Colleges may see funding rise for first time in five years

After five years of reductions in state funding, Virginia's public colleges and universities are in line to see "the first budget going forward that is higher than the previous year," the State Council of Higher Education for Virginia was told Tuesday.
On average the state's public colleges and universities could see increases of nearly 7 percent under Gov. Bob McDonnell's proposed budget, Dan Hix, SCHEV's finance policy director, told the council.
"Overall it's a very good story," Hix said of the reversal of fortune, noting state budget cuts over the last five years had cost the schools nearly $300 million, or 20 percent.
McDonnell last month proposed allocating an additional $100 million per year in the biennial budget for the state's colleges and universities as the next step toward implementing the Higher Education Opportunity Act adopted by the General Assembly last session.
About $25.5 million of that amount would increase base funding for operational costs. But much of the new funding would go to targeted areas to meet the goals of the act, also known as "Top Jobs" legislation for its emphasis on economic development through research and degree programs in high-demand fields of health and science.
McDonnell's budget proposal would reward schools that have enrolled more in-state students — another goal of the legislation — with $16.2 million to account for actual enrollment growth in the 2010-11 academic year.
From those funds, Virginia Commonwealth University and the Virginia Community College System would be the top beneficiaries. VCU would receive more than $2 million and VCCS would get $7.1 million.
The budget plan also would increase undergraduate financial aid by $6.4 million, Hix said. But no additional funding is included to aid graduate students, and a cap would be put on the amount of financial aid that the schools could generate through tuition increases.
Some universities in recent years have tried to soften the sting of tuition increases by setting aside a portion of the revenue raised for financial aid. However, the state's new Higher Education Advisory Committee plans to evaluate the appropriate use of tuition and fee revenue.
McDonnell's budget would eliminate the Eminent Scholars program, saving about $1.7 million a year. That program supplies salary supplements for professors who are nationally recognized in their fields.
McDonnell, whose proposals now go to the General Assembly for approval, also is seeking to phase out funding over three years for the Virginia Women's Institute of Leadership program at Mary Baldwin College.
Karin Kasidelis writes for the Richmond Times-Dispatch.