Radford University officials outline FY27 budget scenarios and potential tuition changes at board workshop

Radford University finance leaders told the Board of Visitors at a budget workshop that the institution is in a "healthy fiscal position" and walked the board through FY26 adjustments and FY27 planning scenarios, including several tuition-rate options and a possible change to the flat-rate credit threshold.

Dr. Rob Hoover, who led the presentation, said the university expects to end FY26 slightly above earlier revenue estimates largely because enrollment exceeded budgeted headcount (budgeted 7,812; actual 7,860). "We are in a healthy fiscal position," Hoover said, thanking enrollment, marketing and student affairs teams for their role in stabilizing revenue.

The workshop is preparatory only: no formal recommendations or votes were taken. Board members were told that tuition, comp fees, housing and dining recommendations will be presented for action in March after staff refine scenarios and incorporate final state budget decisions.

Why it matters: the options under consideration will affect student out-of-pocket costs and auxiliary services. State budget language and amendments in the governor's, House and Senate proposals could change the university's available state support and therefore influence how much of any cost increase must be borne by students.

Hoover described four primary FY27 drivers: the statewide and regional economic outlook, mandatory cost increases, legislative actions, and enrollment mix. He said the governor's December revenue update showed stronger-than-expected general fund receipts but noted signs of slowed regional job and housing growth.

On state-level impacts, Hoover summarized differences among the governor's proposed budget and House and Senate amendments. He said the governor had included language limiting tuition increases to the lesser of 2.5% or CPI; both the House and Senate drafts removed that tuition-cap language. Hoover also reviewed proposed undergraduate financial aid supplements, salary increases (the governor's proposal included 2% across the board; the Senate language referenced 3%), and a $1,500 bonus line in amendment drafts.

Hoover presented three tuition scenarios as illustrative examples of the FY27 impact: 3.5%, 2.5% and 1.5%, each tied to an enrollment projection of roughly 7,880 students submitted to the state. He quantified the revenue effects: approximately $1.7 million additional revenue at 3.5%, $1.2 million at 2.5% and about $750,000 at 1.5%. He also reported estimated per-student dollar impacts (for example, a 1.5% in-state undergraduate tuition increase would equal about $130 annually).

A separate policy option under consideration would raise the flat-rate tuition threshold from 16 to 18 credit hours. Hoover said the shift is expected to reduce tuition revenue by about $550,000 annually, an amount the administration expects to try to offset through enrollment and other adjustments; the board will see details when tuition recommendations are presented in March.

Auxiliary rates were also discussed. Housing increases were described as likely in the 4%–8% average range depending on residence hall and room type, and dining partners' contractual minimums were noted (contracted base increases of at least 3% with recommended adjustments in the 4%–8% range). Hoover explained comp fee sensitivity: 1% in the comp fee yields roughly $260,000 in additional revenue, while 3% is about $781,000 and 5% about $1.3 million.

Board members asked for more historical detail on previous years' ENG (education and general) underruns and asked staff to include a 2% tuition scenario among the materials. Hoover agreed to provide performance detail and additional scenarios to support the March recommendations.

The Budget Affairs Committee chair said the committee will receive the formal recommendations in March and urged board members to forward questions or additional data requests in advance. With no further questions, the chair adjourned the workshop.

Next steps: staff will refine models, incorporate the final state budget and return with tuition, comp fee, housing and dining recommendations to the Budget Affairs Committee and the full board in March.