University of the Virgin Islands
Approaching the Future
LaVerne E. Ragster, Ph.D.
President
Our Current Situation
! USVI deficit in millions
! Federal deficit in the Trillions, focus on 
security issues
! Budgets cut in 47 states, education large 
target
! VIG financial situation not likely to improve 
in next few years
Our Current Situation
! 2002-2003 UVI allotments from $24,669,686 
to $23,251,084 for operations
! UVI receives 65% of operating revenue from 
VIG
! FY 2003-04 Executive budget recommends 
$20,961,470 for operations, a 15% reduction 
from 2002-03 allotment level
Our Challenges
! The Territory needs a responsive, quality 
higher education institution-UVI
! UVI is a public institution, not a private one –
tuition and grants not major support
! Proposed level of funding cannot support 
current level of operations without 
jeopardizing the financial and operational 
integrity
Our Challenges
! No immediate source of revenues to absorb or 
offset the shortfall in appropriations
! Heavily dependent on VIG appropriations for 
operations
! Must maintain viable, competitive programs 
& services to raise revenues & attract 
students/clients
Goals
! A university that is financially sustainable & 
able to fulfill its mission
! A university that is less dependent on VIG 
appropriations & more dependent on resources 
over which it has control
! A leaner, more efficient and productive 
university
! Minimization of negative impacts from 
adjustments to resource levels
UVI in the Future
 
  Degrees        
 
  Research 
 Non Traditional         
        Programs 
 
 Community Service 
   Research 
Entrepreneurialism 
Collaboration 
Instruction 
Partnership 
Public Service 
Approaches
! Develop scenarios and approaches to address 
challenges using goals as targets
! Obtain Board input and support for basic 
approach to sustainability challenges
A Stepped Approach to Decrease 
Dependency on VIG  Appropriations
2005-06
60%
40%
VIG
Appropriations
Cost
Reduction/New
Revenue
2004-05
60%
39%
1%
VIG
Appropriations
Cost
Reduction/New
Revenue
Loan
2003-04
60%
35%
5%
VIG
Appropriations
Other
Revenue*
Loan
2002-03
65%
35%
VIG
Appropriations
Other Revenue*
The 2003 Budget Process
Involves:
! Development of components’ budget proposals
! Creation of University Budget Committee (UBC)-
heads of components or designee and elected 
representatives
! Election of representatives from research and 
teaching faculty, professional and regular staff to 
UBC (one member from each group)
! Development of budget guidelines for UBC by UVI 
Budget Office & Cabinet
The 2003 Budget Process
Involves:
! Training workshops for UBC representatives
! UBC reviews all submissions from components, 
develops recommended budget for Cabinet
! Cabinet meets to approve 2003-04 Budgets
! Final Budget reported out to components and UVI 
Community
! Sustainable Budget implemented by December 1, 
2003
What about me?  What next?
! Final appropriations level determined and 
Board direction by end of October
! Involvement in budget process begins 
September 22, 2003
! Continuous involvement in maintaining 
quality of core programs, identifying new 
revenue sources, building reputation, offering 
ideas for cost containment
UVI Specializes in Futures
Our future is dependent on our efforts together to 
Fly and Float as we demonstrate the critical 
importance and the limitless promise of higher 
education through UVI.