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UVI officials defend larger operating request as senators press limits of $3 million free-tuition cap
Summary
University of the Virgin Islands leaders told the legislative budget panel they re-built UVI's budget from the ground up and are asking for higher general-fund support amid rising utilities, mandate-driven costs and a $3 million cap on the free-tuition program that officials said covers about 700 students before the cap is reached.
University of the Virgin Islands President George told the Committee on Budget, Appropriations and Finance on the record that the university built its FY request "from scratch," and that the institution is seeking a higher general appropriation to cover operating costs driven by mandated programs, utilities and deferred maintenance.
The university asked for a $39 million general appropriation within a larger $49,851,535 budget figure cited during the hearing. Senators pressed the administration on how that amount translates to a per-student cost: Senator Viola calculated a $26,488 local share per student using the total figure and asked for justification of that high ratio.
Why it matters: senators said the territory is balancing competing funding demands — the judiciary, hospitals and other agencies also pressed for large increases — and sought detail on the parts of UVI's request that are new or expanded.
UVI officials attributed the larger request to several specific increases the university provided to the committee: a utilities trend that has grown by roughly $1.25 million compared with earlier years (from roughly $2.0 million to about $3.8 million over time); a $2 million line for deferred maintenance across campuses; a $1 million estimate for increased employer retirement matching tied to benefit changes; and a $250,000 estimate for minimum-wage related increases including fringe. President George said the university scaled an initial $51 million figure down but nonetheless built the operating budget from detailed unit-level cost estimates.
Free-tuition cap: senators focused closely on the territory's free-tuition program and the $3 million cap allocated to it. Senator Giddens and others asked how many students the cap supports and how the program is applied against Pell grants. President George's team said the program is applied first to tuition and that Pell is applied afterward to cover remaining expenses.
UVI told the committee that 548 students accepted free tuition in academic year 2024–25 and that the university dispersed $2,385,736 in free-tuition payments that year. Committee members noted that at an average tuition of about $4,300, the $3 million cap would only sustain roughly 700 students before the cap is reached; UVI officials said they are tracking enrollment and that reaching higher enrollment under free-tuition will require a different funding mechanism if the program expands beyond the capped amount.
Other program items: senators asked about a green-technology center and a $200,000 line that appears in budget appendices; UVI said the center is active, leads the campus energy audit and has partnered with RT Park and other entities on grant-writing and hazard-mitigation work.
What's next: senators asked the university for line-item justifications and asked UVI's chief financial officer to provide detailed back-up for the increases. President George said the university will provide more detailed breakdowns and that the administration is seeking ways to grow its independent revenue and philanthropic support so request levels can decline in future years.
