Addressing the Cost of Higher Education in Virginia

Report to the Governor and the General Assembly of Virginia

Addressing the Cost of Public Higher Education in Virginia

House Document 3 (2015) Commonwealth of Virginia

November 2014

Members of the Joint Legislative Audit and Review Commission Chair

Senator John C. Watkins

Vice-Chair

Delegate Robert D. Orrock, Sr. Delegate David B. Albo Senator Charles J. Colgan Delegate M. Kirkland Cox Senator Janet D. Howell Delegate Johnny S. Joannou Delegate S. Chris Jones Delegate R. Steven Landes Delegate James P. Massie III Senator Thomas K. Norment, Jr. Delegate John M. O'Bannon III Delegate Lionell Spruill, Sr. Senator Walter A. Stosch Martha S. Mavredes, Auditor of Public Accounts

Director

Hal E. Greer

JLARC Staff for This Report

Justin Brown, Associate Director David Reynolds, Project Leader Nicole Gaffen Nia Harrison Paula Lambert

Report No. 461

?2014 Joint Legislative Audit and Review Commission

January 27, 2015

The Honorable John C. Watkins, Chair Joint Legislative Audit and Review Commission General Assembly Building Richmond, Virginia 23219

Dear Senator Watkins:

In 2012, the General Assembly directed the Joint Legislative Audit and Review Commission to study the cost efficiency of the Commonwealth's institutions of higher education and identify opportunities to reduce the cost of public higher education in Virginia (HJR 108). This is the fifth and final report in a series of reports under HJR 108 released during 2013 and 2014. This report was briefed to the Commission and authorized for printing on November 10, 2014.

On behalf of Commission staff, I would like to thank the Secretary of Education and the State Council of Higher Education for Virginia for their assistance during this review. I would also like to acknowledge the staff at Virginia's 15 public higher education institutions, who were very accommodating to our research teams.

Sincerely,

Hal E. Greer Director

CONTENTS

Summary

i

Recommendations and Options

ix

Chapters

1. Factors Increasing the Price of Public Higher Education in Virginia

1

2. Public Higher Education Governance in Virginia

11

3. Increased Tuition Reliance as State Funding Declined

23

4. Revising Allocation of State Operating Funding

33

5. Limiting Auxiliary Spending

47

6. Limiting Capital Spending and Debt

63

7. Strategically Maintaining Facilities

81

8. Reallocating State Student Aid

95

Appendixes

A: Study Mandate

111

B: Research Activities and Methods

113

C: Recommendations Made in Prior JLARC Reports in Series

127

on Higher Education

D: Agency Responses

130

Online-Only Appendixes E: Selected Board of Visitors Survey Results F: Operating Spending G: Performance-Based Funding Programs for Higher Education H: Potential Athletic Savings Targets and Fee Reductions I: Annual Growth in Mandatory Non-E&G Fees J: Capital Spending and Existing Policies to Manage Levels

of Spending and Debt K: Strategies to Increase Graduation and Transfer Rates at

Virginia Public Four-Year Institutions L: Net Cost by Institution and Income Level M: Bibliography

ABBREVIATIONS

Auditor of Public Accounts Christopher Newport University College of William and Mary Department of General Services Department of Planning and Budget Education and General George Mason University James Madison University Longwood University Norfolk State University Old Dominion University Operations and Maintenance Radford University State Council of Higher Education for Virginia Six member advisory committee for institutional six-year plans Six-Year Capital Outlay Advisory Committee University of Mary Washington University of Virginia University of Virginia?Wise Virginia Commonwealth University Virginia Military Institute Virginia State University Virginia Student Financial Assistance Program Virginia Tech

APA CNU CWM DGS DPB E&G GMU JMU

LU NSU ODU O&M

RU SCHEV OpSix

6PAC UMW

UVA UVA-Wise

VCU VMI VSU VSFAP

VT

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