Finance and BudgetUnderstanding VCU’s Finances

Education and General (E&G)

Education and General (also known as E&G) includes all of the University's academic programs and support services. They make up the core instructional related activities of higher education institutions, including instruction, student services, libraries, administration, and maintenance of facilities.

Capital funds, which are used to acquire or improve assets such as facilities, are designated funds and cannot be used for E&G programs or services.

Revenue

The state and students share the responsibility for funding E&G at public institutions. The state provides appropriations for public institutions while funding from students is derived from tuition and fee revenue.

  • Tuition and fees (61%)
  • State funding (36%)
  • Sales, services, gifts, other (3%)

FY24 Revenue Components of Education and General

Sales and Services include such things as clinical earnings in the School of Dentistry, external training programs and surveys.

Budgeted Revenue Gains for FY2024

Education and General (E&G) programs include all of the University’s instructional programs and related support services. This fund makes up about half of the FY24 $1.49B University budget. Revenue includes state appropriations, tuition and fee revenue, including sales and services such as fees from dental clinics.

FY24 E&G Budgeted Revenue Growth includes:

  • 3% tuition increase - $12.3M
  • State support increase (5% salary) - $13.4M

In order to properly budget E&G tuition and fee revenue, VCU uses a Responsibility/Revenue Center Management (RCM) Budget Model:

  • Enrollment revenue projections drive the School level budgets.
  • School level spending authority is directly impacted by a School’s enrollment performance.
  • Revenue for interdisciplinary courses are shared appropriately between the teaching schools.
  • Schools are rewarded for increasing enrollment.

Expenses

  • Personnel (77.8%) — includes salary and fringe benefits
  • Scholarships (8.4%)
  • Contracted services (7.4%)
  • Maintenance and repairs (3.2%)
  • Insurance and utilities (2.1%)
  • Other (1.1%)

E&G Expenses

Expenditure growth includes:

  • 5% Salary Increases - $27.4M
  • Virginia Military Survivors & Dependents Education Program (VMSDEP) waivers, & other aid – $7M
  • New facilities, maintenance, and utility rate increases – $9M
  • Academic, operational & compliance needs – $6.8M
  • Balancing the FY24 budget required 5% budget reallocations in the amount of $24.5M

Faculty and Staff Compensation
Faculty & Staff salaries make up a significant portion of the E&G budget. Aside from an employee’s base salary, there are additional costs to the University to cover what are called fringe benefits. These benefits are supplemental to faculty and staff salaries, and include retirement matches, tuition waiver, health insurance and life insurance coverage, Social Security and Medicare, Paid Leave, and more. The fringe benefits are currently 39.7% of salary expenses.

Additional Costs:

  • When the State government mandates a raise and/or bonus, they only provide support to VCU to cover approximately half of that cost increase. The remaining balance must be funded by VCU.

Balancing the E&G Budget

Balancing the budget requires multi-year projections and ensuring that VCU is advancing our strategic plan, and funding our operational needs.

E&G Revenue Sources

  • State Funds – dependent on the State Legislature 
  • Tuition and fees – dependent on enrollment and retention of our students
  • Sales & Services – makes up 3% of our overall budget

E&G Expense Needs

  • Competitive salaries and benefits for faculty and staff
  • Cutting edge technology
  • Appropriate spaces for student learning
  • Support services for students
  • Financial Aid for students
  • Managing inflation and contracted increases