Book Description

Fluctuations in state funding present a tremendous challenge to the well being of Virginia public higher education institutions and the state's students and families. On a per-student basis, general fund appropriations declined by 49.6% ($5,909) on average at the four year-institutions and by 46.6% ($2,550) at the Virginia Community College System (VCCS) between 2001 and 2016, based on the adjusted budget for FY16. Since Virginia's students and their families are shouldering an increasingly high proportion of college costs, it is imperative that the Council's highest priority budget amendment recommendation focus on financial support for students. Student financial need has risen in the past years due to an increased number of students (both new and returning) demonstrating financial need, reduction in financial resources, higher tuition charges and other cost increases. With these cost increases and the slow recovery of the economy, the number of students demonstrating financial need increased by 78% from 71,043 students to 126,700 students between FY2011 and FY2014. The State Council of Higher Education made 2014-16 budget amendment recommendations presented in this report. The following recommendations are presented in priority order, with the assumption that limited additional general fund would be available in FY2016 given the weak economy and state budget situation: (1) Student Financial Aid; (2) Higher Education Equipment Trust Fund; (3) Funding budget items through tuition capacity; and (4) Develop a long-term financial plan. The following attachments are included: (1) FY2016 Virginia Student Financial Assistance Program Funding Proposal; (2) Higher Education Equipment Trust Fund (HEETF) Research and Workforce Development Equipment* (2015-2016); (3) Annual Average Virginia Teaching and Research Faculty Salary to Reach the 60th Percentile of Peers over Five-Years; and (4) Estimated Required Tuition Increases for Faculty Salary and O&M in FY2016.