Financial Overview
The university’s continued focus on revenue growth and diversification, coupled with strategic expense management, innovation and philanthropy, resulted in a successful fiscal year. Transformative facility construction and renovation took place and the university concentrated on key financial sustainability efforts.
Fiscal Year 2023 Overview
At $587.3 million, operating revenues for the university and its affiliated foundations increased by $46.5 million — or 8.6% — over the prior year. The largest dollar increase was in state funds for the Commonwealth of Virginia’s share of salary and benefit increases, continued investment in affordable access funding and a one-time allocation for the relocation of the historic Bray School structure. Grants and contracts, 15.1%, and private funds, 11.9%, also both saw double digit percentage increases as William & Mary’s generous donors continue to strengthen to the university’s financial foundation. Increases in research reflect our commitment to the goal in Vision 2026 of Expanding William & Mary’s Reach.
FY23 expenditures totaled $562 million — an increase of $63.1 million or 12.6%. Increases were largely related to state mandated salary, wage and benefit actions, planned increases in instructional spending to align with growth in undergraduate enrollment and targeted growth in graduate and professional programs, and a full year of operating without travel and other restrictions stemming from COVID. The market value of W&M’s total endowment grew slightly over the prior year to a total of $1.36 billion.
Investments in academic facilities and infrastructure remain strong. With support from the commonwealth for construction and renovation of academic facilities, W&M has completed the first phase of the Arts Quarter, two state-of-the-art educational and performance buildings for its Music, Theatre, Dance and Speech programs. The Arts Quarter was officially dedicated over Homecoming & Reunion Weekend.
Construction is well underway on the last phase of the Integrated Science Center (ISC). Completion of this fourth and final ISC building is a key component to the new school that will join departments and programs focusing on Computer Science, Data Science, Applied Science and Physics, bringing together similar disciplines and fostering collaboration in teaching and research. The new school will address student and employer demand, respond to the employment needs of high-demand, growing data industries in Virginia, position W&M as a leader in the evolution of liberal arts education and further cement W&M’s ability to attract and retain world-class faculty in a competitive market.
William & Mary’s Virginia Institute of Marine Science is also investing in its facilities with a new research facility and an Eastern Shore Research Facility under construction.
The university has begun work on several other important facility improvements. The Martha Wren Briggs Center for the Visual Arts, which houses the Muscarelle Museum of Art, is undergoing a renovation and expansion that will triple the museum’s size. Progress on the revitalization of Kaplan Arena and the construction of a new Mackesy Sports Performance Center continues, with a new state-of-the-art scoreboard in the arena unveiled in the fall and renovations to the weight room and locker rooms in progress. In addition, W&M kicked off the first phase of its comprehensive housing and dining facilities master plan, which includes renovations to existing facilities and construction of new buildings to replace failing and outdated ones.
In FY23, W&M was able to hold tuition flat for in-state undergraduates for the fifth year in a row.
Sustainable Success
Holding tuition flat was made possible in part by the execution of an intentional plan to grow the undergraduate student population by 600. This plan has been successful in generating additional resources while maintaining the most personal learning experience of any public institution in the nation. It is essential to maintain our distinctive identity as a “Public Ivy” to sustain student demand and the financial health of the institution. In concert with seeking out new ideas to expand resources, it is imperative that W&M continuously assess its operations for opportunities to automate and provide cost savings.
One recent example of looking for innovative ideas to improve the student living and learning experience is the first public-private partnership W&M entered into with Balfour Beatty Campus Solutions LLC and the Provident Group-Williamsburg Properties LLC in July 2022. The partnership will develop approximately 1,200 residential beds over five buildings and a new 50,000-square-foot dining facility to replace existing facilities. The partnership structure allows William & Mary to deliver high-quality buildings, in keeping with our campus standards, at an accelerated pace while protecting our debt capacity. The project provides current and future students with the benefit of best-in-class facilities in which to live, learn and dine.
A key part of the sustainability of the university’s financial picture is the generosity of alumni, parents, family, students, faculty, staff, friends, foundations and corporations. The resources generated from private giving provide a margin of excellence to sustain the institution’s mission to afford exceptional students the opportunity to attend W&M through scholarships; enhance the ability for school and departments university wide to provide quality educational experiences for students; renovate and construct academic and auxiliary facilities like those in the new Arts Quarter and Kaplan Arena; and invest in key strategic priorities like
Vision 2026.
As we plan for the future, we focus on maintaining the relationships and successes that have made William & Mary a leading institution, while constantly assessing and evolving our overall resource picture to ensure that we continue to thrive for years to come.
