To Members of the University Community:
December 17, 2008

The current global economic crisis affects the University of Virginia in many ways—from state budget shortfalls and future reductions to substantial losses in the University�s endowment. I write to share with you our ongoing effort to address these challenges. Over the coming weeks and months, I hope that you will rely on this site as a resource.

In October, Governor Kaine released a plan to meet the state's 2009 fiscal shortfall of $973.6 million. The overall reduction for U.Va. was $10.6 million, or approximately 7 percent of our General Funds. On Dec. 17, Governor Kaine's 2010 budget was released with an additional 8 percent or $12.4 million in reductions that the University must absorb. The result is of these two cuts equals a total reduction of 15 percent, or $23 million of the state's $160 million allocation to U.Va's $2 billion budget.

These cuts did not come as a surprise. The Governor alerted everyone earlier this fall of the strong possibility of budget cuts ranging from 5 to 15 percent. Since then, we have been preparing for reductions. In bad times, we protect our core work of teaching, conducting research, providing best-practice care for patients, and providing public service. We seek to offer these essential services without noticeable interruptions.

A second effect of the global economic crisis is evident in the University's endowment, which has seen a decrease in value coinciding with the fall-off in global equity markets. The University of Virginia Investment Management Company, UVIMCO, is taking all available steps to assure the long-term health of the endowment.

Despite today's economic environment, we continue to make solid progress in the Campaign for the University of Virginia. Current and future support commitments totaled $1.783 billion as of the end of September. Generous gifts made during the first half of the campaign have given us momentum heading into the second half.

We have weathered economic downturns before. Today's situation requires us to make hard decisions. If we make these decisions wisely and with our values clearly defined, today's crisis can teach us new fiscal disciplines and improved strategic thinking. Through all of this, we will sustain our commitment to access for all qualified students who apply; to uninterrupted excellence in teaching, research, and patient care; and to a stable work environment for the staff and faculty members whose work and accomplishments have made our University the world's standard of excellence in public higher education.

A letter on the Economy's Impact on the University from President John T. Casteen III

A letter from Executive Vice President and Chief Operating Officer Leonard Sandridge