Virginia Higher Education Update

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april 07 newsletterredo 4/24/07 1:33 PM Page 1 Virginia Higher Education Update Published by the Virginia Business Higher Education Council April 2007 We will continue to invent the future through

1 april 07 newsletterredo 4/24/07 1:33 PM Page 1 Virginia Higher Education Update Published by the Virginia Business Higher Education Council April 2007 We will continue to invent the future through our blood and tears and through all our sadness... We are the Hokies... - Nikki Giovanni, University Distinguished Professor, poet, activist On Behalf of the Higher Education Community, We Offer Our Support, and Remember Ross Abdallah Alameddine Christopher James Bishop Brian Roy Bluhm Ryan Christopher Clark Austin Michelle Cloyd Jocelyne Couture-Nowak Kevin P. Granata Matthew Gregory Gwaltney Caitlin Millar Hammaren Jeremy Michael Herbstritt Rachael Elizabeth Hill Emily Jane Hilscher Jarrett Lee Lane Matthew Joseph La Porte Henry J. Lee Liviu Librescu G.V. Loganathan Partahi Mamora Halomoan Lumbantoruan Lauren Ashley McCain Daniel Patrick O Neil Juan Ramón Ortiz-Ortiz Minal Hiralal Panchal Daniel Alejandro Pérez Erin Nicole Peterson Michael Steven Pohle, Jr. Julia Kathleen Pryde Mary Karen Read Reema Joseph Samaha Waleed Mohamed Shaalan Leslie Geraldine Sherman Maxine Shelly Turner Nicole White

2 april 07 newsletterredo 4/24/07 1:33 PM Page 2 April 2007 BUSINESS, POLITICAL AND EDUCATION LEADERS AGREE Mark D. Musick President Emeritus, Southern Regional Education Board The 2007 Virginia Business Higher Education Council Forum filled a very large room and there was agreement among elected officials, among educators from different colleges and universities, and among business leaders representing nearly every aspect of corporate Virginia. Yes, if you scratched deep enough you could uncover some non-sugar coated warnings or challenges for Virginia s leaders. But what I heard loudest among the Virginia business, political and education leaders was fundamental agreement about higher education and its essential role in Virginia s future. That agreement seemed captured in one term. As Virginia celebrates its 400 th anniversary it may seem like an odd idea to dominate a discussion of Virginia leaders in 2007, but there was no mistaking it.. INNOVATION was the term of the day. INNOVATION... directly and indirectly all who spoke agreed that innovation, driven by higher education, is Virginia s future. Governor Tim Kaine, Speaker of the House Bill Howell and Senate President pro tempore John Chichester had many impressive things to say about recent actions to spur higher education research and innovation in Virginia. Business leaders were equally certain of its importance to Virginia s future and one noted that innovation requires people, people with creativity, the ability to analyze information HIGHER EDUCATION LEADERS LEAVING LEGISLATURE Virginians recently learned that two of their foremost leaders and friends of higher education, Delegate Vince Callahan (R) and Senator John Chichester (R), will not run for re-election. All Virginians, especially college students, will unfortunately lose their combined 69 years of legislative experience and leadership. During their years of service they have helped in many ways to build what is recognized as one of the foremost systems of higher education in the nation. Although each man chairs the budget-writing committee of his respective body, their leadership has been STATE SUPPORT INCREASES The 2007 General Assembly added state support of $64.8 million for public colleges and universities Educational Operating Budgets, $13.7 million for Student Aid and $185.8 million for Capital Outlay. Table 1 shows these amounts as additions to the second year of the budget that was approved in June Educational Operating Budgets Continued on page 4 The General Assembly s operating budget increase of $64.8 million includes $22 million for base budgets and enrollment growth, $19 2 Continued on page 3 Continued on page 5

3 april 07 newsletterredo 4/24/07 1:33 PM Page 3 Business, Political and Education Leaders Agree Continued from page 2 and the ability to collaborate to find new ways to meet the many needs within our society. These are people with a college education. The problem is that research and innovation are two of Virginia s most important and yet most ungrateful friends. Research and innovation are always the first to ask What have you done for us today? Why? Because, first class research and an environment of innovation have to be developed and supported year-in and year-out. There was justifiable pride among all about what Virginia has done in higher education. A record boost in research that Virginia approved last year was very impressive. What will be more impressive will be an on-going funding plan about which there seemed to be agreement among Virginia leaders. It is when agreement on the critical role of innovation leads to consistent action each and every year that research and innovation establish deep and lasting roots. Several non-sugar coated warnings or challenges stood out among the general agreement and good news. Chief Operating Officer Marge Connelly of Wachovia Securities said that success in business requires a talented workforce. That means that we need to manage our higher education system in a way that results in certain attributes, including capacity and affordability. We need to create more supply in terms of secondary and post-secondary education graduates. But the compounding effect of relatively large college tuition increases over the past several years is starting to negatively impact access and choice and this detrimental trend will likely continue without some shifts in policy and practices. Senator John Chichester warned that despite recent actions Virginia may be behind the curve when it comes to investing in higher education research. Behind the curve is not where Virginians ever care to be and behind the curve in investing in higher education research is definitely not a place that a state or a state s universities want to be. The other warning that I heard was at the other end of the education spectrum. Ben Davenport, Chairman of First Piedmont Corporation, said that Virginia is behind the curve in pre-school education and that pre-school education is vitally important to help a segment of Virginia s population who are not going anywhere. He was saying bluntly that there are children whose lives are not going anywhere unless they get help, help that they are not getting, at an early age. But, again, what I heard the loudest was agreement among Virginia leaders about the critical importance of innovation and the role of higher education in leading it. Recent actions have been impressive. Now the question is what will Virginia do in its 401 st year? and the 402 nd...? 3

4 april 07 newsletterredo 4/24/07 1:33 PM Page 4 Higher Education Leaders Leaving Legislature Continued from page 2 more than setting funding levels. They have taken the lead in crafting policies that have resulted in prudent and sustained investment in education. The results of their leadership will benefit thousands of Virginia s students for a very long time. In January 2002, Delegate Callahan and Senator Chichester joined together to take ownership and direct passage of what resulted in the largest-ever capital improvement program for Virginia s public colleges and universities. The 2002 General Assembly, and subsequently Virginia voters, overwhelmingly approved the legislation they formed and sponsored. Their legislative package established a multiyear capital improvement plan with ongoing and predictable investment in buildings and infrastructure. Included, was a General Obligation Bond Issue of $846 million for public college and university facilities. An additional $376 million was appropriated to provide immediate funding for long-delayed college and university construction and renovation projects. Together, these investments began implementation of a new law that requires annual capital outlay funding of at least two percent of the state s general fund revenues. Prior to the Callahan- Chichester legislation, the state did not have a capital investment policy. Another landmark higher education accomplishment was the work of the Joint Subcommittee on Higher Education Funding Policies. Senator Chichester chaired and Delegate Callahan served on the group. The Joint Subcommittee s efforts resulted in the General Assembly adopting objective guidelines to assess the operating budget requests of Virginia s public two and four year colleges and universities. The guidelines have become state policy and are used to calculate base budget adequacy. Since 2004, they have been used as the primary benchmark in restoring state support for higher education. Delegate Vincent F. Callahan, Jr. is a native of Washington, D.C. and a Mclean resident since He served in the United States Marine Corp and later as a reserve officer in the Coast Guard. First elected to the House of Delegates in 1967, he is Chairman of the House Appropriations Committee and the ranking Republican member of the Virginia General Assembly. Delegate Callahan is a graduate of Georgetown University, did graduate work in journalism at American University and is an editor and publisher by profession. Senator John H. Chichester is a native of Stafford County and has served his home area in the Virginia Senate since Senator Chichester is a graduate of Virginia Tech and served in the United States Army and Army Reserve. He is the longest-serving Republican in the Senate and in 2000 was elected Senate President pro tempore by his colleagues. He has led the Senate Finance Committee as Chairman since 2000 and was co-chairman from 1996 to In 2004, he was selected as one of Governing Magazine s Public Officials of the Year and the following year received the State Legislative Leadership Award from the National Conference of State Legislatures. 4

5 april 07 newsletterredo 4/24/07 1:33 PM Page 5 State Support Increases Continued from page 2 million for a four percent faculty salary increase and $5 million more for research. The additional research funding includes $1 million for the Commonwealth Technology Research Fund, $500,000 for the Christopher Reeve Stem Cell Research Fund, $1 million for cancer research at Virginia Commonwealth University, $1 million for cancer research at the University of Virginia, and $1.5 million for the Virginia Coastal Energy Research Consortium. A portion, $7.2 million, of the additional $22 million for Base Budgets and Enrollment is contingent on an institution s tuition increase not exceeding six percent in order for it to receive its share of the $7.2 million. The $64.8 million also includes $12 million (included under Other ) for interest earnings on tuition and fee revenues that the institutions do not currently receive. Additional state support for , the second year of the biennium, now totals $285.5 million more than was provided in This represents good progress in the on-going effort to restore the deep funding reductions caused by the recession in the early 2000s. State Support At 45 Percent Table 2 shows that, with the additional funds approved for , the state-support proportion of the total funding for Educational Operating Budgets will be 45 percent. Total state support of $1,526.6 million for all of the colleges and universities is 45.2 percent of Continued on page 6 Table 1 Additional State Support for Virginia's Public Colleges and Universities Biennium With General Assembly's Actions (In Millions) State Support State Support General Assembly 2007 Total State Support (General Fund) (General Fund) Additional Support (General Fund) (General Fund) Educational Operating Budget Base Budgets & Enrollment $113.2 $123.8 $22.0 $145.8 Faculty Salaries New Facilities Research Initiative Virtual Library Equipment Purchase Debt Service Other Total $179.0 $220.7 $64.8 $285.5 Student Aid $10.9 $10.9 $13.7 $24.6 Capital Outlay Project Cost Supplements $150.7 $102.3 New Projects Planning - New Projects 10.7 Equipment Major Repairs - Maintenance Reserve Total $692.8 $

6 april 07 newsletterredo 4/24/07 1:33 PM Page 6 State Support Increases Continued from page 5 total funding of almost $3.4 billion. The remaining 54.8 percent, $1,849.5 million, comes from student tuition and fees and other non-state funds. The primary reason for the variation in the percentage of state support among the colleges and universities is the proportion of their student bodies that are Virginians. State support is provided for in-state students. Outof-state students are required to pay at least 100 percent of the cost of their education and most pay substantially more. Out-of-state students, in effect, subsidize the education of Virginians. A college or university with a higher proportion of Virginia students receives a relatively higher level of state support. For example, Virginia s community colleges get 57 percent of their Educational Operating Budget support from the state, while the University of Virginia gets 32 percent. Capital Outlay The additional $185.8 million in state support for capital outlay includes $102.3 million for project cost-increase supplements and $33.1 million to equip new facilities that will open during the biennium. Also approved are two new projects at Old Dominion University and Northern Virginia Community College as well as $10.7 million to plan several other new projects. The additional state support for capital outlay funding for public college and university facilities now totals $878.6 million for the Biennium. Table 2 Virginia's Public Colleges and Universities Percentage of State Support for Educational Operating Budgets (In Millions) State Support Amount Percent Tuition, Fees and Other Non-State Funds Amount Percent GMU $ % $ % ODU UVA VCU VT WM CNU UVAW JMU LU UMW NSU RU VMI VSU RBC VCCS Totals $1, % $1, % 6

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8 april 07 newsletterredo 4/24/07 1:33 PM Page East Main Street, Suite 1100 Richmond, Virginia 23219

Higher Education Six-Year Plans

Higher Education Six-Year Plans 2018-2024 House Appropriations Committee Retreat November 15, 2017 Tony Maggio, Staff Background The Higher Education Opportunity Act of 2011 included the requirement for