1. www.mcguirewoodsconsulting.com 60 th Annual Legislative Work Conference & Southern Regional Education Board Meeting ____________________________ Comprehensive Statewide Policy Initiatives: Preparing for the Top Jobs of the 21st Century The Virginia Higher Education Opportunity Act of 2011 Deputy Secretary Laura Fornash June 28, 2011

2. Educating Virginians for Top Jobs and Incomes in the Knowledge-Based Economy 2 Timeline May 2009 Candidate Bob McDonnell announces higher education plan in campaign speech at George Mason University March 2010 Governor McDonnell issues Executive Order #9 creating the Higher Education Reform, Innovation and Investment Commission December 2010 Commission issues interim report calling for the “Top Jobs” legislation and Governor McDonnell announces $100 million investment in higher education February 2011 Legislation passes General Assembly unanimously

3. 3 YearAction 2005Passed the Restructured Higher Education Financial and Administrative Operations Act 2006Passed management agreements for Level 3 Institutions (UVA, VT, and CWM) 2007No legislation passed 2008 Passed management agreement with VCU; Level II is defined and provides additional autonomy in capital outlay, information technology, and procurement * Major capital outlay initiative passed 2009Extended term of Level III institutions to 2015 Restructured Higher Education Financial and Administrative Operations Act Timeline

4. 4 “Preparing for the Top Jobs of the 21st Century” The Virginia Higher Education Opportunity Act of 2011 1.ECONOMIC OPPORTUNITY Fueling economic growth and preparing Virginians for the top job opportunities in the knowledge-based economy 2.REFORM-BASED INVESTMENT Maintaining excellence and achieving global leadership through sustained, reform-based investment and innovation 3.AFFORDABLE ACCESS Providing all capable Virginians with access to a college degree at an affordable cost

5. 5 Outline of Major Provisions 1.ECONOMIC OPPORTUNITY a)100,000 More Degrees i.Enrolling more Virginia students ii.Degree completion by Virginians with partial credit iii.Improving retention and graduation rates b)STEM and Other High-Demand Degrees i.Economic opportunity metrics ii.STEM degree initiative c)Research and Development Initiative i.Statewide R&D strategic roadmap ii.Creation of Virginia Innovation Fund iii.R&D income tax credit

6. 6 Outline of Major Provisions 2.REFORM-BASED INVESTMENT a)Year-Round Utilization b)Technology-Enhanced Instruction i.“Virtual Departments” initiative ii.Innovative course redesign iii.Expansion of online course offerings iv.Electronic textbooks and online curriculum c)Degree Path Initiatives i.Dual enrollment and advanced placement ii.Community college transfer program iii.Accelerated degree completion iv.College readiness initiatives d)Restructuring Refinements e)Community College “Reengineering”

7. 7 Outline of Major Provisions 3.AFFORDABLE ACCESS a)Codified Funding Model i.Four-part framework ii.Restoring predictable state support iii.Reducing reliance on tuition iv.Higher education rainy day fund b)Per-Student Funding i.Tuition assistance grants (TAG) ii.Enrollment growth incentive funding c)Need-Based Financial Aid i.Targeting low- and middle-income families d)Incentives for Economic Impact and Innovation

8. 8 “Preparing for the Top Jobs of the 21st Century” The Virginia Higher Education Opportunity Act of 2011 Commits the Commonwealth to national and international leadership in college degree attainment and personal income. Puts Virginia on a focused and sustainable path of higher education reform, innovation, and investment. Establishes a clear state policy that will serve as a roadmap and catalyst for priority investment as the economy and revenues rebound. Provides the framework for developing and funding specific initiatives promoting economic opportunity, reform-based investment, and affordable access.

9. 99 TJ21 Funding Model: Framework Incentives for Economic Impact and Innovation Need-Based Financial Aid Per-Student Enrollment Growth Funding Basic Operations and Instruction

10. 10 Determining need for high demand enrollment, capacity, and resources in post secondary institutions Providing financial incentives to increase STEM enrollment and degree completion Incentivizing greater coordination in K-12 Enhancing teacher education and professional development Strengthening mathematics readiness Providing assistance in the acquisition and improvement of facilities and equipment Creation of a STEM Public-Private Partnership

11. 11 Chaired by the Secretary of Education Five representatives from central government and five from public higher educations institutions One private not-for-profit president selected by the Governor Governor AND Advisory Committee may designate other persons to serve on the Advisory Committee Committee makes recommendations to the State Council of Higher Education for Virginia who makes recommendations to the Governor and the chairs of the money committees Creates the Higher Education Advisory Committee (AC)

12. 12 Responsibilities 12 Incentives for Economic Impact and Innovation Need-Based Financial Aid Per-Student Enrollment Growth Funding

13. 13 Additional Responsibilities 4.Economic Opportunity Metrics 5.Additional authority, state goals and objectives each institution is expected to achieve, and criteria for measuring educational-related performance with regard to those goals and objectives, and the benefits and consequences for meeting or not meeting 6.The role of nonpublic institutions in addressing the goals set forth in this chapter and make recommendations regarding such matters

14. Federal and state financial aid programs and institutional practices to ensure that the appropriate level of financial assistance is being provided to both low-income and middle-income families The Restructured Higher Education Financial and Administrative Operations Act to identify additional ways to reduce costs and enhance efficiency by increasing managerial autonomy with accountability at the institutional level 14 Review Every Five Years

15. Assess the degree to which the Commonwealth’s system of higher education is meeting the statewide objectives reflected in legislation. Enactment Clause: Develop recommendations for creating of a Higher Education Revenue Stabilization Fund and a Higher Education Institutional Revenue Stabilization Fund 15 Review Every Five Years

16. Next Steps Higher Education Advisory Committee (AC) Six Year Plans Commission work resumes through the summer Regional strategies for workforce development, business recruitment, and research Optimal college degree access for military personnel and veterans 16

17. 17 More Information: www.education.virginia.gov