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UVA MAY SOON FACE MILLIONS IN CUTS-THE DAILY PROGRESS, AUGUST 21, 2007

Posted: Tuesday August 21, 2007

UVa May Soon Face Millions in Cuts

By Brian McNeill / bmcneill@dailyprogress.com | 978-7266
August 21, 2007

Along with all state agencies across Virginia, the University of Virginia is bracing for possible multi-million-dollar budget cuts.

To make up for a $641 million budget shortfall, Gov. Timothy M. Kaine announced Monday that state government agencies will explore ways to reduce their operating budgets by 5 percent.

At UVa, that would mean a roughly $7.4 million budget reduction from its $147 million state funding, said Colette Sheehy, UVa’s vice president for management and budget.

“Five percent is a lot of money,” Sheehy said. “But it’s not as bad as what we’ve faced in the past.”

During Gov. Mark R. Warner’s term, she said, UVa’s budget was slashed by a total of $52 million.

However, it is unclear if higher education institutions such as UVa will be included in Kaine’s efforts to curtail state spending.

“We’re waiting to hear more about what Gov. Kaine is going to do,” said Kirsten Nelson, director of communications and government relations for the State Council of Higher Education for Virginia. “The details at this point aren’t crystal clear.”

Sheehy said UVa officials expect guidance from the state in the coming week. In the meantime, she said, they are preparing for the worst.

“We’re going to have to look at everything very carefully and figure out how we can permanently reduce the budget,” she said.

If UVa is asked to enact a 5 percent budget cut, Sheehy said, the university might have to curtail hiring and take additional cost-saving measures.

“It’s always especially hard when you have to make cuts in the middle of a budget year,” she said. UVa’s $3.1 billion budget for 2007-08 began July 1. Approximately 9 percent of its funding comes from the state’s general fund appropriation.

In his speech Monday in Richmond before the joint meeting of the Senate Finance, House Finance and House Appropriations committees, Kaine said the budget shortfall had emerged primarily because of the state’s cooling housing market.

“We will examine all operations to determine which activities truly create value for Virginians. No government program should be funded simply because it has always been funded before,” Kaine told the committees. “At the same time, we cannot ignore opportunities to make smart investments to serve citizens better, strengthen our economy and improve our quality of life. Slower revenue growth is no excuse for stopping the continuous improvement of state government.”

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