GOVERNOR’S AMENDED BUDGET RECOMMENDATIONS Virginia Community College System December 18, 2014

Budget Highlights No additional targeted funding reductions for institutions of higher education beyond Chapter 3 (2014) – ($8,226,680) or (2.2%) of E&G state funding for VCCS each year. Other state agencies face reductions based on submitted 5% and 7% budget reduction plans. Language eliminated that prohibited institutions from using tuition and fee increases to address the budget reductions. New language added allowing institutions of higher education flexibility in spreading reductions across programs. 2

Budget Highlights Student Financial Aid Language modified to permit use of state-funded financial aid for students pursuing industry-based credentials and adds $1.0 million in new funding for non-credit students at the VCCS. An additional $200,000 in state-funded financial aid for VCCS in FY Brings total state-funded student aid for VCCS to $38.1 million Technical adjustment increases non-general fund appropriation $25.7 million for revenue from fall 2014 tuition increases and $3 million for other non-general fund sources. 3

Budget Highlights Workforce Development $1.1 million in existing federal WIA Act funding reallocated to increase industry sanctioned non-credit credentials Capital No new state funding for capital projects except for $3.9 million in equipment for two previously authorized capital projects under construction at JTCC and BRCC. Maintenance reserve funding increased $400,919 in FY 2016 bringing VCCS total to $6.4 million Higher Education Equipment Trust Fund $2.15 million increase for VCCS in FY 2016 bringing VCCS total to $13.9 million FY 2015 reimbursements distributions delayed to 1 st quarter of FY Institutions allowed to use operating funds to purchase equipment and get reimbursed next year. 4

Questions? 5