Overview of Governor’s Proposed Amendments to the 2018-20 ...sfc.virginia.gov/pdf/Higher...

SENATE FINANCE & APPROPRIATIONS COMMITTEE

January 14, 2020

Overview of Governor’s Proposed Amendments to the 2018-20 Budget (Senate Bill 29) and the

Proposed 2020-22 Biennial Budget (Senate Bill 30) for Higher Education and Other Education

SENATE FINANCE & APPROPRIATIONS COMMITTEE 2

Background on Higher Education Funding in Virginia

2019 Session and Interim Updates

2020 Session: Overview of Proposed 2020‐22 Biennial Budget

Presentation Topics:


$1,397

$1,696

$1,447$1,337

$1,470$1,541

$1,645

$1,851

$192 $222 $257$341

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Higher Education Operating and Financial Aid (GF Appropriations, $ in millions)

HigherEducationOperating

Student FinancialAssistance(includingSCHEV)

10‐Year Trend (2010‐2020) = 62.3% increase

10‐Year Trend (2010‐2020) = 27.9% increase


Higher Education Institutions Ch.854, FY 2020 ($ in Millions)

GF NGF Total Dollars GF Positions

State Council of Higher Education for Virginia $109.3 $7.3 $116.6 46.0Christopher Newport University 36.3 132.7 169.0 341.6

College of William and Mary in Virginia 51.0 331.1 382.2 552.2George Mason University 176.1 944.1 1120.3 1082.1James Madison University 98.2 490.6 588.8 1167.4Longwood University 35.1 112.5 147.7 287.9Norfolk State University 61.2 105.0 166.2 497.6Old Dominion University 157.1 315.8 472.9 1084.5

Radford University 66.2 171.4 237.6 631.4Richard Bland College 9.4 10.5 19.9 72.4

University of Mary Washington 33.4 106.3 139.6 228.7University of Virginia 153.4 1484.4 1637.8 1084.6

University of Virginiaʹs College at Wise 23.5 27.0 50.5 171.5Virginia Commonwealth University 232.5 1022.8 1255.3 1507.8Virginia Community College System 451.1 754.1 1205.2 5558.6Virginia Institute of Marine Science 24.5 26.1 50.6 293.9

Virginia Military Institute 18.3 70.5 88.8 188.7Virginia Polytechnic Institute and State University 198.6 1246.6 1445.2 1890.5

Virginia State University 46.5 121.5 168.1 329.5


Other Higher Education Institutions Ch.854, FY 2020 ($ in Millions)

GF NGF Total Dollars GF Positions

Cooperative Extension and Agricultural Research Services $5.6 $6.6 $12.2 31.75

Eastern Virginia Medical School 30.4 0.0 30.4 0

Higher Education Research Initiative 28.0 0.0 28.0 0

Institute for Advanced Learning and Research 6.4 0.0 6.4 0

Jefferson Science Associates, LLC 1.8 0.0 1.8 0

New College Institute 2.6 1.5 4.1 17

Online Virginia Network Authority 3.0 0.0 3.0 0

Roanoke Higher Education Authority 1.5 0.0 1.5 0

Southern Virginia Higher Education Center 3.7 4.1 7.8 34.8

Southwest Virginia Higher Education Center 2.1 7.5 9.6 30

University of Virginia Medical Center 0.0 1987.7 1987.7 0

Virginia Cooperative Extension and Agricultural Experiment Station 73.0 18.2 91.1 730.24

• Virginia529 is an Independent Agency.


Virginia Tech

(36,383)

George Mason (38,255)

VCU(30,103)

ODU(23,675)

JMU(21,820)

UVA(25,018)

CWM(8,773)

RU(11,870)

LU

UMW

NSU(5,601) CNU

VSU

UVA Wise VMI

NorthernVirginia (50,931)

Tidewater

(20,941)

John Tyler

(10,144)

Reynolds(8,737)

Thomas Nelson(7,685)

Germ

anna(7,208)

Virginia Western(6,827)

Lord Fairfax(6,798)

PiedmontVirginia(5,445)

Liberty University (85,586) Regent

University (10,420)

Private 4yr Nonprofits (134,897 total students)Public 2yr (VCCS & RBC)(163,951 total students)

Public 4yr (223,438 total students)

Headcount Enrollment By Institution


Baccalaureate Inst. Average –In-State Undergrad

In-State Increase

In-State Charges

Out-of-State Charges

Tuition &Mandatory E&G Fees

$0 $9,274 $28,204

Mandatory Non-E&G Fees

175 $4,425 4,425

Room & Board 367 $11,000 11,000

Total $543 $24,699 $43,629

2019-20 Total “Sticker” Price(Net Price May Be Significantly Lower for Some Students, While a Student’s Total Cost of Attendance May be Much Higher)

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Va. Community Coll. System

Increase Charges

Tuition & Mandatory E&G Fees

0 $4,606

Mandatory Non-E&G Fees

0 14

Total $0 $4,620

• Students who complete an associate degree at a community college and transfer can save an average of $18,612 on the cost of a bachelor’s degree.

Source: SCHEV, Tuition and Fee Report.


Administrative and Operational Restructuring Levels of Autonomy

3 2 1

Level 3 Autonomy

Broad autonomy in multiple areas including finance, HR, IT, procurement, leases, and capital outlay. Adoption of performance and other standards.

Level 2 Autonomy

Initially allowed greater autonomy in 2 of 3 areas: procurement, IT, and/or CO. SCHEV must certify performance benchmarks and institution adopts 1 new education-related measure per area.

Level 1 Autonomy

Managerial autonomy with BOV commitment to the statewide goals. Eligible for financial incentives if meet educational and institutional performance benchmarks.

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Levels of Autonomy

1

2

3

Level 3 -CWM, UVA (UVA-Wise), VCU, & VT, & JMU*

Institutions with an unenhanced AA-bond rating or higher or a proven track record in two “Level 2” areas. Management agreement negotiated by the Administration and approved by the General Assembly. (In the case of JMU, institution receives interest from auxiliaries and tuition monthly, rather than retain.)

Level 2 -CNU, LU, ODU, RU, UMW, VMI, VCCS, & GMU (2+)

Those with an appropriate organizational structure to manage with limited state oversight and an approved memorandum of understanding (2/3 of the BOV) with respective Cabinet Secretary.

Level 1-NSU, RBC, & VSU

All with BOV commitment to the state goals.

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• In the 2018-20 biennium, over $285 million was added for Virginia higher education.

• 2019 Budget (Chapter 854) included:

• $15.5 million GF to support undergraduate need-based financial aid, and review of financial aid funding models and awarding practices;

• $52.5 million in FY 20 for in-state undergraduate tuition moderation (at FY 19 levels) plus $5.0 million operating support for the Virginia Community College System;

• $16.6 million GF to increase computer science degrees (tech talent pipeline); and

• Other items including $4.0 million GF for the New Economy Workforce Credential Grant program and $500,000 GF for the Innovative Internship Program.

2019 Session Higher Education Budget


For Students Attending Public Four-Year Institutions (2017-18 Data)

Average Income State Gift Aid Average Award Average Unmet Need

Low IncomeUnder 200% Federal Poverty Level (family of 4 = $49,200)

$20,196 $91M $2,688 $12,378

Middle Income201-400% FPL (family of 4 = $49,201 - $98,400)

69,152 $48M 1,915 11,118

High IncomeHigher than 400% FPL (family of 4 = $98,401)

127,800 $12M 647 6,158

Total/Overall $61,543 $151M $1,954 $10,498

Current “Partnership” Model:Unmet need = (Cost of Attendance * 70%) - Known Gift Aid - Expected Family Contribution

Financial Aid Allocation and Awards• Although Virginia has increased funding for need-based financial aid in recent years, the

percentage of unmet need has continued to increase.• Most of the state aid goes to low and middle-income students, but average unmet need for low

income students is over $12,000, even after taking other sources into account.


Financial Aid: Proposed Adjustments• In addition to the overall level of funding, some concerns with the current system have

included: complexity, linkage to tuition levels, equity, awareness and branding, and lagged data.

• SCHEV staff ’s proposed changes include:

1) Refining the current “Partnership Model” (using individual student’s actual Expected Family Contribution, average Cost of Attendance, and based on enrollment of low- and middle-income students, at an additional state cost of $45 million in 2020-22 Biennium),

2) Continuing in 2020 to review, with additional input, policies around award process (combine the two major state financial aid programs into one program, adjust minimum award amounts, etc.),

3) Provide additional criteria for the use of tuition revenue for aid, and

4) Expand outreach to improve student’s preparation for higher education (college access programs, FAFSA completion, etc.).


2019-20 2019-20

CWM $15,810-17,570 RU $7,980

UVA 14,148-24,386 LU 7,940

VCU 12,247-14,097 JMU 6,620-8,750

VT 11,595-13,595 ODU 7,047

VMI 9,284 RB 6,000

CNU 9,100 VSU 5,769

GMU 9,060 NSU 5,752

UMW 8,678 UVA-Wise 5,694VCU varies by School, and CWM varies by Level. UVA, VT, and JMU vary by both School and Level. See Appendix for detail.

Average In-state Undergraduate Tuition is $9,274From FY 2003 to FY 2019, Smallest Average Annual Tuition & Fee Increase was 4.5%


Source: SCHEV 2018-19 Tuition and Fees Report on-line. Italicized annotations added.

Early 2000s: Tuition freeze and budget reductions. FY 2003-05: Double-digit percentage tuition increases. FY 2004: Caps were imposed. Later tuition authority was returned to the Boards of Visitors.

FY 2008-09: Tuition Moderation Incentive Funds for limited increases. FY 2011-12: Increases averaged 13.1 percent and 9.7 percent, respectively.

Annual Increase of Average In-State Undergraduate Tuition & Mandatory E&G Fees


Six-Year Plans InstitutionFY21 T&F Increase Institution

FY21 T&F Increase

CNU 9.0% UVA* 4.0%

CWM* 3.0% UVA-Wise 7.9%

GMU 5.0% VCU 6.9%

JMU* 13.8% VMI 3.0%

LU 4.9% VSU 5.0%

NSU 5.1% VT 4.9%

ODU 15.0% VCCS 4.2%

RU 6.0% RBC 5.0%

UMW 7.5%

This table shows “Scenario 1: No New GF”. (Institutions submitted other scenarios for planning purposes, indicating lower tuition increases if additional state funding is provided.).*Tuition and mandatory fee amounts represent incoming freshmen rates.

• The Higher Education Opportunity Act of 2011 included the requirement that institutions annually submit six-year plans.

• Enrollment• Academic• Financial

• A six-person advisory committee (“op-six”) was established to review the plans and provide feedback to the institutions.

• Secretaries of Finance and Education• Directors of DPB and SCHEV• Directors of SFC and HAC

• Under a “no new GF” scenario, institutions indicated tuition revenue totaling $96.1 million for FY 21 and $152.3 million for FY 22, as well as GF requests of $25.5 million for FY 21 and $41.7 million for FY 22.


• Specific items reported include (but not limited to): • Anticipated levels of GF, NGF, and tuition support • Anticipated tuition and E&G fees charges by degree level and domicile• Financial aid sources and amounts, including grants and loans• # of Degrees awarded• Disclosure of any program changes• Restructuring requests• Resource sharing/partnerships with other institution's • Additional GF request to fund plans• Capital outlay request • Econ development/IP• Performance pilots

Other Components of Six-Year Plans


2019: Performance Pilots Requests

Pathways in High Demand Fields

Initiatives Related to Computer Science

Other Multi-faceted Proposals(Including Increased Out-of-State Revenue)

Did NotSubmit This Year

UMW –Fredericksburg’s Region Pipeline to Promise, $2.0 million

VCCS – Partner with NVCC and Amazon Web Services on cloud computing specialization, $2.2 million

GMU – Grow online student count to 25,000$11 million

CWM – Integrated support of workforce/economic development, enrollment management, access/affordability, and completion

RU, NSU, RBC

LU – True 2+2 BS in early childhood education, $137,310

ODU – Digital Innovation Academy$7.3 million

VCU – Innovative Internships, integrated into REAL program, $5 million

VT – VT CommonwealthPartnership: Talent & Affordability~$30.9 million

VMI - Reviewing options, will consider submitting in 2020

CNU – Expand Captain’s Connection$2.5 million

VSU – Petersburg Area Computing Education PATHWAY, $1.9 million

UVA/UVA-Wise – Talent Development Strategy$4.1 million

JMU – Employment-ready in high-demand fields, $2.0 million Note: Initial funding requests vary in duration, including one, two and five-year time periods.


• Virginia’s successful HQ2 bid included a tech talent investment program targeting 25-35K new computer science degrees (half bachelors, half masters).

• Focused on computer science, computer engineering, and software engineering as top feeders to the tech jobs that firms have the most difficulty filling.

• Up to $1.1B over 20 years (operating and capital), with a performance-based funding model.

Tech Talent: $1 Billion for Computer Science Degree Production


• 2019 legislation charged “Designated Reviewers” to develop the “Tech Talent Investment Program” (TTIP) structure and allocations.

• Consistent approach for GF per new degree (SCHEV calculations).

• Level funding over the time period, some reallocation of current degree levels but mostly overall growth in number of degrees.

• MOUs signed October 30th; some funding was set aside for VCCS and other proposals.

Tech Talent 20-Year Funding

Source: VEDP materials, August 2019.


2020 Session: Overview of Higher Education

• SB 30: proposed actions result in a net increase of $248.8 million over the biennium (another $125.2 million over the biennium is related to technical adjustments distributing funds from Central Appropriations).

• $145.1 million GF for a last-dollar community college new initiative (“G3”);• $45.4 million GF for student need-based financial aid;• $30.4 million for Tech Talent (in Central Appropriations);• $22.0 million GF each for GMU and ODU related to enrollment; • $20.6 million GF for student success items at VSU ($10.8 million) and NSU ($9.8 million); and • Additional funding for Massey Cancer Center, the Workforce Credential Grant program, Tuition

Assistance Grants (TAG), Jefferson Lab, and others.• Total above reflects a decrease of $28.0 million per year due to the elimination of the Higher Education

Research Initiative under the Secretary of Education.

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Higher Education: Student Financial Assistance

23

GF Actions for the 2020-22 Biennium ($ in millions)

VCCS – New “Last Dollar” “Get Skilled Get a Job Give Back” G3 Initiative $72.5 $72.5

Undergraduate Need-Based Aid (Commonwealth Award and VGAP) 15.1 30.3

Increase Workforce Credential Grant to $17.5 million/yr. 4.0 4.0

NSU –Va. College Affordability Network – Free tuition, some Room & Bd. for up to 300 local students 3.5 4.9

VSU –Va. College Affordability Network – Free tuition, some Room & Bd. for up to 300 local students 3.8 4.9

Tuition Assistance Grant (TAG) – Increase award to $4,000; online programs not eligible 3.0 3.0

Military & Survivors Dependents Stipends (<$1800 to offset room/board, books and supplies) 0.75 0.75

Subtotal $102.7 $120.3


Higher Education: E&G (Enrollment, Student Success, Instructional Expansion)

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GMU – Base Operations (To Account for Enrollment Growth) $10.0 $12.0

ODU – Base Operations (To Account for Enrollment Growth) 10.0 12.0

NSU – Information Technology 3.0 2.5

VSU – Data Modernization 1.6 0.1

UVA – Foundation for the Humanities – K-12 curriculum and classroom visits 1.0 1.0

VSU – Student Success Initiatives 1.0 1.2

NSU – Student Success Initiatives 0.8 0.8

VCCS – Hospitality Apprenticeship 0.25 0.25

ODU – Symphony Orchestra Minority Fellowships 0.25 0.25

LU – 2+2 Degree Pathway in Early Childhood Education 0.1 0.1

Subtotal $28.1 $30.2


Higher Education: Non-E&G Institution Specific/Research

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Computer Science Degree Production “Tech Talent” (in Central Appropriations) $15.2 $15.2

Increase Massey Cancer Center (VCU) state GF to $20.0 million/yr. 7.5 7.5

Jefferson Lab – Electron Ion Collider ($ unallotted until Governor authorizes disbursement) 2.5 2.5

Cooperative Extension State Match (VSU) 1.5 1.5

New Allocation for Research and Programming at Montpelier (JMU) 1.0 1.0

UVA – Increase Support for Focused Ultrasound Cntr. Programs and Research 1.0 1.0

Jefferson Lab – Increase Support for Center for Nuclear Femtography 0.75 0.75

VIMS – Saltwater Fisheries Survey 0.25 0.25

Continue $4 million/yr. for New HR Biomedical Research Consortium

Increase VA Biosciences Health Research Corp. to $5 million in FY 22 0.0 1.25

Subtotal $29.7 $29.7


• $72.5 million GF per year for a new “Get Skilled, Get a Job, Give Back” (G3) initiative, covering tuition, fees, and books for students with a family income less than 400% of the federal poverty limit enrolled in select pathways at community colleges, in high-demand fields.

(i) grants up to the last-dollar cost of tuition, mandatory fees, and textbook costs (for up to 150% of required credits), (ii) a student incentive grant up to $2,500 per year full-time students who are eligible for full Pell grant awards, and (iii) performance payments to institutions when a student incentive grant recipient reaches 30 hours ($400) and earns a

degree ($500).

• Students must submit the Federal & State Student Financial Aid forms, agree to complete Community Engagement requirements of 2 hours per credit hour, and maintain a required GPA and satisfactory academic progress (federal Higher Education Act), and make reasonable progress towards completion within three years.

• SCHEV and VCCS must work collaboratively to compile annual data on program participation and completion.

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Last-Dollar Community College Initiative (“G3”)


Need-Based Undergraduate Financial AidInstitution (GF $ in millions) FY 2021 FY 2022Christopher Newport University $124,800 $249,600College of William & Mary 66,500 133,000George Mason University 3,472,500 6,944,900James Madison University 639,700 1,279,400Longwood University 393,700 787,400Mary Washington University 235,200 470,300Norfolk State University 816,100 1,632,200Old Dominion University 2,668,500 5,337,000Radford University 1,269,200 2,538,400University of Virginia 160,200 320,300UVA at Wise 201,400 402,700VA Commonwealth University 2,319,200 4,638,400Virginia Military Institute 13,400 26,700Virginia State University 738,500 1,477,000Virginia Tech 811,600 1,632,200Richard Bland College 77,200 154,300Virginia Community College System 1,135,500 2,271,000Total $15,143,200 $30,285,800


• Expand Membership in the 4-VA Initiative. Adds VMI, VCU, and CWM to the “4-VA” public-private partnership. Current named institution members include GMU, JMU, UVA, VT, and ODU. Existing language allows the 4-VA Management Board to expand to additional institutions.

• UVA-Wise Indirect Costs and Auxiliary Operations. Exempts UVA-Wise from the requirement to recover the full indirect cost of auxiliary enterprise programs (food services, residential operations, student health services, parking, and athletics) for the 2020-22 biennium.

• Binding Arbitration. Allows public institutions of higher education to enter into agreements or contracts with nonprofit organizations that provide funding for research or other mission related activities and require use of binding arbitration or application of the laws of another jurisdiction, upon approval of the Office of the Attorney General.

• Performance Measure Change. Suspends development and administration of education-related measures for institutions with Level II restructuring authority (currently ODU, RU, VMI, LU, UMW, CNU, and VCCS). SCHEV recommended this moratorium while SCHEV reviews the performance assessment process going forward for these measures since some have been in place for almost 10 years and are not tied to performance funding. SCHEV also notes that Level III institutions which have more expanding authority do not have a similar requirement.

Other Higher Education Actions


SB 30: Other Education• Virginia Commission for the Arts $4.1 million GF each year for additional funding for grants to arts organizations,

bringing the annual General Fund amount for the agency to $8.1 million (all funds). Existing budget language states that it isthe objective of the Commonwealth to fund the Virginia Commission for the Arts at an amount that equals one dollar for eachresident ofVirginia.

Also recommends $135,000 GF each year to add a program coordinator, correct salary disparities, address audit concerns, andfund health insurance coverage of the current director.

• Jamestown-Yorktown Foundation. Reducing funding by $89,102 GF each year for consumer advertising and specialexhibition marketing.

• Jamestown-Yorktown Commemorations Reduces funding by $6.5 million from “Historic and CommemorationAttraction Management” associated with 400 year commemorations in 2019.

• Museum of Natural History. Includes the Museum’s budget ($3.0 million GF and $554,880 NGF per year, and 47.5 totalpositions) under the Secretary of Education, pursuant to Executive Order 31, signed on May 14, 2019, which transferredadministrative authority for the agency from the Secretary of Natural Resources.

• Science Museum of Virginia Extends to the Science Museum language already included for the Museum of Fine Artsallowing retail and food items for sale to the public to be exempt from the Virginia Public Procurement Act, however suchpurchases shall provide for competition where practicable.

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Overview of Governor’s Proposed Amendments to the 2018-20 ...sfc.virginia.gov/pdf/Higher...

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