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January 25, 2008

At the upcoming Hokie Day on February 6, members of the university administration will provide our volunteer alumni with specific background information on our operating and capital budget amendments.  As recently reported, state revenues are down and the Governor has announced plans to reduce the revenue estimates for the upcoming biennium. Despite the uncertain revenue forecast, the university continues to advocate for additional operating dollars to reduce the impact of the budget reductions, to support additional new students, to provide for safety and security enhancements, to continue the Commonwealth Research Initiative, and to jump-start the Cyber Arts Initiative and other high priority needs.

In regard to capital funding, there are two different bills introduced this session to provide capital construction funding for higher education. In December, the Governor announced a General Obligation Bond Package for higher education which included a number of projects for Virginia Tech and Cooperative Extension and the Agricultural Experiment Station divisions.  Last week, Delegate Lacey Putney, Chairman of the House Appropriations Committee, announced the 21st Century Capital Improvement Plan which proposes a new long term capital construction plan and also includes a number of projects for Virginia Tech. We are grateful of the Governor and legislature’s recognition of the severe capital needs of the entire higher education system.  We need your help in communicating to legislators the importance of securing a major capital program for the 2008-2010 biennium.

If you have not already responded that you can attend, please RSVP to nhagen@vt.edu.  If you have specific questions about plans for the day, you may contact Betty Lee at our Alumni Office in Richmond at 804/786-8111, cell 540/798-7695 or by e-mail at bettylee@vt.edu.

Here is some information about Virginia Tech’s state funding over the past 8 years.  The Base Budget Adequacy, calculated by the state for Virginia Tech, is underfunded by $72 million. Additional comparison charts illustrate university needs from future General Fund appropriations.  Also, an article from the Roanoke Times is included regarding proposed legislation that could accelerate funding for the proposed medical school in partnership with the Carilion Clinic organization.

Budget graphics...

From the ROANOKE TIMES, January 24, 2008

Construction of a Roanoke medical school building planned by Virginia Tech and Carilion Clinic could start sooner than expected under legislation emerging in the House of Delegates. But because the bill radically changes a statewide bond package proposed by Gov. Tim Kaine, the legislation faces uncertainty as it moves through the General Assembly.

Del. Lacey Putney, I-Bedford, is sponsoring a bill that would authorize bonds for the $59 million medical school building and another $350 million worth of building projects at state colleges. House Bill 1547 also authorizes $152 million in debt to finance renovations at Western State Hospital in Staunton and for state park projects.

Kaine included the Roanoke medical school project in a proposed $1.6 billion bond package that would require approval from the legislature and by voters in a November referendum. Kaine's proposal relies on general obligation bonds, which require voter approval.

Putney's proposal would not need a green light from voters because the bonds would be issued by state building authorities. And, he noted, lawmakers already had approved planning money for the college building projects listed in his bill.  Putney said he also plans to attach an emergency clause to his bill so that it would take effect as soon as it gets signed into law. "I think it will be an economic stimulus to get these projects going early," said Putney, chairman of the House Appropriations Committee.

But Kaine spokesman Gordon Hickey said the governor's proposal "is much more robust" and guarantees funding for all projects in the package. "This proposal is big on planning and not very big on doing," Hickey said of Putney's bill. Putney introduced the bill Friday and legislative staffers outlined it at a committee meeting Wednesday.

In addition to approving $550 million worth of projects, the bill also proposes funding for "detailed planning" of future projects. Putney said the bill lists projects over a six-year horizon, allowing for thorough planning and vetting, better cost estimates, and the flexibility to respond to changing economic conditions. "Many of us have felt for a long time that we need to have an order to the process of funding capital projects," Putney said. "There's been a general feeling that we can do better in the planning and management of capital programs."

Putney pointed to cost overruns of more than $300 million on projects approved by voters in a 2002 referendum, which authorized $900.5 million in debt for college building projects. But legislators have acknowledged that factors including increased fuel and building material costs have played a role.

Roanoke's delegates said they approve of Putney's bill, partly because it could speed up the medical school project. The 150,000-square-foot building would be located in the Riverside Center for Research and Technology on South Jefferson Street and house a medical college, research institute and about 50 laboratories. The project has won favorable reviews from lawmakers in both parties.

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Virginia Tech Alumni Legislative Advocacy