advancing the system of higher education in virginia the 1999 virginia plan for higher education
TRANSCRIPT
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Advancing the System of Higher Education in Virginia
The 1999 Virginia Plan for Higher Education
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Background:
SCHEV is assigned responsibility - “To prepare plans under which the several state-supported institutions of higher education shall constitute a coordinating system . . . The Council shall revise such plans biennially in each odd-numbered year. . .” (The Code of Virginia - §23-9.6:1)
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Overview of the Plan:
Preface and Introduction Vision Changing Needs and Expectations
– The Education Contract; Access; Quality; Affordability; Accountability
Planning Assumptions Goals and Recommendations
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Preface and Introduction:
Continue and calibrate the balance of excellent faculty & students, strong institutional governance, and effective, statewide planning
Focus on changes in the public policy framework in order to . . .
. . . Enhance each institution’s ability to achieve a system-wide vision by advancing its own distinct mission
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Preface and Introduction: (continued)
Reaffirms long-standing aims of access, quality, affordability, and accountability
Recommend changes in how we do business, rather than in what our business is
Plan to plan continuously and systematically
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Preface and Introduction: (continued)
Messages from Constituents:– Pride in excellence of VA’s public and private
colleges and universities, especially with regard to mission distinction;
– Responsibility of leaders to build on past successes and to guarantee continued excellence, access, and affordability; and
– College education is more important than ever
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Vision:
A system of results, framed by a shared vision to offer every citizen in Virginia full opportunity to attain a baccalaureate degree
A diverse set of institutions self-tailored to meet needs and choices of students
The public good of higher education
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Changing Needs and Expectations:
Complex, interrelated forces are driving change:– Demographic and social trends
– Economic conditions
– Technological development
– Shifting attitudes and values
– And many more
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The Education Contract:
Origins of the public commitment to universal access to higher education
Investing in the education of individual citizens promotes the well-being of society
Complex, wide-ranging benefits to many constituents
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Outcomes of higher education:
Educated citizens Skilled workers Life-long learners Economic
development Public service - land-
grant, health care, etc.
Advances in Knowledge & Culture
Research Primary & secondary
education Flourishing
communities
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Access:
Central to our vision Considerations include number and location
of institutions, academic programs, etc. Managing enrollment growth Opportunity to succeed, not just to enroll
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Quality:
Focus on outcomes, not inputs A value-added approach Emphasis on institution’s own efforts to
assess quality Council’s role in approving and auditing
assessment processes
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Affordability:
Controlling costs -- restructuring, tuition freezes, general fund support
A new approach to funding
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Accountability:
A new approach to accountability Change from pre-approval, regulatory
approach to post-audit, outcome approach Strong institutional governance Accountable to students and families
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Planning Assumptions: High quality at an affordable cost for all Diverse institutional missions are valued Enrollment growth and fiscal planning Decentralization combined with accountability Research and economic development Impact of SOLs Collaboration Distance education
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Goals:
1. Improved opportunities for strategic decision-making by institutions
2. Assessment of value-added outcomes 3. Improved system-wide planning 4. Increased collaboration 5. System approach to capital infrastructure
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Goal 1:
To improve the opportunities for strategic decision-making at all public colleges and universities by promoting decentralization within a context of continuous quality assessment
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Goal 1 - Recommendations:
1.1-1.5 Implement the new Performance Funding
Model 1.6 Decentralize appropriate
administrative activities 1.7 Minimize bureaucratic regulations
while assuring accountability
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Goal 2:
To strengthen the ongoing assessment of the programs and units at Virginia’s colleges and universities by focussing on outcomes and value-added analysis
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Goal 2 - Recommendations:
2.1 Revise the assessment guidelines 2.2 Modify the process to initiate
academic programs 2.3 Develop alternatives to evaluate
retention, graduation, and other indicators of student
outcomes
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Goal 2 - Recommendations:
2.4 New mechanism for reporting on progress in institutional strategic plans and assessment of outcomes
2.5 Ensure that approval of private and and out-of-state institutions is consistent with highest quality
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Goal 3:
To anticipate the future needs of all constituents of higher education through improved system-wide planning
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Goal 3 - Recommendations:
3.1 Fund cost of undergraduate education beyond what families can afford
3.2 Improve information for students in choosing a college
3.3 Review coverage of higher education institutions across Virginia
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Goal 3 - Recommendations (continued)
3.4 Plan enrollment based on capacity of public and private institutions
3.5 Innovative ways to extend coverage 3.6 Minimize barriers that delay student
progress 3.7 Improve linkages between campus
and statewide planning
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Goal 3 - Recommendations:
3.8 Enhance Boards of Visitors training 3.9 Continue Council’s campus-liaison
program 3.10 Continue and enhance dialog
between the Council and
Virginia faculty 3.11 Consider formalizing the
Council of Visitors
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Goal 4:
To encourage collaborative programming across institutions
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Goal 4 - Recommendations:
4.1 Policy changes to facilitate collaboration
4.2 Target development of new consortia
4.3 Intellectual property policies to support collaboration
4.4 Support for Statewide Workforce Training Council
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Goal 5:
To evaluate capital infrastructure at public and private campuses for the purpose of assessing system capacities and options for delivering academic programs
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Goal 5 - Recommendations:
5.1 Improve capital planning process 5.2 Funding for maintenance reserve 5.3 Reduce deferred maintenance
backlog 5.4 Use of technology for access 5.5 Support Higher Education
Equipment Trust Fund 5.6 Shared funding of research
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SCHEV’s Performance Grant Funding Model
State Council of Higher Education
May 1999
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Council Action
revised performance funding guidelines will reflect a decentralized or “block grant” approach;
Be It Resolved that the Council of Higher Education adopts the following funding model components:
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Council Action
the performance grant will comprise all Educational and General appropriations (E&G), all fund sources and, in addition, maintenance reserve funding;
Be It Resolved that the Council of Higher Education adopts the following funding model components:
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Council Action
staff will conduct an analysis of base funding adequacy;
Be It Resolved that the Council of Higher Education adopts the following funding model components:
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Council Action
the performance grant model will not provide for enrollment growth funding per se, but marginal enrollment growth may be accommodated through incentive funding recurring in the base and also through periodic re-evaluation of base budget adequacy;
Be It Resolved that the Council of HigherEducation adopts the following funding model components:
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Council Action
revised performance funding guidelines will include an incentive budgeting component;
institutions will be freed from unnecessary regulatory constraints, thereby allowing them to pursue their missions with greater efficiency and creativity;
Be It Resolved that the Council of HigherEducation adopts the following funding model components:
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Council Action
institutions would remain accountable to law and, as a minimum requirement of the block grant, would have to meet internal and external audit standards;
Be It Resolved that the Council of Higher Education adopts the following funding model components:
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Council Action
the state will provide general best practice guidelines/principles from which institutions would establish their own internal policies and procedures;
Be It Resolved that the Council of Higher Education adopts the following funding model components:
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Council Action
institutions that fail to manage their human, fiscal, and capital resources appropriately would fall into receivership, and if corrective action were not taken, would be closed;
Be It Resolved that the Council of Higher Education adopts the following funding model components:
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Council Action
annually adjust the block grant to account for such technical issues as one-time expenditures, annualization of salaries, lease payments for the Higher Education Equipment Trust Fund and to protect equal opportunity and Unique Military Activities funding.
Be It Resolved that the Council of Higher Education adopts the following funding model components:
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Council Action
use a Virginia-specific version of the Higher Education Price Index (HEPI) to calculate inflationary growth in the block grant, the specific version to be approved by the Council; and,
Be It Resolved that the Council of Higher Education adopts the following funding model components:
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Council Action
include maintenance reserve in the block grant and separately calculate future resource needs on the basis of general programmatic criteria.
Be It Resolved that the Council of Higher Education adopts the following funding model components:
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Council Action
propose specific thresholds as “triggers” for base budget adequacy review with respect to significant changes in institutional mission, programs, enrollments, and new construction;
Be It Further Resolved that the Council of Higher Education directs the staff to…
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Council Action
devise procedures and methods to review base budget adequacy for subsequent adoption by Council; and,
develop specific performance measures consistent with the general provisions adopted by Council.
Be It Further Resolved that the Council of Higher Education directs the staff to…
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Underlying Premise
Encourage innovation and efficiency by freeing our public colleges and universities from regulatory micro-management.
Hold our public colleges and universities accountable for the results they achieve with the public funds entrusted to them.
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How the Model Works
Performance based block grant to all institutions with deregulation
PLUS
Incentive funding for performance exceeding expectations
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The Performance Grant
Prior Year’s E & G Funding
+/- Technical Adjustments
+/- Inflationary Growth Factor
+/- Base Budget Adequacy Adjustment
E&G Funding equals
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The Performance Grant
The performance grant deregulates institutions at the front end of the process while holding them accountable at the back end.
After initial determination of base budget adequacy, subsequent growth in institutional budgets would be largely held to the rate of inflation.
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The Performance Grant
SCHEV would evaluate institutions performance on a variety of measures for early warning signals of potential problems.
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Incentive Funding
Performance measures outcome focused.
Incentive funding above performance grant drawn from pool of funds established for that purpose.
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Incentive Funding
Incentive funding, when awarded, becomes a recurring allocation in the institution’s base budget.
Staff have been directed to develop specific performance measures consistent with the general provisions adopted by Council.
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The Next Steps
The Council will use this model to make operating budget recommendations to the Governor and General Assembly this fall.
In this effort, Council staff will work this summer on a base adequacy analysis which will be incorporated into Council recommendations.
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The Next Steps
The Council will recommend legislation for the 2000 General Assembly Session to allow for the decentralization and deregulation called for in the model.
Staff will develop legislation to be submitted this fall to be submitted to the Governor and General Assembly for their action.
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Base Adequacy Analysis
In working with finance staffs of the colleges and universities, SCHEV will seek input on drafting the necessary legislation for deregulation and for examining a variety of options for assessing adequacy.
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The Next Steps
Over the next twelve months, staff will work on development of the predicted retention and graduation rates and development of transition rates for the VCCS.
Staff will also begin work on development of other outcome measures such as passage rates on exit exams, measures of post graduate placement, and faculty productivity.
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Institutional Involvement
As SCHEV staff proceeds in its assessment of base budget adequacy, drafting of legislation, and development of performance measures, SCHEV must recognize and encourage the involvement and input of campuses.
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Performance Measures
Working with Academic officers and institutional research, SCHEV seeks to improve upon already existing predictive measures for graduation and retention.
Working with this same group, SCHEV seeks to refine current transfer measures for the VCCS and to incorporate other transition variables into one single measure.
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The Challenge
Control over own resources
Predictable funding
Reward for excellence
Through this collaborative effort, the Council seeks to deliver on the basic elements for funding which colleges and universities have long sought:
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Join Us in This Challenge
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WinterOdd #Years
VA Plan Released
SpringOdd # Years
Draft Institutional Strategic
Plans Submitted
SummerOdd # Years
SCHEV Begins Scan for New VA
PlanFall
Odd # Years Final Institutional
StrategicPlans Submitted
SpringEven # YearsDrafting ofNew VA
Plan begins
Fall Even # Years
Institutional Reports on Progress in Achieving
Strategic Plan Goals
FallEven # Years
Drafts of New VA Plan
Circulated
Strategic Planning
Reporting Cycle
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To Learn More...
1999 Virginia Plan for Higher Education - http://www.schev.edu
Virginia Higher Education Performance Funding Model -http://www.schev.edu
Measuring Virginia Education: Can SCHEV Make a Difference? (from the Virginia News Letter) - http://www.schev.edu/wumedia/nov98nl.pdf
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Join the VaPlan List-Serve
In order to continue this important dialog about the Virginia Plan, the Funding Model, and their implementation, the Council has established a list-serve.
To subscribe to the moderated list-serve, please send the command “subscribe vaplan your name” in the body of the message to - [email protected]
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