Vincennes University's finance committee on Monday approved a biennial budget that includes a 2.9-percent tuition hike for students.
After a sparely-attended public hearing was held in May, the finance committee made quick work of pushing the increase forward as a part of its budget.
“We think this reflects well on the value we have here and where we stand financially,” Phil Rath, VU's vice-president of finance and government relations, said of the rather uneventful process of vetting the tuition increase to the public.
And, overall, finance committee members felt good about this latest two-year budget. With about $174.9 million in expected revenue over the next two years — and just $164.4 in expected expenditures — they may even end up with some reserves in the bank.
“We've got a strong budget,” Rath said with a definitive nod of his head. “VU is in great financial shape right now. I can't emphasize that enough.”
But with a state allocation formula that favors only those institutions with increasing enrollment, VU may be facing cuts the next time around.
VU has, for the last couple of years, seen a decline in enrollment, and as a result, the university ended this last two-year budget with about $4 million less in revenue.
To meet an expected 5-percent increase in utility costs, an estimated 8-percent increase in health insurance, another 1.3 percent hike in equipment needs and a 2.5-percent employee pay raise — they didn't get one last year — the university would need to raise tuition by about 7.6 percent.
But the proposed 2.9 percent increase is twice the 1.4 percent increase recommended by the state's Higher Education Commission.
So looking ahead, VU officials are trying to be as efficient as possible.
Rath said they have put into place “a lot of austerity measures” and “hunkered down” to stretch dollars. They didn't do a pay raise for staff last year and they aren't filling positions lost to attrition.
Of the current 42 open positions, Rath said they aren't likely to fill only about half of them.
Rath said it might be difficult to rely on the state for sufficient operating funds, so it will look to those things it can control.
“We can always rely on tuition and make sure we can fund our own operation,” he said. “I know we're two years out, but it will come around pretty fast.”
All hope is not lost, however, in terms of student numbers. While enrollment isn't projected to suddenly shoot upwards over the next two years, there are signs of stabilization.
Kristi Deetz, VU 's director of external relations, told members of the university's board of trustees in April that in terms of applications for the fall semester, enrollment seems to be on par with the same time last year.
They have also seen an uptick in the number of Illinois applications, whose tuition will be the same as Indiana residents. And VU, too, is performing very well among schools that offer Early College and dual-credit high school courses.
VU president Chuck Johnson said they will look to better retain students and improve graduation rates as well.
And with that, he said it's possible VU can begin filling some of those empty positions.
“I think it would be fair to say that as enrollment comes back, so, too, will the teachers,” he said Monday. “The bottom line is that we still offer great value in education and great quality in education.”
The full board of trustees is expected to approve the biennial budget when it meets later this month.
The proposed increase would increase the cost per credit hour to $191 but still leave VU the most affordable residential university in the state.
Overall, only Ivy Tech is less expensive at $139 per credit hour last year.
The University of Southern Indiana in Evansville is just above Vincennes, and it charged $237 per credit hour during the 2016-17 school year.