by James A. Bacon
In explaining the cause of rising tuition & fees at the University of Virginia, we described last week how the driving force over the past 20 years has been a relentless increase in spending. Expenditures in the academic division of the University of Virginia, fueled by an expansion in salaries, increased 135% between 2002 and 2022, far outpacing the 59% rise in the Consumer Price Index and 20% increase in enrollment.
But that’s not the whole story. While expenditures were surging, state support for UVa and other public universities in the Old Dominion lagged far behind. Colleges and universities, the higher-ed lobby has argued, have had little choice but to offset public parsimony by raising tuition & fees.
A Jefferson Council analysis suggests that there is some truth to this assertion at UVa but it falls woefully short in explaining the ascent of tuition & fees to stratospheric levels. After adjusting for inflation and enrollment growth, roughly 30% of the tuition hikes have offset the decline in state funding while 70% went toward higher spending.
While coping with stagnant state funding, UVa presidents and Boards of Visitors looked to increased gifts and higher tuition to pay for their aggressive spending increases. Gifts have surged over the 20-year period and now equal state support as a source of funding at UVa. But the bulk of new revenue has come from tuition hikes. Continue reading