CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – The Finance Committee of the University of Virginia Board of Visitors presented and took public comment Monday on a proposed 2026-27 tuition and fees increase ranging from 3- to- 4.5%.
That according to the presentation during a Zoom meeting as the entire Board is poised to meet and consider the increase April 16.
In an overview at the Board’s March 5 meeting, UVA Executive Vice President and Chief Operating Officer JJ Davis presenting a macro-financial overview said, “The largest cost driver the last couple of years has been compensation increases.”
“Just to put it in context with the Commonwealth, we do follow the Commonwealth’s pay increases, they’re merit-based,” she said. “But the overall general rate of change, 3%, 5%, we’ve put over $280 million of net new costs into the system because we’ve done a 5, 5, and a 7% pay increase and last year’s was 3.”
Davis continued, “So, a lot of additional base costs into the system, our employees deserve it, we’re actually still below benchmarks, but those costs have been significant, coupled with a real moderation of tuition increases.”
“Tuition increases are typically the normal lever that has been agreed upon with the Commonwealth to use to fund state pay increases.”
The state budget work is not completed yet, so a presentation slide noted the tuition increase proposal “assumes that the unrestricted state appropriation will be at essentially the same level as it was in the 2024-26 Appropriation Act”.
Other cost considerations are “rising costs in non-personnel expenses including utilities, equipment, and other goods and services”.
An additional cost consideration in the proposal is, “The University and Board of Visitors’ long-range planning assumption that tuition on average will increase annually by the increase in the Higher Education Price Index (HEPI), which is currently 3.6%, and adding a percentage point.”
All of the latter factors are also subject to inflation that has occurring and is occurring.
According to the March 5 minutes, “Davis explained tothat UVA has almost 34,000 employees, $570 million in annual sponsored research, and an operating budget of $6.4 billion. UVA Health is a $5 billlion enterprise, aggregating together with the physicians’ group (UPG) and the Medical School.”
“Net patient revenue is the largest source of funds, followed by tuition and fees. State appropriations account for about 5% overall, and 11.6% of the academic enterprise.”
According to Davis, “The Academic Division budget is $2.52 billion. Net tuition and fees account for $860 million, sponsored research $545 million, endowment distributions $337 million, and state appropriations $294 million. Expenses are split nearly evenly between labor on the one hand, and supplies, utilities, and other expenses.”
The Board of Visitors will also consider a tuition and fee increase ranging from 2 to- 3% at the UVA College at Wise.
