansion of its Blue Crab Survey. The Governor’s proposed requirement that we reallocate additional funds to priorities in the TJ21 legislation was not taken by the General Assembly.

On the capital front, we can move forward with the Tyler Hall renovation once planning is complete, and VIMS can proceed with its Consolidated Scientific Research Facility. VIMS can also begin preplanning for its Facilities Management Building. And, using our own funds, we are authorized to move forward with dormitory renovations and a Law School addition.

The General Assembly will reconvene for the veto session on April 3. More about all this in due course.

Cordially,

Taylor Reveley