The Joint Legislative Audit and Review Commission (JLARC) has included the University of Mary Washington (UMW) among seven higher education institutions in Virginia identified as facing viability risks. A recent report highlights both challenges and positive trends that impact UMW’s financial health and operational sustainability.
JLARC Report Overview
The JLARC report, titled “Higher Education Institutional Viability,” assessed Virginia’s 15 four-year public colleges and universities, concentrating on revenue trends and various metrics. Eight institutions, such as George Mason University, Virginia Tech, and the University of Virginia (UVA), were categorized as having “very low viability risk,” which indicates that no state intervention is required. Conversely, UMW, along with six other institutions, was classified as having either “relatively low” or “some viability risk,” potentially necessitating periodic state oversight.
Institutions with Viability Risks
Among the institutions with relatively low viability risks are Christopher Newport University, Longwood University, Norfolk State University, and the University of Virginia’s College at Wise. UMW, along with Radford University and Virginia State University, has been noted for experiencing some viability risk and is actively pursuing plans to mitigate these issues.
Enrollment Challenges
The report pointed out a significant enrollment decline of 20% at UMW over the past decade, posing challenges for revenue generation. In a response to JLARC members, UMW President Dr. Troy Paino underscored the importance of context regarding current enrollment figures, referencing a strategic enrollment plan formulated prior to the COVID-19 pandemic. He emphasized that UMW is committed to enhancing the quality of the undergraduate experience and establishing partnerships with larger institutions rather than solely focusing on increasing enrollment numbers. It was noted that UMW’s current four-year enrollment aligns with levels from 25 years ago, a period marked by notable institutional success.
Graduation Rates and Facility Needs
Furthermore, the report recognized UMW’s graduation rates as a favorable indicator, noting that they exceed expectations. Nevertheless, it flagged the need for extensive repairs and renovations across the university’s facilities. Dr. Paino mentioned that UMW has allocated approximately $10 million for maintenance projects in recent years, an expenditure not included in the JLARC assessment.
Financial Challenges and Future Strategies
Additionally, UMW has been grappling with high debt levels, primarily due to adverse investment results from its foundation. In response to these financial challenges, UMW has begun acquiring foundation-owned property, which is expected to help alleviate its debt.
Looking ahead, Dr. Paino articulated strategies such as improving competitive pricing for out-of-state students, revising regulatory practices, and aligning educational programs with changing workforce demands as potential methods to enhance UMW’s viability, as well as that of other institutions in the state. He expressed a readiness to collaborate with the General Assembly to pursue these aims.
Source: Fredericksburg Free Press
