"University President John T. Casteen, III addressed the University community in his annual State of the University speech Friday afternoon, which included discussion of issues such as state budget cuts, the Capital Campaign, student safety, the Living Wage Campaign and academic advances made in the past year.

Casteen asked those in attendance to be mindful of the risks to the University posed by a budget impasse in the Virginia General Assembly, which adjourned March 11 without agreeing to a spending plan.

'I have confidence, as I hope you do, that the General Assembly and the governor will resolve this impasse and conduct the public business,' Casteen said. 'But no one should underestimate the scale of the potential crisis if they do not.'

Casteen speculated on the effect the situation might have on higher education appropriations.

'It certainly puts everything ... at risk because when resolved, it will consume money, possibly money now allotted in the budgets adopted separately by both houses to our issues and needs,' he said.

Casteen stressed the $3 billion Capital Campaign, which will be kicked off publicly this September, as an important step in countering the University's growing dependence on revenue generated from the endowment.

According to Casteen, the endowment currently totals $3.4 billion. It earned $288 million this year. Because of spending policies, $90 million of the endowment is available for operating costs.

Casteen also noted endowment gifts are often restricted by donor stipulations governing how the funds will be spent.

During the speech, Casteen highlighted increased progress towards diversity at the University.

Currently, 54 percent of students are women and 23 percent are black, Native American, Asian and Latino.

Casteen also lauded the work of Chief Diversity Officer William Harvey.

Harvey 'has emerged as a significant leader in a short time, and we applaud him for what he has already accomplished and for what he will accomplish,' Casteen said.

While activists sat in the audience wearing sashes in support of the Living Wage Campaign, Casteen called the proposed wage 'revolutionary.'

The campaign 'relates to how one calculates the wage standard for the lowest-paid employees and ... in its intent to move responsibility for addressing social evils, including poverty, from government, which clearly fails to meets its obligations in many related areas,' he said.

Benjamin Van Dyne, a spokesperson for the Living Wage Campaign, said Casteen's speech missed the point of the campaign.

'The real point is whether all of the University employees are really members of our community of trust and if they are, then whether we will take care of them as part of our University community,' Van Dyne said.

Van Dyne added that Casteen made no mention of contracted employees, who do not necessarily make the University's lowest wage of $9.39 an hour.

Casteen also addressed safety issues that have arisen because of the popular Web site the Facebook.

Casteen reminded audience members of the murder of a student at Virginia Commonwealth University related to 'these sites [which can be] dangerous to those who do the postings.'

There will also be a national effort to 'find a solution before more die,' Casteen said.

The speech also highlighted improvements that are being implemented in undergraduate curriculum including more study abroad, more courses in the sciences, more interdisciplinary courses, fewer course requirements, better academic advising, a January Term and smaller classes.

College Dean Edward Ayers said the College has been making strides in these areas.

'Generally that's what we've been doing in the last five years,' Ayers said. 'I agree [these recommendations are] what our experience shows makes for good undergraduate education.'

Ayers added the University's graduation and retention rates are among the best in the country.

These improvements were recommended by a curriculum review report issued by Harvard in 2004, Casteen said.

Casteen concluded his remarks by reminding audience the University is a work in progress.

'Together we have the opportunity to extend [Jefferson's] vision and shape the University in our time and for the future,' Casteen said. 'This is both an obligation and a privilege.'" (Maggie Thornton, Cavalier Daily, April 24, 2006)