VMI board adopts $126M FY27 operating budget and approves 3% tuition increase

The Virginia Military Institute Board of Visitors voted to approve the institute’s FY27 operating budget, endorsing a proposed 3% tuition increase for both Virginia and non‑Virginia cadets as part of a $126 million operating plan. Finance committee members told the board the plan closes a projected $4.4 million gap while addressing rising costs and the institute’s lower auxiliary fund balance.

Terry, who presented the finance committee report, said the proposed operating budget reflects an increase of about $4.4 million over FY26 and includes a 3% tuition increase that would raise in‑state tuition to about $33,974 and out‑of‑state tuition to about $66,514. Committee members flagged a projected end‑of‑year fund‑balance drawdown and a steep health‑insurance cost increase (noted as a roughly 13% employer health‑insurance uptick) as items that drove the recommendation for targeted revenue increases and reserve use.

Board discussion highlighted athletics costs and enrollment assumptions that underpin the budget. Board members said growing the corps above 500 cadets remains a revenue priority because each matriculated cadet represents significant per‑student funding. After debate, a motion to adopt the FY27 operating budget, including the tuition and mandatory‑fee increases, was moved, seconded and carried by voice vote.

What the board approved: the FY27 operating budget totaling approximately $126 million, a 3% tuition increase for Virginia and non‑Virginia cadets, and a roughly 3% increase in mandatory fees. The committee recommended a mix of measures including continued alumni engagement and athletic‑cost controls to improve the fund balance over time.

Next steps: Institute leaders will begin implementation steps in time for the fall 2026 fiscal year and return to the board with updates on enrollment, athletic strategy and closing the fund‑balance gap.