U.Va., W&M brace for new cuts

University of Virginia President John Casteen is warning the U.Va. community that deeper budget cuts are almost certainly on the horizon.

Casteen also signaled that tuition increases are likely and didn't rule out layoffs if the state economy continues to worsen, but said the university intends to do everything it can to avoid them.

College of William and Mary President Taylor Reveley sent a similar notice to his campus last week, although he said that compared with most other colleges and universities, W&M "has come through the recession relatively well to date."

Gov. Timothy M. Kaine has instructed state agencies, including colleges and universities, to prepare for reductions of 5 percent, 10 percent and 15 percent of state appropriations for the current fiscal year. Kaine is attempting to curtail state spending amid the ongoing recession that has caused tax revenues to fall far short of projections.

Casteen said the governor's order stipulates that whatever reductions are ordered in October, when the next state revenue report becomes available, may continue through the next budget biennium.

Under the worst-case scenario, U.Va. would have to slash roughly $19 million out of its state allocation. W&M would face a cut of up to $6 million.

Casteen said he cannot yet speculate how U.Va. departments will absorb the latest round of budget cuts, but the university would attempt to do so without resorting to layoffs. Rather than eliminating employees, U.Va. will instead continue to shrink its labor force by avoiding new hires and by not filling many positions left vacant by retirements, routine turnover and transfers.

"Layoffs are bad business logic in universities because our chief investments are in people whose whole-career accomplishments add up to the university's net value," Casteen wrote in an e-mail sent to the university community Thursday.

Reveley's letter did not mention specifics of where W&M will look to make cuts.

"Our plans are due to the governor by July 22. They will be general," he wrote.

Brian McNeill writes for The Daily Progress in Charlottesville.

Staff writer Karin Kapsidelis contributed to this report.