Agenda Book September 18-19, 2017

Location: Norfolk State University, Norfolk, VA

September 18-19, 2017, Council Meetings Schedule of Events

Norfolk State University 700 Park Avenue G.W.C. Brown Memorial Hall Replacement Building Norfolk, Virginia

September 18

12:00 –1:00 Executive Committee (Room 141) – Section A on the agenda (all members are invited)

1:00 – 3:00 Academic Affairs Committee (Room 142) - Section B on the agenda (Committee members: Katie Webb (chair), Carlyle Ramsey (vice chair), Ken Ampy, Rosa Atkins, Gene Lockhart)

1:00 – 3:00 Resources and Planning Committee (Room 141) - Section C on the agenda (Committee members: Marge Connelly (chair), Henry Light (vice chair), Stephen Moret, Bill Murray, Tom Slater, Minnis Ridenour)

3:30 – 5:00 Joint Meeting with Public College Presidents (Room 143) – Separate agenda

5:15 – 6:00 Walking Tour

6:00 – 7:30 Reception/Dinner (Room 230)

September 19

9:00 –12:30 Council Meeting (Room 230) - Section D on the agenda

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA Council meeting - Norfolk State University

Time: September 18, 2017 @ 12:00 PM - September 19, 2017 @ 3:30 PMEDT

Location: 700 Park Avenue, Norfolk, VA - GWC Brown Memorial Hall Replacement Bldg.

Description: September 18 - Committee meetings 12:00 - 3:00 / September 19 - Council meeting 9:00 - 12:30

Section Agenda Item Presenter Page

EXECUTIVE COMMITTEE A. September 18 - 12:00 PM - 1:00 PM (Room 141)

A1. --Call to Order Mr. Fralin

A2. --Discussion of SCHEV Legislative and Budget Proposals Mr. Blake 1

A3. --Motion to Adjourn

ACADEMIC AFFAIRS COMMITTEE B. September 18 - 1:00 - 3:00 PM (Room 142)

B1. --Call to Order Ms. Webb

B2. --Approval of Minutes (July 18, 2017) Ms. Webb 2

B3. --Action on Programs at Public Institutions Dr. DeFilippo 7

--Report on Advance Placement (AP) / International Baccalaureate B4. 12 (IB) Implementation

B5. --Report of the Staff Liaison to the Committee Dr. DeFilippo 29

--Action on Revocation of Certificate to Operate (American College B6. Dr. DeFilippo 32 of Commerce and Technology)

B6.a Exhibit 1 36

B6.b Exhibit 2 37

B6.c Exhibit 3 60

B6.d Exhibit 4 69

B6.e Exhibit 5 92 B6.f Exhibit 6 95

B6.g Exhibit 7 97

B6.h Exhibit 8 114

B6.i Exhibit 9 118

B7. --Motion to Adjourn Ms. Webb

RESOURCES AND PLANNING COMMITTEE C. September 18 - 1:00 - 3:00 PM Room 141)

C1. --Call to Order Ms. Connelly

C2. --Approval of Minutes (July 18, 2017) Ms. Connelly 122

--Action on Virginia Guaranteed Admission Program (VGAP) Mr. Hix and C3. 126 Regulation Amendments Mr. Andes

C4. --Discussion of Enrollment Projections and Degree Estimates Mr. Massa 144

C4a. --Attachments to Enrollment Projections and Degree Estimates 150

C5. --Discussion of 2018-20 Systemwide Operating Budget Mr. Hix 170

C6.a --Maintenance Reserve 212

C6.b --New Capital Outlay 215

COUNCIL MEETING D. September 19 - 9:00 AM - 12:30 PM Room 230)

C7. --Motion to Adjourn Ms. Connelly

D1. --Call to Order and Announcements Mr. Fralin

D2. --Receipt of Public Comment Mr. Fralin

D3. --Approval of Minutes (July 18, 2017) Mr. Fralin 224

D4. --Remarks from Eddie Moore, President, Norfolk State University

D5. --Report of the Agency Director Mr. Blake 235

D5.a Tuition and Fee Report Executive Summary 238

D5.b GEAR UP Virginia 2014-2021 242

D6. --Report from Committees

D6.a --Summary of Executive Committee Actions and Discussions Mr. Fralin 244 D6.b --Summary of Academic Affairs Actions and Discussions Ms. Webb 245

D6.c --Summary of Resources and Planning Actions and Discussions Ms. Connelly 247

D7. --Discussion of Updates to The Virginia Plan for Higher Education Mr. Blake 248

D8. --Receipt of Items Delegated to Staff Mr. Blake 254

D9. --New Business

D10. --Old Business Mr. Blake 259

D11. --Motion to Adjourn State Council of Higher Education for Virginia Agenda Item

Item: Executive Committee #A2 – Discussion of SCHEV Legislative and Budget Proposals

Date of Meeting: September 18, 2017

Presenter: Peter Blake, Director [email protected]

Most Recent Review/Action: No previous Council review/action Previous review/action Date: Action:

Background Information/Summary of Major Elements:

In addition to making budget and policy recommendations for all of higher education, SCHEV also has an opportunity to propose legislation and request budget adjustments for the agency itself. At the meeting, Director Blake will review the status of items under consideration.

Materials Provided: N/A

Financial Impact: N/A

Timetable for Further Review/Action: These items will be further discussed at the Council meeting on September 19.

Resolutions: N/A

September 2017 Agenda Book 1 STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA ACADEMIC AFFAIRS COMMITTEE JULY 18, 2017 MINUTES

Mr. Lockhart (Chair) called the meeting to order at 10:00 a.m. John Tyler Community College in Midlothian, Virginia. Committee members present: Gene Lockhart, Rosa Atkins, Carlyle Ramsey, Heywood Fralin, Ken Ampy.

Staff members present: Joe DeFilippo, Sylvia Rosa-Casanova, Beverly Covington, Paul Smith, Wendy Kang, Jodi Fisler.

APPROVAL OF MINUTES

On motion by Dr. Ramsey, and seconded by Mr. Fralin, minutes from the May 16, 2017, meeting were approved unanimously.

ACTION ON PROGRAMS AT PUBLIC INSTITUTIONS

George Mason University; Master of Science (M.S.) degree in Criminal Justice (CIP: 43.0104)

In attendance: George Mason University: Dr. Claudia Rector, Assistant Provost for Academic Affairs Dr. Stephen Mastrofski, Professor and Director of the Center for Justice Leadership and Management

Dr. DeFilippo gave an overview of the proposed program. He said there is an increasing need for analysts in criminal justice policy, particularly in government agencies. Existing programs tend to focus on theory, whereas the proposed program focuses on practical applications. Mason has special expertise due to having various centers dedicated to criminal justice. Student demand was demonstrated by surveys of students and agencies in Northern Virginia. Projected enrollment will satisfy viability standards. Four other institutions have a Masters in criminal justice in one form or another, but the level of duplication is not judged to be counter-indicative.

Mason representatives talked about the need for the program, saying that the program will give students practical skills to find solutions to crime issues rather than focusing on criminological theory. The jobs would mostly be in the public sector but there are a fair number of private non-profits that may employ graduates.

On motion by Mr. Ampy and seconded by Dr. Ramsey, the following resolution was approved unanimously to be forwarded to the full Council:

BE IT RESOLVED that the State Council of Higher Education for Virginia grants approval to George Mason University to initiate a Master of Science (M.S.) degree program in Criminal Justice (CIP: 43.0104), effective spring 2018.

September 2017 Agenda Book 2 Old Dominion University; Master of Science (M.S.) in Sport Management (CIP: 31.0504)

In attendance: Dr. Jeanie Kline, SCHEV Liaison Dr. Lynn Ridinger, Chair Human Movement Sciences

Dr. DeFilippo provided an overview of the proposed program and noted that it was first presented to the committee at the May meeting, at which time staff did not recommend approval. In response to feedback received from the Academic Affairs Committee in May, ODU produced a revised proposal, which staff recommends for approval. Some clarification, especially as to specific demand, was included. There is a growing demand for graduates demonstrated by job announcements in the field for individuals with expertise in data analytics and a Masters degree.

On motion by Dr. Ramsey and seconded by Mr. Ampy, the following resolution was approved unanimously to be forwarded to the full Council:

BE IT RESOLVED that the State Council of Higher Education for Virginia grants approval to Old Dominion University to initiate a Master of Science (M.S.) degree program in Sport Management (CIP: 31.0504), effective fall 2017.

Thomas Nelson Community College; Associate of Fine Arts in Visual Arts (CIP: 50.701)

In attendance: Patrick Tompkins, Dean of Communications, Humanities, and Social Sciences Susan English, Vice President for Academic Affairs

Dr. DeFilippo provided an overview of the proposed program. He said the Associate of Fine Arts is a new type of degree, nationally and in Virginia. Existing Associate of Applied Science (AAS) programs do not transfer effectively to BFA programs; students lose credits or have to acquire a large number of additional credits in order to continue. There is good evidence that the degree will articulate to a large number of institutions and surveys show sufficient student interest. Representatives from TNCC addressed the transferability of the degree and job demand in art education and art therapy.

On motion by Dr. Ramsey and seconded by Mr. Ampy, the following resolution was approved unanimously to be forwarded to the full Council:

BE IT RESOLVED that the State Council of Higher Education for Virginia grants approval to Thomas Nelson Community College to initiate an Associate of Fine Arts degree program in Visual Arts (CIP: 50.0701), effective fall 2017.

ACTION ON POLICY ON STUDENT LEARNING ASSESSEMENT AND QUALITY IN UNDERGRADUATE EDUCATION

September 2017 Agenda Book 3 Dr. DeFilippo introduced the assessment policy and said that it fulfills part of the strategic plan by addressing effectiveness of programs at the General Education level. Dr. Fisler presented the content of the policy. In regard to its structure, institutions will assess six areas of competency. Four are determined by SCHEV and the other two are selected by the institution. Institutions will create a publicly available report that will use data to tell about the quality of learning on campus. The report may address limitations of methods used and describe how the institution is using information to assess improvement. The policy was developed with a task force and there was a lot of support for the 4+2 structure. Three of the four competencies named come from the original SCHEV policy. One new one is civic engagement, which was the topic of discussion at a recent summit.

There was discussion about how the policy might motivate changes in curriculum and about the frequency of meeting with institutions and reporting back to Council. Dr. Fisler said would we like to do meetings on a two year cycle. The task force might be released, but some type of advisory committee will be kept in place. Mr. Fralin asked whether the task force discussed job placements. Dr. Fisler said that the task force members felt it would be asking too much of this policy to require post-completion assessment in addition to the learning outcomes component. Dr. Fisler did consult with career center directors and learned that while is some wage data for first year after graduation, it is self-reported and there is not a good response rate. Mr. Fralin requested that the topic be discussed with the task force or subsequently formed committee.

Dr. Ramsey asked about civic engagement and remarked that we should be able to assess whether students have mastery of the system of American civics and government. Dr. Fisler said that institutions were concerned about prescribing a particular curriculum or requiring hours of community service. The policy allows institutions the flexibility to measure this competency in a way that is appropriate for their students.

Mr. Lockhart asked that a report be provided to the Academic Affairs Committee at an appropriate time on the policy’s implementation.

On motion by Mr. Ampy and seconded by Mr. Fralin, the following resolution was approved unanimously to be forwarded to the full Council:

BE IT RESOLVED that the State Council of Higher Education for Virginia approves the Policy on Student Learning Assessment and Quality in Undergraduate Education, effective immediately, and directs staff to implement its provisions collaboratively with public institutions of higher education.

BRIEFING ON STATUS OF ACICS SCHOOLS OPERATING IN VIRGINIA

Dr. DeFilippo reminded the committee that last fall, the United States Department of Education (USED) announced it would pull the recognition status of the Accrediting Council for Independent Colleges and Schools (ACICS), the largest national accreditor of higher education institutions. At that time, Council granted provisional

September 2017 Agenda Book 4 authorization for ACICS institutions operating in Virginia to cover the 18 month period USED was allowing them to achieve accreditation with another recognized accreditor.

Ms. Rosa-Casanova provided additional detail. In order for an institution to be eligible for federal financial aid, it must have state authorization and must be accredited by an accreditor recognized by the United States Department of Education. Sixteen Virginia schools were affected by this. Staff analyzed each school and did individualized plans for each one to report on their status. All of the schools except for two—American College of Commerce and Technology and Global Health—have started the process with a recognized accreditor. Those schools are now one year out from when they will need to have an accreditor, so POPE is requiring additional information from them which is due next month. They will be evaluated at that time to determine whether teach out options may be necessary. The two schools have surety instruments. POPE also requested information about what schools will do with the records.

Mr. Fralin expressed concern about the extent of SCHEV oversight of regulated schools. He suggested there should be some review and evaluation of the quality of the schools. Ms. Rosa-Casanova clarified by explaining the extent of student protections provided in regulation, including approval of programs and audits. She also explained that while for-profits are often in the news, those are not all we regulate; many regulated schools are non-profits and public institutions from out of state. Dr. DeFilippo pointed out that the next agenda item would explain further the nature and extent of SCHEV oversight.

BRIEFING ON PRIVATE SECTOR REGULATION BY SCHEV

Dr. DeFilippo provided an overview of regulation of the private sector by SCHEV. The presentation is on page 71 of the agenda.

UPDATES TO VIRGINIA PLAN

The Committee received updates on Initiatives 1 and 4 of the Virginia Plan:

Ms. Kang provided updates on the Pathways grants. There was a kickoff meeting featuring a national speaker from Lumina. Grant recipients from the five institutions shared what they planned to do. They decided to collaborate to address the lack of qualified teachers for their dual enrollment programs. Pathways grants are one-time grants for 18 months, but the hope is that they will continue on their own.

Ms. Kang also discussed the College Advising Corps which is connected with GEAR Up. The program also addresses civic engagement because there is a service component. It will potentially impact 15 high schools. A report on College Access is also in progress to identify access providers and best practices. SCHEV is looking for ways to work with the Department of Education on incorporating career planning into the curriculum and also on how to implement teacher training so that teachers can incorporate career planning.

September 2017 Agenda Book 5 Mr. Massa presented on the wage and debt report and demonstrated the draft tool which will be available on the website. He advised there are limitations on the data, as it shows only grads working in Virginia, working in a position covered by employment insurance. Thus, it does not include federal workers, independent contractors, or graduates who go out of state. There is no information on number of hours worked, what kind of job position they are in, or location of work. The tool will allow examination of data showing a cross-section of institution size versus wages and average debt versus wages. Pursuant to HB 1664, the VLDS—a partnership between 10 agencies—is now a duty of Council. In addition, a privacy exemption allows record matching with federal government and other entities to get wage data.

Mr. Lockhart said we should work with partners to figure out how to utilize the VLDS to address specific questions.

REPORT OF THE STAFF LIAISON TO THE COMMITTEE

Dr. DeFilippo referred the committee to the liaison report, on page 88 of the agenda.

ADJOURNMENT

Mr. Lockhart adjourned the meeting at 11:55 a.m.

______Gene Lockhart Chair, Academic Affairs Committee

______Beverly Covington Staff, Academic Affairs

September 2017 Agenda Book 6 State Council of Higher Education for Virginia Agenda Item

Item: Academic Affairs Committee #B3 – Action on Programs at Public Institutions

Date of Meeting: September 18, 2017

Presenter: Dr. Joseph G. DeFilippo Director of Academic Affairs & Planning [email protected]

Most Recent Review/Action: No previous Council review/action Previous review/action Date: Action:

Background Information/Summary of Major Elements:

New Degree Programs Proposed  John Tyler Community College, Associate of Fine Arts in Theatre (CIP: 50.0501)  Northern Virginia Community College, Associate of Science in Criminology and Criminal Justice (CIP: 43.0104)

Financial Impact: See individual program summaries below.

Timetable for Further Review/Action: N/A

Resolutions:

BE IT RESOLVED that the State Council of Higher Education for Virginia grants approval to John Tyler Community College to initiate an Associate of Fine Arts degree program in Theatre (CIP: 50.0501), effective fall 2018.

BE IT RESOLVED that the State Council of Higher Education for Virginia grants approval to Northern Virginia Community College to initiate an Associate of Science degree program in Criminology and Criminal Justice (CIP: 43.0104), effective spring 2018.

September 2017 Agenda Book 7 John Tyler Community College Associate of Fine Arts in Theatre (CIP: 50.0501)

Program Description John Tyler Community College (JTCC) is proposing the creation of an Associate of Fine Arts (AFA) in Theatre to be initiated in the fall 2018. The proposed program will be housed in the Department of Arts, Humanities and Social Sciences located at the Chester and Midlothian Campuses.

The proposed program provides a pathway for students aspiring to transfer to a Bachelor of Fine Arts (BFA) program at a four-year institution. This program’s course of study is designed to parallel the freshman and sophomore years of performance oriented BFA programs at most colleges and universities. The 62-credit hour requirement for the degree falls within the range of 60-63 credit hours authorized by SCHEV and the VCCS. Graduates of the program will 1) demonstrate the ability to act individually and as an ensemble member; 2) create a performance portfolio demonstrating competencies in character analysis, text analysis, and self-reflection; 3) demonstrate competency in one or more technical areas; 4) demonstrate knowledge of theater history; and 5) demonstrate the ability to communicate ideas, concepts, and requirements related to the student’s professional practice to theatre professionals and laypersons. The proposed program requires 23 credit hours of general education coursework and 39 credit hours of core coursework.

Justification for the Proposed Program JTCC asserts that programs currently offered in the fine arts are not adequately serving students interested in transferring to a BFA program in theatre. Currently, students interested in transferring to a BFA program at JTCC are enrolled in an associate of art (AA) or associate of science (AS) degree program. These degrees are comprised primarily of general education courses that do not parallel the first two years of most BFA programs. Students graduating with an AA or AS are unable to transition seamlessly into BFA programs, which increases time to degree completion and cost.

Student Demand JTCC provided two sources of data to show student demand, historic enrollment patters in theater enrollment and a student interest survey. Enrollment in theatre courses over the last four academic years ranges from 117 to 155 students.

In September 2016 an AFA student interest survey was sent out to 43 students enrolled in theatre classes at JTCC. The survey group included a mix of AA and AS theatre majors and non-majors. Seventy-five percent of the respondents (n = 36) indicated an interest for more transferable courses in the fine and performing arts. Sixty-seven percent of respondents indicated an interest in the AFA degree. Additionally, 61% of survey participants indicated an interest in transferring to a BFA program.

Market/Employer Demand/Transfer Benefits

September 2017 Agenda Book 8 The proposed AFA in Theatre was developed in conjunction with JTCC’s major transfer partners, Longwood University and Virginia Commonwealth University. JTCC worked directly with Theatre departments at both institutions to develop a curriculum that aligned with the institutions’ BFA requirements. Both Virginia Commonwealth and Longwood have expressed their support of the proposed program.

Issues of Duplication Tidewater and Thomas Nelson Community Colleges offer AFA degrees. JTCC would be the first Virginia community college to offer an AFA in theatre, and will be the only college offering the AFA in its service area.

Resource Needs Material and equipment required for implementation of the AFA in Theatre are in place. No additional full-time faculty will be required. Anticipated increases in enrollment and course sections offered will cover costs for additional adjunct faculty (.5 FTE), and revenue generated from the theatre will cover anticipated additional hours needed for part-time theatre technicians (.25 FTE classified staff). The proposed program will require no additional space as existing classroom and performance facilities on the college’s Midlothian campus are sufficient.

Board Approval The State Board of Community Colleges approved the proposed program on May 18, 2017.

Staff Recommendation Based on a thorough review of the application, staff recommends that the Academic Affairs Committee adopt the following resolution and transmit it to the Council:

BE IT RESOLVED that the State Council of Higher Education for Virginia grants approval to John Tyler Community College to initiate an Associate of Fine Arts degree program in Theatre (CIP: 50.0501), effective fall 2018.

September 2017 Agenda Book 9 Northern Virginia Community College Associate of Science in Criminology and Criminal Justice (CIP: 43.0104)

Program Description Northern Virginia Community College (NVCC) is proposing the creation of an Associate of Science in Criminology and Criminal Justice to be initiated spring 2018. The proposed program will be offered at NVCC’s Annandale, Manassas, and Woodbridge campuses and overseen by the Department of Business and Related Programs.

The 61 credit hour program is designed to offer students interested in transfer a more efficient pathway into baccalaureate programs in criminology/criminal justice. The proposed program is specifically designed for transfer to George Mason University, NVCC’s primary transfer institution, without loss of credit. Graduates of the program will possess the knowledge to 1) Describe the challenges of law enforcement, judiciary, and corrections elements in today’s societal environment; 2) Describe the investigative responsibility and techniques in obtaining evidence during a follow-up investigation; 3) Illustrate a basic understanding of sources of criminal law and the elements of the various criminal offenses and legal defenses; 4) Describe the collection, identification, preservation, and introduction of evidence; and 5) Identify the impact of crime on victims, private business, and government institutions. The proposed program requires 43 credits hours of general education and 18 credit hours in core coursework.

Justification of the Proposed Program NVCC students currently interested in transferring into baccalaureate criminal justice programs must do so either through a General Studies program that is not specifically designed for them, or through an AAS program in Administration of Justice that is not a transfer program. In both cases students are subject to inefficiency in course taking and loss of credit upon transfer. The proposed AS degree allows the student to seek subject-specific advising and a seamless pathway for transfer.

Student Demand NVCC administered a student survey in April 2016 in criminal justice courses. Of 50 respondents, 84% plan to obtain a four-year degree with 91% of these students planning to transfer to George Mason University.

Enrollment in the existent AAS program remains high, with 485 enrolled and 88 students graduating in 2014-2015.

Market/Employer Demand/Transfer Benefits A 2016 transfer report conducted by NVCC showed 113 NVCC graduates transferred into GMU’s Criminology, Law and Society program in 2014-15. In addition, 9 graduates transferred to Virginia Commonwealth University’s Criminal Justice program. The report suggests substantial interest in two to four-year transfer into criminology/criminal justice programs. The proposed degree would provide students with an efficient transfer pathway that does not currently exist for NVCC students.

September 2017 Agenda Book 10 Both ODU and GMU have offered letters of support that recognize the benefits of the proposed degree.

Issues of Duplication NVCC has several programs under the Administration of Justice umbrella, but these programs are career rather than transfer oriented. Other community colleges offer similar programs; however, these program lack a transfer focus, and NVCC is the assigned provider of associate level education in northern Virginia.

Resource Needs The proposed program would be supported by existing levels of funding under NVCC’s Administration of Justice programs. The proposed program uses only existing courses, faculty, facilities, equipment, and learning resources. Funds will not have to be reallocated unless there is an unexpected growth in the total number of students in existing courses.

Board Approval The State Board for Community Colleges approved the proposed program on May 18, 2017.

Staff Recommendation Based on a thorough review of the application, staff recommends that the Academic Affairs Committee adopt the following resolution and transmit it to the Council:

BE IT RESOLVED that the State Council of Higher Education for Virginia grants approval to Northern Virginia Community College to initiate an Associate of Science degree program in Criminology and Criminal Justice (CIP: 43.0104), effective spring 2018.

September 2017 Agenda Book 11 State Council of Higher Education for Virginia Agenda Item

Item: Academic Affairs Committee #B4 – Status Report on Virginia Public Higher Education Policy on Course Credit for AP, Cambridge, CLEP, and IB

Date of Meeting: September 18, 2017

Presenters: Dr. Joseph G. DeFilippo Director of Academic Affairs & Planning [email protected]

Dr. Jodi Fisler Associate for Assessment Policy and Analysis [email protected]

Most Recent Review/Action: No previous Council review/action Previous review/action Date: March 21, 2016 Action: Council approved Virginia Public Higher Education Policy on Course Credit for AP, Cambridge, CLEP, and IB

Date: Council meetings in October 2015 and January 2016 Action: The Academic Affairs Committee received briefings on discussions with institutions and provided guidance to staff on draft iterations of the policy.

Background Information/Summary of Major Elements:

I. HB 1336 was passed by the 2015 General Assembly and signed into law by Governor McAuliffe, thereby creating Code of Virginia §23-9.2:3.10, which has since been re-codified (with no substantive change) as §23.1-906: A. The State Council of Higher Education for Virginia (Council), in consultation with the governing board of each public institution of higher education, shall establish a policy for granting undergraduate course credit to entering freshman students who have taken one or more Advanced Placement, Cambridge Advanced (A/AS), College-Level Examination Program (CLEP), or International Baccalaureate examinations. The policy shall: 1. Outline the conditions necessary for each public institution of higher education to grant course credit, including the minimum required scores on such examinations;

September 2017 Agenda Book 12 2. Identify each public institution of higher education's course credit or other academic requirements that the student satisfies by achieving the minimum required scores on such examinations; and 3. Ensure, to the extent possible, that the grant of course credit is consistent across each public institution of higher education and each such examination. B. The Council and each public institution of higher education shall make the policy available to the public on its website.

II. The 2015 passage of HB 1336 was the third time this section of code had been visited by the General Assembly since 2010. The table below summarizes legislative actions, by year:

Year Enactment Components 2010 SB 209:  Governing Boards shall implement policies granting credit to entering freshmen who have Enacts Code of completed IB or AP courses. Virginia §23-9.2:3.8.  Policies shall: o outline conditions for granting credit, including minimum scores on IB or AP exams; o identify credit/requirements satisfied by completion of the “diploma program;” o treat IB and AP comparably.  Governing Boards report to SCHEV and make policies available on web. 2011 SB 1448:  Innovations over prior statute: o Cambridge A-level exams added. Amends and o clarifications: Reenacts Code of . “course” replaced by “examination” Virginia §23-9.2:3.8. throughout; . “diploma program” replaced by “International Baccalaureate diploma program.”  Preserved: o comparability required in treatment of exams; o emphasis on minimum scores; o reporting to SCHEV and website availability. 2015 HB 1336:  Innovations over prior statute o SCHEV establishes policy, in Repeals Code of consultation with Governing Boards; Virginia §23-9.2:3.8 o CLEP exams added; o intra-institution comparability Enacts Code of replaced by consistency across Virginia §23-9.2:3.10 institutions and exams, “to the extent

September 2017 Agenda Book 13 Year Enactment Components (now §23.1-906). possible.”  Preserved: o emphasis on minimum scores; and o website availability.

III. Following enactment of §23-9.2:3.10, SCHEV staff commenced a program of research and consultation in the second half of 2015 and into 2016 that included the following:  research into standards and practices of the four assessments;  review of other states’ policies and statutes, with emphasis on recently enacted policies;  visits to six Virginia institutions to consult with faculty and administrators on institutional policies and practice;  meeting with senior staff of the Virginia Department of Education to gain feedback on draft policy in development;  reports to the Academic Affairs Committee at meetings in October 2015 and January 2016; and  discussions of draft versions of the policy with the Instructional Programs Advisory Committee (IPAC) at meetings in November 2015, January 2016, and February 2016.

IV. The policy approved by Council in March 2016 had been discussed extensively by IPAC, and received a strong consensus endorsement by that body prior to its adoption by Council.

Materials Provided:  Report on Virginia Public Higher Education Policy on Course Credit for AP, Cambridge, CLEP, and IB. The Report provides: o detailed background on SCHEV and institutional activities, which have been extensive, since Council’s March 2016 approval of the policy; o high-level analysis of results reported to SCHEV by institutions, including a breakdown of differences between institutional policies pre- and post-Council’s policy.

Financial Impact: N/A

Timetable for Further Review/Action: N/A

Resolution: N/A

September 2017 Agenda Book 14

August 25, 2017

Report on Virginia Public Higher Education Policy on Course Credit for AP, Cambridge, CLEP, and IB

Background In March 2016, in accordance with Virginia Code §23.1-906, Council approved a policy (appended here) requiring institutions to review their institutional policies regarding the award of credit for performance on Advanced Placement (AP), International Baccalaureate (IB), Cambridge, and College Level Examination Program (CLEP) exams. The policy asked institutions to grant the maximum credit for performance on the four exam types “consistent with the likelihood of student success and with the faculty’s judgment of consistency with the institution’s curriculum and academic standards.” Furthermore, Council’s policy established minimum score thresholds for each exam and asked that institutions provide evidence-based justification for any credit decisions that require a higher level of performance. In this way, the policy set forth expectations for the expansion of credit while also respecting the standards of individual institutions and the professional judgment of their respective faculties.

The following timeline describes actions that were taken in fulfillment of the policy aims:

March 2016: SCHEV staff met with representatives from all institutions within a few days of the policy’s adoption to explain the policy and the parameters for completing the reviews. Institutional faculty were charged to review each of the exams—a total of 190 exams for all four exam types—and determine the appropriate credit award in each subject for each score at or above the minimum threshold listed in the policy. SCHEV staff worked with staff at the College Board, IB, and Cambridge to provide syllabi, marking schemes, and other resources that faculty could use in determining the appropriate credit awards for each level of performance. Institutions were directed to begin planning and conducting their reviews immediately. Considering the time necessary to conduct a comprehensive and thoughtful review, institutions were asked to complete the process by the end of the 2016-17 academic year.

September 2017 Agenda Book 15 Report on AP, Cambridge, CLEP, and IB Credit Policies

Spring-Fall 2016: Institutional representatives shared the policy requirements and exam resources with faculty in departments related to the various exam subjects. Faculty reviewed the materials and gathered evidence to make their credit determinations.

Fall 2016: SCHEV staff requested an interim progress report from each institution.

January 2017: SCHEV staff conducted a phone meeting with institutional representatives to once again go over the instructions for completing the policy reviews and to discuss acceptable justifications for awarding credit at higher minimum scores.

Spring/Summer 2017: Institutional faculty continued work on their reviews. SCHEV staff reviewed the completed credit policy reports as they were submitted. Institutions were contacted individually when staff had questions or thought stronger justifications were necessary in specific cases. (Some of these follow-up conversations are still in progress.) Summary Report of Revised Credit Award Policies All 17 institutions—15 public four-year institutions, Richard Bland College, and the Virginia Community College System—have now submitted their final reports and the revised policies are in effect. Three key findings have emerged from SCHEV’s analysis of the institutional submissions.

1. Reviews have resulted in expansion of credit.

All institutions that were not already granting credit for the minimum score thresholds articulated in the SCHEV policy have expanded their credit awards in multiple subjects in at least one exam type. This has been accomplished by (1) lowering the minimum score accepted for credit on a particular exam, (2) establishing credit policies where none existed previously, (3) increasing the number of credits awarded for a given level of performance, and/or (4) extending credit to more students (e.g., majors as well as non-majors in a particular subject). Some institutions’ policies were already closely aligned with the SCHEV minimum thresholds and, therefore, did not allow for much revision.

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA 2

September 2017 Agenda Book 16 Report on AP, Cambridge, CLEP, and IB Credit Policies

The impact of the policy review process at each institution is evident in Table 1 (p. 6). The first two data columns show the number of AP exams for which credit was granted for a score of 3 before the review and after. The third column shows the net change in the number of exams for which students now get credit for a score of 3. The fourth column shows the number of exams for which credit has been expanded in any way, including expansion for scores above 3. (This table shows results for AP exams only. AP is the most common exam type and it is also the easiest to report in this format.)

Figures 1-4 (pp. 7-10) show the percentage of exams in each exam type for which credit is now awarded for the minimum scores stated in the SCHEV policy (e.g., a 3 for AP exams). Credit awarded for higher scores is not reflected in these charts. That is, if an institution awards credit for an AP score of 4 but not 3 on some number of exams, those exams are not included in the percentage shown in Figure 1.

Taking both Table 1 and Figures 1-4 together, we see that there has been a considerable increase in the number of institutions granting credit at the score threshold articulated in the policy, and even those institutions that maintain higher minimum scores have expanded their credit awards. Consider the following:

 Prior to the review, nine institutions granted credit for a 3 on 20 or more AP exams. That number has now increased to fourteen.

 Prior to the review, only two institutions granted credit for a 3 on at least 30 AP exams. That number has increased to nine.

 Five institutions more than doubled the number of AP exams for which they grant credit for a 3. Most of the other institutions could not reach that level because they were already granting credit for a 3 on the majority of exams.

 The most restrictive institutions (each granting credit for a 3 on fewer than 10 AP exams) are also the most selective: the University of Virginia, the College of William & Mary and James Madison University.

2. Rationales for higher minimum scores are based primarily on faculty judgment of student readiness for more advanced work.

In most cases, justifications for setting higher minimum scores or awarding no credit for certain exams center on (1) the actual performance of students in past years’ classes who

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA 3

September 2017 Agenda Book 17 Report on AP, Cambridge, CLEP, and IB Credit Policies had received credit or exemption based on the exam in question; (2) a review of the exam content and associated pre-college course curriculum, which in several cases was found to be lacking in topics or skills deemed essential for success in higher-level courses at that institution; and/or (3) faculty judgment that the introductory courses in their departments teach skills (not simply facts and concepts) that are necessary for student success in subsequent courses in that discipline at their institutions. The faculty making this judgment determined that essential skills are not adequately taught in high schools or assessed by pre-college exams, leaving students—particularly those with minimally passing scores—unprepared for the kind of thinking, discussion, and analysis that will be required of them in more advanced courses.

3. Institutions remain open to reviewing student work in cases where no formal policy has been articulated.

The SCHEV policy affords that an institution is “not required to award course credit for performance on an assessment whose subject matter is not offered in its curriculum.” This accounts for many of the non-credit determinations, particularly on the IB and Cambridge exams (which include exams in several foreign languages not taught at any of our institutions, such as Finnish and Hindi).

Similarly, institutions were not required to establish formal policies for exams that had never been submitted by their incoming students. In these cases, institutions were invited to indicate an “ad hoc” policy, under which credit would be determined as needed, if a student were to request credit for such an exam in the future. Many institutions adopted the “ad hoc” option in several subjects, particularly on the IB and Cambridge exams. Students, therefore, are not denied credit for their achievement in these subjects as measured by those exams; they will simply have to request an individual review to determine the appropriate credit award. Conclusion Although the institutions have completed their reviews, SCHEV staff continues to follow up in specific instances where clarification or additional information is needed. As of this writing, some institutions are still in the process of updating their catalogs and websites to reflect the new policies. Once the institutions have submitted the URLs, SCHEV will post a page on its website with links to each institution’s exam policies, as stipulated in Code.

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA 4

September 2017 Agenda Book 18 Report on AP, Cambridge, CLEP, and IB Credit Policies

This policy required an extensive effort on the part of institutions to coordinate and conduct reviews of a large and diverse array of exams. It was not intended to establish a single standard across all institutions and, indeed, Council was very careful to give institutions the flexibility to maintain their own academic standards in setting their institutional policies. The results clearly show that on the basis of these reviews, most institutions have expanded the amount of credit they offer for performance on pre- college exams, and many more are giving credit at the threshold scores set forth in the policy. The majority of institutions now grant credit for the threshold scores on the majority of exams; this was not true before the passage of HB 1336. The most selective institutions remain the most restrictive, as one would expect, given the demands of their curricula. Where institutions have set more rigorous policies, they have articulated rationales that are based in evidence and the professional judgment of their faculty about students’ level of mastery and likelihood of success in subsequent courses.

The results of the analysis reported above demonstrate that the institutions have engaged in this process thoughtfully and with due consideration of the law’s intent that credit granted be consistent across institutions “to the extent possible.” While respecting the uniqueness of institutions and the primacy of student success, the policy has resulted in greater consistency in institutional policies and higher awards of credit for talented students entering Virginia’s college and universities.

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA 5

September 2017 Agenda Book 19 Report on AP, Cambridge, CLEP, and IB Credit Policies

Table 1: Expansion of credit for AP exams (38 subjects)

Institution # of exams # of exams Net change in AP # of exams for granted credit for granted credit for exams granted which credit a 3 before the a 3 after the credit for a score of awards were review review 3a expandedb Christopher Newport U. 10 24 +14 14

College of William & Mary 7 9 +2 6

George Mason U. 6 33 +27 27

James Madison U. 6 8 +2 2

Longwood U, 12 29 +17 17

Norfolk State U. 22 22 0 9

Old Dominion U. 24 31 +7 12

Radford U. 22 29 +7 8

Richard Bland College 28 28 0 0

U. of Mary Washington 35 38 +3 11

U. of Virginia 0 0 0 12

U. of Virginia’s College at 13 38 +25 27 Wise

Virginia Commonwealth U. 26 34 +8 10

Virginia Community 36 36 0 0 College System

Virginia Military Institute 26 30 +4 4

Virginia State U. 12 30 +18 20

Virginia Tech 25 33 +8 9

a Some institutions’ reviews resulted in more rigorous credit policies in certain subjects. This column indicates the net effect of the policy reviews (i.e., the number of exams for which the minimum score was lowered to a 3 minus the number for which the minimum was raised to a 4 or 5). b This column includes expansion of credit for scores of 4 and 5.

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA 6

September 2017 Agenda Book 20 Report on AP, Cambridge, CLEP, and IB Credit Policies

Figure 1: AP Exams (38 subjects)

Percentage of exams for which recognition is awarded for a 3

CNU

CWM

GMU

JMU

LU

NSU Credit ODU

Ad Hoc RU

RBC Satisfaction of requirement (no credit) UMW

UVA

UVA-W

VCU

VCCS

VMI

VSU

VT

0% 20% 40% 60% 80% 100% Percentage of exams

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA 7

September 2017 Agenda Book 21 Report on AP, Cambridge, CLEP, and IB Credit Policies

Figure 2: IB Exams (68 subjects) Percentage of exams for which recognition is awarded for a 4 (Higher Level) or 5 (Standard Level)

CNU

CWM

GMU

JMU

LU

NSU Credit ODU

Ad Hoc RU

RBC Satisfaction of requirement (no credit) UMW

UVA

UVA-W

VCU

VCCS

VMI

VSU

VT

0% 20% 40% 60% 80% 100% Percentage of exams

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA 8

September 2017 Agenda Book 22 Report on AP, Cambridge, CLEP, and IB Credit Policies

Figure 3: CLEP Exams (33 subjects) Percentage of exams for which recognition is awarded for a score of 50 on a C-level exam

CNU

CWM

GMU

JMU

LU

NSU Credit ODU

Ad Hoc RU

RBC Satisfaction of requirement (no credit) UMW

UVA

UVA-W

VCU

VCCS

VMI

VSU

VT

0% 20% 40% 60% 80% 100% Percentage of exams

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA 9

September 2017 Agenda Book 23 Report on AP, Cambridge, CLEP, and IB Credit Policies

Figure 4: Cambridge Exams (51 subjects) Percentage of exams for which recognition is awarded for a score of C (A-level of AS- level)

CNU

CWM

GMU

JMU

LU

NSU Credit ODU

Ad Hoc RU

RBC Satisfaction of requirement (no credit) UMW

UVA

UVA-W

VCU

VCCS

VMI

VSU

VT

0% 20% 40% 60% 80% 100% Percentage of exams

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA 10

September 2017 Agenda Book 24

Virginia Public Higher Education Policy on Course Credit for AP,

Cambridge, CLEP, and IB

Virginia Code §23.1-906, enacted by the 2015 General Assembly, states:

A. The State Council of Higher Education for Virginia (Council), in consultation with the governing board of each public institution of higher education, shall establish a policy for granting undergraduate course credit to entering freshman students who have taken one or more Advanced Placement, Cambridge Advanced (A/AS), College-Level Examination Program (CLEP), or International Baccalaureate examinations. The policy shall:

1. Outline the conditions necessary for each public institution of higher education to grant course credit, including the minimum required scores on such examinations;

2. Identify each public institution of higher education's course credit or other academic requirements that the student satisfies by achieving the minimum required scores on such examinations; and

3. Ensure, to the extent possible, that the grant of course credit is consistent across each public institution of higher education and each such examination.

B. The Council and each public institution of higher education shall make the policy available to the public on its website.

The State Council of Higher Education for Virginia (SCHEV) promulgates the policy guidelines below in fulfillment of the duty described by §23.1-906, and in accord with its general responsibility to establish policies for public higher education in the commonwealth, as per §23.1-203:15.3

3 “The Council shall…adopt such policies and regulations as the Council deems necessary to implement its duties established by state law. Each public institution of higher education shall comply with such policies and regulations.”

September 2017 Agenda Book 25

Prologue The purpose of the Virginia Public Higher Education Policy on Course Credit for AP, Cambridge, CLEP, and IB (the Policy) is to facilitate consistency, to the extent possible, across institutions in credit granting policies related to the referenced assessments. In keeping with priorities of the General Assembly, Governor, and Council, this Policy intends to  maximize students’ ability to earn college credit consistent with institutions’ academic standards;  enhance transparency for Virginia students seeking course credit for prior learning;  contribute to lower costs for Virginia families by enhancing students’ ability to complete a degree in a timely manner;  improve the college transfer environment; and  support quality of undergraduate education at Virginia public institutions.

Guidelines  Each public institution of higher education shall approve a policy or policies governing the granting of course credit to entering first year students according to their performance on the following assessments: • Advanced Placement • Cambridge Advanced (A/AS) • College-Level Examination Program (CLEP) • International Baccalaureate Institutional policies shall conform to parameters delineated under section II below.

 Parameters of Institutional Review and Policy-Setting A. Each institution shall review AP, Cambridge, CLEP, and IB exams in comparison to its course offerings and curricular requirements to determine the proper grant of credit for each level of performance at or above the minima specified:

1. (3) or higher on an Advanced Placement examination 2. (4) or higher on a higher level International Baccalaureate examination

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA

September 2017 Agenda Book 26

3. (5) or higher on a standard level International Baccalaureate examination 4. (50) or higher on a CLEP examination 5. (C) or higher on a Cambridge Advanced examination (A/AS) B. Institutional policies shall grant the maximum credit for each level of performance on each assessment consistent with the faculty’s review of the content of the assessment and its alignment with the following criteria:

1. institutional curriculum and academic standards; 2. qualitative and quantitative student success data; and 3. institutional persistence and completion patterns.

C. Each institution shall make a submission to SCHEV of its final policies, specifying grants of credit, if any, for each level of performance on each assessment, and providing justification for each case where the minimum threshold for granting credit is above the minimum indicated under II.A above.

D. Additional considerations

1. Students should be given the opportunity to earn the maximum credit consistent with the likelihood of student success and with the faculty’s judgment of consistency with the institution’s curriculum and academic standards. 2. The faculty shall have responsibility for specifying all curricular equivalencies for each level of performance on each assessment, to include (but not necessarily to be limited to) the following considerations: a. number of course credits granted; b. course designation(s) for which credit is granted; c. general education, program, or other degree requirements satisfied; and d. program-based exceptions to a-d. 3. An institution is not required to award course credit for performance on an assessment whose subject matter is not offered in its curriculum.

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA

September 2017 Agenda Book 27

 Process

A. This Policy takes effect immediately. SCHEV staff and institutional staff and faculty shall cooperate to facilitate approval of institutional policies as expeditiously as possible.

B. The Director of SCHEV may provide further guidance to institutions and establish whatever processes or advisory groups he judges necessary to facilitate institutions’ conformance with this Policy.

C. Each institution shall make its final policy or policies available on its web site in a format that is easily understood by the general public. SCHEV shall maintain a web resource that includes links to institutional policies.

D. Future changes to institutional policies shall be developed in conformity with this Policy.

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA

September 2017 Agenda Book 28

State Council of Higher Education for Virginia Agenda Item

Item: Academic Affairs Committee Item #B5 – Report of the Staff Liaison to the Committee

Date of Meeting: September 18, 2017

Presenter: Dr. Joseph G. DeFilippo Director of Academic Affairs & Planning [email protected]

Most Recent Review/Action: No previous Council review/action Previous review/action Date: Action:

Background Information/Summary of Major Elements: N/A

Materials Provided:

“Report of the Staff Liaison to the Academic Affairs Committee,” by Dr. Joseph G. DeFilippo.

Financial Impact: N/A

Timetable for Further Review/Action: N/A

Resolution: N/A

September 2017 Agenda Book 29 Report of the Staff Liaison to the Academic Affairs Committee, September 2017

Dr. Joseph G. DeFilippo Director of Academic Affairs & Planning

Advisory Committee on Dual Enrollment and General Education Transfer Joe DeFilippo and Paul Smith facilitated the first meeting of the Advisory Committee on Dual Enrollment and General Education Transfer on August 1. The meeting was attended by representatives from two- and four-year institutions, the VCCS, and the Virginia Department of Veterans Affairs. This committee is charged with the implementation of HB 1662 and SB 1234, both passed during the 2017 General Assembly. HB 1662 requires SCHEV, in consultation with each public institution of higher education, to establish a policy for granting undergraduate general education course credit to any entering freshman student who has successfully completed a dual enrollment course. SB 1234 requires SCHEV and each public institution of higher education to develop a passport credit program that will be offered at each associate-degree-granting public institution of higher education. Prior to the next meeting, SCHEV staff will develop a draft dual enrollment policy and a crosswalk of four-year institutional general education requirements with the VCCS’s Certificate of General Education. The next scheduled meeting is October 19.

Teacher Shortage Workgroup Joe DeFilippo and Ashley Lockhart staffed two meetings of the Governor’s Teacher Shortage Workgroup on July 20 and August 21. Council member Gil Minor is co- chair of the workgroup. As a result of its deliberations, the workgroup has identified five priority areas for recommendations (due October 1) to Governor McAuliffe: teacher induction; expedited pathways; compensation; retention; and school climate. Writing is underway and will continue through September.

September 2017 Agenda Book 30 Staff Activities and Recognition

Joseph G. DeFilippo  Attended the SHEEO Higher Education Policy Conference in Minneapolis August 8-11. Participated in a conference panel on Math pathways in Virginia, with Prof. Patricia Parker of Germanna Community College and VCCS.

Darlene Derricott  Attended SHEEO’s P-16 Professional Development (PD) Collaborative Pre- Conference and Higher Education Policy Conference held in Minneapolis, MN August 6-11. Dr. Denise Pearson, SHEEO Principal Policy Analyst, and member states exchanged information on PD programs, participant benefits, student achievement, and federal requirements for monitoring and closing the Improving Teacher Quality (NCLB) grant. Dr. Pearson informed the group that SHEEO’s focus will be redirected to teacher preparation and possible funding sources including the Kellogg Foundation, Kresge Foundation and the Thurgood Marshall College Fund.

Jodi Fisler  Presented on the new SCHEV assessment policy at the annual meeting of state leads for the Multi-State Collaborative, held in Minneapolis on August 7.  Attended the SHEEO Higher Education Policy Conference in Minneapolis August 8-11. Participated in a conference panel on the Multi-State Collaborative.  Attended an assignment design workshop for faculty in Southwest Virginia, held at Mountain Empire Community College on August 17. This was the first regional workshop to emerge from the “train the trainer” workshop sponsored by SCHEV in Richmond in February 2017.

Academic Affairs Staff: Ms. Beverly Covington, Senior Associate for Academic & Legislative Affairs Dr. Joseph G. DeFilippo, Director, Academic Affairs & Planning Ms. Darlene Derricott, Senior Coordinator, Academic Services Dr. Jodi Fisler, Associate for Assessment Policy & Analysis Ms. Ashley Lockhart, Regional Center Study Project Manager Dr. Monica Osei, Associate Director for Academic Programs & Instructional Sites Ms. Angela Patterson, Specialist for Academic Programs & Services Ms. Sylvia Rosa-Casanova, Director, Private Postsecondary Education Dr. Paul Smith, Senior Associate for Student Mobility Policy & Research

September 2017 Agenda Book 31

State Council of Higher Education for Virginia Agenda Item

Item: Academic Affairs Committee #B6 – Action on American College of Commerce and Technology (ACCT)

Date of Meeting: September 18, 2017

Presenter: Dr. Joseph G. DeFilippo, Director of Academic Affairs & Planning [email protected]

Ms. Sylvia Rosa-Casanova, Director, Private and Out-of-State Postsecondary Education [email protected]

Most Recent Review/Action: No previous Council review/action Previous review/action Date: Action:

Background Information/Summary of Major Elements:

Please note: materials and information presented in this agenda item will be subject to discussion and action only by the full Council on September 19. At the Academic Affairs Committee meeting, staff will be prepared to answer general questions about regulations and procedures related to revocation of a school’s certification. Details of the particular case under consideration should be raised in the full Council meeting.

This item concludes an administrative process instituted by SCHEV with reference to American College of Commerce and Technology (ACCT), a postsecondary institution granting baccalaureate and master’s degrees. ACCT was originally certified to operate on May 18, 2010, became accredited by the Accrediting Council for Independent Colleges and Schools (ACICS) in April 2015 and is currently operating without recognized accreditation due to ACICS’ loss of recognition by the US Department of Education on December 12, 2016. According to its August 2017 recertification application, 93% of ACCT’s students are international students admitted with F1 visas. The action recommended here—revocation of ACCT’s certificate to operate in Virginia—is the culmination of a process begun in February 2016, when an audit by SCHEV staff revealed numerous findings of non-compliance. These findings included violations related to fundamental issues of quality and institutional integrity, such as: unqualified faculty; failure to follow stated admissions standards, questionable English proficiency of students admitted to graduate programs and

September 2017 Agenda Book 32 substandard quality in instruction. The report of audit, enumerating the full scope of violations, is found in Exhibit 2.

Over the nineteen months since SCHEV’s initial audit, ACCT exercised its rights under the Virginia Administrative Process Act (APA). The action presented here for Council consideration follows an extensive process including the following steps:  Initial audit conducted February 2-4, 2016: Resulted in thirteen findings of non- compliance and two items of concern. (Exhibit 2)  Informal Fact-Finding Conference (IFFC) conducted May 1, 2016: Resulted in a determination that there was sufficient basis to continue with the process to revoke ACCT’s certificate to operate due to the severity of three unresolved items of non-compliance. (Exhibit 3)  Formal hearing conducted October 31, 2016: Resulted in a recommendation that ACCT’s certificate to operate not be revoked but that a lesser penalty be imposed. The hearing officer, Mr. William Rollow, recommended that the institution be granted time to come into compliance with SCHEV regulations; that SCHEV conduct a re-audit after the allotted time; and, “If said re-audit reveals that ACCT is still not in compliance, the instant proceeding to revoke ACCT’s certificate to operate should be resumed.”(Exhibit 4)  Consent Agreement between ACCT and SCHEV signed May 2, 2017: Both parties agreed to schedule a re-audit in June 2017 limited to the three items presented at the formal hearing. The agreement states “in accordance with the hearing officer’s recommendation, if the said re-audit reveals that ACCT is still not in compliance regarding the three items of deficiency at issue in the formal hearing, the proceeding to revoke ACCT’s certificate to operate should be continued.” (Exhibit 5)  Limited scope audit of ACCT conducted on June 9-11, 2017: Resulted in two unresolved issues of non-compliance out of three items reviewed. SCHEV staff found ACCT to be in non-compliance with standards regarding faculty qualifications and the quality of online offerings. (Exhibits, 6,7,8,9)

As a result of the findings, SCHEV staff is recommending revocation of ACCT’s certificate to operate per the hearing officer’s recommendation and the terms of the consent agreement.

Materials Provided:

 Exhibit 1: Time line and history of ACCT in Virginia  Exhibit 2: Report of Audit conducted February 2-4, 2016 (Dated March 8, 2016)  Exhibit 3: Letter from Dr. DeFilippo to ACCT reporting results of IFFC (Dated July 7, 2017)  Exhibit 4: Mr. William Rollow’s “Recommended Findings of Fact, Conclusions of Law and Decision” (Dated March 27, 2017)  Exhibit 5: Consent Agreement between SCHEV and ACCT (Dated May 2, 2017)

September 2017 Agenda Book 33  Exhibit 6: Letter to ACCT regarding findings from June 2017 audit of three items of non-compliance (Dated July 27, 2017)  Exhibit 7: Report of Limited Scope audit conducted June 2017 (Dated July 27, 2017)  Exhibit 8: Addendum A: Attachment to Report of Limited Scope audit conducted June 2017  Exhibit 9: Addendum B: Attachment to Report of Limited Scope audit conducted June 2017

Financial Impact: N/A

Timetable for Further Review/Action: N/A

Resolution:

WHEREAS, as a result of an audit conducted by SCHEV staff in February 2016, ACCT was found to be in violation of the Virginia Administrative Code (Exhibit 2, attached hereto and incorporated herein); and

WHEREAS, in accordance with Virginia law, ACCT exercised its rights to both an informal conference and formal hearing under the Administrative Process Act (APA) (Exhibits 3 and 4, attached hereto and incorporated herein); and,

WHEREAS, in accordance with the recommended decision resulting from the formal hearing, SCHEV entered into a Consent Agreement with ACCT to allow ACCT time to come into compliance with SCHEV regulations (Exhibit 5, attached hereto and incorporated herein); and

WHEREAS SCHEV conducted a re-audit of ACCT in June 2017 to determine the institution’s compliance with the three unresolved items of non- compliance reviewed by the hearing officer; and,

WHEREAS upon re-auditing ACCT,SCHEV staff found ACCT to be in non- compliance with two of the three items reviewed (Exhibits 6, 7, 8, and 9, attached hereto and incorporated herein); and

WHEREAS in accordance with the recommendation of the hearing officer and the terms of the Consent Agreement, SCHEV may now continue the process of revocation of ACCT’s certificate to operate;

THEREFORE, BE IT RESOLVED, in accordance with § 23.1-221 of the Code of Virginia, and with the regulations set forth in Part VII of 8VAC40-31, (i) that the State Council of Higher Education for Virginia (SCHEV), for the reasons stated herein, hereby revokes the American College of Commerce and Technology’s (ACCT) Certificate to Operate in the Commonwealth of Virginia, effective immediately; and

September 2017 Agenda Book 34 (ii) that the proprietors of ACCT shall make arrangements for the transfer of student records to SCHEV or another institution of postsecondary education approved by SCHEV within thirty days of the date of revocation, in accordance with subsection D of 8VAC40-31-280.

September 2017 Agenda Book 35 Exhibit 1- ACCT Timeline

American College of Commerce and Technology (ACCT) Timeline: 2010-2017

May 2010 ACCT established in Virginia. July 2012 SCHEV conducts first audit of ACCT and finds no items of non- compliance. April 2014 ACCT denied accreditation by the Accrediting Council for Independent Colleges and Schools (ACICS). August 2014 ACCT appeals denial of accreditation to ACICS review board. December 2014 ACICS defers action to accredit ACCT until April 2015 April 2015 ACCT attains accreditation from ACICS. February 2016 SCHEV conducts audit of ACCT and reports 13 items of non-compliance and two items of concern. Staff recommends revocation of ACCT’s certificate to operate. (Exhibit 2) March 2016 In accordance with the Administrative Process Act (APA) (§ 2.2-4000 et seq.), ACCT requests an informal fact finding conference (IFFC) to present information that may have an effect on SCHEV’s proposed action. May 2016 IFFC is held. Dr. DeFilippo, Director of Academic Affairs and senior staff at SCHEV presides over the meeting. ACCT provides oral and written information that resolves some of the items of non-compliance. July 2016 In his letter informing ACCT of the results of the IFFC, Dr. Defilippo informs the institution that there is sufficient basis to continue with the revocation process due to the severity of three unresolved items of non- compliance. (Exhibit 3) ACCT exercises its right under the APA and requests a formal hearing before a hearing officer assigned by the Virginia Supreme Court. October 2016 The formal hearing is held. SCHEV and ACCT present their cases before Mr. William Rollow, the assigned hearing officer. March 2017 Mr. William Rollow submits his “Recommended Findings of Fact, Conclusions of Law and Decision” to SCHEV. Mr. Rollow’s recommends that ACCT’s certificate to operate not be revoked. Instead, ACCT should be granted a reasonable time to come into compliance with Virginia regulation and then re-audited. If ACCT is not in compliance at the time of the re-audit, then the proceeding to revoke ACCT’s certificate to operate should be resumed. (Exhibit 4) May 2017 As a result of Mr. Rollow’s recommendation, SCHEV enters a consent agreement with ACCT. (Exhibit 5) June 2017 SCHEV staff conducts a re-audit of the three items of non-compliance presented before Mr. Rollow at the formal hearing. Staff concludes that two of the three items of non-compliance remain unresolved. July 2017 SCHEV staff submits re-audit report to ACCT notifying the school it will recommend revocation of its certificate to operate at the September 2017 Council meeting. (Exhibit 6,7,8,9)

September 2017 Agenda Book 36 Exhibit 2- Report of Audit 2016

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA

Report of Audit American College of Commerce and Technology (ACCT) Audit Date: February 2-4, 2016

Report Date: March 8, 2016

ITEMS OF NON-COMPLIANCE

1. INSTRUCTORS ARE NOT PROPERLY QUALIFIED TO TEACH ASSIGNED COURSES 8 VAC 40-31-140(D)(3)(a)-(b) Instructional faculty members who teach in programs at the baccalaureate level shall:  Hold a master’s degree in the discipline being taught or hold a master’s degree in an area other than that being taught with at least 18 graduate semester hours in the teaching discipline from an accredited college or university.  Exception to academic preparation requirements for instructional faculty may be made in instances where substantial documentation of professional and scholarly achievements and/or demonstrated competences in the discipline can be shown. The institution must document and justify any such exception.

8 VAC 40-31-140(D)(4) Instructional faculty teaching in a program at the master's level or higher shall hold :  A doctoral or other terminal degree in the discipline being taught from an accredited college or university  Exception to academic preparation requirements for instructional faculty may be made in instances where substantial documentation of professional and scholarly achievements and/or demonstrated competences in the discipline can be shown. The institution must document and justify any such exception. Finding: SCHEV staff reviewed the credentials of 26 of the 67 faculty members reported to be employed by ACCT. This constitutes over a third of the faculty. Of the 26 faculty reviewed, SCHEV deemed 22, nearly 85%, are unqualified to teach the subjects assigned. Details of the findings are as follows: The SCHEV audit team reviewed the files of eleven instructors teaching at the baccalaureate level. Eight of the eleven instructors (72%) are not qualified by academic preparation to be assigned to the courses they are teaching. The following instructors do not have the appropriate qualifications: Instructor Courses Comments REDACTED HUM200, SCI200 & CIS200 Does not have 18 graduate credits in each of these fields of study. REDACTED ENG100, BUS280, HUM400 & Does not have 18 graduate credits in ENG110 each field of study. No transcript evaluation for the University of September 2017 Agenda Book 37 American College of Commerce and Technology (ACCT) - Report of Audit Audit Date: February 2-4, 2016 Page 2

Instructor Courses Comments Freiburg. REDACTED BUS130 Does not have 18 graduate credits in Business. REDACTED ENG100 & COMM100 Does not have 18 graduate credits in English. REDACTED BUS220 Does not have 18 graduate credits in business. No transcript evaluation for Mohammed V University. REDACTED POL350 Does not have 18 graduate credits in political science. REDACTED SOC101 Does not have 18 graduate credits in sociology. REDACTED ENG100 Does not have 18 graduate credits in English.

The SCHEV audit team reviewed the files of fifteen instructors teaching at the graduate level. Of the fifteen instructors, fourteen (93%) are not qualified by academic preparation to be assigned to the courses they are teaching. The following instructors do not have the appropriate qualifications:

Instructor Courses Comments REDACTED CIS505, CIS504, CIS502 & Does not have a doctorate in CIS503 Computer Information Science. Resume & ACICS data sheet states pursuing DBA at ACCT. There is no approved DBA at ACCT. REDACTED CIS590, CIS555& CIS510 Does not have a doctorate in CIS. Rochville University, listed as the institution where he received a doctoral degree in 2008 is reputed to be a diploma mill. The university’s reported accreditation is not recognized by the US Department of Education. REDACTED CIS562 Does not have a doctorate in CIS. REDACTED BUS590, ACC590, GIS585, Does not have a doctorate in the GIS581 disciplines. REDACTED CIS590, 575, 570, 576,578 & 579 Does not have a doctorate in CIS.

September 2017 Agenda Book 38 American College of Commerce and Technology (ACCT) - Report of Audit Audit Date: February 2-4, 2016 Page 3

Instructor Courses Comments Resume states he is pursuing a doctorate degree at ACCT. There is no approved doctorate at ACCT. REDACTED CIS500 Does not have a doctorate in CIS. REDACTED BUS530 & BUS520 Does not have a doctorate in Business from an accredited college or university. REDACTED CIS594, 500, 591 & 570 Does not have a doctorate degree in CIS from an accredited university. REDACTED BUS585, BUS505, ACC500 & Does not have a doctorate from an BUS515 accredited college or university. REDACTED TAX580 & ACC500 Does not have a doctorate in Accounting. REDACTED LEG500, BUS557 & BUS530 Does not have a doctorate in Business. REDACTED BUS520, 565 & 585 Does not have a doctorate in Business. REDACTED MKT501, ECO500 & BUS530 Does not have doctorate in the assigned disciplines. REDACTED ACC500 & ACC502 Does not have a doctorate in Accounting. Summary Note: SCHEV reviewers found a systematic inefficiency in the qualification of ACCT faculty. This demonstrates a lack of academic judgement or a willful ignoring of proper academic qualifications. Both alternatives are unacceptable.

2. INSTITUTION DOES NOT FOLLOW ITS OWN ADMISSIONS POLICY 8 VAC 40-31-160(E)(1) The postsecondary school shall maintain records on all enrolled students. At a minimum, these records shall include: 1. Each student's application for admission and admissions records containing information regarding the educational qualifications of each regular student admitted that are relevant to the postsecondary school's admissions standards. Each student record must reflect the requirements and justification for admission of the student to the postsecondary school. Finding: Records reviewed indicate that ACCT does not follow its own admissions policy in a consistent manner. SCHEV staff reviewed a total of 43 student records. This constitutes 3% of the current

September 2017 Agenda Book 39 American College of Commerce and Technology (ACCT) - Report of Audit Audit Date: February 2-4, 2016 Page 4 enrollment. Twenty-eight of the student records reviewed (65%) indicate students were admitted without meeting the admissions requirements specified by ACCT in its catalog/student handbook. ACCT entrance requirements:  All students: o Must take Accuplacer Reading Comprehension exam during first term o Entering students must take English 100 unless score earned on Accuplacer is 65 or higher* o Entering students may not take Accuplacer more than two times  Undergraduate: o Completed and signed Application o HS Diploma, transcript or attestation  Graduate: o Completed and signed application o Official Transcripts for all undergraduate/graduate degrees o Degrees from foreign institutions must be evaluated by Association of Collegiate Registrars and Admissions Officers (AACRAO) o Form of ID

*For additional information regarding Accuplacer scores see Item of Non-Compliance 4 section III below. Student Name/ Program Non-compliance with admissions policy REDACTED  Student began new program of study (MBA) in fall MBA 2015. Took Acuplacer on 5/30/2015. Scored 42 after completing Advanced Graduate program at ACCT. student now enrolled in ENG 100 for winter 2016. REDACTED  Student admitted summer 2015. Accuplacer was not MBA administered until 9/15/2015 and the student scored 29. Student did not enroll in ENG 100 winter 2016. REDACTED  Student admitted for winter term beginning Jan 4, MSCIS 2016, Accuplacer administered 1/10/2016. Student scored 30 and is not enrolled in ENG 100.  Foreign degree not evaluated REDACTED  Student admitted for winter 2016 term beginning Jan 4, 2016. Accuplacer administered 1/12/2016. Student MSCIS scored 34 and is not enrolled in ENG 100. REDACTED  Student admitted for winter term 2016. Accuplacer not MSCIS administered.  No undergraduate transcript in file , No HS transcript in file

REDACTED  Student admitted for fall term beginning Sept 28, MSCIS 2015. Accuplacer administered 9/26/15. Student

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Student Name/ Program Non-compliance with admissions policy scored 44 but was not enrolled in ENG 100 until 1/4/2016.  Foreign degree not evaluated REDACTED  Student admitted for summer term beginning July 6, MSCIS 2015, Accuplacer administered 9/19/2015 and 10/10/2015. Student scored 44 and 49 respectively on exam but was never enrolled in ENG 100. REDACTED  No undergraduate transcript in file MSCIS REDACTED  Student admitted for winter term 2016. Accuplacer BSCIS administered 1/15/2016. Student scored 39 but student not enrolled in ENG 100. REDACTED  Student admitted for winter term 2016. Accuplacer MSCIS administered 12/22/2015. Student scored 31but was not enrolled in ENG 100. REDACTED  Student admitted for Fall term beginning Sept 28, MS Accounting 2015. Accuplacer administered 9/28/15. Student scored 51, but has not enrolled in enrolled in ENG 100.  Foreign degree not evaluated REDACTED  Student admitted for winter term beginning Jan 4, MBA 2016. Accuplacer was not administered. REDACTED  Student admitted for Winter term beginning Jan 4, MSCIS 2016, Accuplacer administered 12/22/2015. Student scored 31but was not enrolled in ENG 100. REDACTED  Student took Accuplacer 3 times in September 2015 MSCIS although the limit is two times. Student scored 41 the first time and 60 the second time. When he took the exam the third time, the student scored 105 and was not required to take ENG 100.  Does not have a BA. AACRAO evaluated degree as equivalent to three years. REDACTED  Student admitted for Summer term beginning July 6, MBA 2015. Accuplacer was not administered until 1/9/16. the student scored 59 has not enrolled in ENG 100.

REDACTED  Student admitted for Summer term beginning July 6, BSCIS 2015. Accuplacer was not administered until 9/25/15. The student scored 36 and was not enrolled in ENG 100. Instead student enrolled in ENG110 and received F grade in summer 2015. Student enrolled in ENG 100 Fall 2015 and received an incomplete. REDACTED  Student admitted Summer 2014. Did not take

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Student Name/ Program Non-compliance with admissions policy MBA Accuplacer until 9/15/15. He scored 44 and has never taken ENG 100. REDACTED  Student admitted for Summer term beginning July 6, MBA 2015. Accuplacer was not administered until 10/10/2015. Student tested 2X on same day and scored 50, then 37. Student not enrolled in ENG 100 until winter 2016. REDACTED  Student admitted Fall 2014. Accuplacer was not MBA administered  Foreign degree not evaluated REDACTED  Admitted Summer 2014. Accuplacer was not MSCIS administered until 1/7/2016. Student scored 53 and has never taken ENG 100. REDACTED  Student admitted for Fall term beginning Sept 28, MSCIS 2015. Accuplacer administered 9/28/15. Student scored 33 and has never enrolled in ENG 100. REDACTED  Foreign degree not evaluated. MSCIS REDACTED  Student admitted for winter term beginning Jan 4, MBA 2016. Accuplacer administered 1/9/2016. Student scored 60 and has not enrolled in ENG 100.  Foreign degree not evaluated REDACTED  Student admitted for winter term beginning Jan 4, MSCIS 2016, Accuplacer administered 1/9/2016. Student scored 50 and has not enrolled in ENG 100. REDACTED  Student admitted Fall 2014. Accuplacer administered MBA 10/10/2014. Student scored 61 and has never enrolled in ENG 100.  Foreign transcript not evaluated. REDACTED  Student admitted winter 2016. Accuplacer never MBA administered REDACTED  Student admitted winter 2014. Accuplacer not MA administered until 9/26/15. Student scored 60. Student enrolled in ENG 100 beginning January 2016.  Foreign degree not evaluated. REDACTED  Student admitted fall 2015. Accuplacer administered 3 MSCIS times. 9/26 (score 51); 9/29 (score 61); and 1/9/16 (score 43). Enrolled in ENG 100 winter 2016. Summary Note: SCHEV reviewers concluded that ACCT’s adherence to its own admissions policy is arbitrary. The small sampling of admissions records reviewed coupled with the high level of exceptions to the policy indicate that ACCT treats its own admissions policy capriciously.

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September 2017 Agenda Book 43 American College of Commerce and Technology (ACCT) - Report of Audit Audit Date: February 2-4, 2016 Page 8

3. INSTITUTION DOES NOT MAINTAIN STUDENT RECORDS IN ACCORDANCE WITH VIRGINIA REGULATION

8 VAC 40-31-160(E)(3) The postsecondary school shall maintain the following for each student:  A record of student academic or course progress at the school including: programs of study, dates of enrollment, courses taken and completed, grades, and indication of the student's current status (graduated, probation, etc.) Any changes or alterations to student records must be accurately documented and signed by an appropriate school official. Finding: I. Transcripts reviewed for students reported as having graduated did not include any indication of the name of the degree or the date it was conferred. During the exit interview, ACCT confirmed transcripts do not include this information. II. REDACTED reported as having graduated from his program of study but the transcript indicates he received an “F” in the capstone course. He is currently retaking the course. III. Documents in student files contain conflicting information: a. REDACTED: Enrollment agreement states MSCIS; ACCT reported student is enrolled in MBA. b. REDACTED: Application states MSCIS; U.S. Immigration and Customs Enforcement (ICE) form I20 states MBA c. REDACTED: Transcript states student enrolled in MSCIS, ICE form I20 states Masters in Accounting; Acceptance letter says MBA. d. REDACTED: Transcript states student is enrolled in MSCIS; ICE form I20 says MBA; application says MBA. e. REDACTED: Purportedly student completed MSCIS and enrolled in MBA. No new ICE form I20 in file, no new application, no letter of acceptance for new program. f. REDACTED: Purportedly student completed Advanced Graduate Specialist program and enrolled in MBA. No new application or enrollment agreement in file. IV. REDACTED i: The record is unclear whether this student completed an “Advanced Graduate Specialist” certificate program. The student curriculum sheet and transcript indicate that three courses were substituted for required courses. The student resume indicates he completed the program in 2015. He does not appear on the list of graduates or completers reported to SCHEV for 2015 or 2016. Current student transcript indicates Mr. REDACTED is enrolled in an MBA program but there is no new application or enrollment agreement on file. V. ACCT confirmed that transcripts do not identify courses taken in the on-line format from those taken face-to-face. For F-1 students limited to taking one online course per semester or term, it is impossible to confirm whether the institution is in compliance with CFR §214.2 f(6)(G).

Summary Note:

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SCHEV reviewers concluded that ACCT demonstrates an alarming lack of competence in the area of proper records maintenance.

4. PROGRAM OFFERINGS DO NOT MEET STANDARDS OF QUALITY EXPECTED OF INSTITUTIONS OF HIGHER EDUCATION 8 VAC 40-31-140(C) The course, program, curriculum and instruction must be of quality, content and length to adequately achieve the stated objective. Finding: During the audit, SCHEV found many instances that raise significant concerns about the quality of education offered by ACCT. The following are examples of these findings: I. Students reported as graduated but transcripts reflect they did not meet requirements for degree: a. REDACTED was reported as having graduated with an MBA in 2013. A transcript printed February 4, 2016 indicates she never completed three required courses (ACC 500, BUS 590; BUS 599) b. REDACTED was reported as having graduated with a MS in Accounting. A transcript printed February 4, 2016 indicates the student did not complete the requirements for the degree. 1. The student never took the following courses listed as major requirements: ECO500, ACC500, ACC555, ACC555, ACC570, ACC599, ACC504. 2. The student received an “I” in ACC590 in Spring 2015. The current transcript still reflects this. 3. The two electives the student took were not on the list of eligible electives. 4. Courses substituted for the required courses were all unrelated to accounting. c. REDACTED was reported as having graduated with an AS in Computer Information Systems. A transcript printed February 2, 2016 indicated the following: 1.The student attempted 148.5 quarter credits, earned 112.5 quarter credits but the degree only required 54 quarter credits. 2.The student never completed ENG 200 or COMM 100 both requirements for the degree. II. Student received credential that was never approved by SCHEV and transcript indicates student took undergraduate and graduate level courses concurrently. a. REDACTED was reported as having completed a Certificate of Accounting, a credential that was never approved by SCHEV. In fall 2014, the student was concurrently enrolled in ACC100- Principals of Accounting; ACC250- Intermediate Accounting I; and ACC562- Advanced Managerial Accounting. III. Institution contends that international students admitted into programs have proficiency in English. Documentation reviewed by SCHEV indicates otherwise. a. Students wishing to pursue academic studies in the United States apply to their institution of choice from their home countries to begin the process of obtaining an F- 1 visa.

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b. If the student is accepted, the institution completes a U.S. Immigration and Customs Enforcement form “Certificate of Eligibility for Nonimmigrant Student Status” AKA an I-20 form. c. The I-20 form requires the institution to state whether English proficiency is required to enroll in the program and whether the student is proficient in English. d. All the degree programs at ACCT require English proficiency. e. All the I-20 forms reviewed by SCHEV staff in the course of the audit stated that students were proficient in English. f. The college administers the College Board Accuplacer Reading Comprehension exam to determine English proficiency. ACCT passing score is 65. In accordance with admissions standards, students scoring below 65 are required to enroll in English 100, described as follows in the catalog: “this course focuses on reading comprehension, pronunciation, vocabulary development and spelling.” g. SCHEV reviewed 40 student records with Accuplacer exam scores and found 30 (75%) students scored below 65. Moreover, 23 of those students scored below 50. This means that of the 40 students reviewed, over 57% scored below 50. All but two of the 23 students scoring below 50 on the Accuplacer were enrolled in graduate degree programs. h. Because the level of English proficiency of students admitted to graduate level programs at ACCT was alarming, SCHEV staff researched the interpretation of Accuplacer scores. 1. The College Board’s Reading Comprehension English Proficiency Statements define a score of 51 as follows: Students at this level are able to comprehend short passages that are characterized by uncomplicated ideas, straightforward presentation and, for the most part, subject matter that reflects everyday experiences. These students are able to  Recognize the main idea and less central ideas.  Recognize the tone of the passage when questions do not require fine distinctions.  Recognize relationships between sentences, such as the use of one sentence to illustrate another. 2. The College Board does not include an English Proficiency Statement for scores below 51. 3. To better understand scores below 51, SCHEV researched institutions that use this exam to place new students into appropriate English courses and found that even community colleges have higher standards than ACCT in regard to placing students with limited English proficiency scores in appropriate classes. The following are some examples institutions that require the same Accuplacer Reading Comprehension exam for placement. i. Southern Maine Community College  Score 0-49: The school does not place students in a class with scores below 49. Students are recommended to take an English course through the local adult education center. ii. Riverland Community College

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 Score 0-51: The school does not place students into an English class with scores below 51. Students are recommended to work with a community Adult Learning program or to explore an ESL program. iii. Hawkeye College  Score 1-34: ESL referral  Score 35-61: College Prep Reading courses iv. Brookdale Community College  Score 50 or less: Enrollment in 2 non-credit reading classes v. University of Texas at El Paso  Score 20-30: Student must take READ 0307 (a precollege, developmental reading courses) at El Paso Community College.  Score 31-77: Student is enrolled in ENG0310, a remedial reading course. vi. Illinois Valley Community College  Score 0-28: Adult Basic reading  Score 29-45: Basic Reading I  Score 46-67: Basic Reading II Summary Note: SCHEV reviewers concluded that the quality of programs at ACCT is suspect. Graduating students who have not met the requirements for the degree; allowing students to enroll in undergraduate and graduate level courses concurrently; and admitting students with sub-par English skills into degree programs requiring English proficiency are practices of an institution that is not meeting even the minimal standards expected of institutions of higher education.

5. ON-LINE COURSE OFFERINGS DO NOT MEET STANDARDS OF TRAINING 8VAC40-31-160 L (1-5) All programs offered via telecommunications or distance education must be comparable in content, faculty, and resources to those offered in residence, and must include regular student-faculty interaction by computer, telephone, mail, or face-to-face meetings. 8 VAC 40-31-140(C) The course, program, curriculum and instruction must be of quality, content and length to adequately achieve the stated objective. 8VAC40-31-195(A) (2) The council may (i) suspend, revoke, or refuse to issue or renew a certificate to operate; (ii) modify the certificate to operate to conditional; or (iii) impose a penalty pursuant to § 23-276.12 of the Code of Virginia for furnishing of false, misleading, deceptive, altered, or incomplete information or documents to the council.

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Finding: ACCT maintains a significant on-line enrollment. In the current quarter, ACCT is offering 72 on- line courses out of a total 228 courses (31%). Online courses can run 11 weeks (regular) or 6 weeks (mini). A review of the online platform (Moodle) and ACCT policies regarding on-line education reveal areas of non-compliance. I. The extent of ACCT’s on-line presence remains unclear due to conflicting information provided by ACCT and difficulty obtaining information from written records. For institutions that offer degrees that can be achieved strictly on-line, SCHEV must review the program to ensure it meets the requirements of regulation. Whether ACCT awards totally online degrees is unclear for the following reasons: a. When first asked if it is possible for a student to obtain a degree strictly via distance education, the institution said no. However, SCHEV noted that the CAR report for the period of July 1, 2014-June 30, 2015 designated 12 students as “100% online.” When questioned, ACCT explained this discrepancy by informing SCHEV that these students were simply taking a course prior to enrolling at ACCT. b. SCHEV found evidence that contradicts ACCT statements. 1.REDACTED was reported as an MBA graduate in Summer 2013. She does not appear to have completed any courses in the US. Her home is in Africa. 2.REDACTED was reported as having completed a BSBA in 2016. She does not appear to have completed any courses in the US. Her home is in Africa. 3.REDACTED has been enrolled since spring 2014 and has not completed a course in the US. Her home is in Africa. c. On page 20 of the catalog, under forms of instruction, ACCT states the following: “All of the ACCT degree and academic certificate programs are available in both on-ground and on-line modalities. Students may take either on-ground, on-campus, or both types of courses as their needs dictate, within the bounds of federal residency requirements.” III. ACCT’s online courses are asynchronous and run from Monday-Sunday. However, it is the policy of the school that the student be given maximum opportunity not to fail the course. This policy was stated to SCHEV staff by Mr. Zribi and confirmed by Dr. Schipper during the exit interview. Unconventional policies include: a. Contrary to standard practices for asynchronous online courses the ACCT policy allows students to complete assignments well beyond the due date instead of weekly. Typically, online programs open each week’s lesson and assignment on Monday and closes that week’s lesson at midnight of the following Sunday. Students must complete all tasks for that week prior to Sunday. The written policy for on-line courses at ACCT states “Homework assignments are posted at the beginning of the week and must be completed and submitted by the due date.” This however, is not adhered to. The SCHEV auditor reviewed on-line records for the first three weeks of the current winter term. These are only some of the items noted: 1. CIS500 – 20 students enrolled. 10 students had not submitted any assignments as of the third week and were not dropped from the course. 2. BUS 100 – 19 students enrolled. 8 students had not submitted any assignments as of the third week and were not dropped from the course. 3. CIS 150 – 14 students enrolled. 5 students had not submitted any assignments as of the third week and were not dropped from the course.

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4. FIN100 – 14 students enrolled. 9 students had not submitted any work as of the third week in class. b. While syllabi indicate that the courses offered by ACCT meet the required “student- faculty interaction”, this is not true in practice. The SCHEV reviewer noted that student interaction in the courses evaluated during the audit was sporadic at best. c. The SCHEV reviewer confirmed that students could submit all assignments at the end of the session and be graded on the work, possibly still receiving a passing grade. d. Dr. Schipper confirmed that if a student fails a course, s/he can repeat the course free of charge, a practice that may seem noble but in fact creates a safe haven for multiple failures. e. Attendance is counted when the student signs on as opposed to the student completing the lesson for the week. SCHEV pointed out that students can sign into the platform, walk away and still be counted as being present. This is not an accurate measure of attendance. IV. The institution has a large population of students with residential addresses outside of Virginia. Of the 1358 students currently enrolled, 728 report Virginia addresses (53.6%) and 630 (46.4%) report addresses outside of Virginia. Students are reportedly domiciled in the following states: Connecticut, Delaware, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, North Carolina, Nevada, New Jersey, New York, Pennsylvania, South Carolina, West Virginia, Washington DC. a. ACCT has not assured SCHEV that it is in compliance with state authorization in all states where students may take online courses. Note the following: 1. The majority of F1 students at ACCT take one on-line course per quarter. 2. 98% of the student population has F1 visas. 3. Nearly half the students live in states other than Virginia. 4. Therefore, ACCT must ensure compliance within each state where students take on-line courses. b. ACCT has not explained how F1 students domiciled in states such as Florida, Georgia, Illinois, Kentucky, Louisiana, Massachusetts, Michigan, and Nevada can attend ACCT and be in compliance with federal regulation. Summary Note: SCHEV reviewers concluded: 1) ACCT provided false, misleading or deceptive information to SCHEV reviewers regarding students’ ability to earn a degree totally online. 2) ACCT’s online presence has a high degree of non-engagement as one would expect from a diploma mill as opposed to a genuine institution of higher education. 3) The geographic dispersal of students is indicative of visa-mill behavior and undermines the claim that educational activity of sufficient quality is occurring. 6. INSTITUTION VIOLATES REFUND POLICY 8 VAC 40-31-160 (N)(1-15) The school shall establish a tuition refund policy and communicate it to students.

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 Accredited institutions shall adhere to the tuition refund requirements of their accrediting body, if required, and if those requirements describe specific refund terms.  Otherwise, accredited institutions, as well as all other schools, shall adhere to SCHEV’s tuition refund requirements.  The date of the institution's determination that the student withdrew should be no later than 14 calendar days after the student's last date of attendance as determined by the institution from its attendance records. The institution is not required to administratively withdraw a student who has been absent for 14 calendar days. However, after 14 calendar days, the institution is expected to have determined whether the student intends to return to classes or to withdraw. Finding: SCHEV staff reviewed files of fifteen (15) withdrawn students, to verify if the refund policy is applied correctly by ACCT. The following items were found to be noncompliant with Virginia regulation: I. A class roster revealed a student missed ten (10) consecutive class sessions during the period 10/6-12/15/2014. The file revealed no determination was made regarding the student’s status after 14 calendar days of non-attendance as required by Virginia regulations. There was nothing noted in the record regarding the absences. a. The class roster for course BUS530 revealed student REDACTED missed ten (10) consecutive class sessions during the period 10/6/2014 - 12/15/2014. The same student missed seven (7) consecutive class sessions for course ACC562 during 10/18/2014 – 12/13/2014. II. The following students had three or more consecutive absences during the first four weeks of winter 2016. There was no indication in student records regarding the status of these students: a. REDACTED: BUS530 - 4 absences b. REDACTED n: CIS500 - 4 absences c. REDACTED: CIS500 - 4 absences d. REDACTED a: ECO500 - 4 absences e. REDACTED: BUS100 - 3 absences f. REDACTED h: BUS100 - 3 absences g. REDACTED: HUM200 - 3 absences h. REDACTED: LEG100 - 3 absences i. REDACTED t: ECO100 - 3 Absences j. REDACTED: CIS510 - 4 Absences k. REDACTED X: HUM200 - 4 Absences l. REDACTED X: CIS500 - 3 absences m. REDACTED XXX: CIS500 - 3 absences n. REDACTED: CIS500 - 4 absences o. REDACTED XX XXX: CIS500 - 4 absences p. REDACTED XX: CIS500 - 4 absences q. REDACTED X: CIS500 - 4 absences r. REDACTED: CIS500 - 4 absences s. REDACTED: CIS500 - 4 absences

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t. REDACTED: CIS500 - 4 absences u. REDACTED X: CIS552 - 3 absences v. REDACTED: CIS552 - 3 absences w. REDACTED: CIS594 - 3 absences x. REDACTED: CIS594 - 3 absences y. REDACTED X: CIS570 - 3 absences z. REDACTED: BUS530 - 3 absences III. ACCT policy states a student will be withdrawn from the institution if the student misses seven consecutive instructional days and all of the days are unexcused. This policy is incorrect. Virginia regulation requires the school to make a determination of a student’s status after he/she misses 14 calendar days. By using instructional days as the determining factor, ACCT guarantees that students will never be eligible for refunds as classes only meet once per week. IV. Attendance policy for on-line courses is based on time when student signs into the platform and not on work completed and submitted for grading. The school policy essentially allows students not to complete any work all semester and still be marked present each week. The method used to determine “present” or “absent” for on-line courses is faulty and the institution cannot accurately determine when a student must be withdrawn. Summary Note: ACCT’s withdrawal policy is patently wrong. The evidence gathered indicates that it is highly unlikely that ACCT has provided a refund even when one was warranted.

7. STUDENT FINANCIAL RECORDS DO NOT MEET MINIMUM STANDARDS

8 VAC 40-31-160(E)(4) A record of all financial transactions between each individual student and the school including payments from the student, payments from other sources on the student’s behalf, and refunds. Fiscal records must be maintained for a minimum of three years after the student’s last date of attendance; Students that pay by installment plan must receive a clear disclosure of the truth-in- lending statement. It must be signed by student & maintained in the student record. Finding: I. The SCHEV audit team reviewed student financial files and discovered some student accounts included unidentified items. These were under the heading of “Scholarship approved” and shown as “reward” with an indicated percentage deducted from the balance on the account. There is no clear indication what the reduction is based on. Five “-1%” credits to the same account were calculated as $200, $500, $700 ,$700 and $1430. It can be noted that the only scholarships identified in the catalog pertain to an academic merit scholarship of $500 and an unspecified financial assistance grant. The records did not indicate the reasons for the “rewards” applied to student accounts. List of unexplained “rewards” from current student files reviewed: 23 out of 43 (53%) included unexplained, random discounts from tuition charged.

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Name Tuition Discount Name Tuition Discount REDACTED 5/17/14: $ 400 REDACTED 3/15/15: $ 150 11/23/15: $1350 9/12/15: $ 100 REDACTED 4/10/14: $ 160 REDACTED 6/21/15: $ 100 12/30/14: $ 500 12/7/15: $ 350 11/14/15: $1350 1/14/16: $ 500 REDACTED 4/19/14: $ 600 REDACTED 9/28/15: $ 50 6/23/14: $ 250 9/12/15: $ 150 12/5/15: $ 300 REDACTED 10/5/15: $ 400 REDACTED 8/15/15: $ 650 11/14/15: $ 300 1/2/16: $ 600 REDACTED 2/1/16: $ 720 REDACTED 10/14/15: $ 300

REDACTED 9/19/15: $ 100 REDACTED 9/12/15: $ 100 9/26/15: $ 100 12/19/15: $ 100 12/31/15: $ 900 REDACTED 12/22/15: $ 150 REDACTED 8/8/15: $ 1150 10/31/15: $ 700 REDACTED 1/11/16: $ 500 REDACTED 9/18/14: $ 200 3/7/15: $ 400 3/14/15: $ 150 12/5/15: $ 600 REDACTED 9/5/15: $ 350 REDACTED 1/9/16: $ 100 10/24/15: $ 100

REDACTED 9/2/15: $ 150 REDACTED 1/10/15: $ 1200 12/29/15: $ 300 1/10/15: $ 1200 7/24/15: $ 1200 REDACTED 12/19/15: $ 100 REDACTED 9/12/15: $ 100

REDACTED 6/19/15: $ 200

List of unexplained “rewards” from student files of graduated students reviewed: 14 out of 17(82%) included unexplained, random discounts from tuition charged

Name Tuition Discount Name Tuition Discount REDACTED 3/30/13: $ 2325 REDACTED 9/8/14: $ 540 8/31/13: $ 2325 9/26/14: $ 900 10/19/13: $ 645 1/11/14: $ 2325 7/12/14: $ 1800

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Name Tuition Discount Name Tuition Discount REDACTED 10/6/14: $ 400 REDACTED 1/4/14: $ 100

REDACTED 5/28/14: $ 200 REDACTED 6/28/14: $ 100 7/1/14: $ 500 3/15/15: $ 650 9/22/14: $ 550 1/20/15: $ 200 REDACTED 6/20/15: $ 550 REDACTED 12/21/15: $ 100 9/11/15: $ 100 REDACTED 9/27/14: $ 1300 REDACTED 4/19/14: $ 200 8/13/14: $ 2400 4/13/14: $ 500 5/4/15: $ 3600 10/25/14: $ 700 7/11/15: $ 2400 4/6/15: $ 700 1/13/16: $1430 REDACTED 9/18/13: $ 100 REDACTED 1/6/14: $ 100 5/30/14: $ 100 4/7/14: $ 200 3/2/15: $ 100

REDACTED 10/26/14: $ 1800 REDACTED 4/9/14: $ 100 8/13/14: $ 600 12/29/14: $ 100 8/13/14: $ 600 2/18/15: $ 1800 2/18/15: $ 900

II. Students with installments payment plans had no truth-in lending documentation in the files. The following twelve students comprise a sampling of the students who should have truth in lending documentation in the file: o REDACTED o REDACTED o REDACTED o REDACTED o REDACTED o REDACTED o REDACTED o REDACTED o REDACTED o REDACTED o REDACTED o REDACTED

III. Fiscal records are not maintained for a period of three years beyond the student’s last date of attendance. The SCHEV audit team attempted to verify refund calculations of withdrawn students and was told these items are destroyed after one year and there was no electronic backup. As such, the SCHEV audit team was unable to determine if the correct refund policy is being applied. Summary Note: ACCT demonstrates an alarming lack of competence in the area of proper student financial records maintenance. In accordance with Virginia regulation, ACCT publishes tuition and fees in its catalog. However, the number of unexplained tuition discounts found by reviewers suggests that the institution applies random and arbitrary discounts to student accounts. This practice undermines the

September 2017 Agenda Book 53 American College of Commerce and Technology (ACCT) - Report of Audit Audit Date: February 2-4, 2016 Page 16 very reason why institutions are required to disclose tuition and fees ̶ as a means to protect students from unfair practices.

8. INSTITUTION DOES NOT ADHERE TO NEW PROGRAM ADDITION RULES

8VAC40-31-160Q An institution shall notify council staff of the addition of new programs or modifications to existing program no later than 30 days before said occurrence: Finding: American College of Commerce & Technology is currently offering two certificate programs not approved by SCHEV. The catalog outlines a certificate in Accounting and a certificate in Computer and Network Support. SCHEV has no record of approving these programs and therefore they should not be offered to ACCT students.

In addition, two faculty members (Anwar Ashfaq and Peter Poudel) state on their resumes that they are currently pursuing a DBA at ACCT; however, the institution does not have any approved doctoral programs.

9. ADMINISTRATOR IS NOT QUALIFIED

8 VAC 40-31-140(F)(5) Administrative personnel must be appropriately experienced and educated in the field for which they are hired or receive documented, relevant training within the first year of employment. Finding: During the audit, the SCHEV team reviewed the files of ten (10) administrative employees of American College of Commerce and Technology (ACCT) and the school’s registrar (Diana Schipper) did not did not have adequate documentation to justify appointment to the position. The file does not contain supporting documentation to demonstrate appropriate experience and training as a Registrar. In addition, there is not any documentation to demonstrate any training received given since she was hired in March 2015. Summary Note: SCHEV reviewers note that the Registrar’s lack of qualification appears to be reflected in the chaotic and non-compliant records described in Item of Non-Compliance 3 above.

10. ACCEPTANCE OF CREDIT FOR LIFE/WORK EXPERIENCE NOT CLEARLY DEFINED 8 VAC 40-31-140 (B)(7) An institution that awards life or work experience credit shall have its related transfer policy approved by the council. No more than 30% of the credit in a student's degree program may be awarded for life or work experience.

September 2017 Agenda Book 54 American College of Commerce and Technology (ACCT) - Report of Audit Audit Date: February 2-4, 2016 Page 17

Finding: ACCT outlines the institution’s policy on awarding life/work experience credit on page 12 of the catalog. The policy does not state that no more than 30% may be awarded to a student for life/work experience. 30% is the maximum that may be awarded according to Virginia regulation.

11. INSTITUTION DOES NOT DISCLOSE PLACEMENT SERVICES

40-31-160(F)(14) The school has a catalog, bulletin, brochure, or electronic media containing the availability of career advising and placement service offered by the school. Finding: The American College of Commerce & Technology’s catalog does not state the availability of career advising and placement service offered by the school. On page 8 of the catalog there is a reference to resume building and career advancement. The catalog does not outline whether any career placement services are offered by the school.

12. CATALOG DOES NOT CLEARLY DEFINE “TUITION” v “FEES”

8 VAC 40-31-160(F)(5) The school has a catalog, bulletin, brochure, or electronic media containing, at a minimum:  A listing of tuition, fees and other enrollment related charges, such as deposits, fees, books, supplies, tools, and equipment and any other charges for which the student will be responsible. 8 VAC 40-31-160(N)(12) Expenses incurred by students for instructional supplies, tools, activities, library, rentals, service charges, deposits, and all other charges are not required to be considered in tuition refund computations when these expenses have been represented separately to the student in the enrollment contract and catalogue, or other documents, prior to enrollment in the course or program. The school shall adopt and adhere to reasonable policies regarding the handling of these expenses when calculating the refund. Finding: Page 9 of 2016 Catalog includes a “Schedule of Fees with numerous identified fees and corresponding amounts. Two items identified are: “Undergraduate Tuition fee-$700 per class” and “Graduate Tuition fee-$1,200 per class.” The wording “Tuition fee” does not distinctly identify the costs as a fee or tuition. While tuition is refundable by Virginia regulation, fees are not required to be considered in refund calculations. This list must identify costs as either “tuition” or “fee.”

September 2017 Agenda Book 55 American College of Commerce and Technology (ACCT) - Report of Audit Audit Date: February 2-4, 2016 Page 18

13. INSTITUTION USES INCORRECT WORDING IN CATALOG

8 VAC 40-31-30(A)(i) Print and electronic catalogs contain a clear statement that the council has certified the school to operate in Virginia Finding: A statement on page 3 of ACCT’s 2016 school catalog reads:

“In 2010, ACCT was authorized to operate as an institution of higher education in Commonwealth of Virginia by State Council of Higher Education for Virginia.”

While the phrase certified to operate by SCHEV is used properly in the catalog on multiple occasions, the instance cited above does not meet the regulatory requirement in describing the function of SCHEV in its oversight of post-secondary schools in Virginia.

ITEMS OF CONCERN

1. INSTITUTION MAY VIOLATE FEDERAL REGULATION OR LAW REGARDING INTERNATIONAL STUDENTS

8 VAC 40-31-130(C) Postsecondary schools must be in compliance with all local, state, and federal statutes, laws and codes. Concern: ACCT may be in violation of the Code of Federal Regulation (CFR) regarding F1 visa students enrolled in colleges, universities, seminaries, conservatories, academic high schools, elementary schools, other academic institutions.

1. CFR §214.2 (f)(10)(i) allows F-1 students to be authorized for practical training after being enrolled on a full time basis, in a Service-approved college, university, conservatory, or seminary for one full academic year. A student is authorized for 12 months of practical training, and becomes eligible for another 12 months of practical training when he or she changes to a higher educational level. An eligible student may request employment authorization for practical training in a position that is directly related to his or her major area of study. For authorization to participate in curricular practical training (CPT), it must be an integral part of an established curriculum.

a) The SCHEV audit team reviewed American College of Commerce & Technology’s student CPT files and has concerns about the types of jobs the students are working in and the location of these jobs. ACCT currently has 125 students doing CPT. SCHEV staff reviewed 12 files and has concerns with eight of the CPT placements.

September 2017 Agenda Book 56 American College of Commerce and Technology (ACCT) - Report of Audit Audit Date: February 2-4, 2016 Page 19

Student Name/CPT class Company & Location Comments REDACTED American College of Commerce & Student is pursuing a Technology masters’ in accounting. CPT job involves bookkeeping. REDACTED American College of Commerce & Student is pursuing a MBA, Technology job description is answering phone calls and filing records. REDACTED American College of Commerce & Student is pursuing a MBA, Technology the job is Admissions Assistant. Duties are described as answering phones and making phone calls. REDACTED American College of Commerce & Student is pursuing a Technology Masters in computer science. The job is front desk. Duties include answering phones, filing and clerical duties. REDACTED Sage IT, Frisco, TX Student is working and living in Greensboro, NC. This is 307 miles from ACCT. ACCT states in its policy that the training location must be within 250 miles of the school. REDACTED Broadgate Inc, Troy, MI Student is pursuing a MBA Training site – Reston, VA and the Job title of the CPT position is Business/Systems Analyst – job duties include develop code updates, implement programming practices, and evaluate client applications for hardware & software applications. REDACTED TEKgence, Irving, TX Physical address of training site on CPT form is the same address as the student’s home address. Letter from employer does not state it is a work from home position.

September 2017 Agenda Book 57 American College of Commerce and Technology (ACCT) - Report of Audit Audit Date: February 2-4, 2016 Page 20

b) ACCT provided a list of students on Curricular Practical Training (CPT) with the name of companies that employs them. The list includes companies with addresses and phones numbers in the following locations: Oakland, CA; Lafayette, LA; Dallas, TX; Cincinnati, OH; Salinas, CA; Buffalo, NY; Deer Park, NY; Tampa, FL; Davenport, IA; Brecksville, OH; Monterey, CA; Dallas, TX; Oakland, MI; Southborough, MA; Cleveland, OH; Detroit, MI; Kissimmee, FL; Atlanta, GA; and San Jose, CA.

As students participating in CPT are simultaneously enrolled in an on-site course to meet curriculum requirements of CFR §214.2 (f)(10)(i), the locations of these CPT assignments may violate federal regulation. c) REDACTED was approved for CPT in Fall 2013 for a program in “Post Graduate Education In Information Systems.” In Fall 2015 he was approved for CPT for the MBA program he began that semester. This may violate CFR §214.2 (f)(10)(i) which allows F- 1 students to be authorized for 12 months of practical training, and become eligible for another 12 months of practical training when he or she changes to a higher educational level. This is not a higher education level. Furthermore, the student is pursuing a MBA but his Job title is Front Desk/ Admissions Assistant. His duties include “print, scan, help admissions and DSO” (sic). In addition, REDACTED received an MBA in Finance from University of Northern Virginia (UNVA) in 2005 and took courses for a Doctorate in Business Administration in 2007 and 2009 at UNVA prior to transferring to ACCT in 2012. 2. As noted in Item of Non-Compliance #3 above, ACCT transcripts do not include any information about degrees conferred and date of program completion. This may violate 8CFR §214.3 (g) (1)(viii) which requires an SEVP-certified school to maintain specific documents relating to each F-1 student including a statement of graduation (if applicable); title of degree or credential received; date conferred; and program of study or major. 3. ACCT does not confirm the status of students with two or more consecutive absences from a class. Virginia regulation requires the institution to make a determination whether the student will return to class after 14 consecutive days. This may violate 8CFR §214.2 (f)(6)(iii) as an F-1 student who drops below a full course of study without the prior approval of the DSO will be considered out of status. 4. As noted in Items of Non-Compliance 2 and 4 above, students are admitted into programs at ACCT that require fluency in English but the Accuplacer test scores indicate otherwise. This may violate 8 CFR 214.3(k)(2) which allows an institution to issue an I-20 after the written application, the student's transcripts, and proof of financial responsibility have been received, reviewed, and evaluated at the school's location in the United States and the appropriate school authority has determined that the prospective student's qualifications meet all standards for admission.

2. ACCT HAS MULTIPLE TIES TO AN INSTITUTION ORDERED CLOSED BY SCHEV The Code of Virginia § 23-276.16(C) allows SCHEV to deny permission to operate another postsecondary institution in the Commonwealth to owners or senior administrators of institutions that closed without providing an adequate teach-out plan and arranging for the appropriate

September 2017 Agenda Book 58 American College of Commerce and Technology (ACCT) - Report of Audit Audit Date: February 2-4, 2016 Page 21 preservation of records. University of Northern Virginia (UNVA) was an institution of Higher Education that operated in Virginia from 2006 until 2013 and did not properly arrange for the preservation of student records. Council voted to revoke UNVA’s certificate to operate in July 2013. Upon closure of UNVA, ACCT affiliated itself with persons associated with the closed institution. The Chairman of the Board of the defunct UNVA at the time of closure is now Chairman of the Board of ACCT. According to Dr. Schipper, President and CEO of ACCT, Mr. Bishnu Poudel, is also a stockholder. The State Corporation Commission lists Bishnu Poudel as the Director of the corporation. While it is true that a board member is not defined as a senior administrator in Virginia regulation, ACCT’s decision to affiliate with members of UNVA, an institution with a spotted history during its existence in Virginia, raises questions regarding the nature of ACCT’s operation. While UNVA’s certification was revoked based on its failure to obtain candidacy with an accrediting agency recognized by the US Department of Education within the time allotted by the Code of Virginia, the institution had a long standing problem with maintaining compliance with Virginia regulation. As a result of an audit conducted in October 2012, for example, SCHEV staff recommended revocation of UNVA’s certificate to operate. UNVA also had other issues it was facing at the time of closure. In July 2011, Homeland Security conducted a raid of UNVA in regard to its compliance with laws concerning F1 student visas. The investigation was still underway at the time of Council’s revocation of the institution’s certificate to operate. In addition to Mr. Poudel, the Admissions Director at ACCT, Fakhirah Abbassi was formally the Admissions Director of UNVA. There are also faculty members, other staff and students employed by ACCT with connections to UNVA.

Immediately after UNVA’s closure, ACCT’s student population began to grow rapidly. In summer 2013, ACCT’s student population increased by 64%. Many of these were F-1 Visa transfers from UNVA. Two and a half years after the closure of UNVA, ACCT’s student population has grown from 46 in spring 2013 to 1334 in winter 2016, nearly all of which are international students. In view of the magnitude of ACCT’s non-compliance with Virginia regulation; its almost complete population of international students; and its close ties with a troubled institution ordered closed by Council —it is not unwarranted for SCHEV to question the true objective of ACCT’s operation in Virginia.

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STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA

Report of Limited Scope Audit American College of Commerce and Technology (ACCT) Date of Visit: June 9-11, 2017

Report Date: July 27, 2017

HISTORY

Pursuant to 8VAC40-31-200, SCHEV staff conducted an audit of American College of Commerce and Technology (ACCT) on February 2-4, 2016 for the purpose of determining compliance with § 23-276 of the Code of Virginia and the provisions of 8 VAC 40-31 et.seq of the Virginia Administrative Code. Following the audit, SCHEV staff prepared a report citing thirteen items of non-compliance, two items of concern and a recommendation that ACCT request an informal fact finding conference (IFFC) to provide evidence to support why its certificate to operate as a postsecondary institution should not be revoked. The IFFC was held on May 1, 2016 and ACCT provided written documentation and oral statements disputing some of the findings of the audit and correcting some items of non- compliance described in the Report of Audit. Following the analysis of documentation submitted by ACCT at the IFFC, SCHEV determined that sufficient basis existed to continue with the process to revoke ACCT’s certificate to operate based on the severity of three non-compliant items that had not been resolved. The three remaining items of non-compliance were (1) non-adherence to admissions requirements specifically in regard to English proficiency of foreign students; (2) unqualified instructors; and (3) substandard online education. In accordance with the Administrative Process Act (APA) (§ 2.2-4000 et seq. of the Code of Virginia), prior to the denial, suspension, or revocation of its certificate to operate a school is entitled to to a formal hearing presided over by a hearing officer selected from a list prepared by the Executive Secretary of the Supreme Court of Virginia. ACCT exercised its right to a formal hearing, which was held before Mr. William Rollow on October 31, 2016 in Tysons, Virginia. In accordance with the APA, Mr. Rollow submitted his recommendation to SCHEV on March 27, 2017. In his Recommended Findings of Fact, Conclusions of Law and Decision, Mr. Rollow recommended that ACCT’s certificate to operate not be revoked by at this time. His Proposed Decision was as follows: 1. ACCT’s certificate should be downgraded to “conditional”. 2. ACCT should be given a “reasonable time” to come into compliance with Virginia regulation, including, but not limited to, hiring instructors who have the required academic degrees. 3. After the period of time allowed for ACCT to come into compliance, SCHEV should re-audit ACCT. 4. The revocation proceeding should be stayed pending completion of the re-audit. 5. If said re-audit reveals that ACCT is still not in compliance, the proceeding to revoke ACCT’s certificate to operate should be resumed. As a result of the Mr. Rollow’s recommendation, SCHEV entered a consent agreement with ACCT in which both parties agreed to schedule a re-audit in June 2017. It should be noted

September 2017 Agenda Book 97 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 2 that ACCT informed SCHEV that it did not need additional time to be in compliance with the regulation and requested a re-audit in June. Per the consent agreement, the re-audit was limited to the three items of non-compliance presented at the formal hearing. SCHEV staff conducted the re-audit on June 9-11. The Consent Agreement also adopted the Hearing Officer’s recommendation that if the re-audit reveals that ACCT is still not in compliance regarding the three items of deficiency at issue in the Formal Hearing, the proceeding to revoke ACCT’s certificate to operate should be resumed. At the close of the re-audit, SCHEV staff concluded that ACCT failed to achieve compliance with two of the three items reviewed and is recommending the revocation of ACCT’s certificate to operate. The following is a report of the findings from the audit conducted June 9-11.

I. UNRESOLVED ITEMS OF NON-COMPLIANCE

1. Instructors are not properly qualified to teach assigned courses. 8 VAC 40-31-140(D)(3)(a)-(b) All instructional faculty members who teach in programs at the baccalaureate level shall: a. Hold a master's degree in the discipline being taught or hold a master's degree in an area other than that being taught with at least 18 graduate semester hours in the teaching discipline from an accredited college or university. b. Exception to academic preparation requirements for instructional faculty may be made in instances where substantial documentation of professional and scholarly achievements and/or demonstrated competences in the discipline can be shown. The institution must document and justify any such exception.

8 VAC 40-31-140(D)(4) All instructional faculty teaching in a program at the master's level or higher shall hold a doctoral or other terminal degree in the discipline being taught from an accredited college or university. Exception to academic preparation requirements for instructional faculty may be made in instances where substantial documentation of professional and scholarly achievements and/or demonstrated competences in the discipline can be shown. The institution must document and justify any such exception. Original Finding: At the time of the initial audit, SCHEV staff reviewed the credentials of 26 of the 67 faculty members reported to be employed by ACCT. The 26 were selected randomly and constitute more than a third of the faculty. Of the 26 faculty reviewed, SCHEV deemed 22, nearly 85%, as unqualified to teach the subjects assigned. ACCT Response: ACCT provided proof to support that all 22 faculty members deemed unqualified by SCHEV staff were in fact qualified to teach courses assigned by virtue of “professional and scholarly achievements.”

September 2017 Agenda Book 98 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 3

SCHEV Rebuttal: The exception to academic preparation is not meant to be used by an institution as a universal means to qualify an instructor to teach subjects assigned. It was placed in regulation to be used in instances where it is difficult to hire an academically qualified instructor. It is most reasonably used in new and emerging fields where it is problematic or impossible to find a candidate with the required level of education. ACCT’s use of the exception to academic preparation as the standard across the board means of qualifying faculty is an instance of the exception “swallowing” the rule. In addition, even the justifications used by ACCT to qualify faculty by means of the exception were substantively deficient in many cases. Mr. Rollow’s Recommended Findings of Fact, Conclusions of Law and Decision: (page 8) “The undersigned believes, and so rules, that before ACCT’s charter can be revoked for lack of adequate faculty qualification,(i.e. the requisite academic degrees), ACCT must have clear notice as to the narrow construction of the exception clause. It did not. Accordingly, ACCT should have time to obtain academically qualified instructors.” Audit Findings June 2017: SCHEV staff reviewed the files of the 57 instructors assigned to teach during the spring 2017 quarter (April 3, 2017-June 18, 2017). Documentation provided to SCHEV staff included all courses the instructor is assigned to teach (not only the ones assigned during the current quarter). These courses have all been included here for evaluation. On the last day of the audit, SCHEV reported that sixteen (16) instructors were either not qualified to teach courses assigned OR qualification could not be established based on materials reviewed at the time of audit. Mr. John Bozeman provided additional information which SCHEV evaluated to determine that five (5) of those originally cited were qualified to teach specific courses. Please see Addendum A for a list of those instructors and SCHEV’s analysis of the documentation provided by Mr. Bozeman. The remaining eleven (11) instructors have been deemed unqualified to teach at least one course assigned. The table below provides details of the finding:

Instructor Credentials Courses 1. REDACTED MPH Global Health/Public Assigned Spring 2017: Health, GMU, 2013 HCM300; SCI200 BS Community Health, GMU, Other Courses Assigned: 2009 HCM563; HCM562; HCM350; HUM200; PSY100; SOC101 CIS590; CIS510; CIS555 FINDINGS- REDACTED SCHEV finding June 2017 Academically qualified to teach undergraduate courses in Healthcare Management based on MPH degree. Not academically qualified to teach on graduate level in any subject—no doctoral degree.

September 2017 Agenda Book 99 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 4

Not academically qualified to teach general education courses in science, humanities psychology, or sociology—no 18 graduate credits in subject matter. Repeat finding from Feb 2016 audit. ACCT email and documentation dated 6/20/2017 from John Bozeman (1) “A review of her master's transcript shows that she has completed 21 graduate hours in the field of science, with the following seven 3-credit hour courses: Environmental Health; HIV/ AIDS: Concepts, Principles, and Interventions; Introduction to Epidemiology; Practicum in Public Health; Global Non-communicable Diseases; Nutrition and Weight Management; and Introduction to Biostatistics. She thus is qualified to teach undergraduate science courses as well as classes on the topic of healthcare.” (2) “In addition to the graduate course work mentioned above, REDACTED is additionally qualified to teach due to the unusual breadth and quality of her prior teaching and research experience.” (3)“REDACTED no longer teaches PSY classes at ACCT. She only taught undergraduate HCM and SCI classes for the spring 2017 term, and now scheduled to teach the same summer 2017.” SCHEV response to additional documents submitted in support of faculty (1) The courses noted by ACCT in the item above academically qualify REDACTED to teach HCM on the undergraduate level but not a general education science course. There is nothing in the academic records provided or in the documentation submitted that support REDACTED qualification to teach either of the two science courses offered by ACCT as described below:

SCI200 Science and Society (4.5 quarter credit hours) This course studies the impact of scientific ideas on society of nineteenth and twentieth centuries. Addresses issues such as the scientific method of inquiry, social Darwinism, evolution, nuclear energy, the structure of matter, cloning, and medical and technological breakthroughs.

SCI210 Environment and Health (4.5 quarter credit hours) This course provides an introduction to foundational concepts of environmental science, including concepts such as ecosystems, nutrient cycling, pollution and pollution control, conservation, and resource management. The role of human impact on the environment will also be considered, as well as contemporary environmental controversies and management. (2) Prior teaching experience in another field at another institution does not constitute professional and scholarly achievements and/or demonstrated competences in the discipline. (3) REDACTED is not qualified to teach general education courses in any field including science. Additional observation ACCT’s continued practice of assigning of REDACTED courses she is not academically qualified to teach by attempting to prove she is qualified by “professional and scholarly achievements and/or demonstrated competences” indicates either a lack of understanding

September 2017 Agenda Book 100 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 5 when the exception may be used or a purposeful defiance after receiving SCHEV guidance and instruction.

Instructor Credentials Courses 2. REDACTED PhD Management, Northcentral Assigned Spring 2017: University, 2005 MKT545 MBA Management, Northcentral University, 2004

FINDINGS- REDACTED ACCT email and documentation dated 6/30/2017 from John Bozeman “ACCT thanks SCHEV for pointing out this oversight on our part; we are now sending out his British degrees for evaluation and he will not teach further graduate courses in marketing until cleared by SCHEV.” SCHEV finding June 2017: Not qualified to teach course assigned. Only 3 graduate credits in marketing. Additional observation ACCT’s assignment of a graduate level course in marketing to REDACTED indicates either a lack of understanding of the regulation specific to the academic qualification of faculty or a purposeful defiance after receiving SCHEV guidance and instruction. This faculty assignment was made after SCHEV’s last audit.

Instructor Credentials Courses 3. REDACTED DBA, Argosy University, 2013 Assigned Spring 2017: MBA Management, Strayer ACC500 University, 2004 Other Courses Assigned: ACC563; ACC575 FINDINGS- REDACTED No additional documentation was submitted by ACCT after the audit SCHEV finding June 2017: Not qualified to teach course assigned. Only 6 graduate credits in accounting. Additional observation ACCT’s assignment of a graduate level course in accounting to REDACTED indicates either a lack of understanding of the regulation specific to the academic qualification of faculty or a purposeful defiance after receiving SCHEV guidance and instruction. This faculty assignment was made after SCHEV’s last audit.

September 2017 Agenda Book 101 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 6

Instructor Credentials Courses 4. REDACTED EdD Organizational Leadership, Assigned Spring 2017: Nova Southeastern University, BUS520 2010 Other Courses Assigned: MS Management Information BUS530; CIS500 Sciences, Strayer University, 2003 BA Education and History, Abia State University (Nigeria), 1993 FINDINGS- REDACTED ACCT email and documentation dated 6/17/2017 from John Bozeman “In your comments during the visit concern was expresses that the instructor is not credentialed to teach CIS500. REDACTED no longer teaches that class; he only taught BUS520 and BUS530 during the winter 2017 and spring 2017 terms, and is scheduled to teach BUS520 for summer 2017.” SCHEV finding June 2017: Not academically qualified to teach graduate level CIS courses—no 18 graduate credits in subject matter. It is noted that REDACTED did not teach CIS in winter and spring 2017. Not academically qualified to teach graduate level BUS courses (with one exception noted below)—no 18 graduate credits in subject matter. Academically qualified to teach BUS 520 (Leadership and Organizational Behavior) based on EdD concentration in Organizational Leadership including 18 graduate credits in subject. Additional observation Not academically qualified to teach BUS 530 (Business Technology and Research) although currently assigned to teach the course.

Instructor Credentials Courses 5. REDACTED MS Information Systems, Strayer Assigned Spring 2017: University 2004 MAT100 MSc Mechanical Engineering, Other Courses Assigned: Université Laval, (Canada), 1979 CIS500; CIS591; BUS530; BSc, Physics, Concordia BUS599 University, (Canada), 1974 FINDINGS- REDACTED ACCT email and documentation dated 6/20/2017 from John Bozeman “In your comments during the visit concern was expressed that the instructor is not credentialed to graduate CIS courses, and that he lacks documentation to be able to teach math at the undergraduate level. 1. REDACTED no longer teaches graduate courses.

September 2017 Agenda Book 102 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 7

2. He is qualified to teach undergraduate CIS classes, based on his Strayer master’s degree. 3. We are sending his Laval transcript out to be translated.” SCHEV finding June 2017: Academically qualified to teach undergraduate CIS courses based on MS Information Systems degree from Strayer University. Not academically qualified to teach MAT 100 (College Algebra)—no 18 graduate credits in subject matter. Not academically qualified to teach graduate level CIS or BUS courses—no 18 graduate credits in subject matter. It is noted that REDACTED did not teach CIS in spring and summer 2017.

Instructor Credentials Courses 6. REDACTED MS Computer Engineering, Assigned Spring 2017: Wayne State University, 1987 MGT551 BS Electrical Engineering, Other Courses Assigned: Wayne State University, 1986 MGT550; MGT560; PMP certification MGT580; BUS285; BUS499; CIS557; CIS570; FINDINGS- REDACTED ACCT email and documentation dated 6/17/2017 from John Bozeman “REDACTED is qualified to teach undergraduate CIS classes at ACCT on the basis of his master degree in computer engineering from Wayne State University. In addition, ACCT has determined that REDACTED is professionally qualified to teach project management courses at the graduate level due to his extensive experience and portfolio of certifications in the field. These include his certification as a Project Management Professional (PMP) by the Project Management Institute (PMI), his Six Sigma Green Belt Professional certification, also by PMI, his passage of the APM ITIL version 3 Foundation Examination, and by letters from the University of Maryland, Virginia International University, and Stratford University attesting to his having successfully taught dozens of undergraduate and graduate courses in project management.” SCHEV finding June 2017: Academically qualified to teach undergraduate CIS courses. Qualified to teach BUS285, MGT 550 & 551 (Project Management) by virtue of “professional and scholarly achievements and/or demonstrated competences in the discipline.” REDACTED has PMP certification and there is no degree in PMP. Not academically qualified to teach other graduate courses assigned in BUS, MGT and CIS as noted above.

September 2017 Agenda Book 103 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 8

Instructor Credentials Courses 7. REDACTED DSc Medical Engineering, GWU, Assigned Spring 2017: 1987 CIS555; CIS510 MS Computer Science, GWU, Other Courses Assigned: 1973 CIS500; CIS594; CIS570; BSEE, Electrical Engineering Wichita State University, 1970 FINDINGS- REDACTED ACCT did not submit additional documents for review after the audit. SCHEV finding June 2017: Qualification to teach CIS courses on the graduate level not determined since actual courses for REDACTED at GWU were not on transcript. However, due to the degree being in Medical Engineering, it is not likely he will have 18 graduate credits in computer information systems.

Instructor Credentials Courses 8. REDACTED PhD Electrical & Electronic Assigned Spring 2017: Engineering, Brunel CIS549 University(UK)1992; Other Courses Assigned: MPhil Electrical Engineering, CIS500; CIS570; CIS591; Brunel University (UK), 1990 CIS594 BS Mechanical Engineering, North Carolina A&T, 1985 FINDINGS- REDACTED Finding from Feb 2016 audit ACCT provided information in support REDACTED qualification to teach subjects assigned by virtue of “professional and scholarly achievements and/or demonstrated competences in the discipline.” SCHEV did not agree with ACCT’s documentation and submitted the following statement: “(1) Experience in “different disciplines” does not qualify an instructor to teach in a specific field, or teach specific courses especially on a graduate level. (2) Qualification to teach courses in Virginia is not based on courses instructors have taught in other countries because qualifications in Virginia are specific to the state regulation. In addition, there’s no detail regarding courses he was assigned to teach. Teaching experience at an unaccredited university (UNVA) do not support substantial documentation of professional and scholarly achievements and/or demonstrated competences in the discipline. Not qualified to teach courses assigned. ACCT email and documentation dated 6/21/2017 from John Bozeman “During your recent visit to ACCT on 6/9-11/2017, REDACTED was flagged for the following reasons: “Foreign degrees evaluated by ECE; No doctorate in CIS; cited on prior

September 2017 Agenda Book 104 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 9 audit for same courses. “I would thus like to send to you the attached file for your review which contains more details about REDACTED credentials. Page 3 provides a letter of justification which highlights the fact that REDACTED dissertation was on high-speed circuit timing, a topic essential to the proper function of all modern computers and memory chips. Pages 9 – 18 are scans of a few relevant pages of his dissertation which demonstrate this, as well as his supporting work with computer languages. Beginning on page 40 is documentation showing the development and overlap of computer science and electrical engineering, with demonstrations of cross citations of journals within the field and also through tracing the history of computer science as a discipline.” The letter provided by ACCT to justify REDACTED qualification to teach the assigned courses includes the following: “REDACTED holds a master’s degree and a PhD in electrical and electronics engineering from Brunel University, degrees which ECE views as equivalent to their American regionally credited equivalent degrees. REDACTED graduate work was on the topic of “Tapping and Synchronizing Circuits” used in connecting central processing units (CPUs) of computer systems to computer memory chips, a core aspect of computer information hardware. Further, REDACTED research involved modelling of computer system interactions using the Very High-speed Hardware Description Language (VHDL), a high level computer language similar to ADA and C, often used as a language in parallel computing systems.” “REDACTED has also published in the field of e-ecommerce, particularly in the area of technological innovation and the willingness of users to accept new technologies. A copy of this paper is attached.” “REDACTED is thus qualified to teach CIS courses given his doctoral experience in both computer hardware and software, especially in the areas of cloud computing, computer hardware and circuit design, and management of information systems.” SCHEV finding June 2017: Not academically qualified to teach CIS courses on the graduate level— The institution has not provided sufficient proof that REDACTED has a “doctoral or other terminal degree in the discipline being taught.” While ECE confirms that REDACTED degree is equivalent to a doctorate in Electrical and Electronics Engineering, ECE did not have access to the course by course transcript. SCHEV could not confirm that coursework taken at Brunel University included those comparable to Computer Information Systems courses he teaches. Therefore, ACCT has provided no proof that a PhD Electrical & Electronic Engineering conferred in 1992 qualifies REDACTED to teach Computer Information Systems on the graduate level. REDACTED listed a number of courses that he took as part of the degree; however, there is no evidence that those courses were part of the doctorate he received. As such there is no proof that REDACTED has the academic credential to teach courses assigned.

REDACTED resume includes his teaching experience at ACCT, Arab Open University, Uxbridge Technical College (UK), Hatfield University (UK), and NOVA Community College, none of which can be used to support his ability to teach CIS on the graduate level.

September 2017 Agenda Book 105 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 10

SCHEV finds REDACTED unqualified to teach assigned graduate level courses in CIS which is a repeat finding from the February 2016 audit.

Additional observation ACCT’s continued assignment of CIS courses to REDACTED indicates either a lack of understanding of the regulation specific to the academic qualification of faculty or a purposeful defiance after receiving SCHEV guidance and instruction.

Instructor Credentials Courses 9. REDACTED MS Financial Management/ Assigned Spring 2017: Management Science, West BUS597; BUS505 Coast University,1972 Other Courses Assigned: BS Industrial Engineering, BUS507; BUS515; ACC590; California State Polytechnic FIN200; MAT100; MAT310 University, 1966 FINDINGS- REDACTED SCHEV finding June 2017: Academically qualified to teach Fin200 based on MS in Financial Management. Qualified to teach BUS505 (Business Analytics for Competitive Advantage); BUS 507 (Marketing Analytics) and BUS 597 (Statistical Analytics of Business Problems by virtue of “professional and scholarly achievements and/or demonstrated competences in the discipline” as detailed in the documents forwarded to SCHEV on 6/21/2017. REDACTED also has documented training in “Manipulating Data and Analytics and Advanced Business Analytics and there is no degree in Data Analytics. Not academically qualified to teach BUS515 (Operations Management); ACC590 (Curricular Practical Training in Accounting Externship); MAT100 (College Algebra) ; MAT310 (Descriptive Statistics). It is noted that REDACTED did not teach any of these courses in and spring and summer 2017.

Instructor Credentials Courses 10. REDACTED PhD, Edu. Administration & Assigned Spring 2017: School Law, University of Utah, BUS100

1974 Other Courses Assigned: MA Secondary School ACC 100, ACC250, ACC302 Curriculum, University of the Pacific, BA, Social Sciences, Chico State College, 1961

September 2017 Agenda Book 106 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 11

FINDINGS- REDACTED ACCT email and documentation dated 6/17/2017 from John Bozeman “During your recent visit to ACCT on 6/9-11/2017, REDACTED was flagged for the following reason: “Transcripts do not show 18 credits in accounting or related discipline.” I wanted to let you know that REDACTED will not be teaching any courses during the summer 2017 term. SCHEV finding June 2017: Not academically qualified to teach any accounting courses. It is noted that REDACTED did not teach any of these courses in spring and summer 2017 and, at the time of audit, ACCT notified SCHEV the accounting courses were included on REDACTED list of assigned courses in error. Not academically qualified to teach BUS100 (Introduction to Business) — no graduate credits in subject matter. Additional observation ACCT’s assignment of an undergraduate level course in business to REDACTED indicates either a lack of understanding of the regulation specific to the academic qualification of faculty or a purposeful defiance after receiving SCHEV guidance and instruction. This faculty assignment was made after SCHEV’s last audit and the instructor has NO business courses in his transcript.

Instructor Credentials Courses 11. REDACTED Post-MBA Certificate of Assigned Spring 2017: Advanced Study In Technology BUS590; CIS570; ACC590 Management, The University of Liverpool, UK 2016 Other Courses Assigned: EdD Educational Leadership, BUS320; BUS530; BUS558; Delaware State University, 2009 BUS565; CIS500; CIS520; CIS530; Post-Doc Certificate/Univ of Liverpool-Org. Leadership and Change Mgt; MBA Management, Eastern University, 1999 PhD, Industrial Engineering, Penn State University, 1986 MEng, Industrial Engineering, Penn State University, 1977 Bachelor of Science (BSc), Chemical Engineering, Baghdad University, Baghdad, Iraq, 1996

September 2017 Agenda Book 107 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 12

FINDINGS- REDACTED ACCT email and documentation dated 6/30/2017 from John Bozeman “During your recent visit to ACCT on 6/9-11/2017, REDACTED was flagged for the following reason: “Post MBA and Post-Doc certificates has course listing but not evaluated to show US equivalence for credits; Does not show a doctorate in business or 18 credits in doctorate.” However, in Exhibit 1 submitted at the SCHEV hearing of 10/31/16, SCHEV wrote the following in regard to this ACCT instructor: “REDACTED is qualified to teach Leadership/Organizational behavior and Human resources courses on the basis of his academic preparation (Post-Doctoral courses from Liverpool as well as his strong background in Human Resources and Leadership Experience. REDACTED is not qualified to teach Supply Chain Management (BUS585) which is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.” Based on SCHEV’s directive of October, REDACTED has not been teaching BUS585 during 2017. Instead, he has been teaching BUS565 (Human Resource Development), CIS570 (E-Business Technology and Management), and supervising business-oriented CPT courses (BUS590, BUS590-1, etc.). ACCT would appreciate it if SCHEV would let ACCT know if these teaching assignments are satisfactory, and also if SCHEV could provide clarification of its seemingly contradictory assessments of REDACTED teaching qualifications. SCHEV finding June 2017: As noted in the document quoted above, (Exhibit 1 submitted by SCHEV at the hearing of 10/31/16) the statement regarding REDACTED qualification to teach Leadership/ Organizational Behavior and Human Resources courses on the basis of his academic preparation (Post-Doctoral courses from Liverpool) as well as his strong background in Human Resources and Leadership Experience specifically referred to the courses he was assigned to teach at that time BUS520 (Leadership and Organizational Behavior) and BUS565 ( Human Resources Development). The qualification to teach the two courses was in part based on his professional achievements and demonstrated competences in the discipline. SCHEV was specific in the courses REDACTED could teach and did not state that he was qualified to teach on the graduate level for ALL disciplines. Note that his doctorate degree is in Education not Business. During the February audit, SCHEV specifically determined REDACTED was unqualified to teach the third course assigned to him at that time BUS585 (Supply Chain Management). ACCT has confirmed that REDACTED no longer teaches that course and SCHEV did not find any indication that this is not so. Since the February audit, however, ACCT has assigned REDACTED additional courses and his qualifications to teach those were not evaluated until the June audit. As a result of reviewing the documents provided, SCHEV finds REDACTED is:  Not academically qualified to teach the following graduate courses CIS500

September 2017 Agenda Book 108 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 13

(Management of Information Systems) CIS570 (E-Business Technology and Management); CIS520(Software Engineering); CIS530(Computer Systems Architecture —Does not have a “doctoral or other terminal degree in the discipline being taught.”  Not academically qualified to teach BUS530 (Business Technology and Research); BUS558 (Entrepreneurship and Small Business Management); BUS590 (CPT) — Does not have a “doctoral or other terminal degree in the discipline being taught.”  Not academically qualified to teach ACC590 (CPT) —Does not have a “doctoral or other terminal degree in the discipline being taught.”  Academically qualified to teach BUS280 (Business Ethics) on the basis of his MBA.  Academically qualified to teach BUS320 (Entrepreneurship) on the basis of his MBA. Additional observation ACCT’s assignment of a variety of Graduate level courses to REDACTED indicates either a lack of understanding of the regulation specific to the academic qualification of faculty or a purposeful defiance after receiving SCHEV guidance and instruction. These assignments were made after SCHEV’s last audit. While SCHEV allowed a specific exception to academic preparation, ACCT has applied the exception broadly in violation of Virginia regulation.

2. Program offerings do not meet standards of quality to adequately achieve the stated objective. 8 VAC 40-31-140(C) The course, program, curriculum and instruction must be of quality, content and length to adequately achieve the stated objective. 8VAC40-31-160 L (1-5) All programs offered via telecommunications or distance education must be comparable in content, faculty, and resources to those offered in residence, and must include regular student-faculty interaction by computer, telephone, mail, or face-to- face meetings.

Original Finding: SCHEV determined that on-line course offerings do not meet standards expected of distance education. SCHEV staff found policies that would be considered good practices for online education but the school did not follow them. Weekly homework assignments, for example, were not required to be completed weekly, as stated in policy. As of the third week of class, 47.7% of students enrolled in four classes had not submitted even one assignment. Student/faculty interaction during the first three weeks of class was sporadic at best. ACCT Response: ACCT notified SCHEV that it adjusted its online policy. The new policy includes: (1) the requirement that students complete assignments every week, (2) withdrawal of students that

September 2017 Agenda Book 109 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 14 do not participate within the first two weeks of class and (3) students who accumulate four or more absences in an online course “may receive an F.” SCHEV Rebuttal: The policy change that ACCT implemented regarding completing assignments every week was already in place; however, ACCT systematically failed to enforce the policy. ACCT’s statement that it would henceforth enforce policy does not ameliorate the fact that ACCT provided subpar, non-compliant online education to students over an extended period of time. Furthermore, ACCT’s non-enforcement of policies considered standard in online education violates regulation because it results in substandard education. Mr. Rollow’s Recommended Findings of Fact, Conclusions of Law and Decision : (page14) “ACCT, in its briefs filed in the instant appeal, add (sic) a further defense—namely that SCHEV’s position was based on unpublished standards—and therefore of no import. Be that as it may, ACCT did violate SCHEV’s online regulations. The only issue is whether such violation warrants a per se cancellation of ACCT’s charter. The undersigned rules that revocation at this time on this narrow basis is not warranted-but, as set forth later, all remaining online issues must be resolved with SCHEV. “There remains one further issue. Did ACCT violate 8VAC40-31-140(C) by its failure to meet the standards of quality expected of institutions of higher learning in Virginia. Probably— again this issue is mooted by the recommendations set forth in the following Conclusion.” Audit Findings June 2017: As noted above, in its response to the February 2016 audit, ACCT informed SCHEV that it had adjusted its online policy to address SCHEV’s concerns in regard to this issue. While ACCT claims to have made changes to its policy, SCHEV found, for example, that students are still not required to complete assignments the week they are due. The actual policy as written is: “All assignments are due by the end of the week. Late assignments will lose 10% credit when turned in one week late and 50% credit when turned in two weeks late. Assignments will not be accepted for credit after two weeks.” SCHEV also found that in practice, the institution still fails to comply with its stated policy. Assessing the violations noted in this area during this audit as compared to the audit of 2016, SCHEV found more serious issues with the quality of the online education offered at ACCT than had been reported previously. Statistics: Online courses offered spring 2017: 40 Online courses reviewed: 20 (50%) Undergraduate Online Courses reviewed: 7 Graduate Online Courses reviewed: 13

Materials Reviewed: 1. “Moodle: A Virtual Learning Environment and Platform for Online Distance Education & Learning- September 19, 2013”(“Moodle”) — posted on ACCT’s website.

September 2017 Agenda Book 110 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 15

2. The ACCT Catalog (Catalog)—volume 8, No. 6; June 7, 2017 3. “Distance Education” — a policy posted on ACCT’s website

General findings: 1. ACCT’s online offerings do not adhere to minimum standards required by 8VAC40-31- 160(L) (1-5). Specifically: a. “regular student-faculty interaction by computer, telephone, mail, or face-to-face meetings” was notably absent or deficient in content. b. “timely interaction between students and faculty” was inconsistent across courses evaluated. 2. ACCT’s online offerings do not meet the quality and content of curriculum and instruction required under 8 VAC 40-31-140(C). Academic rigor was found to be deficient in all courses reviewed. 3. As was noted in the report of audit for the visit conducted in February 2016, while ACCT has an online policy, the faculty does not consistently adhere to the rules. While the stated policy represents best practices for delivery of quality online learning, what was actually observed occurring in the courses reviewed did not match those practices. The following deficiencies were noted: a. SCHEV found evidence that faculty does not consistently penalize students for late assignments. However, the policy under “Distance Education” (and page 21 of the Catalog) states “All assignments are due by the end of the week. Late assignments will lose 10% credit when turned in one week late and 50% credit when turned in two weeks late. Assignments will not be accepted for credit after two weeks. Attendance is predicated on the student’s submission to the discussion board each week.” b. SCHEV found very little evidence of student to student interaction. Not only is this considered best practice in online education, but page 7 of “Moodle” states that students are expected to participate in their courses weekly. Participation includes class activities, assignments, and online discussion. c. SCHEV found evidence of rampant plagiarism that was either ignored or detected but not penalized. This practice defies the strict wording of the following policies: i. Student Expectations —“Moodle”( page 9): “Intentionally using unauthorized materials, information, or study aids in any academic assignment or representing the words or ideas of another as one’s own in an academic exercise will follow the American College of Commerce and Technology Student Academic Misconduct/Disciplinary Procedures.” ii. Dismissal for Student Conduct – Catalog (page 22): “Academic dishonesty is not condoned. Such misconduct subjects the student to a range of possible disciplinary actions from admonition to dismissal, along with any grade penalty the instructor might impose.” Two of the four items identified as academic dishonesty under this section are cheating on an examination or quiz and plagiarism. d. SCHEV found multiple instances where students submitted assignments that were copied from internet articles and were then altered by substituting synonyms for carefully selected words. This practice avoids detection of the plagiarized article by means of plagiarism detection services such as Turnitin. However, the word

September 2017 Agenda Book 111 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 16

substitutions were incorrect (as often happens with non-native English speakers) rendering the assignment incomprehensible. Instructors did not comment on these incoherent responses and SCHEV found no indication that students werer penalized for nonsensical postings. e. Student responses to discussion questions are not substantive and do not indicate a clear understanding or knowledge of topic of study. Student comments on postings by their peers were often limited to less than 5 words and were often statements like “good job explaining.” No engaging discussions between students or even between faculty and students were observed. f. Even though ACCT has a policy that citations must follow the APA writing style, instructors do not adhere to the policy. g. While page 10 of “Moodle” states that “students are expected to use writing support tools or an editor to check their grammar and sentence structure so they can present their writing in the best way possible,” SCHEV found student posts were poorly constructed and contained grammatical and spelling errors. More disturbing still was that instructor postings were often no better than the students’. h. The courses reviewed did not meet quality and content expected of courses on the baccalaureate or masters’ levels. Quizzes and exams were observed to be easy and took students little time to complete and achieve perfect scores. Low level expectations by instructors were observed in many instances. Specific Findings: Please see Addendum B for specific examples of the findings noted above. The examples do not comprise all the items found to be deficient but provide a good sampling of the major issues discovered during the audit.

II. RESOLVED ITEMS OF NON-COMPLIANCE

1. Institution does not follow its own admissions policy. Student records for international students do not reflect requirement and justification for admission. 8 VAC 40-31-160(E)(1) The postsecondary school shall maintain records on all enrolled students. At a minimum, these records shall include: 1. Each student's application for admission and admissions records containing information regarding the educational qualifications of each regular student admitted that are relevant to the postsecondary schools’ admissions standards. Each student record must reflect the requirements and justification for admission of the student to the postsecondary school. Original Finding: SCHEV noted that records reviewed indicated that ACCT did not consistently follow its own admissions policy. SCHEV staff reviewed a total of 43 student records selected at random (3% of the current enrollment) and 28 of the student records reviewed (65%) reflected that students were admitted without meeting the admissions requirements specified by ACCT in its catalog/student handbook. Specifically, SCHEV noted that, in practice, ACCT did not meet

September 2017 Agenda Book 112 American College of Commerce and Technology (ACCT) Report Date: July 27, 2017 Page 17 the requirement regarding the Accuplacer exam described under graduate admissions on page 47 of the ACCT catalog. In addition, SCHEV found that while ACCT claimed students were proficient in English, there was no proof that students actually met the requirement. Audit Findings June 2017: SCHEV reviewed student admissions records of 58 students admitted to ACCT between January and April 2017. ACCT now confirms English proficiency via testing and follows its admissions policy. ACCT now meets the requirements of 8 VAC 40-31-160(E)(1).

September 2017 Agenda Book 113 Exhibit 8

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA

Report of Limited Scope Audit American College of Commerce and Technology (ACCT) Date of Visit: June 9-11, 2017

ADDENDUM A

The instructors noted below were deemed unqualified to teach at least one subject assigned in the preliminary report issued to the school at the time of the June 2017 audit. After reviewing documents forwarded to SCHEV by ACCT, the following five instructors have been cleared to teach the specific courses noted below.

Instructor Credentials Courses 1. REDACTED MS Information Management, Assigned Spring 2017: GWU, 1989 CIS399; CIS499 Other Courses Assigned: Qualified to teach undergraduate CIS139; CIS485; CIS590; courses assigned; not qualified to CIS510;CIS555 teach on graduate level.

COMMENTS: REDACTED SCHEV finding February 2016: Not academically qualified to teach on graduate level- no doctoral degree. ACCT did not provide substantial documentation of professional and scholarly achievements and/or demonstrated competences in the discipline taught. Original SCHEV finding June 2017: Academically qualified to teach undergraduate courses in CIS. Not academically qualified to teach CIS on graduate level. - no doctoral degree. Repeat finding from Feb 2016 audit. ACCT email and documentation dated 6/19/2017 from John Bozeman “REDACTED is also now only allowed to teach undergraduate classes. He only taught undergraduate classes during ACCT’s winter 2017 and spring 2017 quarters, and is only scheduled to teach undergraduate classes for the summer 2017 quarter”. SCHEV revised finding July 17, 2017 Based on SCHEV’s confirmation that REDACTED has not taught any graduate courses in winter, spring and summer 2017, SCHEV has determined that ACCT is in compliance with regulation.

Instructor Credentials Courses 2. REDACTED MS Management Information Assigned Spring 2017: Systems, Strayer University, CIS576; CIS578; CIS575

September 2017 Agenda Book 114 2004 Other Courses Assigned: CIS570; CIS577; CIS578; CIS579; CIS557; CIS590 COMMENTS: REDACTED SCHEV finding February 2016: REDACTED is not academically qualified to teach graduate courses ACCT did not provide sufficient proof that REDACTED is qualified to teach courses assigned on the basis of professional achievement. The institution may have made a stronger case by focusing on the courses assigned, pairing those with the actual experience REDACTED had in his various positions and providing additional proof of coursework in “Quality Assurance” as noted in their statement. While REDACTED documents included a 14 hour course in validation of computer systems (a course he also teaches on the graduate level), this single item does not make REDACTED qualified to teach that specific course on “professional or scholarly achievement.” Original SCHEV finding June 2017: Not academically qualified to teach on graduate level. Repeat finding from Feb 2016 audit.

ACCT email and documentation dated 6/20/2017 from John Bozeman ACCT submitted extensive documentation pairing REDACTED professional experience with course content of CIS575, CIS576, CIS577, and CIS579.

SCHEV revised finding June 2017 SCHEV has determined REDACTED is qualified to teach the four courses noted above by virtue of his professional experience. As REDACTED has not taught other courses besides these in spring and summer 2017, ACCT is in compliance with regulation.

Instructor Credentials Courses 3. REDACTED MBA Management, Strayer Assigned Spring 2017: University, 2008 CIS599; FIN100 Other Courses Assigned: BS Business Admin, Strayer FIN200; BUS575; ACC500; University, 1996 FIN500 COMMENTS: REDACTED SCHEV finding February 2016: Not selected for review at time of February 2016 audit. Original SCHEV finding June 2017:

Addendum A Page 2 of 4 September 2017 Agenda Book 115 Academically qualified to teach undergraduate courses in finance as assigned. Not academically qualified to teach graduate level courses assigned in accounting, finance or business.

ACCT email and documentation dated 6/20/2017 from John Bozeman “He only taught undergraduate classes for the spring 2017 term, and now scheduled to teach undergraduate BUS classes for summer 2017.”

SCHEV revised finding June 2017 SCHEV confirmed that REDACTED only taught the following two classes in Spring and Summer 2017: Introduction o to Business; Introduction to Finance He is academically qualified to teach on the basis of his MBA.

Instructor Credentials Courses 4. REDACTED MBA Management Information Assigned Spring 2017: Systems, CIS310; CIS458; CIS150 Southeastern University,1990 Other Courses Assigned: CIS210; CIS308; CIS499; BA Computer Science, CIS500; CIS594 Southeastern University,1988

COMMENTS: REDACTED SCHEV finding February 2016: Not selected for review at time of February 2016 audit. Original SCHEV finding June 2017: Academically qualified to teach CIS courses on the baccalaureate level. Not academically qualified to teach graduate level courses- no doctoral degree.

ACCT did not provide substantial documentation of professional and scholarly achievements and/or demonstrated competences in the discipline taught.

ACCT email and documentation dated 6/20/2017 from John Bozeman “REDACTED no longer teaches graduate classes at ACCT. He only taught undergraduate classes for the winter 2017 and spring 2017 terms, and now scheduled to teach only undergraduate CIS classes for summer 2017. “

SCHEV revised finding June 2017: Based on SCHEV’s confirmation that REDACTED has not taught any graduate courses in winter, spring and summer 2017, SCHEV has determined that ACCT is in compliance with regulation.

Addendum A Page 3 of 4 September 2017 Agenda Book 116 Instructor Credentials Courses 5. REDACTED PhDPublic Health, Addis Ababa Assigned Spring 2017: University (Ethiopia), 2012 HCM562; HCM576 Other Courses Assigned: MA Regional and Local HCM560; HCM576; CIS555; Development, Addis Ababa CIS557 University (Ethiopia), 2004

BA Sociology and Social Admin, Addis Ababa University (Ethiopia), 2001 COMMENTS: REDACTED SCHEV finding February 2016: Not selected for review at time of February 2016 audit. Original SCHEV finding June 2017: Academically qualified to teach HCM courses on graduate level. Not academically qualified to teach CIS courses on any level.

ACCT did not provide substantial documentation of professional and scholarly achievements and/or demonstrated competences for the CIS courses listed above..

ACCT email and documentation dated 6/20/2017 from John Bozeman “REDACTED no longer teaches CIS classes at ACCT. He now only teaches HCM classes. During the spring 2017 term he taught only HCM classes at the graduate level. He currently does not appear on the summer 2017 schedule, but if he were to be added, it would be only to teach HCM courses.”

SCHEV revised finding June 2017: Based on SCHEV’s confirmation that REDACTED did not teach any CIS courses in spring and summer 2017, SCHEV has determined that ACCT is in compliance with regulation.

Addendum A Page 4 of 4 September 2017 Agenda Book 117 Exhibit 9

STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA

Report of Limited Scope Audit American College of Commerce and Technology (ACCT) Date of Visit: June 9-11, 2017

ADDENDUM B

Specific violations and examples of student and instructor postings from some of the online courses reviewed.

Undergraduate Courses

(1) SCI200- Science and Society; Instructor: REDACTED a. SCHEV observed rampant plagiarism: i. For assignment 3-1, there were 18 student postings and 16 were overtly plagiarized internet articles or the student systematically substituted synonyms throughout a copied article rendering the meaning of the altered document incomprehensible. ii. For assignment 6-2 there were 17 student postings and 14 of these were either overtly plagiarized internet articles or the student systematically substituted synonyms throughout a copied article rendering the meaning of the altered document incomprehensible. b. While the instructor directed students not to use other resources beside the textbook to respond to the questions, students ignored the directive and used (and oftentimes plagiarized) internet sources. c. According to REDACTED course syllabus, students are asked to post at least two substantive comments to other students in the forum. There were eleven student postings as feedback to the postings from other students for assignment 3-1 and ten student feedback responses for assignment 6-2. All were six words or less with the exception of one. None can be considered substantive. d. The instructor comments (28 for assignment 3-1; 20 for assignment 6-2) were repetitive and in cases where the postings did not make sense, were off topic or were plagiarized, comments rarely reflected this. “Good effort in engaging in this discussion,” was a common response, even when the student response was nonsensical. e. The following are two examples of actual student postings for assignment 6-2. i. Student Posting: P.P. ID xxx-xx-1252 May 8, 2017 “In exclusive words, it can be precise that the larger we are on the financial stepping stool, the more joyful we report ourselves to be. From various views, this discovering will not be whatsoever amazing, on the grounds that having money not just offers us probabilities to obtain comforts and extravagances, yet manages us more outstanding reputation and regard, more endeavor time and pleasing work, access to predominant human services and sustenance, and more noteworthy safety, self-sufficiency, and manage. Wealthier members have more advantageous existences, have the fortitude to speculate power with participants they like, are living in more comfortable neighborhoods and not more swarmed conditions, and

September 2017 Agenda Book 118

appreciate a common cushion when confronted with afflictions like sickness, incapacity, or separation. Simply, it's a contemplate that the connection among st st money and character pride is not more grounded than it's.” Instructor comment: “Good effort in engaging in this discussion.” Grade: 80 ii. Student posting SP xxx-xx-1311 Monday, 8 May 2017, 4:00 PM (Excerpt) “The profits courting isn't in basic terms a right away one. It relies upon on the have an impact on of some of external factors that covary with income, each at countrywide and individual ranges. Furthering the complexity, some of mental factors seem to exert a moderating effect on the connection. A effective correlation between incomes makes intuitive sense. Higher income would allow humans to greater effectively meet their primary physical needs and could confer reputation blessings. Beyond this, the extra freedom of motion and consumption that earnings gives could allow for more self-actualization and greater successful purpose pursuits. This point will assessment the extant studies on the income relationship at each of the above levels, and speak the constraints and destiny instructions of this line of inquiry.” Instructor comment: “Good effort in engaging in this discussion.” Grade: 80

(N.B. HCM300, also taught by REDACTED, was reviewed during the audit as well. The results of that review mirror the results of this course.)

(2) CIS 458-Business Systems Analysis; Instructor: REDACTED a. Instructor did not provide timely feedback to students in the course. SCHEV noted that some assignments and discussion posts from April were not graded until the evening of June 8 and morning of June 9. It should be noted that SCHEV’s audit was June 9-11th. b. The instructor administered a multiple choice exam as a midterm. After reviewing five answer sheets, SCHEV noted that while the answers provided were different in each case, the entire class scored 100% on the exam. c. On assignment # 5, at least six students scored 90 out of 100 and others ended up with a perfect score of 100 even though based on the instructor’s feedback it appears they did not respond to the question correctly. For the students who scored 90%, the instructor response is as follows: “It is not ok, becouse I need everyone to be doing is to understand the question and answer with well explaination or informative statement.” (sic) For the three students who scored 100%, the instructor response, is as follows: “It is not ok, becouse I need everyone to be doing is to understand the question and answer with well explaination or informative statement.” (sic) d. Other examples of the instructor’s feedback to students, quoted verbatim, are as follows: i. Good discussion still You have to interact with your fallow class met effectively. ii. This is good apporch but you have to elaborat the question with your understanding of the subject matter. iii. Yes, you have discussed the question good. You have to have a detaied outlook about the subject matter and respond. It is not enough.

September 2017 Agenda Book 119 Addendum B - Page 2 of 4 iv. This is good apporch but you have to elaborate wether you agree or disagree about the other student responses. v. This is unacceptable, bad. You must be care full what you post on the class for grade e. Five student submissions for assignment #7 were reviewed by the audit team. Four of the submissions were completely plagiarized from internet articles. In the other submissions the student systematically substituted synonyms throughout a copied article rendering the meaning of the altered document incomprehensible. One of the entirely plagiarized submissions received a grade of 90% and the other four submissions were graded 100%. f. The following is an excerpt from the response submitted by student SP to the question: “What is the advantage of Use-Case Modeling please explain?” This submission for assignment #7 was graded 100%. i. “Since they are composed in characteristic dialect, utilize cases are straightforward and give an incredible approach to speaking with clients and clients. Despite the fact that PC helped programming building (CASE) apparatuses are valuable for drawing the comparing collaboration outlines, utilize cases themselves require astoundingly little device bolster.”

(3) ECO100-Principles of Economics; Instructor: REDACTED a. The level of difficulty in this class was judged to be low for a college level course. i. In the case of one quiz, three students who achieved 100% completed the entire quiz in 39 seconds, 1 minute 6 seconds and 3 minutes 11 seconds. ii. On assignment #1, five students out of eleven completed the assignment. All five received instructor feedback similar to “your answer is correct; nice work!” or “good use of references.” There were no grades other than zero or 100%. b. In discussion question 2-1, student DP posted a one-sentence response starting with “according to my opinion….” But the prompt did not ask an opinion-based question. The instructor first responded that the response was “obscure” but that he would still give partial credit. Three days later, however, the instructor provided the following feedback on the same posting: “good job, your response is accurate and shows good understanding.” c. In one case, the instructor comments that he caught a student red-handed using an old exam, even to the point of not changing the date. He posted the following feedback on the student’s midterm: “J, you got an old copy of a previous exam, which is wrong, and it is not the current version for this term. You also forgot to delete the date of May 8, instead of May 14 2017. I should give you a zero, but gave you what you scored based on your answers!” Graduate Courses (1) ACC500- Financial Accounting; Instructor: REDACTED a. Students SP, BO, MM, RS had assignments that were more than 36 days overdue at the time of audit. There was no evidence that students were failing the course as per the policy. b. Rampant plagiarism was observed by the instructor and while he informed students it was against policy, students seemed to ignore his comments and continued to submit plagiarized work. In two cases, the instructor informed two separate students three times each and another student was warned twice.

September 2017 Agenda Book 120 Addendum B - Page 3 of 4 c. Level of work expected of students does not reflect a graduate course. The following is an example of one homework assignment and the entire student response quoted verbatim: Question: How does President Trump and his administration use Accounting data? Student Response: My honest idea he is somehow a business man with many time claim bankruptcy and he is refusing to file his taxes. I think he doesn’t have any idea to use accounting information. Hopefully we will be ok for next 4 years.

(2) CIS578-Quality Management Systems; Instructor: REDACTED a. Plagiarism was observed in assignments and in responses posted on the discussion boards. The instructor either did not catch the cases of overt plagiarism or simply ignored them. b. Student MG submitted his response to assignment 4 titled “Evaluating implementation of quality management system (sic) in a teaching hospital's clinical departments” which largely plagiarized the results of a study by the same name. To avoid detection, however, the student substituted synonyms throughout. Clearly the student did not understand the material as the word substitutions are inappropriate and the result is a narrative that makes no sense. He received a grade of 60%. c. Student TK based his response on the same study as student MG but attempted to paraphrase the study. The student’s response, however, was filled with grammatical, word choice and sentence structure errors. The resulting paper was simplistic, not on the level of a graduate student and depicts the student’s lack of in depth knowledge of the topic. The grade he received was not available.

(3) BUS520-Leadership and Organizational Behavior; Instructor: REDACTED a. Instructor provided no feedback to students who submitted assignment #7 for grading. For students who received zeros, the instructor’s comment indicated “No submission provided.” b. Discussion participation in this course is required to be a minimum of 50 words although the instructor does not adhere to this policy. c. Level of work expected from graduate students is low. i. One student scored a 90% on the first week’s assignment. His entire response was one paragraph long. ii. Another student submitted a triple-spaced paper and scored 80% even though the feedback from the instructor stated “content was not detailed.”

(4) FIN500-Advanced Financial Management ; Instructor: REDACTED a. At the time of audit, one week before the end of the quarter, students KTB and PA did not have any posts on the discussion forum.

September 2017 Agenda Book 121 Addendum B - Page 4 of 4 STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA RESOURCES AND PLANNING COMMITTEE JULY 18, 2017 MINUTES

Ms. Connelly called the meeting to order at 10:05 a.m. in Hamel Hall, Room H109, John Tyler Community College, Midlothian, Virginia. Committee members present: Marge Connelly, Henry Light, Stephen Moret, Minnis Ridenour, and Thomas Slater.

Committee members absent: William Murray

Ms. Connelly participated by phone due to an emergency. Her flight was canceled and she was not able to get to Richmond in time for the meeting.

Staff members present: Lee Andes, Peter Blake, Alan Edwards, Dan Hix, Tod Massa, Jean Mottley, Lee Ann Rung, and Yan Zheng.

APPROVAL OF MINUTES

On a motion by Mr. Light and seconded by Mr. Slater the minutes from the May 15, 2017, meeting were approved unanimously.

ACTION ON THE 2017-18 FULL COST REPORT

Mr. Blake explained the history of this item and reported that average nonresident tuition at all institutions is well over 100% of full cost. Dr. Zheng reported that all institutions have been in compliance with the full cost policy since 2010. She answered questions from members.

On a motion by Mr. Light and seconded by Mr. Ridenour, the following resolution was approved unanimously (4-0) to be forwarded to the full Council. Mr. Moret was not present for the vote:

BE IT RESOLVED that the State Council of Higher Education for Virginia approves the 2017-18 Full Cost Report.

ACTION ON FINANCIAL ASSISTANCE FOR INDUSTRY-BASED CERTIFICATION AND RELATED PROGRAMS – SCHEV GUIDANCE DOCUMENT

Mr. Andes reminded members that as part of a new emphasis on increasing student credential completion, the 2015 Act of Appropriation, Chapter 665, authorized institutions to redirect a portion of their appropriations for the need-based aid program, Virginia Student Financial assistance Program (VSFAP), for industry-based certification and related programs that do not qualify for other sources of student financial assistance. Staff identified areas where clarification and amendment would

September 2017 Agenda Book 122 be helpful. Mr. Andes answered questions from members about the program’s interaction with various forms of aid.

On a motion by Mr. Slater and seconded by Mr. Ridenour, the following resolution was approved unanimously (4-0) to be forwarded to the full Council. Mr. Moret was not present for the vote:

BE IT RESOLVED that the State Council of Higher Education for Virginia approves the amended guidelines for usage of state need-based financial aid for industry-based certification and related programs that do not qualify for other sources of student financial assistance. Council delegates to staff to make future non-substantive administrative changes to the program as needed.

Mr. Moret joined the meeting at 10:20 a.m.

BRIEFING ON ENROLLMENT PROJECTIONS AND DEGREE ESTIMATES

Mr. Massa presented information on enrollment projections and degree estimates and indicated that the state is on track to achieve its goal of awarding 100,000 additional undergraduate degrees to in-state students at public institutions by 2025. He displayed a graph showing a slightly upward trend in undergraduate enrollment for both 2- and 4-year public institutions. Mr. Massa also provided charts of Virginia public high school graduates vs. actual and projected full-time-in-college students. He reminded members that the local economy drives community college enrollment, making community college estimates difficult to project.

Mr. Massa answered questions from members and reported that action on the final projections is anticipated to take place at the October meeting, following completion of the six-year plan meetings with the public institutions.

DISCUSSION OF VIRGINIA STUDENT FINANCIAL ASSISTANCE PROGRAM (VGAP) REGULATION AMENDMENTS

Mr. Andes explained the VGAP program, which is a need-based aid program for eligible Virginians. Significant changes in statute during the 2017 General Assembly session were adopted to incentivize student progression and completion by raising the annual progression standard from completion of 24 credits per year to limiting recipients to one year of award per class level. The new requirement places recipients on a four-year graduation path rather than a five-year path.

Mr. Andes answered questions from members. He reported that this item will be brought to the Council in September for action. Mr. Slater requested that in future reports staff include the VGAP funds allocated per institution.

DISCUSSION OF UPDATES TO THE VIRGINIA PLAN FOR HIGHER EDUCATION

Update on Initiative #2

September 2017 Agenda Book 123 Mr. Hix spoke briefly about this initiative and reminded members that the Committee requested staff to determine costs of various options to support stable and sustainable public funding for higher education. He discussed attachment 1 from the agenda book which included excerpts from the July 10, 1991, SCHEV document entitled, “Colleges and Universities for the 21st Century, A Report and Proposals For Continued Improvements in Virginia Higher Education.” Mr. Hix briefly explained the four options provided and answered questions from members. Mr. Ridenour said this must be part of a broader discussion of higher education restructuring. Mr. Slater thanked Mr. Hix for providing the useful information.

Update on Initiative #3

Mr. Blake invited President Raspiller and Ms. VanCleave to provide the interim report from the Virginia Community College System (VCCS) Shared Services Center. Dr. Raspiller informed the Council that the Shared Services Center was established in 2015 to deliver transaction-based services in finance, human resources, and procurement focusing on gaining efficiencies and continuous improvement. He acknowledged Ms. VanCleave’s leadership in moving the program forward.

Ms. VanCleave provided background information and demonstrated ways in which the community colleges are doing more for less. The Shared Services Center, which is located in Daleville, Virginia, is an independent agency with a separate governing structure. The project costs for the processes that are being implemented are overall 40% lower than the costs for current services as reported in a benchmark study. While the VCCS has not yet achieved any savings because it is still paying to set up the services, future savings are anticipated. Ms. VanCleave also reviewed benefits beyond cost savings that have been realized and discussed potential opportunities for other institutions. Ms. VanCleave and Dr. Raspiller answered questions from members. The assessment will continue through 2017 with a final report to Council in January 2018.

Dr. Anne Osterman from the Virtual Library of Virginia (VIVA) presented information about a pilot program designed to convert library catalog records into Linked Data records that pushes data to the larger World Wide Web through common search engines. The program began in January 2017 after receiving $10,000 funding from the Innovation and Efficiency Fund. Dr. Osterman explained the ways in which the program has been successful, including potential savings for the Commonwealth and a broad and significant impact for all VIVA institutions. Mr. Blake thanked Dr. Osterman and acknowledged the innovative work of VITA. He suggested that she and others be invited to a future Council meeting to speak more about VIVA.

MOTION TO ADJOURN

The Chair adjourned the meeting at 11:40 a.m.

______Marge Connelly Committee Chair

September 2017 Agenda Book 124 ______Lee Ann Rung Director, Executive & Board Affairs

September 2017 Agenda Book 125

State Council of Higher Education for Virginia Agenda Item

Item: Resources and Planning Committee #C3 – Action on Virginia Student Financial Assistance Program (VSFAP) Regulation Amendments

Date of Meeting: September 18, 2017

Presenter: Lee Andes, Assistant Director for Financial Aid [email protected]

Most Recent Review/Action: No previous Council review/action Previous review/action Date: July 15, 2017 Action: Council reviewed proposed regulation amendments

Background Information/Summary of Major Elements:

The Virginia Student Financial Assistance Program is a single point of direct appropriations to the institutions that funds the two primary state need-based programs: the Virginia Commonwealth Award and the Virginia Guaranteed Assistance Program (VGAP). These programs combine for a total of $189 million appropriated for 2017-18.

Regulations were last amended in January 2015 so the primary focus of these proposed amendments is to conform VSFAP regulations with the new statutory changes to VGAP – via HB2427 and SB1527 – passed during the 2017 session of the General Assembly. These changes serve to strengthen VGAP’s ability to incentivize student progression and completion by raising the annual progression standard from completion of 24 credits per year to limiting recipients to one year of award per class level, which requires that students complete approximately 30 hours per year. The new requirement effectively places recipients on a four-year graduation path instead of a five-year pace.

The statute also was changed to provide a financial completion incentive by requiring that students in a higher class level receive a larger award than those in a lower class level, if each has equivalent financial need. Finally, the statutory changes removed the requirement that students be “dependent” students. This will enable VGAP to incentivize and reward adult students, single parents, veterans, foster children and others who do not otherwise meet the definition of dependent student.

These statutory changes have created some administrative challenges that must be addressed within regulations. In addition, staff has considered other revisions to the September 2017 Agenda Book 126 regulations for purposes of clarification and continued improvement of guidance. The staff recommended amendments would accomplish the following:

1. Accommodate the new requirements by including a definition of “class level” within the regulations.

2. Detail the new VGAP renewal criteria, including a description of what it means to advance class levels after each year of VGAP award and how to proceed when a student’s class level changes mid-year or mid-term.

3. Describe the administrative process for conforming to the requirement that the award amounts increase by class level. The following issues are addressed:

a. The law does not require that the student’s award amount increase as they advance, rather that the awards for higher class level students must be greater than those for a lower class level within that same award year,

b. The law does not specify the award differential between class levels,

c. How to handle the transition period from one set of renewal criteria (24 hours per year) to the new set (advance class level), and

d. How the new award requirement is phased in over a four-year period.

4. Continue to improve program guidance by:

a. Clarifying the process to conform to the requirement that VGAP students be prioritized over Commonwealth awards.

b. Changing the reference from “approved program” to “eligible program” to clarify that programs are not individually approved.

c. Moving the reference to the Americans with Disabilities Act to a more central location within the definition of “full time.”

d. Adjusting the SAT requirements for students completing high school via home school to account for changes in SAT scoring.

e. Reorganizing the VGAP eligibility section to improve flow.

Staff has worked closely with the financial aid offices responsible for administering the programs and vetting the proposed amendments. Since the July meeting there have been minor updates to the proposed regulations.

To address the concerns of the institutions, the proposed regulations have been amended as follows:

September 2017 Agenda Book 127 1. 8VAC40-131-10 Clarification of definition of Expected Family Contribution to emphasize that the calculation is primarily a measure of family financial strength.

2. 8VAC40-131-10 Clarification of definition of “first time freshman” to accommodate those that begin their enrollment as of the immediate preceding summer term.

3. 8VAC40-131-130 C 1 a 4: Clarification of new proposed section handling a scenario when a student has not advanced class level at the time of receiving an award and therefore was awarded the Commonwealth Award. If that student subsequently provides verification that he/she has accumulated enough credits prior to the term to advanced class level, then the institution can adjust the student’s financial aid package to include a VGAP award. An example was added to provide additional clarity.

4. 8VAC40-131-130 C 1 b 2): Clarification provided for new proposed language describing how transfer credits and passing proficiency tests can also be used to advance class level.

5. 8VAC40-131-120. C 3 b: Corrected reference to an award year: 2016-17 was used when 2017-18 was intended.

Materials Provided: The proposed program amendments are included.

Financial Impact: No additional impact beyond appropriated funds.

Timetable for Further Review/Action: The amended regulations are ready for approval at this time.

Resolutions:

BE IT RESOLVED that the State Council of Higher Education for Virginia approves the amended regulations for the Virginia Student Financial Assistance Program. Council delegates to staff to make future non-substantive administrative changes to the program, as appropriate.

September 2017 Agenda Book 128

Virginia Administrative Code State Council of Higher Education for Virginia

Chapter 131. Virginia Student Financial Assistance Program Regulations

Part I Definitions

8VAC40-131-10. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Academic period" or "semester" means a division of an academic year approximately 15 to 16 weeks in length from the first day of classes through the last day of exams for the fall or spring enrollment periods.

"Academic year" or "regular session" means a division of an award year that normally extends from late August to mid-May, consists of the institution's fall and spring semesters, and is exclusive of the institution's summer session.

"Approved program" means a curriculum of courses in a certificate of undergraduate study, diploma, or degree program at the undergraduate, graduate, or first professional level.

"Award" means a grant from state funds appropriated within the item for student financial assistance in the annual Appropriation Act under Virginia Guaranteed Assistance Program or Commonwealth grant eligibility criteria.

"Award schedule" means the table or formula used by the institutions to award program funds to full-time students for the academic year; awards for less than full-time students for the academic year shall be reviewed and adjusted according to the institution's awarding policies.

"Award year" means the 12-month enrollment period during which an institution holds classes, comprised of the regular session and the summer session.

"Book allowance" means the cost of attendance allowance for education-related book and supply expenses as determined by an institution.

"Census date" means the point at which a student's credit hour enrollment is locked for financial aid purposes. At this point in the term, credit hours are locked and financial aid for the term is adjusted to reflect the official number of enrolledattempted credit hours.

“Certificate program” means a formal award certifying the satisfactory completion of a post- secondary education program that has fewer credits than an associate degree.

“Class level” refers to the institutionally determined undergraduate freshman (first year), sophomore (second year), junior (third year), and senior (fourth year) classifications, which typically, but not always, transitions at 30 credit hour intervals per class level.

September 2017 Agenda Book 129 "Commonwealth Award" means a grant from state funds appropriated within the item for student financial assistance in the annual Appropriation Act under Commonwealth grant eligibility criteria.

"Cost of attendance" means the sum of tuition, required fees, room, board, books, supplies, and other education related expenses, as determined by an institution for purposes of calculating a student's financial need and awarding federal student aid funds.

"Council" means the State Council of Higher Education for Virginia or its designated staff.

“Diploma program” means a formal award certifying the satisfactory completion of a post- secondary education program that has fewer credits than an associate degree but normally more than a certificate.

"Domicile Guidelines" means the Domicile Guidelines and associated addenda of the State Council of Higher Education, dated October 15, 2009, and including Addendum A, dated January 12, 2010, and Addendum B, dated October 15, 2009 as the same are now constituted or hereafter amended.

"Domiciliary resident of Virginia" means a student who is determined by an institution to meet the domicile eligibility requirements specified by § 23.1-502 and § 23.1-505 of the Code of Virginia and augmented by the Domicile Guidelines.

"Eligible program" means a Title IV-eligible curriculum of courses in a certificate of undergraduate study, diploma, or degree program at the undergraduate, graduate, or first professional level.

"Equivalent need" means a level or range of remaining need, as defined by the institution in its award schedule for purposes of awarding program funds.

"Expected family contribution" or "EFC" means the amount a student and the student's family is expected to contribute toward the cost of attendance. is a measure of a student’s family’s financial strength and is calculated according to A student's EFC will be determined by the federal aid need analysis methodology used for Title IV programs and used to determine eligibility for need-based Title IV aid. The institution may exercise professional judgment to adjust the student's EFC, as permitted under federal law, based on factors that affect the family's ability to pay. For students eligible for ana state award but the federal processor has not calculated the student's EFC ineligible to receive federal financial aid, the institution shall calculate the student's EFC using the appropriate federal EFC worksheet in cases where the federal processor has not calculated the student's EFC.

"Financial need" means any positive difference between a student's cost of attendance and the student's expected family contribution. (sSee also definition of "remaining need".).

“First-time freshman” means a student attending any institution for the first time at the undergraduate level. Includes students enrolled in the fall term who attended college for the first time in the immediate preceding summer term. The term also includes students who entered with advanced standing (college credits earned before graduation from high school).

"Full-time study" means enrollment for at least 12 credit hours per term or its equivalent at the undergraduate level and enrollment for at least nine credit hours per term or its equivalent at the graduate or first professional level. The total hours counted will not include courses taken for audit, but may include required developmental or remedial courses and other elective courses that normally are not counted toward a degree at the institution. For students enrolled in a dual or concurrent undergraduate and graduate program, full-time enrollment may be met through a combination of total credit hours, providing that the combination totals at least the minimum credit hours for full-time status for the student's institutionally recognized student level. Exceptions to the full-time requirement due to documented disability or other documented medical reasons, as applicable under the federal Americans

September 2017 Agenda Book 130 with Disabilities Act, 42 USC § 12101 et seq., (ADA) will be considered on a case-by-case basis by the institution; supporting documentation must include health professional verification that a disability exists and a professional assessment that the condition requires limits on the student’s credit load.

"Gift assistance" means financial aid in the form of scholarships, grants, and other sources that do not require work or repaymentscholarships and grants but does not include work-study or student loans.

"Graduate student" means a student enrolled in an approved eligible master's, doctoral, or first professional degree program.

"Half-time study" means enrollment for at least six credit hours per term or its equivalent at the undergraduate level. The total hours counted will not include courses taken for audit, but may include required developmental or remedial courses and other elective courses that normally are not counted toward a certificate, diploma, or degree at the institution. For undergraduate students enrolled in a dual or concurrent undergraduate and graduate program, half-time study may be met through a combination of total credit hours, providing that the combination totals at least the minimum credit hours for half- time status for the student's institutionally recognized student level.

"Institution" or "home institution" means any public institution of higher education in Virginia participating in the Virginia Student Financial Assistance Program.

"Program" or "VSFAP" means the Virginia Student Financial Assistance Program, a financial aid program authorized within the item for student financial assistance in the annual Appropriation Act.

"Remaining need" means any positive difference between a student's financial need and the sum of federal, state, and institutionally-controlled gift assistance known at the time of awarding.

"Satisfactory academic progress" means:

1. Acceptable progress towards completion of an approved eligible program, as defined by the institution for the purposes of eligibility for federal student financial aid under the Code of Federal Regulations (Subpart C, 34 CFR Part 668 - Student Assistance General Provisions); and

2. For a student receiving a Virginia Guaranteed Assistance Program award, acceptable progress towards completion of an approved eligible program in which a student earns not less than 24 credit hours, which is the minimum number required for full-time standing in each award year and maintains a cumulative minimum grade point average of 2.0.

"Summer session" means a division of an award year that normally extends from late May to mid - August and consists of one or more summer enrollment periods, exclusive of the institution's fall and spring semesters.

"Term" means an academic period or summer session.

"Undergraduate student" means a student enrolled in an approved eligible program leading to a certificate of undergraduate study, diploma, associate's degree, or bachelor's degree.

"VGAP" means a grant from state funds appropriated for the Virginia Guaranteed Assistance Program, as authorized by the laws of the Commonwealth of Virginia including §§ 23.1-636, 23.1- 637, and 23.1-638, of the Code of Virginia.

September 2017 Agenda Book 131 Part II Use of Funds 8VAC40-131-20. Use of funds.

An institution shall establish and maintain financial records that accurately reflect all program transactions as they occur. The institution shall establish and maintain general ledger control accounts and related subsidiary accounts that identify each program transaction and separate those transactions from all other institutional financial activity. Funds appropriated for undergraduate awards may not be used for graduate awards, and funds appropriated for graduate awards may not be used for undergraduate awards.

8VAC40-131-30. Types of assistance.

A. Funds allocated to institutions within the item for student financial assistance in the annual Appropriation Act may be used for:

1. Awards to undergraduate students enrolled for at least half-time study;

2. Awards to graduate students enrolled for full-time study. No more than 50% of the institution's graduate grants shall be awarded to students not classified as a domiciliary resident of Virginia;

3. Awards to students enrolled for full-time study in a dual or concurrent undergraduate and graduate program;

4. Assistantships to graduate students, funds for which must be transferred to the education and general account;

5. Providing the required matching contribution to federal or private student grant aid programs, except for programs requiring work; and

6. Supporting institutional work-study programs, funds for which must be transferred to the education and general account.

B. A student may receive either a VGAP award, an undergraduate Commonwealth Award, or a graduate Commonwealth Award during any one term (i.e., a student may not receive a combination of two or more different types of awards during the same term).

C. The provisions of this chapter shall not apply to:

1. Soil scientist scholarships authorized by § 23.1-615 of the Code of Virginia;

2. Foster children grants authorized by § 23.1-601 of the Code of Virginia;

2.3. Need-based financial assistance programs for industry-based certification and related programs not qualifying for other sources of student financial assistance, that are subject to the Financial Assistance for Industry-Based Certification and Related Programs, as the same are now constituted or hereafter amended;

34. Nongeneral funds allocated to institutions within the item for student financial assistance in the annual Appropriation Act, except for the satisfactory academic progress requirement; or

September 2017 Agenda Book 132 5. General funds allocated to institutions within the item for student financial assistance in the annual Appropriation Act that are used to support a work-study program, except for the financial need requirement.

Part III Undergraduate Financial Assistance

Article 1 General Information

8VAC40-131-40. Priority for awards.

A. Priority for awards will be given to those students who file an application as required by the institution for need-based financial aid by the institutional priority filing date or deadline and completing the verification process, if applicable . Those students who file an application after the institutional priority filing date or deadline may receive be considered for an award; however, the award will be based on the funds available at the time the award is made and may be based on a new award schedule.

B. Awards shall not be made to students seeking a second or additional baccalaureate degree until the financial aid needs of first-degree-seeking students are fully met.

8VAC40-131-50. Award schedule and award amount restrictions.

A. Institutions shall construct award schedules to determine priority for and amount of awards, ensuring that the schedule conforms to the conditions and restrictions listed in this subsection.

1. The institution:

a. Must define its neediest students;

b. Must use the same award schedule for all students whose awards are packaged at the same time;

c. Must ensure that students eligible for Commonwealth Awards and students eligible for VGAP awards are packaged at the same time using the same award schedule;

d.c. Shall not include the assessed tuition and fee surcharge at four-year institutions when calculating the remaining need and financial need of students exceeding 125% of their program length, pursuant to § 23.1-509 of the Code of Virginia;

e.d. For students enrolled at multiple institutions or in study abroad programs, shall include as the tuition and required fee component of the cost of attendance the lesser of the amount that would be charged by the home institution for the student's combined enrollment level and the sum of actual tuition and required fees assessed by each institution;

f.e. May include minimum award amounts for VGAP and Commonwealth Awards; and

f. May construct a new award schedule based on the time of packaging and available funds; however, for students whose awards are packaged at the same time, the same schedule shall be used; and

September 2017 Agenda Book 133 g. Shall define equivalent need between Commonwealth Award and VGAP students.

2. Award amounts must be:

a. Based on remaining need; and

b. Proportional to remaining need (i.e., students with greater remaining need receive larger award amounts than students with lesser remaining need).

3. VGAP-eligible students:

a. Must receive an award before Commonwealth Award-eligible students with equivalent need.

1) Administratively, all VGAP and Commonwealth Award students are packaged according to the institution’s award schedule in use at the time of the packaging run. The award schedule should provide for larger VGAP awards than Commonwealth Awards at equivalent need and should ensure that the neediest students are prioritized over less needy students.

2) The practical effect is that at the point at which funds are exhausted, the VGAP students at that last level of need to be funded are awarded before Commonwealth Award students at the equivalent level of need. This process ensures that VGAP students are prioritized over Commonwealth Award students with equivalent need.

b. Must receive award amounts greater than Commonwealth Award-eligible students with equivalent remaining need;

c. Who fall into the neediest category must receive an award amount of at least the tuition charged to the individual student; and

d. Who fall into the neediest category may receive an award amount of up to tuition, required fees, and book allowance.

e. If approved for enrollment of less than 12 hours under an ADA exception, the VGAP award should be adjusted in accordance with institution's awarding policies.

4. Commonwealth Award-eligible students who fall into the neediest category may receive an award amount of up to tuition and required fees.

5.4. Two-year colleges electing to modify theiruse a modified award schedules must:

a. Define "remaining need" as (i) any positive difference between a student's cost of attendance and the student's expected family contribution EFC or (ii) the financial need determined by the U.S. Department of Education and reflected in its payment schedule of EFC ranges for the Federal Pell Grant program;

b. Construct an award schedule that is based on remaining need and the combination of federal and state grant aid; and

c. Include a minimum award amount for the neediest VGAP-eligible student.

B. The following award amount restrictions apply to awards:

September 2017 Agenda Book 134 1. Financial need over awards are prohibited.

a. An award under the program, when combined with other gift assistance applied to the student's institutional account, shall not exceed the student's financial need.

b. For purposes of the over financial need calculation, only the tuition and fee portion of veterans education benefits and national service education awards or post-service benefits (e.g., AmeriCorps) shall be included.

2. Tuition over awards are prohibited.

a. An undergraduate Commonwealth Award, when combined with tuition-only assistance such as a tuition waiver, tuition scholarship or grant, or employer tuition reimbursement, shall not exceed the student's actual charges for tuition and required fees;

b. A VGAP award, when combined with tuition-only assistance such as a tuition waiver, tuition scholarship or grant, or employer tuition reimbursement, shall not exceed the student's actual charges for tuition, required fees, and standard book allowance.

8VAC40-131-60. Summer session awards.

Institutions may elect to award during summer sessions; however, an award made to assist a student in attending an institution's summer session shall be prorated according to the size of comparable awards for students with similar financial needs made in that institution's regular session.

8VAC40-131-70. Refund of awards.

A student who receives an award and who, during a term, withdraws from the institution that made the award must surrender the balance of the award. In determining the earned portion of the award that the student may retain, the institution shall apply the percentage of earned aid resulting from the federal Return to Title IV formula to the student's award amount.

Article 2 Commonwealth Awards

8VAC40-131-80. Undergraduate eligibility criteria for an initial award.

In order to participate, an undergraduate student shall:

1. Be enrolled for at least half-time study as of into an eligible program on or after the term's census date;

2. Be a domiciliary resident of Virginia;

3. Be a United States citizen or eligible noncitizen as described in § 23.1-502 of the Code of Virginia and augmented by the Domicile Guidelines;

4.3. Demonstrate financial need for federal Title IV financial aid purposes; and

5.4. Have complied with federal selective service registration requirements, unless the following apply:

a. The requirement to register has terminated or become inapplicable to the student; and

September 2017 Agenda Book 135

b. The student shows by preponderance of the evidence that failure to register was not a knowing and willful failure to register.

8VAC40-131-90. Renewability of awards.

Awards may be renewed provided that the student:

1. Maintains satisfactory academic progress; and

2. Continues to meet all of the requirements of 8VAC40-131-80.

8VAC40-131-100. Enrollment at multiple institutions and in study abroad programs.

A. A student enrolled concurrently at multiple institutions may receive an award if:

1. The home institution is a VSFAP participating institution;

2. A formal consortium agreement is in place; and

3. The student's combined enrollment is at least half time.

B. A student enrolled in a study abroad program may receive an award if:

1. The student is enrolled for at least half-time study;

2. The student remains on record as a student in an approved eligible program at the home institution for the term in which the award is received;

3. The program funds are disbursed through the home institution; and

4. The study abroad program is a formal agreement arranged by the institution.

Article 3 Virginia Guaranteed Assistance Program Awards

8VAC40-131-110. VGAP eligibility criteria for an initial award.

In order to participate, an undergraduate student shall:

1. Be enrolled for full-time study as of into an eligible program on or after the term's census date. Exceptions to the full-time study requirement due to documented disability or other documented medical reasons, as applicable under the federal Americans with Disabilities Act, 42 USC § 12101 et seq., will be considered on a case-by-case basis by the institution; supporting documentation must include a physician's note specifying the full-time equivalent for the student. Such students shall receive an adjusted award amount determined according to the institution's awarding policies;

2. Be a domiciliary resident of Virginia;

September 2017 Agenda Book 136

3. Be a United States citizen or eligible noncitizen as described in § 23.1-502 of the Code of Virginia and augmented by the Domicile Guidelines;

4.3. Demonstrate financial need for federal Title IV financial aid purposes;

5.4. Be a graduate from a Virginia high school;.

a. sStudents obtaining a General Educational Development (GED) certificate are not eligible.

b. Exceptions to graduating from a Virginia high school are granted for students who:

1) Are dependent children of active-duty military personnel residing outside the Commonwealth of Virginia pursuant to military orders and claiming Virginia on their State of Legal Residence Certificate and satisfying the domicile requirements for such active duty military personnel pursuant § 23.1-502 of the Code of Virginia;

2) Have completed a program of home school instruction in accordance with § 22.1- 254.1 of the Code of Virginia; or

3) Have been excused from school attendance pursuant to subsection B of § 22.1-254 of the Code of Virginia.

6.5. For a high school graduate, have at least a cumulative 2.5 grade point average (GPA) on a 4.0 scale, or its equivalent, at the time of admission to the institution or according to the latest available high school transcript. In the absence of a high school transcript indicating the grade point average, the institution must have on file a letter from the student's high school certifying the student's high school GPA;

7.6. For a student meeting the high school graduate exception in subdivision 5 b or 5 c4 b 1) or 4 b 2) of this subsection, have earned SAT a math and verbal combined scores of at least 900 or above for SATs taken prior to March 1, 2016 or at least 980 for SATs taken on or after March 1, 2016; or have earned ACT composite scores of 19 or above; and

8. Be classified as a dependent student for federal financial aid purposes; and

97. Have complied with federal selective service registration requirements, unless the following apply:

a. The requirement to register has terminated or become inapplicable to the student; and

b. The student shows by preponderance of the evidence that failure to register was not a knowing and willful failure to register.

8VAC40-131-120. Renewability of awards.

A. Awards for students attending two-year colleges may be renewed for one award year while awards for students attending four-year colleges may be renewed for up to three award years. Students shall be limited to a cumulative total of four award years of eligibility.

Awards may be renewed annually provided that the undergraduate student, for the term in which an award is provided:

September 2017 Agenda Book 137

1. Is Continues to be eenrolled for full-time study as of in an eligible program on or after the term's census date;

2. MaintainsIs a domiciliary resident of residency in Virginia; 1. Continues to be a United States citizen or eligible noncitizen as described in § 23.1-502 of the Code of Virginia and augmented by the Domicile Guidelines;

3. Demonstrates continued financial need for federal Title IV financial aid purposes;

2. Maintains at least a 2.0 grade point average on a 4.0 scale, or its equivalent;

3. Maintains satisfactory academic progress;

4. Maintains continuous full-time enrollment from the time of receipt of the initial award unless granted an exception for cause by the council.

a. Continuous enrollment shall be recognized as full-time enrollment for full-time study in each academic period; lack of enrollment or less than full-time enrollment in the summer session or other special sessions offered by the institution does not disqualify the student.

b. A student participating in a cooperative education program or internship that is part of his academic program and a student whose college education is interrupted by a call to military service shall be deemed to have maintained continuous enrollment if he reenrolls no later than the following fall semester after completion of such employment or military service; and.

b.c. If an exception is granted by council, council staff will also determine the student’s remaining VGAP eligibility within their current class level as well as towards the student’s maximum VGAP usage.

5. Annually, prior to the start of the award year,

a. Maintains at least a 2.0 grade point average on a 4.0 scale, or its equivalent;

b. Maintains satisfactory academic progress;

5.6. Has complied with federal selective service registration requirements, unless the following apply:

a. The requirement to register has terminated or become inapplicable to the student; and

b. The student shows by preponderance of the evidence that failure to register was not a knowing and willful failure to register.

B. VGAP renewal awards are subject to the following special considerations:

1. Students who transfer to an institution shall be considered renewal students if they received or were eligible for an award during the prior academic period provided they meet renewal criteria in subsection A.

September 2017 Agenda Book 138 2. Students who do not initially receive a VGAP award may be considered for renewal an awards provided that they meet initial eligibility criteria and continue to meet renewal criteria in subsection A.

2.3. Once a student loses his classification as VGAP-eligibleIf a student fails to meet one of the renewal criteria found in subsection A, the student cannot reestablish such eligibility. However, the student may qualifybe considered for a Commonwealth Award the following term.

C. Conditions and requirements for renewal awards.

1. Beginning with the 2017-18 award year, a student may not receive more than one year of support before satisfying the requirements to move to the next class level.

a. For purposes of this section, one year shall mean a 12-month time frame from the beginning of the first term a VGAP award was received at a specific class level.

1) Students receiving their first term of VGAP at a class level in the fall term must advance class levels by the beginning of the following fall term.

2) Students receiving their first term of VGAP at a class level in the spring term must advance class levels by the beginning of the following spring term.

3) Students receiving their first term of VGAP at a class level in the summer term must advance class levels by the beginning of the following summer term.

4) If an institution determines that the student did not advance class level at the completion of the one year, the student is not eligible for a VGAP award the next term; however, the institution may reconsider providing VGAP for that next term, if

i. the student subsequently demonstrates that additional credits were earned prior to the beginning of the term (whether by transfer, adjusted grades, or other) and

ii. the additional credits are accepted by the institution and are sufficient for the student to advance class level.

ii.iii. Example: The student falls three hours short of advancing class level upon completion of the 2017-18 award year and; therefore, is not packaged VGAP entering the fall 2018 term. However, if during the fall term the student successfully transfers or a secures a grade change for courses that were completed prior to the fall 2018 term, and as a result secures the additional hours needed to advance class level, the institution may award to VGAP for fall 2018.

b. The hours required to advance class level may be completed in any combination of terms, transfer of credits, or testing out of courses. Examples include, but are not necessarily limited to, completing:

1) The minimum hours necessary to advance class level (typically 30) in the combined fall, spring, and summer terms within the one year time frame; or

September 2017 Agenda Book 139 2) The minimum hours necessary to advance class level (typically 30) by combining credits earned in academic terms during the one year and any other credits earned via transfer or an approved examination, such as a CLEP test, by no later than the completion of the one year time frame.

b.c. Students failing to advance class levels after one year of support:

1) May be considered for a Commonwealth Award for the next term of enrollment and

2) May then be reconsidered for a VGAP award for the term in which they enter at a higher class level, if they continue to meet all renewal criteria in subsection A.

d. Students advancing class levels in less than one year are not granted extra terms of support.

2. Beginning with first-time students enrolled in the fall semester in 2018, each eligible student shall receive a grant in an amount greater than the grant of each eligible student with equivalent remaining need in the next-lowest class level.

a. The annual award differential between the class levels is determined by the institution. When determining the differential, institutions should weigh the available funding and the needs of the overall student enrollment with the amount of the differential necessary to incentivize students to progress.

b. The award differential between the class levels can vary from year-to-year.

c. The award differential is not based upon the prior year awards for the individual student or other class levels. Annual awards are based upon the unique circumstances for the individual year, including available funding, student remaining need and, changes in total financial need across all eligible students.

3. Grandfathering:

a. For students enrolled prior to fall 2018, there is no requirement that the awards be differentiated by class level.

b. For students enrolled prior to fall 2017, those completing full-time equivalent courses per academic year remain eligible for consideration of a VGAP award entering the 2017-18 award year. The requirement of one year of award per class level is reviewed upon completion of the 2017-18 award year and then evaluated each term thereafter, as appropriate.

8VAC40-131-130. Enrollment at multiple institutions and in study abroad programs.

A. A student enrolled concurrently at multiple institutions may receive an award if:

1. The home institution is a VSFAP participating institution;

2. A formal consortium agreement is in place; and

3. The student's combined enrollment meets full-time study requirements.

B. A student enrolled in a study abroad program may receive an award if:

September 2017 Agenda Book 140

1. The student is enrolled for full-time study;

2. The student remains on record as a student in an approved eligible program at the home institution for the term in which the award is received;

3. The program funds are disbursed through the home institution; and

4. The study abroad program is a formal agreement arranged by the institution.

Part IV Graduate Financial Assistance

8VAC40-131-140. Graduate eligibility criteria for an initial award.

A. In order to receive a Commonwealth Award, the graduate student must be enrolled for full-time study as ofinto an eligible program on or after the term's census date.

B. An individual award may be based on financial need but may, in addition to or instead of, be based on other criteria determined by the institution making the award.

8VAC40-131-150. Amount of awards.

The amount of an award shall be determined by the institution making the award; however, the institution shall annually notify the council of the maximum size of a graduate award that is paid from funds in the appropriation.

8VAC40-131-160. Renewability of awards.

Awards may be renewed provided that the graduate student:

1. Maintains satisfactory academic progress; and

2. Continues to be enrolled for full-time study.

8VAC40-131-170. Enrollment at multiple institutions and in study abroad programs.

A. A student enrolled concurrently at multiple institutions may receive an award if:

1. The home institution is a VSFAP participating institution;

2. A formal consortium agreement is in place; and

3. The student's combined enrollment meets full-time study requirements.

B. A student enrolled in a study abroad program may receive an award if:

1. The student is enrolled for full-time study;

2. The student remains on record as a student in an approved eligible program at the home institution for the term in which the award is received;

3. The program funds are disbursed through the home institution; and

September 2017 Agenda Book 141

4. The study abroad program is a formal agreement arranged by the institution.

Part V Administration

8VAC40-131-180. Responsibility of the council.

The council shall collect such student specific information for both graduate and undergraduate students as is necessary for the operation of the program and other information deemed necessary by the council.

8VAC40-131-190. Responsibility of institutions.

Institutions shall:

1. Provide reports to the council that will include, but not be limited to, information describing the students served, the awards received, and the number and value of awards. Each institution shall annually report to the council its definition of "neediest" students;

2. Maintain documentation necessary to demonstrate that students' awards calculated during the same packaging cycle used the same award schedule;

3. Provide the council with the initial award schedule or formula that will be used to package on-time applications when submitting an annual report; and

4. Upon request by a student transferring to another institution, send to the other institution information about the student's VGAP eligibility.

8VAC40-131-200. Program reviews.

The council periodically will review institutional administrative practices to determine institutional program compliance with the Appropriation Act, the Code of Virginia, and this chapter. If a review determines that an institution has failed to comply with the Appropriation Act, the Code of Virginia, and this chapter, the council may withhold approval of expenditure plans for the program until the end of the next session of the General Assembly. No attempt to determine compliance with the Appropriation Act, Code of Virginia, and this chapter should be solely based on information from the financial aid data file submitted annually by institutions.

Part VI Discontinued Student Loan Program

8VAC40-131-210. Terms and conditions of the loans.

An institution with a loan program established from previous general fund appropriations may continue the loan program, under such terms and rules as the governing board of the institution may prescribe, but shall not expand the loan program with currently appropriated funds. The loan program shall meet the following requirements:

September 2017 Agenda Book 142 1. In any one award year no student shall receive a loan or loans from the fund of an institution that would result in that student owing a net outstanding amount at the end of that award year in excess of the tuition and required fees charged by the institution;

2. The annual interest rate charged on loans to students from a fund shall be 3.0%;

3. An institution shall make every effort to collect each loan made from its student loan fund using the provisions of the Virginia Debt Collection Act (§ 2.2-4800 et seq. of the Code of Virginia); and

4. The Auditor of Public Accounts shall at least biennially audit and exhibit the account of student loan funds at each institution.

8VAC40-131-220. Eligibility criteria.

In order to be eligible for the student loan program, a student shall meet the criteria of 8VAC40- 131-80, 8VAC40-131-90, 8VAC40-131-110, 8VAC40-131-120, 8VAC40-131-140, and 8VAC40-131- 160.

8VAC40-131-230. Discontinuing student loan programs.

A. If any federal student loan program for which the institutional contribution was appropriated by the General Assembly is discontinued, the institutional share of the discontinued loan program shall be repaid to the fund from which the institutional share was derived unless other arrangements are recommended by the council and approved by the Department of Planning and Budget. Should the institution be permitted to retain the federal contributions to the program, the funds shall be used according to arrangements authorized by the council and approved by the Department of Planning and Budget.

B. An institution may discontinue its student loan program established pursuant to §§23.1-618 through 23.1-621 of the Code of Virginia. The full amount of cash in the discontinued loan fund shall be paid into the state treasury into a nonrevertible nongeneral fund account. Prior to such payment, the State Comptroller shall verify its accuracy, including the fact that the cash held by the institution in the loan fund will be fully depleted by such payment. The loan fund shall not be reestablished for that institution.

C. The cash paid into the state treasury shall be used only for awards to undergraduate students in the Virginia Student Financial Assistance Program according to arrangements authorized by the council and approved by the Department of Planning and Budget. Payments of any promissory notes held by the discontinued loan fund shall continue to be received by the institution and deposited to the nonrevertible nongeneral fund account and to be used for the VGAP awards and undergraduate Commonwealth Awards.

September 2017 Agenda Book 143 State Council of Higher Education for Virginia Agenda Item

Item: Resources and Planning Committee #C4 – Discussion of Enrollment Projections and Degree Estimates

Date of Meeting: September 18, 2017

Presenter: Tod Massa, Director of Policy Analytics [email protected]

Most Recent Review/Action: No previous Council review/action Previous review/action Date: July, 2017 Action: Discussion

Background Information/Summary of Major Elements: The enrollment projections and degree estimates adopted by the Council each odd-numbered year serve as a key planning tool for higher education in the Commonwealth. With passage of the Top Jobs Act (TJ21) in 2011, the degree estimates are a critical component in tracking progress towards the goal of adding 100,000 additional undergraduate degrees to in- state students by 2025. Council’s adoption of a statewide target to reach 1.5 million additional degrees and workforce credentials by 2030 makes the enrollment projections and degree estimates even more important.

In fall of 2016, total fall headcount at the public institutions was 388,749 students. In 2015, the institutions projected a total headcount 400,139 students FOR the fall of 2016. They, thus achieved 97% of their enrollment targets in the aggregate. In terms of degree estimates, the total number of awards at public institutions during the 2015- 16 academic year was 87,364 compared to a projected estimate of 83,009, or about 5% more awards than projected.

Likewise, in the fall of 2016, total headcount of the independent colleges participating in the Tuition Assistance Grant program was 132,144 students. In 2015, these institutions projected a total fall headcount of 141,945 students, achieving 93% of their projected enrollment, or about 9,801 fewer students. The independent institutions projected 30,571 degrees and certificates to be awarded for 2015-16 and awarded 32,571 or about 6.5% more than projected.

For the 2017 enrollment projection and degree estimates process, SCHEV staff worked with institutional staff to streamline the data collection. We generally were successful in this effort, with only a minor loss of detail, which is to be expected when

September 2017 Agenda Book 144 reducing a collection from three major tables per year to one table per year. We also reduced the projections from six years to four. Staff continues to work with institutions on other modifications prior to Council action in October.

Enrollment Projections As we consider the 2017 projections, staff compared the projections not only to the most recent actual enrollments and the 2015 projections, but also to the 2013 projections. Common to all three sets of projections are the years 2016-17 through 2019-20. Upon review, we find first that for the fall of 2016, the actual enrollments were 96% of the 2013 projections and 97% of the 2015 projections. Given the continued shifts in student behavior and enrollment losses in the community colleges, we find comfort in the accuracy of the projections produced in our process.

Overall, the projections of 2017 are significantly lower than those of 2015 and lower still than the 2013 projections. The bulk of the difference is explained by lower projections from the Virginia Community College System, which are consistent with the declines in enrollment colleges have seen as the economy has recovered from the recession. If it were not for the degree estimates discussed below, staff would have concerns about the Commonwealth’s ability to achieve status as the “best-educated state in the nation by 2030.”

Table 1: Comparison of Enrollment Projections Grand Total, Fall Headcount 2013 Projection 2015 Projection 2017 Projection 2016 542,680 535,329 513,770 2017 550,083 542,084 509,086 2018 557,109 549,639 514,348 2019 564,223 558,198 518,602 2020 571,870 567,033 524,330

Degree Estimates Despite significant declines in community college enrollment, degree and certificate production at the public institutions continues to hold steady and even increase modestly. The overall performance of the institutions all levels of degrees and certificates compared to their estimates was 99% of the 2013 degree estimates and 107% of the 2015 degree estimates. If we look at the two prior sets of estimates, we easily can note how low the 2015 estimates dropped compared to the 2013 estimates. We also note that 2017 estimates map closely to the 2013 estimates. It seems clear that the decrease in 2015 estimates was a reflection of a great deal of uncertainty in student behavior and concerns about students staying in college. Clearly, though, students did stay in college and complete.

September 2017 Agenda Book 145

Table 2: Comparison of Degree Estimates Public Institutions, Total Awards 2013 Estimate 2015 Estimate 2017 Estimate 2015-16 121,977 112,656 120,798 2016-17 125,352 114,115 120,458 2017-18 128,669 115,985 123,409 2018-19 132,100 121,066 126,381 2019-20 135,345 122,818 134,896

As a reminder, the enrollment projections and degree estimates play significant roles in the Institutional Performance Standards. Public institutions must achieve 95% of their enrollment projections and degree estimates to be deemed as passing the specific measures. Because of this, institutions are advised to be conservative in their projections and estimates, which they generally are. Thus, if these new estimates are typically conservative we expect to see even greater degree production than the 2013 estimates, with significantly fewer student enrollments projected. This suggests institutional confidence in ongoing efforts to increase student retention and completion.

Degree Estimates, All Institutions, Associate and Bachelor 95,000 90,000 85,000 80,000 75,000 70,000 65,000 60,000 55,000 50,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

A&B - Actual A&B - 2015 Projections A&B Checkpoints A&B LTE PROJ LOW A&B LTE PROJ HIGH A&B - 2017 Projections

Figure 1: Comparisons of Degree Estimates

In Figure 1, the solid line extending to from 2015 to 2030 represents staff estimates of the annual degree production needed to become the best educated state by 2030. The line with diamond markers represents the 2015 projections, the line with a long dash and two dots represents the 2013 projections, and asterisk markers, the 2017 projections. The round markers represent actual awards. What we see from the chart is that the 2017 estimates of degrees exceed the minimum estimates for achieving the Commonwealth’s goal by 2030. We see a similar pattern to the projections and a

September 2017 Agenda Book 146 track suggesting we should achieve the TJ21 goal of 100,000 cumulative additional associate and bachelor degrees awarded to in-state students at public institutions.

Degree Estimates, Public Institutions, Associate and Bachelor, In-State Students 65,000

60,000

55,000

50,000

45,000

40,000

35,000

30,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 A&B - Actual Total Degrees Needed for TJ21 A&B - 2013 Projections A&B - 2015 Projections A&B LTE NEEDED A&B LTE PROJ LOW A&B LTE PROJ HIGH A&B - 2017 Projections

Figure 2: Comparison of Degree Estimates, in-state undergraduate degrees only

Projections of High School Graduates as First-Time in College Enrollments

The public two-year colleges have taken a decidedly conservative approach to projecting the enrollments of first-time in college students from Virginia, as can be seen in Table 3. However, given their recent enrollment downturn, this is not surprising. The projections of the four-year colleges include students that are not recent high school graduates, a number which typically ranges between 1,000 and 1,500 students in actual enrollment counts. In Table 3, we have adjusted the projections to the using the most recent five-year average of the proportion of first- time in college students that are direct from high school.

September 2017 Agenda Book 147 Table 3: First-time in College, Direct from High School Fall Public 4 Public 2 Independent Total 2012 22,827 18,560 4,712 46,099 2013 22,947 19,768 4,640 47,355 2014 23,914 19,123 4,598 47,635 2015 24,768 18,790 4,536 48,094 2016 24,572 18,934 4,609 48,115 2017-Proj* 24,811 14,213 4,923 43,947 2018-Proj* 24,950 14,211 4,776 43,937 2019-Proj* 25,173 14,266 4,710 44,149 2020-Proj* 25,307 14,415 4,961 44,683 *Projections as submitted include students that are not recent high school graduates, but are adjusted to the recent proportion that were direct from HS

Table 4 provides further detail on the relationship between the numbers of recent high school graduates. The annual variance of a percentage point in the participation rate of the combined totals of advanced and standard diploma graduates is fairly typical. The difference of two percentage points represents a loss of nearly 1,800 new college students, if prior year’s participation rate had held true in 2016.

Table 4: High School Graduates by Diploma Type and Enrollment in Public Colleges & Universities the Following Fall Enrollment in Public and High School Graduates Independents C&Us School Year Advanced Standard Percentage of Total Enrollment Diplomas Diplomas Graduates 2011-12 47,329 35,946 83,275 46,099 55% 2012-13 47,872 35,357 83,229 47,355 57% 2013-14 47,943 34,587 82,530 47,635 58% 2014-15 47,956 33,918 81,874 48,094 59% 2015-16 49,324 35,783 85,107 48,115 57%

One final factor to consider is that projections of high school graduates published by the Western Interstate Compact for Higher Education (WICHE) include estimates for the numbers of graduates from nonpublic high schools. These are estimated to be approximately 5,000 in the current year and decreasing to around 4,300 on 2027-28. About 75% of these students are likely to enroll in Virginia colleges in a given year. Thus, even considering the flattening of the numbers of high school graduates

September 2017 Agenda Book 148 between now and 2030, with a modest bump in the middle years, there remains potential for enrollment increases beyond what is projected.

Conclusions

The enrollment projections and degree estimates from the public institutions represent what has become the traditional conservative approach used by the public four-year institutions. They also represent a return to the more positive, aggressive approach to the degree estimates that were present in the 2013 projections that track well recent actual numbers of awards. The projections of the private institutions are conservative for most institutions with aggressive growth planned by Regent University (doubling its fall headcount) and Sweet Briar College (tripling its 2015 enrollment). The projections and estimates from the two-year sector are much more conservative in terms of enrollment, representing both uncertainty and the declining enrollment of recent years. The community colleges are particularly challenged in projecting enrollment as they simply accept all students who show up for enrollment, which is often highly correlated with local and regional employment opportunities. Degree estimates from the two-year institutions represent increases and ongoing efforts towards student engagement and completion. In consideration of the above factors, staff analysis is that we remain on track to achieve the goals of both TJ21 and The Virginia Plan.

Materials Provided: Tables showing institutional enrollment projections and degree estimates.

Financial Impact: Approval of enrollment projections and degree estimates do not have a financial impact. Decisions about funding enrollment growth remain the prerogative of the Governor and the General Assembly.

Timetable for Further Review/Action: Action on the final projections by Council is anticipated to take place at the October meeting.

Resolution: N/A

September 2017 Agenda Book 149 Table 01: Actual and Projected Enrollment - Fall Headcount Percentage Actual Projected Change 2015-16 to 2020-21 Public Institutions 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Christopher Newport University 5,172 5,042 5,022 5,012 5,003 4,994 -3% College of William and Mary 8,484 8,617 8,710 8,817 8,892 8,933 5% George Mason University 34,112 35,189 35,809 36,562 37,105 37,579 10% James Madison University 21,227 21,270 21,635 21,950 22,236 22,455 6% Longwood University 5,087 4,885 5,048 5,134 5,222 5,316 5% Norfolk State University 5,094 5,421 5,531 5,640 5,809 5,984 17% Old Dominion University 24,025 24,322 23,876 23,876 23,876 23,876 -1% Radford University 9,743 9,401 9,259 9,352 9,545 9,839 1% University of Mary Washington 4,647 4,726 4,742 4,762 4,783 4,806 3% University of Virginia 23,883 23,898 24,301 24,438 24,699 24,916 4% University of Virginia's College at Wise 2,065 2,221 2,076 2,090 2,108 2,126 3% Virginia Commonwealth University 31,242 31,218 31,289 31,415 31,523 31,447 1% Virginia Military Institute 1,717 1,713 1,725 1,705 1,714 1,701 -1% Virginia State University 4,696 4,584 4,533 4,546 4,679 4,787 2% Virginia Tech 31,250 33,170 33,001 34,035 34,474 35,047 12% Total Public Four-year Institutions 212,444 215,677 216,557 219,334 221,668 223,805 5% Richard Bland College* 2,134 2,203 2,519 2,548 2,577 2,625 23% Virginia Community College System 176,887 170,869 165,811 162,410 160,495 160,591 -9% Total Public Two-Year Institutions 179,021 173,072 168,330 164,958 163,072 163,216 -9% Total Public Institutions 391,465 388,749 384,887 384,292 384,740 387,021 -1%

Appalachian College of Pharmacy 202 210 215 215 215 215 6% Averett University 893 858 - 910 922 935 5% Averett University Non-Traditional 949 853 750 775 800 830 -13% Bluefield College* 368 418 200 490 507 526 43% Bridgewater College 1,834 1,882 1,962 2,018 2,048 2,061 12% Christendom College 561 589 601 617 617 627 12% Eastern Mennonite University 1,773 1,745 1,749 1,788 1,823 1,872 6% Eastern Virginia Medical School 1,209 1,219 1,415 1,487 1,541 1,575 30% Edward Via College of Osteopathic Medicine 834 845 850 849 849 849 2%

September 2017 Agenda Book 150 Emory and Henry College 1,154 1,152 1,195 1,305 1,365 1,395 21% Ferrum College 1,334 1,285 - 1,187 1,155 1,154 -13% Hampden-Sydney College 1,087 1,027 1,037 1,043 1,057 1,085 0% Hampton University 4,269 4,647 4,514 4,514 4,514 4,514 6% Hollins University 802 828 851 898 928 923 15% Jefferson College of Health Sciences 1,062 1,081 1,093 1,104 1,115 1,126 6% Liberty University 77,818 75,756 72,928 74,110 75,292 76,015 -2% Lynchburg College 2,794 2,720 2,883 2,920 3,015 3,068 10% Mary Baldwin University* 1,371 1,385 1,463 1,514 1,544 1,577 15% Marymount University 3,363 3,369 3,362 3,368 3,398 3,416 2% Randolph College 688 680 707 741 770 787 14% Randolph-Macon College 1,418 1,446 1,476 1,464 1,452 1,483 5% Regent University 7,318 8,773 10,103 11,729 13,630 15,848 117% Roanoke College 1,996 2,001 1,992 1,994 2,025 2,051 3% Shenandoah University 3,093 3,918 3,333 3,353 3,410 3,406 10% Sweet Briar College 241 376 352 453 575 636 164% University of Richmond 4,162 4,135 4,130 4,130 4,130 4,130 -1% Virginia Union University* 1,501 1,417 1,428 1,441 1,456 1,469 -2% Virginia Wesleyan College 1,443 1,385 1,479 1,536 1,617 1,649 14% Washington and Lee University 2,162 2,155 2,132 2,104 2,092 2,087 -3% Total Private, NonProfit, Four-year Institutions 127,699 128,155 124,199 130,056 133,862 137,309 8% Grand Total, All reporting Institutions 519,164 516,904 509,086 514,348 518,602 524,330 1% *Submission under further review prior to final action

September 2017 Agenda Book 151 Table 02: Actual, Estimated and Projected Enrollment - Annual FTE Percentage Actual Estimated Projected Change 2015-16 to 2020-21 Public Institutions 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Christopher Newport University 5,023 4,915 4,890 4,880 4,870 4,860 -3% College of William and Mary 7,980 7,994 8,035 8,101 8,111 8,111 2% George Mason University 25,625 26,617 27,242 27,792 28,138 28,400 11% James Madison University 19,360 19,361 19,718 20,030 20,291 20,499 6% Longwood University 4,564 4,337 4,590 4,669 4,748 4,832 6% Norfolk State University 4,233 4,468 4,558 4,649 4,788 4,932 17% Old Dominion University 15,167 14,723 14,499 14,499 14,499 14,499 -4% Radford University 8,864 8,509 8,426 8,485 8,643 8,894 0% University of Mary Washington 3,869 3,953 3,966 3,967 3,991 4,006 4% University of Virginia 22,802 22,799 23,088 23,208 23,406 23,571 3% University of Virginia's College at Wise 1,156 1,140 1,093 1,107 1,117 1,128 -2% Virginia Commonwealth University 26,318 26,316 26,374 26,492 26,579 26,512 1% Virginia Military Institute 1,830 1,845 1,859 1,836 1,846 1,831 0% Virginia State University 4,632 4,556 4,507 4,492 4,637 4,735 2% Virginia Tech 30,533 30,989 32,155 33,165 33,579 34,142 12% Total Public Four-year Institutions 181,956 182,522 185,000 187,372 189,243 190,952 5% Richard Bland College* 1,282 1,400 1,404 1,418 1,432 1,467 14% Virginia Community College System 63,001 60,605 58,812 57,606 56,927 56,960 -10% Total Public Two-Year Institutions 64,283 62,005 60,216 59,024 58,359 58,427 -9% Total Public Institutions 246,239 244,527 245,216 246,396 247,602 249,379 1%

Appalachian College of Pharmacy 91 ------100% Averett University 866 836 - 896 907 912 5% Averett University Non-Traditional 192 83 70 70 70 75 -61% Bluefield College* 480 536 23 591 621 652 36% Bridgewater College 1,882 1,936 2,027 2,074 2,099 2,111 12% Christendom College 535 548 555 565 565 575 7% Eastern Mennonite University 1,381 1,291 1,314 1,312 1,343 1,358 -2% Eastern Virginia Medical School 1,190 1,189 1,352 1,404 1,386 1,438 21% Edward Via College of Osteopathic Medicine 834 845 850 849 849 849 2% Emory and Henry College 1,109 1,106 1,251 1,391 1,461 1,491 34%

September 2017 Agenda Book 152 Ferrum College 1,319 1,282 - 1,164 1,141 1,141 -13% Hampden-Sydney College 1,086 1,027 1,037 1,043 1,058 1,085 0% Hampton University 4,021 4,386 4,176 4,176 4,176 4,176 4% Hollins University 777 801 821 868 898 893 15% Jefferson College of Health Sciences 801 767 777 782 786 791 -1% Liberty University 14,421 14,763 14,721 14,471 14,471 14,471 0% Lynchburg College 2,440 2,473 2,598 2,632 2,725 2,765 13% Mary Baldwin University* 835 753 768 784 799 816 -2% Marymount University 2,791 2,786 2,807 2,812 2,836 2,848 2% Randolph College 709 693 722 757 786 804 13% Randolph-Macon College 1,400 1,426 1,454 1,442 1,430 1,461 4% Regent University 1,642 1,796 2,067 2,391 2,768 3,212 96% Roanoke College 2,181 2,177 2,186 2,190 2,225 2,254 3% Shenandoah University 2,641 2,641 2,550 2,442 2,535 2,542 -4% Sweet Briar College 257 330 348 333 575 636 147% University of Richmond 3,838 3,838 3,838 3,838 3,838 3,838 0% Virginia Union University* 1,487 1,414 1,422 1,430 1,437 1,446 -3% Virginia Wesleyan College 1,458 1,392 1,524 1,581 1,660 1,687 16% Washington and Lee University 2,159 2,156 2,132 2,104 2,092 2,087 -3% Total Private, NonProfit, Four-year Institutions 54,823 55,270 53,390 56,392 57,537 58,414 7%

*Submission under further review prior to final action

September 2017 Agenda Book 153 Table 3: Actual & Projected Undergraduate Fall Headcount, In-State Percentage Actual Projected Change 2015-16 to 2020-21 NAME 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Christopher Newport University 4,742 4,619 4,531 4,522 4,490 4,456 -6% College of William and Mary 4,174 4,116 4,120 4,120 4,120 4,120 -1% George Mason University 19,060 19,826 20,540 21,003 21,344 21,618 13% James Madison University 13,983 14,434 14,828 15,192 15,588 15,822 13% Longwood University 4,158 3,962 4,060 4,104 4,138 4,435 7% Norfolk State University 3,865 3,888 3,967 3,968 4,087 4,210 9% Old Dominion University 17,492 17,082 17,233 17,233 17,233 17,233 -1% Radford University 8,295 7,885 7,764 7,809 7,954 8,178 -1% University of Mary Washington 3,777 3,897 3,872 3,888 3,897 3,905 3% University of Virginia 10,835 10,991 11,209 11,266 11,330 11,396 5% University of Virginia's College at Wise 1,311 1,309 1,213 1,222 1,235 1,247 -5% Virginia Commonwealth University 20,327 20,595 20,842 21,143 21,307 21,261 5% Virginia Military Institute 1,022 1,045 1,087 1,069 1,070 1,068 5% Virginia State University 3,116 3,050 3,044 3,086 3,143 3,201 3% Virginia Tech 18,118 18,621 19,202 19,621 19,769 20,011 10% Total Public Four-year Institutions 134,275 135,320 137,511 139,247 140,704 142,163 6% Richard Bland College* 1,056 1,022 1,073 1,088 1,103 1,135 7% Virginia Community College System 127,457 120,257 116,454 114,066 112,720 112,788 -12% Total Public Two-Year Institutions 128,513 121,279 117,528 115,154 113,822 113,922 -11% Total Public Institutions 262,788 256,598 255,039 254,400 254,527 256,085 -3%

Appalachian College of Pharmacy ------Averett University 546 511 654 625 607 620 14% Averett University Non-Traditional 555 443 391 395 398 413 -25% Bluefield College* 234 262 363 282 293 304 30% Bridgewater College 1,349 1,343 1,420 1,451 1,469 1,477 10% Christendom College 157 168 159 163 163 166 6% Eastern Mennonite University 654 668 672 708 720 752 15% Eastern Virginia Medical School ------Edward Via College of Osteopathic Medicine ------Emory and Henry College 322 330 318 335 347 356 11%

September 2017 Agenda Book 154 Ferrum College 551 998 937 913 889 896 63% George Washington University ------Hampden-Sydney College 773 719 726 729 747 749 -3% Hampton University 891 1,092 937 937 937 937 5% Hollins University 303 320 313 340 356 353 17% Jefferson College of Health Sciences 693 702 710 717 724 731 5% Liberty University 11,438 10,984 11,005 11,073 11,203 11,281 -1% Lynchburg College 1,380 1,362 1,363 1,387 1,415 1,444 5% Mary Baldwin University* 745 841 864 880 898 918 23% Marymount University 1,149 1,125 1,139 1,005 1,142 1,151 0% Randolph College 411 420 438 460 479 489 19% Randolph-Macon College 1,051 1,052 1,077 1,069 1,060 1,083 3% Regent University 1,548 1,481 1,735 2,029 2,374 2,777 79% Roanoke College 1,017 1,017 1,021 1,022 1,038 1,052 3% Shenandoah University 1,065 1,099 1,228 1,219 1,243 1,255 18% Sweet Briar College 101 162 170 217 277 305 201% University of Richmond 700 689 689 689 689 689 -2% Virginia Union University* 780 1,098 1,103 1,110 1,118 1,125 44% Virginia Wesleyan College 1,075 1,010 1,095 1,146 1,208 1,232 15% Washington and Lee University 238 266 307 314 323 323 36% Total Private, NonProfit, Four-year Institutions 29,725 30,161 30,835 31,214 32,115 32,878 11%

*Submission under further review prior to final action

September 2017 Agenda Book 155 Table 4: Actual & Projected Undergraduate Fall Headcount, Out-of-State Percentage Actual Projected Change 2015-16 to 2020-21 NAME 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Christopher Newport University 298 302 366 365 388 412 38% College of William and Mary 2,086 2,128 2,138 2,138 2,138 2,138 2% George Mason University 3,159 3,306 3,495 3,595 3,651 3,701 17% James Madison University 5,036 4,828 4,793 4,725 4,596 4,569 -9% Longwood University 243 256 319 347 382 167 -31% Norfolk State University 610 819 836 929 957 985 61% Old Dominion University 1,441 1,605 1,614 1,614 1,614 1,614 12% Radford University 497 486 491 494 506 526 6% University of Mary Washington 485 421 441 442 446 448 -8% University of Virginia 4,855 4,853 4,896 4,899 4,914 4,925 1% University of Virginia's College at Wise 84 67 112 113 113 114 36% Virginia Commonwealth University 2,189 2,163 2,078 2,006 1,981 1,967 -10% Virginia Military Institute 695 668 638 636 644 633 -9% Virginia State University 1,033 1,091 1,046 964 980 996 -4% Virginia Tech 7,148 7,057 7,426 7,817 7,901 8,046 13% Total Public Four-year Institutions 29,859 30,050 30,689 31,083 31,211 31,240 5% Richard Bland College 20 30 32 32 32 33 66% Virginia Community College System 5,609 5,295 5,381 5,270 5,208 5,211 -7% Total Public Two-Year Institutions 5,629 5,325 5,412 5,302 5,241 5,245 -7% Total Public Institutions 35,488 35,376 36,102 36,385 36,452 36,485 3%

Appalachian College of Pharmacy ------Averett University 318 330 276 285 315 315 -1% Averett University Non-Traditional 25 36 42 43 52 54 113% Bluefield College* 111 120 194 131 137 144 30% Bridgewater College 474 528 514 522 528 531 12% Christendom College 312 309 322 329 329 336 8% Eastern Mennonite University 516 532 529 523 531 534 3% Eastern Virginia Medical School ------Edward Via College of Osteopathic Medicine ------Emory and Henry College 688 670 647 680 704 724 5%

September 2017 Agenda Book 156 Ferrum College 781 296 278 274 266 258 -67% George Washington University ------Hampden-Sydney College 314 308 311 314 310 336 7% Hampton University 2,424 2,744 2,463 2,463 2,463 2,463 2% Hollins University 301 318 318 338 352 350 16% Jefferson College of Health Sciences 43 54 54 55 55 55 29% Liberty University 38,104 35,696 35,731 36,036 36,575 36,907 -3% Lynchburg College 684 637 639 650 662 673 -2% Mary Baldwin University* 375 300 304 308 314 320 -15% Marymount University 942 990 964 1,099 980 980 4% Randolph College 254 229 239 251 261 267 5% Randolph-Macon College 355 377 379 375 372 380 7% Regent University 1,227 2,042 2,388 2,794 3,269 3,825 212% Roanoke College 935 916 929 930 945 957 2% Shenandoah University 786 833 803 816 812 805 2% Sweet Briar College 131 156 170 217 277 305 133% University of Richmond 2,372 2,432 2,432 2,432 2,432 2,432 3% Virginia Union University* 655 245 247 249 252 254 -61% Virginia Wesleyan College 328 332 354 360 379 387 18% Washington and Lee University 1,593 1,554 1,497 1,480 1,474 1,469 -8% Total Private, NonProfit, Four-year Institutions 55,049 52,985 53,021 53,955 55,045 56,061 2%

*Submission under further review prior to final action

September 2017 Agenda Book 157 Table 5: Actual & Projected Enrollment of New Undergraduates - First-time In College (Fall Headcount) Percentage Actual Projected Change 2015-16 to 2020-21 NAME 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Christopher Newport University 1,224 1,228 1,225 1,225 1,225 1,200 -2% College of William and Mary 1,518 1,507 1,520 1,530 1,530 1,530 1% George Mason University 3,256 3,287 3,355 3,405 3,415 3,428 5% James Madison University 4,408 4,505 4,564 4,614 4,664 4,714 7% Longwood University 1,036 928 1,060 1,079 1,118 1,118 8% Norfolk State University 476 1,044 1,065 1,085 1,118 1,152 142% Old Dominion University 2,946 2,744 2,659 2,659 2,659 2,659 -10% Radford University 1,962 1,751 1,839 1,894 1,951 2,010 2% University of Mary Washington 972 972 924 953 983 1,015 4% University of Virginia 3,674 3,683 3,725 3,725 3,725 3,725 1% University of Virginia's College at Wise 295 334 340 343 347 350 19% Virginia Commonwealth University 4,090 4,234 4,175 4,175 4,200 4,200 3% Virginia Military Institute 434 454 437 437 437 437 1% Virginia State University 765 1,024 1,050 1,050 1,103 1,125 47% Virginia Tech 6,323 5,929 6,325 6,325 6,325 6,325 0% Total Public Four-year Institutions 33,379 33,624 34,263 34,499 34,800 34,988 5% Richard Bland College 546 545 590 598 606 625 14% Virginia Community College System 26,735 27,865 27,433 27,419 27,518 27,790 4% Total Public Two-Year Institutions 27,281 28,410 28,023 28,017 28,124 28,415 4% Total Public Institutions 60,660 62,034 62,286 62,516 62,924 63,403 5%

Appalachian College of Pharmacy ------Averett University 267 237 522 265 265 270 1% Averett University Non-Traditional 12 10 16 17 17 20 67% Bluefield College 154 185 374 204 213 224 46% Bridgewater College 542 600 575 575 580 590 9% Christendom College 149 119 121 122 122 125 -16% Eastern Mennonite University 254 225 215 225 250 255 0% Eastern Virginia Medical School ------Edward Via College of Osteopathic Medicine ------Emory and Henry College 304 285 280 290 305 315 4%

September 2017 Agenda Book 158 Ferrum College 422 452 414 420 425 430 2% George Washington University ------Hampden-Sydney College 305 283 305 320 320 322 6% Hampton University 930 1,278 1,104 1,104 1,104 1,104 19% Hollins University 196 225 200 210 210 210 7% Jefferson College of Health Sciences 65 48 50 52 54 56 -14% Liberty University 4,793 4,048 4,062 4,070 4,093 4,107 -14% Lynchburg College 548 537 537 572 595 607 11% Mary Baldwin University 240 228 232 237 241 246 3% Marymount University 393 442 425 420 425 425 8% Randolph College 184 187 225 225 225 225 22% Randolph-Macon College 406 396 410 420 420 430 6% Regent University 342 382 447 523 611 716 109% Roanoke College 508 508 540 550 550 550 8% Shenandoah University 446 460 450 450 450 455 2% Sweet Briar College 24 134 120 170 180 180 650% University of Richmond 807 817 800 800 800 800 -1% Virginia Union University 456 369 372 374 376 378 -17% Virginia Wesleyan College 349 368 400 400 400 400 15% Washington and Lee University 454 466 461 461 461 461 2% Total Private, NonProfit, Four-year Institutions 13,550 13,289 13,657 13,476 13,692 13,901 3% Grand Total, All reporting Institutions 107,589 108,947 110,206 110,492 111,416 112,293 4%

September 2017 Agenda Book 159 Table 6: Actual & Projected Enrollment of New Undergraduates - First-time In College, In-State (Fall Headcount) Percentage Actual Projected Change 2015-16

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Christopher Newport University 1,134 1,145 1,127 1,115 1,103 1,080 -5% College of William and Mary 963 945 962 968 968 968 1% George Mason University 2,457 2,565 2,618 2,650 2,660 2,673 9% James Madison University 3,086 3,244 3,294 3,344 3,394 3,444 12% Longwood University 970 878 1,007 1,025 1,051 1,051 8% Norfolk State University 355 711 725 710 731 742 109% Old Dominion University 2,626 2,440 2,365 2,365 2,365 2,365 -10% Radford University 1,813 1,623 1,701 1,752 1,805 1,859 3% University of Mary Washington 837 856 814 830 856 874 4% University of Virginia 2,460 2,461 2,489 2,489 2,489 2,489 1% University of Virginia's College at Wise 275 308 304 307 311 313 14% Virginia Commonwealth University 3,572 3,757 3,750 3,750 3,750 3,750 5% Virginia Military Institute 265 266 262 262 262 262 -1% Virginia State University 536 676 735 735 794 810 51% Virginia Tech 4,261 4,347 4,225 4,225 4,225 4,225 -1% Total Public Four-year Institutions 25,610 26,220 26,379 26,527 26,764 26,906 5% Richard Bland College 530 529 572 580 588 606 14% Virginia Community College System 20,027 26,442 20,531 20,520 20,594 20,798 4% Total Public Two-Year Institutions 20,557 26,971 21,103 21,100 21,182 21,404 4% Total Public Institutions 46,167 53,191 47,482 47,627 47,946 48,310 5%

Appalachian College of Pharmacy ------Averett University 152 127 365 174 173 162 7% Averett University Non-Traditional 12 10 1 1 1 1 -92% Bluefield College 91 111 224 122 128 135 48% Bridgewater College 379 409 398 398 401 408 8% Christendom College 50 39 40 40 40 41 -17% Eastern Mennonite University 160 155 151 158 175 179 12% Eastern Virginia Medical School ------Edward Via College of Osteopathic Medicine ------

September 2017 Agenda Book 160 Emory and Henry College 204 188 185 191 201 208 2% Ferrum College 321 325 298 302 306 323 1% George Washington University ------Hampden-Sydney College 208 192 214 214 214 217 4% Hampton University 216 307 265 265 265 265 22% Hollins University 80 99 84 88 88 88 10% Jefferson College of Health Sciences 65 44 46 48 50 52 -21% Liberty University 1,197 1,028 1,031 1,032 1,035 1,038 -13% Lynchburg College 371 369 369 393 409 417 12% Mary Baldwin University 148 115 117 120 122 124 -16% Marymount University 166 199 197 187 193 193 16% Randolph College 123 125 151 151 151 151 23% Randolph-Macon College 299 287 303 311 311 318 6% Regent University 168 177 206 242 88 331 97% Roanoke College 244 272 275 280 280 280 15% Shenandoah University 243 255 248 248 248 250 3% Sweet Briar College 10 62 60 85 90 90 793% University of Richmond 110 132 128 128 128 128 16% Virginia Union University 258 196 197 198 199 200 -22% Virginia Wesleyan College 254 254 292 292 292 292 15% Washington and Lee University 51 83 83 83 83 83 63% Total Private, NonProfit, Four-year Institutions 5,580 5,559 5,927 5,750 5,670 5,972 7% Grand Total, All reporting Institutions 77,357 84,970 79,788 79,904 80,379 81,188 5%

September 2017 Agenda Book 161 Table 7: Actual & Projected Enrollment of New Undergraduates - Transfers, In-State (Fall Headcount) Percentage Actual Projected Change 2015-16 to 2020-21 NAME 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Christopher Newport University 128 121 133 133 133 133 4% College of William and Mary 148 129 149 141 141 141 -5% George Mason University 2,068 2,332 2,461 2,475 2,500 2,535 23% James Madison University 600 720 695 695 695 695 16% Longwood University 177 191 194 197 200 203 15% Norfolk State University 290 413 421 430 443 456 57% Old Dominion University 1,866 1,866 1,959 1,959 1,959 1,959 5% Radford University 694 696 726 747 769 793 14% University of Mary Washington 319 329 285 303 322 344 8% University of Virginia 532 552 604 585 585 585 10% University of Virginia's College at Wise 89 111 107 112 116 119 33% Virginia Commonwealth University 1,904 1,953 1,912 1,912 1,912 1,912 0% Virginia Military Institute 29 17 23 23 23 23 -21% Virginia State University 180 215 229 254 258 262 45% Virginia Tech 835 881 890 890 890 890 7% Total Public Four-year Institutions 9,859 10,525 10,789 10,856 10,945 11,049 12% Richard Bland College 45 39 46 49 51 54 20% Virginia Community College System 1,607 7,048 1,750 1,749 1,755 1,773 10% Total Public Two-Year Institutions 1,652 7,087 1,796 1,798 1,806 1,827 11% Total Public Institutions 11,512 17,612 12,584 12,654 12,752 12,875 12%

Appalachian College of Pharmacy ------Averett University 43 53 63 62 59 55 28% Averett University Non-Traditional 54 45 399 403 414 428 690% Bluefield College 118 126 116 133 137 141 20% Bridgewater College 51 45 45 45 45 45 -11% Christendom College 4 1 1 1 1 2 -40% Eastern Mennonite University 77 71 75 76 81 82 6% Eastern Virginia Medical School ------Edward Via College of Osteopathic Medicine ------

September 2017 Agenda Book 162 Emory and Henry College 17 19 23 38 40 50 188% Ferrum College 41 48 44 44 44 48 17% George Washington University ------Hampden-Sydney College 13 6 8 9 9 9 -28% Hampton University 71 73 63 63 63 63 -12% Hollins University 7 21 12 12 12 12 73% Jefferson College of Health Sciences 112 176 180 183 187 191 70% Liberty University 1,218 949 951 957 971 979 -20% Lynchburg College 89 66 66 66 66 66 -26% Mary Baldwin University 43 160 164 169 174 179 315% Marymount University 152 109 136 140 139 144 -5% Randolph College 30 33 35 36 38 39 28% Randolph-Macon College 46 37 22 24 24 30 -36% Regent University 304 378 441 517 604 707 133% Roanoke College 50 57 53 53 53 53 5% Shenandoah University 108 97 108 108 108 108 0% Sweet Briar College 6 16 23 23 15 38 525% University of Richmond 57 55 58 58 58 58 1% Virginia Union University 46 31 32 33 34 35 -25% Virginia Wesleyan College 91 87 113 113 113 113 24% Washington and Lee University - - 2 2 2 2 Total Private, NonProfit, Four-year Institutions 2,849 2,758 3,229 3,364 3,487 3,673 29% Grand Total, All reporting Institutions 24,220 30,896 26,602 26,874 27,184 27,596 14%

September 2017 Agenda Book 163 Table 8: Total Degree and Certificate Estimates Percentage Actual Projected Change 2015-16 to 2020-21 NAME 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Christopher Newport University 1,275 1,274 1,260 1,250 1,240 1,240 -3% College of William and Mary 2,496 2,464 2,560 2,633 2,671 2,772 11% George Mason University 8,901 9,092 9,115 9,313 9,467 9,641 8% James Madison University 5,350 4,902 5,096 5,272 5,349 5,404 1% Longwood University 1,151 1,119 1,161 1,167 1,172 1,196 4% Norfolk State University 1,172 1,079 972 873 786 1,023 -13% Old Dominion University 5,318 5,306 5,268 5,268 5,268 5,268 -1% Radford University 2,366 2,247 2,208 2,225 2,216 2,254 -5% University of Mary Washington 1,184 1,164 1,173 1,195 1,216 1,240 5% University of Virginia 6,718 6,717 7,916 7,934 7,999 8,088 20% University of Virginia's College at Wise 297 270 255 257 259 262 -12% Virginia Commonwealth University 7,818 7,678 7,462 7,690 7,920 7,955 2% Virginia Military Institute 374 383 385 378 382 380 2% Virginia State University 1,021 1,059 1,031 1,055 1,065 1,039 2% Virginia Tech 8,197 8,272 8,502 9,120 9,114 9,383 14% Total Public Four-year Institutions 53,638 53,026 54,364 55,630 56,124 57,145 7% Richard Bland College 206 222 229 235 243 250 21% Virginia Community College System 33,479 33,814 34,152 34,493 34,838 35,187 5% Total Public Two-Year Institutions 33,685 34,036 34,381 34,728 35,081 35,437 5% Total Public Institutions 87,323 87,062 88,745 90,358 91,205 92,582 6%

Appalachian College of Pharmacy 65 60 67 71 70 70 8% Averett University 169 190 200 202 204 206 22% Averett University Non-Traditional 313 331 305 297 306 305 -3% Bluefield College 258 233 240 336 379 400 55% Bridgewater College 422 385 360 397 426 426 1% Christendom College 83 132 135 140 120 120 45% Eastern Mennonite University 538 511 467 458 489 494 -8% Eastern Virginia Medical School 405 436 461 504 555 581 43% Edward Via College of Osteopathic Medicine 245 281 293 291 298 296 21%

September 2017 Agenda Book 164 Emory and Henry College 225 240 270 300 325 350 56% Ferrum College ------George Washington University 577 598 617 640 652 663 15% Hampden-Sydney College 255 211 220 227 232 238 -7% Hampton University 903 847 883 911 911 911 1% Hollins University 214 196 203 208 233 208 -3% Jefferson College of Health Sciences 704 756 768 786 798 806 14% Liberty University 19,136 18,566 18,517 18,689 19,009 19,201 0% Lynchburg College 704 717 722 747 767 792 13% Mary Baldwin University 341 412 462 508 523 533 56% Marymount University 1,052 977 974 976 393 976 -7% Randolph College 142 131 131 135 146 162 14% Randolph-Macon College 310 285 332 321 312 321 4% Regent University 3,598 4,122 5,332 6,206 7,230 8,416 134% Roanoke College 457 447 427 397 396 414 -9% Shenandoah University 1,103 1,103 1,103 1,103 1,103 1,103 0% Sweet Briar College 92 77 62 85 83 115 25% University of Richmond 1,177 1,157 1,155 1,155 1,155 1,155 -2% Virginia Union University 338 316 327 340 403 414 22% Virginia Wesleyan College 327 285 284 294 308 312 -5% Washington and Lee University 563 557 557 550 548 547 -3% Total Private, NonProfit, Four-year Institutions 33,475 33,396 34,664 36,023 37,060 39,210 17% Grand Total, All reporting Institutions 120,798 120,458 123,409 126,381 128,265 131,792 9%

September 2017 Agenda Book 165 Table 9: Total In-State Undergraduate Degree Estimates Percentage Actual Projected Change 2015-16 to 2020-21 NAME 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Christopher Newport University 1,148 1,124 1,100 1,090 1,080 1,080 -6% College of William and Mary 1,094 1,091 1,073 1,094 1,087 1,097 0% George Mason University 4,413 4,543 4,700 4,870 5,014 5,134 16% James Madison University 3,310 3,028 3,163 3,285 3,335 3,370 2% Longwood University 908 910 922 938 945 959 6% Norfolk State University 868 800 720 648 583 758 -13% Old Dominion University 3,573 3,573 3,573 3,573 3,573 3,573 0% Radford University 1,843 1,800 1,723 1,715 1,698 1,713 -7% University of Mary Washington 901 888 892 906 921 938 4% University of Virginia 2,781 2,740 2,924 2,910 2,904 2,930 5% University of Virginia's College at Wise 279 250 235 237 239 242 -13% Virginia Commonwealth University 4,761 4,764 4,666 4,806 5,003 5,026 6% Virginia Military Institute 207 219 228 224 226 225 9% Virginia State University 646 675 656 662 654 626 -3% Virginia Tech 4,498 4,470 4,664 4,992 5,106 5,127 14% Total Public Four-year Institutions 31,230 30,875 31,239 31,950 32,368 32,798 5% Richard Bland College 205 211 217 224 231 238 16% Virginia Community College System 18,321 18,321 18,689 18,876 19,065 19,256 5% Total Public Two-Year Institutions 18,526 18,532 18,906 19,100 19,296 19,494 5% Total Public Institutions 49,756 49,407 50,145 51,050 51,664 52,292 5%

Appalachian College of Pharmacy ------Averett University 118 133 140 141 143 144 22% Averett University Non-Traditional 190 197 170 165 168 163 -14% Bluefield College 190 181 185 188 192 202 6% Bridgewater College 339 284 288 308 327 326 -4% Christendom College 22 37 38 40 33 33 50% Eastern Mennonite University 177 163 181 181 201 201 14% Eastern Virginia Medical School ------Edward Via College of Osteopathic Medicine ------Emory and Henry College 142 150 150 150 150 165 16%

September 2017 Agenda Book 166 Ferrum College ------George Washington University 79 105 108 112 116 120 52% Hampden-Sydney College 178 147 154 159 163 167 -6% Hampton University 178 198 205 205 205 205 15% Hollins University 74 72 87 70 85 70 -5% Jefferson College of Health Sciences 484 496 504 512 520 524 8% Liberty University 2,461 2,388 2,382 2,399 2,441 2,465 0% Lynchburg College 343 343 350 357 360 365 6% Mary Baldwin University 212 216 221 225 229 234 10% Marymount University 386 334 354 350 - 345 -11% Randolph College 69 62 62 65 70 77 12% Randolph-Macon College 230 212 246 238 231 238 3% Regent University 520 630 808 940 1,094 1,272 145% Roanoke College 237 233 223 207 206 216 -9% Shenandoah University 322 322 322 322 322 322 0% Sweet Briar College 51 33 26 39 37 52 2% University of Richmond 182 182 180 180 180 180 -1% Virginia Union University 115 103 105 107 109 111 -3% Virginia Wesleyan College 265 231 231 238 249 253 -5% Washington and Lee University 61 61 65 73 76 76 25% Total Private, NonProfit, Four-year Institutions 7,332 7,212 7,475 7,659 7,593 8,210 12% Grand Total, All reporting Institutions 57,088 56,619 57,620 58,709 59,257 60,502 6%

September 2017 Agenda Book 167 Table 10: Total Degree Estimates, In-State Graduate and Professional Percentage Actual Estimated Projected Change 2015-16 to 2020-21 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Christopher Newport University 82 85 88 88 88 88 7% College of William and Mary 345 357 415 420 456 502 46% George Mason University 2,194 2,067 1,996 1,992 1,974 1,997 -9% James Madison University 600 576 584 591 598 603 1% Longwood University 205 170 198 191 187 197 -4% Norfolk State University 156 153 138 124 112 145 -7% Old Dominion University 914 900 859 859 859 859 -6% Radford University 311 278 312 328 338 352 13% University of Mary Washington 155 140 142 144 146 148 -5% University of Virginia 927 915 954 992 1,021 1,050 13% University of Virginia's College at Wise ------Virginia Commonwealth University 1,341 1,213 1,146 1,170 1,180 1,190 -11% Virginia Military Institute ------Virginia State University 129 122 116 123 128 134 4% Virginia Tech 1,020 1,019 1,097 1,147 1,147 1,186 16% Total Public Four-year Institutions 8,379 7,995 8, 045 8, 169 8, 234 8, 451 1% Richard Bland College ------Virginia Community College System ------Total Public Two-Year Institutions ------Total Public Institutions 8,379 7,995 8, 045 8, 169 8, 234 8, 451 1%

Appalachian College of Pharmacy ------Averett University ------Averett University Non-Traditional 103 101 108 108 110 115 12% Bluefield College 5 4 6 61 84 89 1680% Bridgewater College - - - 6 9 9 Christendom College 3 9 6 6 6 6 100% Eastern Mennonite University 57 66 66 64 66 68 19% Eastern Virginia Medical School 153 171 180 192 212 240 57% Edward Via College of Osteopathic Medicine ------Emory and Henry College 11 10 25 40 50 50 355%

September 2017 Agenda Book 168 Ferrum College ------George Washington University 220 210 217 225 230 235 7% Hampden-Sydney College ------Hampton University 86 61 79 79 79 79 -8% Hollins University 43 45 45 45 45 45 5% Jefferson College of Health Sciences 126 126 134 148 156 164 30% Liberty University 1,882 1,718 1,822 1,835 1,867 1,886 0% Lynchburg College 121 126 126 131 136 136 12% Mary Baldwin University 59 101 132 173 176 180 205% Marymount University 237 241 236 232 237 238 0% Randolph College 5 8 8 8 9 10 100% Randolph-Macon College ------Regent University 888 1,172 1,378 1,604 1,868 2,176 145% Roanoke College ------Shenandoah University 280 280 280 280 280 280 0% Sweet Briar College 1 6 9 5 7 9 800% University of Richmond 110 90 90 90 90 90 -18% Virginia Union University 2 7 9 10 11 16 700% Virginia Wesleyan College ------Washington and Lee University 0 0 0 0 0 0 Total Private, NonProfit, Four-year Institutions 4304 4484 4868 5253 5638 6026 40% Grand Total, All reporting Institutions 12683 12479 12913 13422 13872 14477 14%

September 2017 Agenda Book 169

State Council of Higher Education for Virginia Agenda Item

Item: Resources and Planning Committee #C5 – Discussion of 2018-20 Systemwide Operating Budget

Date of Meeting: September 18, 2017

Presenter: Dan Hix, Finance Policy Director [email protected]

Most Recent Review/Action: No previous Council review/action Previous review/action Date: October 25, 2016 Action: The Council made budget amendment recommendations for additional funding of $45.8 million from general fund and $31.2 million in nongeneral funds for institutions’ operations in the 2016-18 biennium.

Background Information/Summary of Major Elements:

This item is composed of three parts:

1. Condition of Virginia Higher Education Funding

2. Virginia Higher Education Opportunity Act/TJ 21 Funding Model

3. Options for Systemwide Budget and Policy Recommendations a. Base Adequacy/Cost of Education b. Faculty Salaries c. Operation and Maintenance of New Facilities Coming Online d. Virginia Plan Initiative- Student Success e. Student Financial Aid f. Higher Education Equipment Trust Fund g. Virginia Research Investment Fund h. SCHEV Systemic Budget Items i. Policy Review

Part I (C5.a) presents the conditions of Virginia higher education funding by reviewing systemwide budget trends and compares Virginia’s support for higher education to the support in other states in a series of charts as an Erosion Report/Update that SCHEV staff has provided in the September agenda items since 2010.

Part 2 (C5.b) provides a summary of the Higher Education Opportunity Act of 2011 and the estimated funding associated with the provisions of the act. If fully funded, SCHEV staff estimates that the annual additional general fund cost would be $542.3 million.

September 2017 Agenda Book 170

Part 3 (C5.c) begins a discussion of the Council’s specific priorities for 2018-20 operating budget and policy recommendations. Staff recognizes the unlikelihood of the Governor and the General Assembly appropriating an additional $500 million in the 2018-20 biennium. Staff also believes that Council needs to describe faithfully the financial support needed to maintain a healthy and effective higher education system in the Commonwealth. What follows in Part 3, therefore, is a set of options for Council’s consideration that address policy and funding priorities, and provide reasonable funding strategies as well. Goal #1 of the Virginia Plan, a system strategic plan for Higher Education, is to provide affordable higher education access for all. The alignment of state appropriations, financial aid and tuition and fees will be critical to achievement of this goal.

September 2017 Agenda Book 171

State Council of Higher Education for Virginia Agenda Item

Item: Resources and Planning Committee #C5.a – Discussion of 2018-20 Systemwide Operating Budget: Condition of Virginia Higher Education Funding

Date of Meeting: September 18, 2017

A Structural Problem: Fluctuations in state funding that result from cyclical economic conditions in Virginia present a tremendous challenge to the well-being of our public higher education institutions and the state’s students and families. However, an even greater challenge to Virginia’s public higher system is emerging as both internal and external data indicate an aggregate decline in state support over the past 25 years. Further, based on the most recent national data, Virginia is ranked 41st in the country in terms of general fund support for higher education on a per student basis. All but three states in the Southern Regional Education Board (SREB) ranked above us.

 Between 1992 and 2018, general fund appropriations to public higher education in Virginia fell from 14.4% to 10.2% of total state appropriations based on the Appropriation Act of 2017. This aggregate decline in state funding has been masked by increases in funding when the economy is doing well followed by decreases in funding when the economy contracts.

 On a per student basis, general fund appropriations declined by 17.9% at four-year institutions and by over 6.1% at the VCCS between 1992 and 2018 based on the budget for FY2018. In contrast, tuition revenues from all sources increased by 103.8% for four-year institutions and 112.5% for the VCCS during the same time period. This means Virginia’s students and their families are shouldering an increasing portion of college costs.

 Based on the nominal data that states submitted to the State Higher Education Executive Officers (SHEEO) in 2016, Virginia ranked 41st for state and local appropriations per student. Our neighboring states to the north and south ranked substantially higher— North Carolina ranked 9th and Maryland ranked 12th.

 While the national average for state and local appropriations was $6,954 in 2016 based on the same data, Virginia’s appropriation per student was $1,815 lower at $5,139. North Carolina’s appropriation per student was $8,686 for the same time period. Maryland’s appropriation per student was $8,291.

 Virginia lags behind regionally as well for 2016. Of the 16 Southern Regional Education Board (SREB) states, only Louisiana, South Carolina and West Virginia provided less state support on a per student basis than Virginia.

September 2017 Agenda Book 172

Erosion Update*

*The appendices to the 2009 staff report, “The Erosion of State Funding for Virginia’s Public Higher Education Institutions,” have been updated to reflect the latest available data.

September 2017 Agenda Book 173 Average Funding per FTE Student at Four-Year Institutions (in 2017-18 Constant Dollars)

September 2017 Agenda Book 174 Average Funding per FTE Student at Virginia Community Colleges (in 2017-18 Constant Dollars)

September 2017 Agenda Book 175

September 2017 Agenda Book 176

State Council of Higher Education for Virginia Agenda Item

Item: Resources and Planning Committee #C5.b – Discussion of 2018-20 Systemwide Operating Budget: Virginia Higher Education Opportunity Act/TJ21 Funding Model

Date of Meeting: September 18, 2017

Based on the recommendations of the Governor’s Commission on Higher Education Reform, Innovation and Investment, The 2011 General Assembly enacted “the Virginia Higher Education Opportunity Act of 2011” for the purpose of fueling strong economic growth in the Commonwealth and preparing Virginians for the top job opportunities in the knowledge-driven economy of the 21st century (TJ21).

The Act provides (i) a new higher education funding policy; (ii) the calculation of the state general fund share of an institution's basic operations and instruction funding need; (iii) per student enrollment-based funding; (iv) targeted economic and innovation incentives; (v) the creation of a STEM Public-Private Partnership; and (vi) the creation of a Higher Education Advisory Committee.

TJ21 establishes a new funding model for the Commonwealth with four components in order to provide all capable Virginians with access to a college at an affordable cost and create incentives for Virginia student enrollment growth:

Institution’s basic operations and instruction funding need §23-38.87:13

Per student enrollment-based funding §23-38.87:14

Need-based financial aid §23-38.87:15 and

Targeted economic and innovation incentives §23-38.87:16

A summary of the calculated funding need is presented below according to the funding model. Each item in the table is calculated based on the following assumptions:

 Cost of education – actual FY2017 student enrollment and institutions’ FY2018 resources from the operating plan,

 Faculty salaries – actual 60th percentile goal in FY2018,

September 2017 Agenda Book 177  Paragraph C of §23-38.87:13 – The Higher Education Opportunity Act says, “State general funds shall be allocated and appropriated to institutions in a fair and equitable manner such that, to the extent practicable, the percentage of the cost of education for Virginia students enrolled at an institution to be funded from state general funds is the same for each institution.” Paragraph A of the same section says that 67 percent of an institution’s cost of education for Virginia students should be funded by the state general fund.

 Per-student enrollment-based funding – additional in-state undergraduate enrollment between the projected FY2018 and FY2020 enrollments. The cost is estimated at $3,100 per student for four-year institutions and $2,100 for two-year colleges,

 Need-based financial aid – 100% funding for undergraduate students in FY2020,

 Targeted economic and innovation incentives – to be determined.

What follows are several tables that describe in more detail the financial implications of each element of the Higher Education Opportunity Act. The amounts presented are based on commonly used formulas and approaches that support the four-part funding model. They are not intended to be the sole or definitive means to calculate the totals associated with each element.

September 2017 Agenda Book 178

Calculated Higher Education Funding Need Based on Higher Education Opportunity Act (In Millions)

Total Cost Item GF NGFTotal Basic Operations and Instruction Funding (BOIF) 100% cost of education (COE) in FY18$13.4$11.1$24.4 Faculty salary 60th percentile in FY18$95.6$97.8$193.4 Subtotal $109.0$108.9$217.8

Paragraph C of §23-38.87:13 $845.0 ($1,037.7)($192.8)

Per-Student Enrollment-Based Funding in FY20$5.2$0.0$5.2

Need-Based Financial Aid in FY20 (100% funding)$428.1$0.0$428.1

Targeted economic and innovation incentives To be determined

Total Funding Need (excludes Paragraph C)$542.3$108.9$651.1

September 2017 Agenda Book 179

Estimated 2017-18 Base Adequacy/Cost of Education Funding

CalculatedAvailable% FundingFunding GF Incremental Funding Need1,2 Resources3,4,5 to GuideShortfall Share GF NGFTotal Total$4,498,874,730 $4,691,638,973 104.3% ($26,655,506) 50% $13,361,358 $11,076,270 $24,437,627

Notes: (1) Based on actual FY17 student FTE and FY15-FY17 3-year average discipline credit hours. (2) The blended salary is based on FY2018 operating plan budget positions and appropriated T&R faculty salaries. (3) Available resources are from FY2018 operating plan. (4) GF adjustments are OCR funding at NSU and VSU, and VCCS central office (FY18 adjustment). (5) NGF Adj1 is adjusted required funding for programs 101-40, 102 and 103 made in October 2009. (6) Available resources are adjusted for "uniquely military" mission.

September 2017 Agenda Book 180 Virginia T&R Faculty Salary Goal in FY18

Req % Incr Estimated Additional Funding Instto Goal GF NGFTotal CNU14.0%$1,918,575 $1,263,141 $3,181,716 CWM13.5%$3,978,689 $6,018,016 $9,996,705 GMU24.5%$23,476,866 $23,289,799 $46,766,665 JMU12.7%$6,698,008 $7,027,418 $13,725,426 LU 5.6%$700,651$425,797 $1,126,448 NSU2.0%$243,928$206,955$450,883 ODU14.5%$7,267,795 $5,641,255 $12,909,050 RU 15.5%$4,111,387 $2,552,125 $6,663,512 UMW11.4%$1,690,035 $1,126,690 $2,816,724 UVa9.2%$7,168,140 $13,138,205 $20,306,344 UVAW*n/a $0 $0 $0 VCU10.5%$8,858,046 $9,330,960 $18,189,006 VMI19.2%$801,423 $1,187,220 $1,988,643 VSU 11.5%$1,632,896 $1,699,545 $3,332,441 VT 12.7%$11,188,325 $17,647,564 $28,835,888 RBC*n/a $0 $0 $0 VCCS9.7%$12,073,482 $7,060,404 $19,133,886 VIMS13.5%$801,963$42,209$844,172 VSU-Ext 11.5%$334,119$17,585$351,704 VT-Ext12.7%$2,675,769$140,830 $2,816,599 Total $95,620,096 $97,815,719 $193,435,815 Note: * institution's faculty salary is at or above the 60th percentile of peers.

September 2017 Agenda Book 181

Estimated Base Adequacy/Cost of Education for Paragraph C of §23-38.87:13

Calculated Funding Need Available Resources Difference Institution GF NGF Total GF Share GF NGF Total GF Share GF NGF Total Total, All Institutions $2,239,153,652 $2,259,721,078 $4,498,874,730 50% $1,394,168,267 $3,297,470,705 $4,691,638,973 30% $844,985,385 ($1,037,749,627) ($192,764,242) Notes: (1) Based on actual FY17 student FTE and FY15-FY17 3-year average discipline credit hours. (2) The blended salary is based on FY2018 operating plan budget positions and appropriated T&R faculty salaries. (3) Available resources are from FY2018 operating plan. (4) GF adjustments are OCR funding at NSU and VSU, and VCCS central office (FY18 adjustment). (5) NGF Adj1 is adjusted required funding for programs 101-40, 102 and 103 made in October 2009. (6) Available resources may change in October.

September 2017 Agenda Book 182

Projected Per-Student Enrollment-Based Funding

In-State Undergraduate FTE Change Estimated GF Need* Inst FY18FY19FY20FY18-FY19 FY19-FY20FY2019FY2020 CNU 4,4804,4794,452 (1)(27) $0 $0 CWM 4,2324,2554,293 2338 $75,090$124,286 GMU 19,07119,45519,759 385304 $1,268,942$1,002,917 JMU 14,79515,09415,481 299387 $985,669$1,278,289 LU 4,3954,4674,532 7265 $238,102$213,991 NSU 3,6523,6763,787 24111 $79,444$364,854 ODU 15,16315,16315,163 0 0 $0 $0 RU 7,6687,7297,875 61146 $201,658$481,572 UMW 3,5383,5533,589 1536 $49,576$117,743 UVA 11,63011,68711,792 57105 $189,040$346,573 UVAW 1,4271,4401,451 1311 $42,900$36,300 VCU 19,55319,71819,820 165102 $543,693$336,444 VMI 1,2411,2211,221 (20) 0 $0 $0 VSU 3,2103,3323,454 122122 $401,001$404,063 VT 19,23419,63419,782 399149 $1,317,527$490,843 RBC 1,4291,4441,459 1515 $34,500$49,500 VCCS95,87593,90992,796 (1,966)(1,113) $0 $0 Total230,593230,255230,705 (338) 450 5,427,142$5,247,374 Note: * Four-year institutions are priced at $3,300 per FTE and two-year institutions at $2,300 per FTE.

September 2017 Agenda Book 183 Virginia Student Financial Aid Program

Funds Needed to Achieve 100% of the Model

September 2017 Agenda Book 184

State Council of Higher Education for Virginia Agenda Item

Item: Resources and Planning Committee #C5.c – Discussion of 2018-20 Systemwide Operating Budget: Options for Systemwide Budget and Policy Recommendations

Date of Meeting: September 18, 2017

Options for Systemwide Budget and Policy Recommendations

Due to a budget shortfall at the end of FY2016, the 2017 General Assembly reduced FY2018 general fund appropriations for educational and general (E&G) programs by almost $38 million or 2.5% cut over the original FY2018 appropriations at the system level. While public institutions experienced a rare and significant increase in state support of more than 8% in FY2017, they are now facing budget cut again in general fund in FY2018. One step forward and one step back.

Although the Commonwealth ended fiscal year of 2017 with a budget surplus, the looming budget and policy changes at the federal level may have adverse impacts on the state revenue collections for the upcoming biennium. With this in mind, SCHEV staff presents the following budget options for Council’s consideration. The options represent a combination of funding strategies and priorities designed to meet the goals of the Virginia Plan with a phased approach so that the required additional support will be more moderate.

(a) Base Adequacy/Cost of Education

Following the base adequacy guidelines, SCHEV staff used the actual FY2017 student enrollment and institutions’ FY2018 operating plans to calculate the institutions’ funding need in FY2018, and compared that with the available resources for FY2018 as represented in the operating plans. The calculation resulted in a total funding need of $35.9 million, including the funding for Eastern Virginia Medical School. Staff provides 2 options:

 Option 1. Phase the total funding need over two years to reach the full funding by FY2020. The estimated additional funding need is $19.1 million from the general fund and $16.8 million in nongeneral funds for a total of $35.9 million in 2018-20 biennium. The required annual tuition increase is 4.5% on average with the increases ranging from 0.2% to 10.9% for institutions that are under full funding.

 Option 2. Phase the total funding need over four years to reach the full funding by FY2020. The estimated additional funding need is $9.5 million from the

September 2017 Agenda Book 185 general fund and $8.4 million in nongeneral funds for a total of $17.9 million in 2018-20 biennium. The required annual tuition increase is 2.2% on average with the increases ranging from 0.1% to 5.4% for institutions that are under full funding.

(b) Faculty Salaries

Thanks to the 2%-3% state salary increases in FY2018, it is estimated the ranking of average teaching and research faculty salary at 4-year institutions to national peers would be at the 34th percentile in FY2018.

Institutions stated in their 2017 six-year plans that faculty salaries falling behind those of their peer institutions represent the greatest threat to faculty recruitment and retention. SCHEV staff believes that maintaining the commitment to faculty salaries is critical to meeting the goals outlined in the Virginia Plan.

Staff proposes three options for the Council’s consideration in order to help institutions in faculty recruitment and retention.

 Option 1 – reach the 60th percentile goal immediately. The required average annual salary increase is 12.4% with the salary increase range from 0% to 24.5%. It is estimated that the required additional funding will be $95.6 million in general fund and $97.8 million in nongeneral funds for a total of $193.4 million to fund this option in FY2019.

 A sub-option is to fund the total funding need completely with tuition revenue in 2018-20. It is estimated the average tuition increase rate will be 6.3% with the increase range from 0% to 12%.

 Option 2 – reach the 60th percentile goal over four by FY2022. The estimate assumes an annual salary increase of 2.83% for peer institutions. The required average annual salary increase is 5.2% with the increase range from 1.3% to 8.4%. It is estimated the required additional funding will be $88.4 million in general fund and $90.5 million in nongeneral funds for a total of $178.9 million in FY2020.The accumulated total funding need is estimated at $380.1 million by FY2022.

A sub-option is to fund the total funding need completely with tuition revenue in 2018-20. It is estimated the average tuition increase rate will be 2.7% with the increase range from 1.2% to 4.1%.

 Option 3 – provide an annual 3% salary increase for T&R faculty for all public institutions in the 2018-20 biennium. It is estimated the required additional funding will be $44.9 million in general fund and $46.1 million in nongeneral funds for a total of $91.1 million in FY2020.

A sub-option is to fund the total funding need completely with tuition revenue in 2018-20. It is estimated the average tuition increase rate will be 1.6% with the increase range from 1.1% to 2.7%.

September 2017 Agenda Book 186

Salary increases for faculty should be based on merit and provided as an incentive for meeting state and institutional priorities.

While administrative faculty, part-time faculty and other support staff (classified employees) are not included in this option, the institutions and the Commonwealth ultimately will need to address the appropriate level of compensation needed to attract and retain high-performing employees.

(c) Operation and Maintenance of New Facilities Coming Online

The 2017 General Assembly provided no additional state support in the 2016-18 biennium for the operation and maintenance of new space coming online. In fact, none has been provided explicitly for this purpose since 2011.

As noted in the Capital Outlay assessments, staff believes that the Commonwealth should place a higher priority on maintaining its facilities. This applies to both capital appropriations and for operating appropriations, which is why the Council continues to recognize the need for additional support for operation and maintenance.

A total of $13.5 million from the general fund and $13.2 million from nongeneral funds in the 2018-20 biennium would give institutions the flexibility to provide for the operation and maintenance of new educational facilities without placing an undue burden on students and families.

(d) Virginia Plan Initiative – Student Success

The Virginia Plan for Higher Education, the statewide strategic plan for higher education developed by SCHEV and endorsed by the General Assembly, set four goals that include affordable access, student success, change and improvement, and economic and cultural prosperity. The Plan identifies strategies for achieving the goals and measures to determine if progress is being made over time. Observations related to student success from the work with The Virginia Plan include these areas of concern:

 Virginia’s high rate of educational attainment could shift in the coming years. While Virginia ranks 6th nationally in educational-attainment rates for the population ages 25-64 (those with a degree or workforce credential), the population ages 25-34 ranks lower, at 11th, for those with an associates or above.  Fewer high school graduates and shifting demographics may impact Virginia’s educational attainment ranking. The number of high school graduates is expected to grow by less than 0.1% through 2030. In addition, the shifting demographics of the population – to one that traditionally is harder to serve; i.e., first-generation, low-income or from a minority race or ethnicity – may impact the rate at which students complete a credential or require additional resources for/from institutions to serve them.

September 2017 Agenda Book 187  Gaps in educational attainment remain persistent. While Virginia’s educational-attainment rates rank high compared to other states, large gaps remain in attainment rates between rural and urban areas and between non- Asian minority populations.  Employer demands for qualified workers continue to increase. Employers continue to demand not only the academic and technical skills for a job, but also soft skills, such as problem solving, communication and writing.

SCHEV staff currently is compiling examples and documentation of institutional initiatives submitted in the recent six-year plans that could impact these areas of concern. Based on this review, staff will plan to bring a budget recommendation to the Council at the October meeting.

(e) Student Financial Aid

(e.1) Undergraduate Student Financial Aid

(i) Virginia Student Financial Assistance Program

The Virginia Student Financial Assistance program (VSFAP) is awarded to Virginia undergraduates demonstrating financial need at public institutions. The Commonwealth allocates financial aid funds to institutions based on a funding model, called the partnership model, which assumes a shared responsibility among the state, the student, and other stakeholders while projecting the amount of need for an upcoming year.

In developing funding recommendations, SCHEV uses the most recently available student-specific financial aid data file (FY16) and applies projected cost factors for the target year (FY19 and FY20) to calculate projected expenses for each student. SCHEV then applies the partnership model to determine student need for the target year.

The 2016 session of the General Assembly provided a $24.1 million increase to both years of the 2016-18 biennium. This increase is the highest in terms of dollars and percentage (14.5%) since the program was expanded to include the Virginia Guaranteed Assistance Program in 1993.

These additional funds boosted total funding to just under $190 million and halted a six-year decline in “percent of need met” under the partnership model. For FY2017, VSFAP funding met 33.2 percent of the projections under the partnership model. No new funds were appropriated in the 2017 session of the General Assembly for FY18. Consequently the percent of need met dropped slightly to 32.5 percent.

The recession resulted in increasing need totals over multiple years, including consecutive increases of over 11%, 26%, 22%, 19%, and 13%. Since FY14, the rate of increase declined to a modest 2.2 percent increase in need between FY17 and FY18. Need is now projected to decline by -0.3 percent between FY18 and

September 2017 Agenda Book 188 FY19. As a result, increases in student aid funds are no longer chasing ever larger deficits but can now gain ground on improving affordability.

During the recession, student need under the model increased dramatically. While this is due in part to increasing costs, the primary driver was an increasing number of students demonstrating need. From FY12 to FY14, the number of students demonstrating need under the model increased by 12.7, 27, and 15.7 percentage points in each respective year. Over the past two years, the number of students demonstrating need declined by -2.0 and -7.6 percentage points.

A reduction in the actual number of students demonstrating need under the model could be construed as a positive sign for affordability if the decline was the result of student resources catching up to educational costs; however, the evidence suggests there is a different dynamic at work as the decline is coming almost exclusively from the lower-income bracket.

From FY13 to FY16, the combined enrollment across all public institutions dropped by just over 11,200 students, but students demonstrating need declined by over 13,000 students. More concerning is the loss of students from the $0 to $50,000 income group, which declined by nearly 17,000 (-14.8%). While ten of the four-year institutions experienced a loss of students from the $0 to $50,000 income group over the same period of time, the majority of the losses were experienced by the community colleges with a drop of 16,200 (21%) from this lowest income group.

September 2017 Agenda Book 189 2012-13 Students w/ 2013-14 Students w/ 2014-15 Students w/ 2015-16 Students w/ Need Need Need Need

% of % of % of % of % of % of % of % of Num. Num. Num. Num. Needy Total Needy Total Needy Total Needy Total All public institutions In-state undergraduats 321,689 319,005 315,381 310,420 Demonstrating need 161,930 50.3% 162,732 51.0% 159,903 50.7% 148,927 48.0% $0 to $50,000 114,663 70.8% 35.6% 110,928 68.2% 34.8% 107,608 67.3% 34.1% 97,748 65.6% 31.5% $50,001 to $100,000 34,908 21.6% 10.9% 37,196 22.9% 11.7% 36,855 23.0% 11.7% 35,635 23.9% 11.5% Greater than $100,000 12,338 7.6% 3.8% 14,591 9.0% 4.6% 15,383 9.6% 4.9% 15,522 10.4% 5.0% 4-Year Institutions In-state undergraduats 136,138 137,345 138,363 138,488 Demonstrating need 69,689 51.2% 71,768 52.3% 72,957 52.7% 71,316 51.5% $0 to $50,000 37,245 53.4% 27.4% 36,929 51.5% 26.9% 37,447 51.3% 27.1% 36,509 51.2% 26.4% $50,001 to $100,000 21,402 30.7% 15.7% 21,979 30.6% 16.0% 21,776 29.8% 15.7% 21,050 29.5% 15.2% Greater than $100,000 11,021 15.8% 8.1% 12,843 17.9% 9.4% 13,677 18.7% 9.9% 13,737 19.3% 9.9% VCCS In-state undergraduats 184,023 180,271 175,523 169,779 Demonstrating need 91,452 49.7% 90,310 50.1% 86,232 49.1% 76,836 45.3% $0 to $50,000 76,877 84.1% 41.8% 73,537 81.4% 40.8% 69,670 80.8% 39.7% 60,700 79.0% 35.8% $50,001 to $100,000 13,294 14.5% 7.2% 15,042 16.7% 8.3% 14,881 17.3% 8.5% 14,393 18.7% 8.5% Greater than $100,000 1,281 1.4% 0.7% 1,731 1.9% 1.0% 1,681 1.9% 1.0% 1,743 2.3% 1.0%

VSFAP Performance: The VSFAP awarding policies vary among the institutions. The total number of students and average awards reflect some institutions policy of making fewer but larger awards while others choose to spread the funding thinner to reach more students. The policy differences reflect the differing needs of the student enrollments and availability of other resources at each institution.

VSFAP Awards for 2015-16

Commonwealth Award Virginia Guaranteed Assistance Program # Unique Average # Unique Average Institution Students Dollars Award Institution Students Dollars Award CWM 112 $1,220,276 $10,895 CWM 183 $2,062,553 $11,271 CNU 345 $1,235,313 $3,581 CNU 727 $3,421,183 $4,706 GMU 2,602 $6,873,840 $2,642 GMU 2,744 $9,915,430 $3,613 JMU 698 $3,564,722 $5,107 JMU 675 $3,962,508 $5,870 LU 160 $499,810 $3,124 LU 848 $3,776,773 $4,454 UMW 259 $841,018 $3,247 UMW 549 $2,208,048 $4,022 NSU 1,538 $6,544,055 $4,255 NSU 168 $1,107,702 $6,593 ODU 2,747 $7,942,275 $2,891 ODU 2,096 $9,193,687 $4,386 RU 856 $4,130,743 $4,826 RU 558 $3,385,875 $6,068 UVA-W 238 $713,268 $2,997 UVA-W 454 $1,486,190 $3,274 VT 1,644 $4,777,013 $2,906 VT 2,730 $10,188,499 $3,732 VCU 2,406 $8,191,544 $3,405 VCU 2,374 $13,678,981 $5,762 UVA 172 $644,357 $3,746 UVA 456 $5,261,595 $11,539 VMI 2 $10,203 $5,102 VMI 149 $918,125 $6,162 VSU 1,094 $3,984,221 $3,642 VSU 683 $3,072,669 $4,499 RBC 212 $288,741 $1,362 RBC 125 $259,100 $2,073 VCCS 37,429 $36,438,524 $974 VCCS 1,345 $2,386,083 $1,774 System 52,514 $87,899,923 $1,674 System 16,864 $76,285,000 $4,524

The effects of the declining percent of need met under the model can be seen graphically. Each year, the VSFAP program continues to lose purchasing power as the average award as a percent of tuition has steadily declined. While not all students

September 2017 Agenda Book 190 demonstrating need are eligible for a VSFAP Award, over time the institutions have been awarding a smaller percentage of those students demonstrating need.

Average VSFAP Award as a Percentage of Tuition Percent of Students With Need Receiving an Award (average of combined Commonwealth and VGAP awards; does not include non E&G fees)

Staff also is reviewing the use of tuition and fee revenue for financial aid to determine which institutions are overly reliant on the practice and to determine how state general fund – by way of financial aid funding – can reduce that reliance. A report and recommendation is expected for the October meeting.

2018-20 Virginia Student Financial Assistance Program Funding Option

This preliminary option brings all four-year institutions to at least 35 percent of need met, with each institution receiving a minimum of 3 percent increase.

(ii) Two-Year College Transfer Grant

The Two-year Transfer Grant (CTG) program was adopted in 2007 and began awarding students as of FY09. The program encourages utilization of Virginia’s two- year colleges by rewarding students who complete their associate degree at a two- year college before then transferring to a participating Virginia four-year public or private non-profit college or university within one year. The program also requires full-time enrollment, maintenance of a 3.0 grade point average, and a maximum federally calculated Expected Family Contribution of $12,000.

September 2017 Agenda Book 191 Eligible students receive $1,000 annually for up to three years. An additional $1,000 is awarded to students enrolled into a STEM program of study.

The CTG program grew by an increasing number of students from FY14 through Unique FY16. However, there is little data to Students # Change % Change explain the dramatic growth as enrollments 2010-11 576 336 140.0% into two-year institutions have declined 2011-12 799 223 38.7% recently, the number of associate degree 2012-13 812 13 1.6% graduates has stabilized, and the number 2013-14 1,013 201 24.8% of transfer students has stabilized. The only 2014-15 1,395 382 37.7% factor that has increased in 2015-16 1,909 514 36.8% correspondence with participation growth is 2016-17 2,077 168 8.8% the number of Associate degree earners graduating with at least a 3.0 grade point average. Until a reliable prediction model can be developed, funding projections for the CTG will be subject to a large margin of error.

2016-17 Two-year Transfer Grant Totals

Based on current information, staff projects program participation to range between 2,700 ($3.4 million) and 2,900 ($3.7 million) in FY19 and between 3,100 ($3.9 million) and 3,500 ($4.4 million) in 2020. The current appropriation available for the base award and STEM bonus for FY18 is $2,950,000.

Beginning in FY16, a new incentive portion of the grant was added to encourage students to transfer to one of six institutions: NSU, ODU, RU, UV-Wise, VCU, and VSU. The program is also intended as an incentive for these institutions to actively recruit CTG-eligible students as they complete their Associate degrees.

September 2017 Agenda Book 192 Students transferring to these six institutions receive an additional $1,000. Additionally, the institutions were provided enrollment goals for CTG-eligible students. A total of $600,000 is provided annually to support this component of the CTG.

(e.2) Graduate Student Financial Aid

The graduate Virginia Student Financial Assistance program may be awarded as need- based grants, merit-based scholarships, or awards for duties that require work. Graduate student financial aid is integral to institutional and student success for graduate education and research.

SCHEV staff previously has recommended restoration of graduate financial aid to FY95 levels of funding, which would require annual increases of just over $10 million per year over a period of four years. For the 2016-18 biennium, staff recommended increases of $4 million and $6 million for FY2017 and FY2018, respectively. Increases of $3.1 million for FY17 and $1.4 million for FY18 were approved.

The Virginia Institute of Marine Sciences (VIMS) has a different funding model as all of the students are fully funded through scholarships and waivers. In its case, the graduate financial aid funding, in conjunction with other resources, directly impacts enrollment levels. Staff continues to review VIMS to determine the best appropriate funding model and the role of graduate student financial assistance within it.

September 2017 Agenda Book 193 2016-17 2017-18 Institutions 2015-16 IncreaseTotalIncreaseTotal Christopher Newport University 3,7047,90311,6073,55615,163 College of William & Mary 748,007122,701870,70855,216925,924 George Mason University 1,886,190598,4492,484,639269,3022,753,941 James Madison University 541,870258,001799,871116,100915,971 Longwood University 6,25913,76920,0286,19626,224 Norfolk State University 406,07278,074484,14635,133519,279 Old Dominion University 2,237,734326,1802,563,914146,7812,710,695 Radford University 670,612171,128841,74077,007918,747 University of Mary Washington 6,19910,29916,4984,63521,133 University of Virginia 4,498,154572,2705,070,424257,5215,327,945 Virginia Commonwealth University 2,899,292362,5473,261,839163,1463,424,984 Virginia Institute of Marine Sciences 241,54078,077319,6171,385321,002 Virginia State University 256,34470,838327,18231,877359,059 Virginia Tech 4,490,716404,7644,895,480182,1455,077,625 Four-Year Institution Totals 18,892,6933,075,00021,967,6931,350,00023,317,692

(e.3) Virginia Tuition Assistance Grant Program (TAG)

TAG is designed to make private colleges in Virginia more affordable for Virginia residents and thus increase the level of student choice and access in higher education. TAG was established in 1973 and will provide over $65.8 million of assistance to over 22,500 students enrolled into 30 institutions in FY2018. The maximum annual undergraduate awards are expected to be $3,300 while graduate/professional students are expected to receive $1,650.

TAG funding recommendations are based on the projected fall participation by priority students (returning students and on-time new applicants are prioritized; late applicants are awarded only if funds are available) and historic trends to determine the average award amounts and attrition rates. Additional factors include the current economic conditions and the periodic addition/deletion of institutions or academic programs.

The maximum annual TAG award reached a high of $3,200 in 2007-08 and then declined for three consecutive years until 2011-12.

September 2017 Agenda Book 194

Actual maximum undergrad and graduate awards in previous years:

Annual Fiscal Year Award Amount 2007-08 $3,200 / $1,900 2008-09 $3,190 / $1,890 2009-10 $3,000 / $1,300 2010-11 $2,600 / $1,130 2011-12 $2,750 / $1,200 2012-13 $2,800 / $1,300 2013-14 $3,100 / $1,550 2014-15 $3,100 / $1,550 2015-16 $3,100 / $1,550 2016-17 $3,200 / $1,600 2017-18 $3,300 / $1,650 projected

In recent years, TAG participation of undergraduate students has fallen short of the projected annual growth rate. This has resulted in unspent funds for both FY2014-15 ($2.0 million) and FY2015-16 ($1.3 million). The accumulated surplus enabled the maximum TAG award to be increased to $3,200 for FY17 and $3,300 for FY18 without significant amounts of new funding.

The program surplus will enable awards to remain at $3,300 for FY19 but projections indicate that the carry forward surplus is nearly exhausted by end of FY19. New funding will be needed to support TAG award amounts in excess of $3,300 in FY19 and, because the available funding includes approximately $2.7 million carry forward from FY18, an additional $3.5 million is required just to maintain the $3,300 award in FY20.

Based on projected enrollments for FY19 and FY20, TAG participation is expected to hold at 0.5% for FY18 and could then grow as much as one percent annually for FY19 and FY20.

Incremental Cost of Increasing the Maximum Annual TAG Award FY2018 Base Appropriation = $65,812,665

2018-19 2019-20Additional Funds Funds Award Total Cost Needed Total Cost Needed $3,300$68,261,585(630,279) $69,270,0693,457,404 $3,350$69,295,852403,988 $70,319,6154,506,950 $3,400$70,330,1181,438,254 $71,369,1625,556,497 $3,500$72,398,6513,506,787 $73,468,2557,655,590 $3,700$76,535,7177,643,853 $77,666,441 11,853,776

(f) Higher Education Equipment Trust Fund

In 2000, the Council established an equipment allocation methodology for the HEETF based on institutional needs for (1) regular inventory replacement and (2)

September 2017 Agenda Book 195 technology upgrades. A 9-year replacement cycle, issued for instructional and research equipment, is applied to the current institutional equipment inventories in the Educational and General programs of Instruction, Research and Academic Support. Staff has provided a summary table of 2017-18 HEETF allocations by institution for information purposes. The HEETF addresses half of the identified need and institutional operating funds cover the other half. To continue the progress made in the 2016-18 biennium with updating institutional equipment inventories, the annual replacement need to be covered by the HEETF will be $77.8 million per year or $155.6 million for the 2018-20 biennium.

The HEETF model also includes funding for computers for student use. The Council established a goal of providing 7% of the full-time equivalent students with a microcomputer. In 2000, this rate was considered adequate to accommodate students’ need for access to computer resources. Since then, allocations have been sufficient to maintain this level of coverage. To continue supporting the 14:1 students-to-computer ratio at a cost of $1,800 per computer, an additional allocation of $13.2 million per year is needed. This policy allows for computer replacement approximately once every three years.

For the 2014-16 biennium, the Council recommended the allocation of over $19 million a year in support of research equipment through HEETF. In 2015, SCHEV staff recommended that the Commonwealth establish a pooled bond authorization to finance, as needed and over time, new or renovated facilities and equipment for research activities. This funding for research equipment in 2016-18 biennium was presented in under the Research Competitiveness initiative. This year, staff has returned to the 2014-16 methodology for equipment funding based on research equipment replacement. Under this methodology, staff calculates $25.9 million to maintain current funding levels in research.

Estimated debt service payments by institution total $12.2 million from the general fund for the traditional HEETF calculation and $4 million from the general fund for the Research HEETF calculation in FY2020.

Council may wish to align its recommendations on HEETF allocations, and on research funding generally, with other relevant opportunities, such as the Virginia Research Investment Fund and the findings of the assessment of research assets being conducted this fall through a contract with Council on behalf of the Virginia Research Investment Committee.

(g) Virginia Research Investment Fund (VRIF)

Created in the 2016 legislative session, the VRIF is a special non-reverting revolving fund to support “innovative and collaborative research, development and commercialization efforts … with a high potential for economic development and job creation” at public institutions of higher education. Grants from the Fund are awarded by the Virginia Research Investment Committee (VRIC), which the SCHEV director chairs, and the grant competition is administered by SCHEV staff. VRIC will award the first round of VRIF grants in late 2017.

September 2017 Agenda Book 196

VRIF’s initial general-fund appropriation was $8 million in FY2017 and $12 million in FY2018, with an additional $29 million in bond authority to support equipment purchases or laboratory renovations associated with researcher incentive packages and the translation of research into commercial use. During the 2017 legislative session’s budget-reduction efforts, the general fund appropriations were reduced to $4 million in FY2017 and $8 million in FY2018. The VRIF Call for Proposals for the first round of awards advised applicants that VRIC intended to award about $4 million in VRIF funding in this year’s initial grant competition.

The above amounts, while unlikely to impact Virginia’s research-expenditure national rankings, are large enough to generate interest, and more importantly proposals, from researchers at public universities that will lead to more collaboration between them and between higher education and industry, as well as to more patents, licenses and entrepreneurship. For this reason, and to signal ongoing support for this initiative and academic research generally, the VRIF should be maintained at its current appropriation level; i.e., ensure that the Fund balance is at least $8 million in each year of the next biennium.

(h) SCHEV Systemic Budget Items

(1) Fund for Excellence and Innovation

The Fund for Excellence and Innovation was established during the 2016 General Assembly to focus on two primary activities: (1) to stimulate collaborations among public school divisions, community colleges and universities and to expand affordable student pathways and (2) to pursue shared services and other efficiency initiatives at colleges and universities that lead to measureable cost reductions. The initial fund provided $500,000 annually for FY 2017 and FY2018 to support these efforts. During the 2017 session, the fund was reduced to $450,000 in FY 2017 and $225,000 in FY 2018.

As part of the Fund, through a competitive grant process to public higher education institutions, SCHEV funded five programs that aim to improve transitions from high school to postsecondary education, reduce costs to students, increase college- completion rates, and lead to a degree, certificate or workforce credential. The funds provide one-time start-up costs to support programs that leverage programs that provide cost savings to students, such as dual enrollment, transfer and open learning resources (an alternative traditional text book costs). The five programs (descriptions provided through this link: http://schev.edu/index/institutional/grants/affordable-pathways/affordable-pathways- partnership-2016-grants) are expected to save students an average of $10,600 toward completing their degrees or credentials, with an expected cumulative savings of $4.3 million for the first cohort of students.

SCHEV also provided grant funding for projects related to shared services and efficiencies initiatives. The Virtual Library of Virginia (VIVA) received a $10,000 grant to conduct a Linked Data pilot with Zepheira and Atlas Systems, companies at the leading edge of this technology. During this pilot over 48,000 records about

September 2017 Agenda Book 197 unique and special content held by VIVA libraries were converted into Linked Data. This effort has enhanced the “findability” of resources that are important to the history of the Commonwealth of Virginia exponentially and immediately without adding any additional technical infrastructure. These resources are now much more accessible to classrooms and researchers throughout the world. The pilot also developed a foundation of experience with Linked Data within VIVA and facilitated a conversation among the experts within the state. The Virginia Community College System obtained a $30,000 grant to support a study to evaluate the feasibility of other public higher education institutions receiving services from the Shared Services Center. The final report for that study is due in January of 2018.

Staff will plan to bring a budget recommendation, to continue the innovative and important work this fund supports, to the Council at the October meeting.

(2) Virtual Library of Virginia

The Virtual Library of Virginia (VIVA) is the consortium of the nonprofit academic libraries within the Commonwealth of Virginia. Members include all of Virginia’s 39 public colleges and university, as well as 32 private institutions and the Library of Virginia.

VIVA is equitable, distributing its impact across the Commonwealth.

With services located in Arlington, Harrisonburg, Sweet Briar, Blacksburg, Charlottesville, and Richmond, VIVA shows a high level of willing cooperation among higher education in Virginia.

VIVA is cost-effective, having demonstrated a cost avoidance of over $695,000,000 through group purchases since it began in 1994.

Collaboratively select, license, and acquire online library resources, saving its member institutions and the Commonwealth significant money and time.

Provide extensive resource sharing of print books and journal articles among member institutions—over 2 million items have been shared since VIVA began.

Provide educational and training opportunities for its member libraries.

Budget Highlights

Over 97% of the total VIVA budget of around $16 million is allocated directly to library materials and services for member libraries.

Administrative costs of any kind are below 3% of the total budget. The General Assembly provides 45% of the revenue that supports VIVA; 55% comes from member institutions, both public and private.

SCHEV staff will work with VIVA representatives in putting together an appropriate budget request for the October Council meeting.

September 2017 Agenda Book 198

(i) Policy Review

(1) The Council’s Resources and Planning Committee discussed four options for restructured funding at its July meeting and the Committee’s chair, Marge Connelly, discussed the subject at the August meeting of the Presidents group General Professional Advisory Committee at SCHEV. A similar discussion is planned for the September meeting of the institutional chief financial officers Finance Advisory Committee at SCHEV. In addition to these restructured funding options that could provide additional autonomy for some institutions and additional (reallocated) general fund support for others, we would like to revisit the Council’s support of current policies that have helped to preserve and protect our public system of higher education along with a potential affordability-related amendment. The following excerpts are taken from the Resolution associated with the Council’s budget recommendations for the 2017 legislative session.

BE IT FURTHER RESOLVED that, the State Council of Higher Education for Virginia commends our public institutions of higher education for their financial management strategies−best practices that have allowed them to maintain their viability through economic downturns−and affirms its support for the flexibility and autonomy that is provided to those institutions through the Restructured Higher Education Financial and Administrative Operation Act of 2005 and the Virginia Higher Education Opportunity Act of 2011, within the framework of accountability and transparency required of our colleges and universities to perform and be measured on that performance.

BE IT FINALLY RESOLVED that the State Council of Higher Education for Virginia strongly supports the protection provided the public institutions of higher education by the Code of Virginia (§23.1-101.2) which states that when measuring the extent to which the Commonwealth shall finance higher education, the availability of endowment funds and unrestricted gifts from private sources “shall neither be taken into consideration in nor used to reduce state appropriations or payments and shall be used in accordance with the wishes of the donors of such funds to strengthen the services rendered by these institutions to the people of the Commonwealth.”

(2) Given the passage of HB 2171 by the 2017 General Assembly which resulted in the following amendment to the Code of Virginia, we think it is important that the preceding statements by the Council be re-emphasized as we go forward.

§ 23.1-1303.B.11. No later than December 1 of each year, report to the Council (i) the value of investments as reflected on the Statement of Net Position as of June 30 of the previous fiscal year, excluding any funds derived from endowment donations, endowment income, or other private philanthropy; (ii) the cash earnings on such balances in the previous fiscal year; and (iii) the use of the cash earnings on such balances. In the event that the commitment of any such investment earnings spans more than one fiscal year, the report shall reflect the commitments made in each future fiscal year. The reports of the Boards of Visitors of Virginia Commonwealth University and the

September 2017 Agenda Book 199 University of Virginia shall exclude the value of and earnings on any investments held by the Virginia Commonwealth University Health System Authority and the University of Virginia Medical Center, respectively. As used in this subdivision, "investments" includes all short-term, long-term, liquid, and illiquid Statement of Net Position accounts, and subaccounts thereof, in which moneys have been invested in securities.

(3) Item 4-2.01.b.8

(a) Except as provided in Chapters 933 and 943 of the 2006 Acts of Assembly, Chapters 594 and 616 of the 2008 Acts of Assembly, and Chapters 675 and 685 of the 2009 Acts of Assembly, mandatory fees for purposes other than educational and general programs shall not be increased for Virginia undergraduates beyond five percent annually, excluding requirements for wage, salary, and fringe benefit increases, authorized by the General Assembly. Fee increases required to carry out actions that respond to mandates of federal agencies are also exempt from this provision, provided that a report on the purposes of the amount of the fee increase is submitted to the Chairmen of the House Appropriations and Senate Finance Committees by the institution of higher education at least 30 days prior to the effective date of the fee increase.

(b) This restriction shall not apply in the following instances: fee increases directly related to capital projects authorized by the General Assembly; fee increases to support student health services; and other fee increases specifically authorized by the General Assembly.

These fees capped at a 5% rate of increase at our four-year institutions between 2001 and 2018 would yield an average increase of $3,670. An annual increase of 3% would yield an average increase of $2,646—a difference of $1,024 and 28% less than the current cap. Reducing this cap, while retaining the same exemptions noted above, could significantly improve affordability over time.

Financial Impact: None.

Timetable for Further Review/Action: This item is for discussion purposes only. Action is scheduled to be taken at the October meeting.

Recommendations and Resolution: None.

September 2017 Agenda Book 200

Summary of SCHEV Budget Selected Options for 2018-20 Biennium (in millions)

Va Plan 2018-19 2019-20 Biennial Total Goals* Item GF NGF Total GF NGF Total GF NGF Total (A) Educational and General Programs All (A.1) Base Operations Funding Cost of education (Option 2) $4.8 $4.2 $9.0 $9.5 $8.4 $17.9 $14.3 $12.6 $26.9 Faculty salaries (Option 3) $22.1 $22.7 $44.8 $44.9 $46.1 $91.0 $67.0 $68.8 $135.8 Operation and maintenance of new facilities $4.7 $4.2 $8.9 $8.8 $9.0 $17.8 $13.5 $13.2 $26.6 1,3,4 Higher Education Equipment Trust Fund (debt service) $12.2 $12.2 $12.2 $12.2 Subtotal $31.6 $31.1 $62.7 $75.4 $63.5 $138.9 $107.0 $94.6 $201.5 All (A.2) Virginia Plan Initiatives -- student success (B) Student Financial Aid 1.2 (B.1) Institution-based financial aid Undergraduate financial aid $15.5 $15.5 $21.1 $21.1 $36.6 $36.6 Graduate financial aid Subtotal $15.5 $15.5 $21.1 $21.1 $36.6 $36.6 1.2 (B.2) Systemic financial aid with the SCHEV Budget Two-year college transfer grant Tuition Assistance Grant (TAG) $3.5 $3.5 $3.5 $3.5 Subtotal $0.0 $0.0 $3.5 $3.5 $3.5 $3.5 Total for Operating Budget $31.6 $31.1 $62.7 $75.4 $63.5 $138.9 $107.0 $94.6 $201.5 Total for Financial Aid $15.5 $15.5 $24.6 $24.6 $40.1 $40.1 Total $47.1 $31.1 $78.2 $100.0 $63.5 $163.5 $147.1 $94.6 $241.6

(C) Systemic Budget Items within the SCHEV Budget 1,2,3 Virtual Library of Virginia (VIVA) 3 Fund for Excellence and Innovation $0.5 $0.5 $0.5 $0.5 $1.0 $1.0 Subtotal $0.5 $0.5 $0.5 $0.5 $1.0 $1.0

Grand Total $47.6 $31.1 $78.7 $100.5 $63.5 $164.0 $148.1 $94.6 $242.6

September 2017 Agenda Book 201

*Virginia Plan for Higher Education

Goal 1: Provide Affordable Access for All Strategies: 1.1 Expand outreach to PK-12 and traditionally underserved populations 1.2 Improve the college readiness of all students 1.3 Cultivate affordable postsecondary education pathways for traditional, non-traditional and returning students 1.4 Align state appropriations, financial aid and tuition and fees such that students have broader access to postsecondary education opportunities regardless of their ability to pay Goal 2: Optimize Student Success for Work and Life Strategies: 2.1 Strengthen curricular options to ensure that graduates are prepared with the competencies necessary for employment and civic engagement 2.2 Provide effective academic and student services infrastructures focused on persistence and completion 2.3 Increase on-time completion of certificates and degrees 2.4 Engage adults and veterans in certificate and degree completion and lifelong learning Goal 3: Drive Change and Improvement through Innovation and Investment Strategies: 3.1 Identify and implement public funding strategies to sustain long-term planning and responsiveness 3.2 Cultivate innovations that enrich quality, promote collaboration and improve efficiency 3.3 Foster faculty excellence, scholarship and diversity 3.4 Enhance higher education leadership, governance and accountability Goal 4: Advance the Economic and Cultural Prosperity of the Commonwealth and its Regions Strategies: 4.1 Build a competitive, future-ready workforce for all regions 4.2 Become a catalyst for entrepreneurship and a model for business incubation 4.3 Target funding, resources and partnerships to support research and development 4.4 Expand participation and engagement in public service and institutional service to the community 4.5 Demonstrate the impact of higher education on state and regional economic development

September 2017 Agenda Book 202

Calculation of the Cost of Education in the 2018-20 Biennium

Option 1: Incremental Funding over Two Years CalculatedAvailable % Funding Funding GF 2018-19 2019-20 Inst Need1,2 Resources3,4,5 to Guide Shortfall Share GF NGFTotal GF NGFTotal Grand Total $4,581,091,256 $4,764,618,863 ($35,892,142) $9,546,890 $8,399,181 $17,946,071 $19,093,780 $16,798,362 $35,892,142

Option 2: Incremental Funding over Four Years CalculatedAvailable % Funding Funding GF 2018-19 2019-20 Inst Need1,2 Resources3,4,5 to Guide Shortfall Share GF NGFTotal GF NGFTotal Grand Total $4,581,091,256 $4,764,618,863 ($35,892,142) $4,773,445 $4,199,590 $8,973,035 $9,546,890 $8,399,181 $17,946,071

Notes: (1) Based on actual FY15 student FTE and FY13-FY15 3-year average discipline credit hours. (2) The blended salary is from 2016-18 Activity-Based Budget (ABB) (3) Available resources are from 2016-18 ABB. (4) GF adjustments are OCR funding at NSU and VSU, and VCCS central office (FY16 adjustment). (5) NGF includes required funding for programs 101-40, 102 and 103 made in October 2009. (6) Available resources are adjusted for "uniquely military" mission. (7) The average represents institutions under full funding.

September 2017 Agenda Book 203

Options for Average Virginia Teaching and Research Faculty Salary

FY2018 Option 1: One Time Funding to FY2018 Goal Option 2: Phase Over Four Years to Goal by FY2022 Option 3: 3% Salary Increase per Year in 2018-20 Appropriated T&R Faculty One time to the Goal Funding Need By Fund Share Over Four Years Funding Need By Fund Share in FY2020 Funding Need By Fund Share in FY2020 60th Req. T&F Required Req. T&F Req. T&F Va T&R Salary Percentile Required Incr for 60th Annual Incr for Total Funding Incr for Faculty Percentile Goal in Salary 100% Percentile Salary 100% Need over 100% Inst Salary to Peers FY2016 Increase GF NGFTotal Funding Goal Increase GF NGFTotal Funding Three Years GF NGFTotal Funding CNU $77,139 34% $87,934 14.0% $1,918,575 $1,263,141 $3,181,716 7.2% $97,625 6.1% $1,722,894 $1,134,310 $2,857,204 3.2% $5,590,593 $834,580 $549,467 $1,384,047 1.6% CWM $106,808 25% $121,256 13.5% $3,978,689 $6,018,016 $9,996,705 6.4% $134,620 6.0% $3,642,710 $5,509,828 $9,152,539 2.8% $18,552,151 $1,794,831 $2,714,794 $4,509,625 1.4% GMU $89,483 4% $111,412 24.5% $23,476,866 $23,289,799 $46,766,665 12.0% $123,690 8.4% $16,774,556 $16,640,894 $33,415,450 4.1% $69,742,434 $5,835,678 $5,789,179 $11,624,857 1.5% JMU $81,936 36% $92,335 12.7% $6,698,008 $7,027,418 $13,725,426 6.0% $102,511 5.8% $6,295,284 $6,604,888 $12,900,171 2.7% $21,031,252 $3,211,879 $3,369,841 $6,581,720 1.4% LU $75,805 42% $80,085 5.6% $700,651 $425,797 $1,126,448 2.8% $88,911 4.1% $1,046,985 $636,271 $1,683,255 2.1% $3,394,985 $761,958 $463,055 $1,225,012 1.5% NSU $72,557 55% $73,993 2.0% $243,928 $206,955 $450,883 1.2% $82,149 3.2% $793,058 $672,854 $1,465,912 1.9% $2,226,807 $742,761 $630,179 $1,372,940 1.8% ODU $81,939 24% $93,824 14.5% $7,267,795 $5,641,255 $12,909,050 8.1% $104,165 6.2% $6,407,890 $4,973,797 $11,381,687 3.5% $19,693,710 $3,052,474 $2,369,327 $5,421,801 1.7% RU $74,935 25% $86,512 15.5% $4,111,387 $2,552,125 $6,663,512 8.7% $96,046 6.4% $3,503,857 $2,175,003 $5,678,860 3.6% $10,267,536 $1,615,377 $1,002,738 $2,618,115 1.7% UMW$82,768 29% $92,201 11.4% $1,690,035 $1,126,690 $2,816,724 7.1% $102,362 5.5% $1,675,580 $1,117,054 $2,792,634 3.4% $5,750,712 $902,834 $601,890 $1,504,724 1.9% UVA$111,668 40% $121,952 9.2% $7,168,140 $13,138,205 $20,306,344 3.9% $135,393 4.9% $7,822,700 $14,337,923 $22,160,623 2.1% $48,985,136 $4,744,997 $8,696,920 $13,441,917 1.3% UVAW $78,740 75% $74,655 n/a $0 $0 $0 $82,883 1.3% $130,338 $85,453 $215,792 1.2%$351,207 $303,320 $198,866 $502,186 2.7% VCU $92,897 29% $102,674 10.5% $8,858,046 $9,330,960 $18,189,006 4.4% $113,991 5.2% $9,001,799 $9,482,388 $18,484,187 2.2% $34,948,740 $5,137,667 $5,411,957 $10,549,623 1.3% VMI $79,756 28% $95,042 19.2% $801,423 $1,187,220 $1,988,643 7.0% $105,518 7.2% $622,706 $922,470 $1,545,176 2.6% $2,407,483 $254,201 $376,571 $630,773 1.1% VSU $71,064 33% $79,257 11.5% $1,632,896 $1,699,545 $3,332,441 10.4% $87,993 5.5% $1,604,853 $1,670,357 $3,275,210 5.0% $6,048,044 $864,725 $900,020 $1,764,745 2.7% VT $100,255 27% $112,991 12.7% $11,188,325 $17,647,564 $28,835,888 5.3% $125,445 5.8% $10,515,616 $16,586,486 $27,102,102 2.4% $45,904,377 $5,365,110 $8,462,493 $13,827,603 1.2% RBC $64,551 68% $61,710 n/a $0 $0 $0 $68,512 1.5%$60,163 $32,825 $92,988 0.9% $65,061 $121,223 $66,138 $187,361 1.8% VCCS$67,396 47% $73,927 9.7% $12,073,482 $7,060,404 $19,133,886 3.7% $82,439 5.2% $13,281,328 $7,766,736 $21,048,064 2.0% $37,014,874 $7,580,155 $4,432,769 $12,012,925 1.1% Inst Total $91,808,244 $97,615,095 $189,423,340 $84,902,318 $90,349,537 $175,251,855 $331,975,103 $43,123,770 $46,036,204 $89,159,974 4-yr Average Ranking 34% Average Increase 12.4% 6.3% 5.2% 2.7% 1.6% VIMS $801,963 $42,209 $844,172 $734,242 $38,644 $772,886 $1,586,934 $361,775 $19,041 $380,815 VSU ext $334,119 $17,585 $351,704 $346,798 $18,253 $365,051 $656,824 $176,938 $9,313 $186,250 VT ext $2,675,769 $140,830 $2,816,599 $2,381,329 $125,333 $2,506,662 $5,091,098 $1,283,105 $67,532 $1,350,637 Total $95,620,096 $97,815,719 $193,435,815 $88,364,687 $90,531,767 $178,896,454 $339,309,959 $44,945,588 $46,132,089 $91,077,676 Notes: (1) 2016-17 peer salary came from IPEDS 2016 SA. (2) Assumed peer salaries will increase by 2.8% annually in 2018-20. This rate is based on 3-year average of faculty salary increases at public institution published by AAUP. (3) n/a means Virginia institution has reached the 60th percentile of its peer salaries. (4) Average increase excludes institutions that are already at or above the goal. (5) Institutions' base salary came from 2018 operating plan. (6) Funding need is derived by assuming salary increases on July 1.

September 2017 Agenda Book 204

SCHEV Survey of Operation and Maintenance Costs for New E&G and Research Facilities Coming On-Line 2018-2020 Building Building SCHEV GF SCHEV NGF SCHEV GF SCHEV NGF E&G Research FY 19 FY 20 Recommend Recommend Recommend Recommend Inst Building Name Percent Percent Months Months GF Share FY2019 FY2019 FY2020 FY2020 CNU Trible Library, Phase II 100% 0% 12 12 60.9% $464,235 $298,056 $464,235 $298,056 Total $464,235 $298,056 $464,235 $298,056

CWM West Plant 49% 0% 6 12 38.4% $76,349 $329,418 $155,752 $672,014 Total $76,349 $329,418 $155,752 $672,014

GMU Potomac Science Center 60% 40% 12 12 50.6% $182,160 $267,840 $182,160 $267,840 GMU Mason Ferry Garage (Potomac Sci Ctr Parking Deck) 0% 0% 12 12 50.6% $0 $0 $0 $0 GMU Academic VII/Peterson Family Health Sciences Hall 80% 20% 12 12 50.6% $387,090 $462,910 $387,090 $462,910 GMU Hylton Performing Arts Center Addition 60% 0% 6 12 50.6% $157,872 $362,128 $157,872 $362,128 Total $727,122 $1,092,878 $727,122 $1,092,878

JMU College of Business Expansion and Refurbishment 100% 0% 0 3 48.3% $0 $0 $136,104 $145,684 Total $0 $0 $136,104 $145,684

LU Brock Hall 100% 0% 7 12 63.1% $193,442 $113,122 $201,952 $118,099 LU New Heating Plant 100% 0% 3 12 63.1% $296,044 $173,123 $355,253 $207,747 LU Admissions Building 100% 0% 1 12 63.1% $104,746 $61,254 $178,573 $104,427 LU New Academic Building 100% 0% 0 8 63.1% $0 $0 $353,991 $207,009 Total $594,232 $347,499 $1,089,769 $637,282

NSU No Request 0% 0% 0 0 56.6% $0 $0 $0 $0 Total $0 $0 $0 $0

ODU New Education Bldg: Child Study Center 100% 0% 12 12 56.1% $72,871 $57,023 $75,196 $58,844 Total $72,871 $57,023 $75,196 $58,844

RBC No Request 0% 0% 0 0 65.1% $0 $0 $0 $0 Total $0 $0 $0 $0

RU No Request 0% 0% 0 0 62.2% $0 $0 $0 $0 Total $0 $0 $0 $0

UMW Jepson Science Center 100% 0% 4 12 59.0% $49,167 $34,167 $147,501 $102,501 UMW Seacobeck Hall 100% 0% 0 11 59.0% $0 $0 $152,515 $105,985 Total $49,167 $34,167 $300,016 $208,486

UVA Old Ivy Road Office Building 100% 0% 7 12 36.4% $340,105 $594,249 $583,037 $1,018,713 UVA Cochran House 100% 0% 12 12 36.4% $7,129 $12,456 $7,129 $12,456 UVA Center for Human Therapeutics 100% 0% 6 12 36.4% $33,670 $58,830 $67,340 $117,660 UVA Ivy Stacks Expansion 100% 0% 12 12 36.4% $101,386 $177,147 $101,386 $177,147 UVA Gilmer Chemistry 100% 0% 0 10 36.4% $0 $0 $54,600 $95,400 Total $482,290 $842,682 $813,492 $1,421,376

UVA-W No Request 62.7% $0 $0 $0 $0 Total $0 $0 $0 $0

September 2017 Agenda Book 205 SCHEV Survey of Operation and Maintenance Costs for New E&G and Research Facilities Coming On-Line 2018-2020 (cont.) Building Building SCHEV GF SCHEV NGF SCHEV GF SCHEV NGF E&G Research FY 19 FY 20 Recommend Recommend Recommend Recommend Inst Building Name Percent Percent Months Months GF Share FY2019 FY2019 FY2020 FY2020 VCCS SSVCC( Christianna) - Student Support and Learning Ctr. 100% 0% 0 12 61.3% $0 $0 $475,405 $300,134 VCCS BRCC-Bio Science Bldg. 100% 0% 2 12 61.3% $64,192 $40,526 $385,155 $243,156 VCCS LFCC (Fauquier) Science Building. 100% 0% 0 12 61.3% $0 $0 $386,617 $244,080 VCCS JTCC-Renovate/Expand Bird-Nicholas Hall 100% 0% 0 12 61.3% $0 $0 $194,511 $122,799 VCCS Armory Building Conveyance from Va. National Guard 100% 0% 9 12 61.3% $239,249 $151,043 $318,999 $201,391 VCCS Replace Anderson Hall 100% 0% 3 12 61.3% $29,791 $18,808 $119,163 $75,230 Total $333,232 $210,377 $1,879,850 $1,186,790

VCU Allied Health Professions 100% 0% 4 12 48.7% $114,323 $120,427 $471,011 $496,157 VCU Engineering Expansion 0% 100% 0 6 48.7% $0 $0 $197,657 $614,075 Total $114,323 $120,427 $668,668 $1,110,232

VMI Post Infrastructure Improvements 90% 0% 0 0 39.1% $0 $0 $0 $0 VMI Renovate Preston Library 100% 0% 2 12 39.1% $673 $1,047 $4,145 $6,455 VMI Renovate Scott Shipp Hall (no O&M costs reported) 100% 0% 0 0 39.1% $0 $0 $0 $0 Total $673 $1,047 $4,145 $6,455

VSU MT Carter Addition 0% 100% 2 12 49.2% $3,129 $9,591 $18,776 $57,548 VSU Lockett Hall 100% 0% 12 12 49.2% $64,374 $66,467 $64,374 $66,467 Total $67,503 $76,059 $83,150 $124,016

VT Renew/Renovate Academic Buildings 100% 0% 12 12 40.0% $106,321 $159,481 $109,472 $164,207 VT Instructional Laboratory Renovations 100% 0% 10 12 40.0% $31,417 $47,125 $32,348 $48,522 VT VTC Health Sciences & Technology Building 0% 100% 3 12 40.0% $100,428 $401,712 $413,670 $1,654,678 Total $238,166 $608,318 $555,489 $1,867,408

VT-Ext. Improve Kentland Facilities 100% 0% 6 12 95.0% $244,311 $12,858 $377,379 $19,862 VT-Ext. Livestock Production & Poultry Research Facility 100% 0% 0 4 95.0% $537,790 $28,305 $830,706 $43,721 VT-Ext. Eastern Shore AREC Storage Facility 100% 0% 12 12 95.0% $23,121 $1,217 $23,807 $1,253 Total $805,222 $42,380 $1,231,892 $64,836

VIMS Consolidated Scientific Research Facility 85% 15% 12 12 95.0% $440,128 $60,729 $450,817 $62,204 VIMS Facilities Management Building 100% 0% 12 12 95.0% $41,325 $2,175 $43,225 $2,275 VIMS Research Vessel 70% 30% 12 12 95.0% $143,977 $34,323 $145,996 $34,804 Total $625,430 $97,227 $640,038 $99,283 Grand Total $4,650,815 $4,157,558 $8,824,918 $8,993,639 Please note: Both FY 2019 and FY 2020 are stated in dollars incremental to the base.

September 2017 Agenda Book 206 2018-20 Higher Education Equipment Trust Fund Guideline-Calculated Recommended Allocation

2018-19 2019-20

Traditional HEETF Guidelines Traditional HEETF Guidelines

9-Year 9-Year Cycle, Cycle, Annual Annual Replacement Research Grand Replacement Research Grand Institutions Need Microcomputers Total Initiative (1) Total Institutions Need Microcomputers Total Initiative (1) Total GMU $3,682,106 $1,250,865 $4,932,971 $806,683 $5,739,653 GMU $3,682,106 $1,250,865 $4,932,971 $806,683 $5,739,653

ODU $4,277,881 $852,840 $5,130,721 $467,276 $5,597,997 ODU $4,277,881 $852,840 $5,130,721 $467,276 $5,597,997

UVA $13,874,021 $1,055,295 $14,929,316 $6,930,293 $21,859,609 UVA $13,874,021 $1,055,295 $14,929,316 $6,930,293 $21,859,609

VCU $7,798,937 $1,224,855 $9,023,792 $3,708,748 $12,732,540 VCU $7,798,937 $1,224,855 $9,023,792 $3,708,748 $12,732,540

VT $11,370,899 $1,481,985 $12,852,884 $7,634,317 $20,487,200 VT $11,370,899 $1,481,985 $12,852,884 $7,634,317 $20,487,200

W&M $1,601,289 $370,755 $1,972,044 $659,757 $2,631,801 W&M $1,601,289 $370,755 $1,972,044 $659,757 $2,631,801

W&M-VIMS $291,605 $3,240 $294,845 $694,619 $989,464 W&M-VIMS $291,605 $3,240 $294,845 $694,619 $989,464

CNU $609,513 $222,120 $831,633 $0 $831,633 CNU $609,513 $222,120 $831,633 $0 $831,633

UVA-Wise $180,510 $71,055 $251,565 $0 $251,565 UVA-Wise $180,510 $71,055 $251,565 $0 $251,565

JMU $1,601,288 $908,865 $2,510,153 $0 $2,510,153 JMU $1,601,288 $908,865 $2,510,153 $0 $2,510,153

LU $572,803 $205,380 $778,183 $0 $778,183 LU $572,803 $205,380 $778,183 $0 $778,183

UMW $494,768 $188,460 $683,228 $0 $683,228 UMW $494,768 $188,460 $683,228 $0 $683,228

NSU $1,193,001 $210,780 $1,403,781 $0 $1,403,781 NSU $1,193,001 $210,780 $1,403,781 $0 $1,403,781

RU $1,628,658 $404,820 $2,033,478 $0 $2,033,478 RU $1,628,658 $404,820 $2,033,478 $0 $2,033,478

VMI $1,097,866 $84,195 $1,182,061 $0 $1,182,061 VMI $1,097,866 $84,195 $1,182,061 $0 $1,182,061

VSU $1,239,658 $203,085 $1,442,743 $0 $1,442,743 VSU $1,239,658 $203,085 $1,442,743 $0 $1,442,743

RBC $119,480 $57,780 $177,260 $0 $177,260 RBC $119,480 $57,780 $177,260 $0 $177,260

VCCS(2) $10,816,233 $4,423,590 $15,239,823 $5,000,000 $20,239,823 VCCS(2) $10,816,233 $4,423,590 $15,239,823 $5,000,000 $20,239,823

SWVHEC $105,297 $0 $105,297 $0 $105,297 SWVHEC $105,297 $0 $105,297 $0 $105,297

RHEA $63,321 $0 $63,321 $0 $63,321 RHEA $63,321 $0 $63,321 $0 $63,321

IALR $237,941 $0 $237,941 $0 $237,941 IALR $237,941 $0 $237,941 $0 $237,941

SVHEC $208,601 $0 $208,601 $0 $208,601 SVHEC $208,601 $0 $208,601 $0 $208,601

NCI $59,672 $0 $59,672 $0 $59,672 NCI $59,672 $0 $59,672 $0 $59,672

EVMS $1,444,637 $0 $1,444,637 $0 $1,444,637 $1,444,637 $0 $1,444,637 $0 $1,444,637

TOTAL $64,569,984 $13,219,965 $77,789,949 $25,901,692 $103,691,642 TOTAL $64,569,984 $13,219,965 $77,789,949 $25,901,692 $103,691,642

(1) Additional funding provided for original Commonwealth Research Initiative (CRI) institutions. (2) Includes $5 miillion additional recommendation to support Workforce development.

September 2017 Agenda Book 207

2017-18 HEETF Traditional ResearchTotal Institution AllocationAllocation Allocation GMU $ 3,947,024 $ 474,407 $ 4,421,431 ODU $ 5,016,192 $ 329,078 $ 5,345,270 UVA $ 10,458,476 $ 5,189,341 $ 15,647,817 VCU $ 6,853,430 $ 2,995,552 $ 9,848,982 VT $ 10,331,639 $ 5,240,458 $ 15,572,097 W&M $ 2,300,493 $ 595,857 $ 2,896,350 W&M-VIMS $ 362,100 $ 175,307 $ 537,407 CNU $ 754,464 $ -754,464$ UVA-Wise $ 250,681 $ -250,681$ JMU $ 2,309,646 $ -2,309,646$ LU $ 743,433 $ -743,433$ UMW $ 655,746 $ -655,746$ NSU $ 1,200,108 $ -1,200,108$ RU $ 1,744,993 $ -1,744,993$ VMI $ 886,084 $ -886,084$ VSU $ 1,342,189 $ -1,342,189$ RBC $ 160,149 $ -160,149$ VCCS $ 17,596,542 $ -17,596,542$ SWVHEC $ 80,111 $ -80,111$ RHEA $ 77,623 $ -77,623$ IALR $ 274,172 $ -274,172$ SVHEC $ 95,790 $ -95,790$ New College $ 34,486 $ -34,486$ EVMS $ 524,429 $ -524,429$ TOTAL $ 68,000,000 $ 15,000,000 $ 83,000,000

September 2017 Agenda Book 208 2018-20 Higher Education Equipment Trust Fund Estimated Debt Service Payments(1)

HEETF Estimated Research Debt Initiative Total Institutions Service Service(2) Equipment GMU $773,651 $124,576 $898,227

ODU $804,664 $72,161 $876,826

UVA $2,341,403 $1,070,246 $3,411,649

VCU $1,415,225 $572,742 $1,987,967

VT $2,015,751 $1,178,968 $3,194,719

W&M $309,281 $101,886 $411,167

W&M-VIMS $46,241 $107,270 $153,511

CNU $130,427 $0 $130,427

UVA-Wise $39,454 $0 $39,454

JMU $393,674 $0 $393,674

LU $122,044 $0 $122,044

UMW $107,152 $0 $107,152

NSU $220,159 $0 $220,159

RU $318,916 $0 $318,916

VMI $185,386 $0 $185,386

VSU $226,269 $0 $226,269

RBC $27,800 $0 $27,800

VCCS $2,390,101 $772,150 $3,162,251

SWVHEC $16,514 $0 $16,514

RHEA $9,931 $0 $9,931

IALR $37,317 $0 $37,317

SVHEC $32,715 $0 $32,715

NCI $9,358 $0 $9,358

EVMS $226,566 $0 $226,566

TOTAL $12,200,000 $4,000,000 $16,200,000

(1) Assumes a 7year period of debt service with the first payment made in the second year of the biennium. Estimated payments are based on the institutions' share of the recommended total allocation for 2019-20.

(2) Additional funding provided for original Commonwealth Research Initiative (CRI) institutions.

September 2017 Agenda Book 209

FY2018-20 Virginia Student Financial Assistance Program Funding Option

Note: This preliminary option brings all four-year institutions to at least 35 percent of need met, with each institution receiving a minimum of 3 percent increase.

September 2017 Agenda Book 210

Virginia Tuition Assistance Grant Program

Incremental Cost of Increasing the Maximum Annual TAG Award FY2018 Base Appropriation = $65,812,665

2018-19 2019-20Additional Funds Funds Award Total Cost Needed Total Cost Needed $3,300 $68,261,585 (630,279) $69,270,069 3,457,404 $3,350 $69,295,852 403,988 $70,319,615 4,506,950 $3,400 $70,330,118 1,438,254 $71,369,162 5,556,497 $3,500 $72,398,651 3,506,787 $73,468,255 7,655,590 $3,700 $76,535,717 7,643,853 $77,666,441 11,853,776

September 2017 Agenda Book 211

State Council of Higher Education for Virginia Agenda Item

Item: Resources and Planning Committee #C6.a – Discussion of 2018-20 Systemwide Capital Outlay Budget: Maintenance Reserve

Date of Meeting: September 18, 2017

Presenter: Dan Hix, Finance Policy Director [email protected]

Most Recent Review/Action: No previous Council review/action Previous review/action Date: October 25, 2015 Action: The Council recommended the appropriation of $116,308,980 annually from the general fund to the Maintenance Reserve Program for higher education institutions in the 2016-18 Biennium.

Background Information/Summary of Major Elements:

In 1982, following the Council’s recommendations, the Commonwealth established the maintenance reserve program to provide funding for facility repairs that are not addressed in the institutions’ operating budget and are usually too small to qualify for capital outlay funding. Examples of typical maintenance reserve projects are roof repair and replacement, boiler and chiller replacement, major electrical system upgrades, etc.

In order to make meaningful budget recommendations, in 1999 SCHEV staff developed a ten-year maintenance reserve funding formula using institutions’ detailed information of the condition of their buildings and infrastructure assets such as the current replacement value and the deficiencies. The goal was to allow each institution to achieve a campus-wide Facility Condition Index (FCI) of “Good” over a ten-year period through a series of scheduled funding. The “Good” condition represents the dollar value of deficiencies is 5% or less of the current replacement value.

The Commonwealth has provided about $75 million per year for the maintenance reserve program in the past ten years. For FY2018, the program provides a total of $104.4 million statewide, including $63.2 million (61%) for higher education. However, the program funding has fallen far short of Council’s recommendations. The cumulative shortfall grew to over $501 million by 2011. While funding for deferred maintenance has lagged, the Commonwealth has provided two significant capital initiatives for new construction and major renovations at the public institutions through bond proceeds over the past ten years. This has helped improve the institutions’ overall facility conditions. The Commonwealth changed the funding source for the program from the general fund to bond proceeds in FY2009. As a result, the state bond funding for new

September 2017 Agenda Book 212 construction, renovation and deferred maintenance is constrained by the annual debt capacity.

Recognizing the Commonwealth’s priority for new construction, but seeing the need for addressing an appropriate amount of deferred maintenance, SCHEV staff changed the 10-year maintenance reserve funding methodology and started applying an annual capital renewal and reinvestment budget methodology commonly used in facility management for the SCHEV maintenance reserve recommendations in 2013. The purpose of the capital reinvestment is to keep a facility in reliable operating condition for its present value and prevent further accumulation of deferred maintenance. The National Association of College and University Business Officers (NACUBO) recommends an annual capital reinvestment rate of between 1.5% and 3.5% of the present replacement value. The annual capital reinvestment rates set by the U.S. Government Accountability Office (GAO) vary from 1% for the U.S. Air Force to 4% for NASA.

The Commonwealth’s Division of Risk Management collects building values for insurance purposes in the Virginia Agency Property System (VAPS) database. As the maintenance reserve program provides funding only for facilities used for Educational and General Programs (E&G), SCHEV staff recently asked institutions to identify each facility’s percentage use of E&G programs in the VAPS database. The following table shows the current total E&G facility replacement value at each institution. SCHEV staff proposes to use a 1% annual reinvestment rate to derive the funding need for the maintenance reserve program in 2018-20 biennium. The estimated funding need is $121,521,931per year for a total of $243,043,863 for the 2018-20 biennium.

Materials Provided: SCHEV Calculation of Capital Investment Rate for the Maintenance Reserve Program in 2018-20 Biennium

Financial Impact: See attached table.

Timetable for Further Review/Action: This item is for discussion purposes only. Action is scheduled to be taken at the October meeting.

Resolution: None.

September 2017 Agenda Book 213

SCHEV Calculation of Capital Investment Rate for the Maintenance Reserve Program in 2018-20 Biennium

E&G Building Annual Institution Replacement Value (1) Funding Need (2) Christopher Newport University $ 272,122,384 $ 2,721,224 College of William and Mary $ 668,626,423 $ 6,686,264 George Mason University $ 947,680,543 $ 9,476,805 James Madison University $ 793,108,266 $ 7,931,083 Longwood University $ 235,425,693 $ 2,354,257 Norfolk State University $ 228,812,895 $ 2,288,129 Old Dominion University $ 527,618,959 $ 5,276,190 Radford University $ 341,639,878 $ 3,416,399 University of Mary Washington $ 186,941,776 $ 1,869,418 University of Virginia $ 1,990,662,407 $ 19,906,624 University of Virginia at Wise $ 177,073,119 $ 1,770,731 Virginia Commonwealth University $ 1,410,554,362 $ 14,105,544 Virginia Military Institute $ 453,921,020 $ 4,539,210 Virginia State University $ 333,517,396 $ 3,335,174 Virginia Tech(3) $ 1,603,576,448 $ 16,035,764 Richard Bland College $ 57,088,057 $ 570,881 Virginia Community College Sys. $ 1,923,823,506 $ 19,238,235 TOTAL $ 12,152,193,129 $ 121,521,931

Notes: (1) Data sources are Virginia Agency Property System (VAPS) building value and SCHEV survey of Education and General facilities, excluding infrastructure, with updated reports from institutions. (2) Calculation is derived by 1% reinvestment rate. (3) Replacement value contains E&G buildings on main campus only.

September 2017 Agenda Book 214

State Council of Higher Education for Virginia Agenda Item

Item: Resources and Planning Committee #C6.b – Discussion of 2018-20 Systemwide Capital Outlay Budget: New Capital Outlay

Date of Meeting: September 18, 2017

Presenter: Dan Hix, Finance Policy Director [email protected]

Most Recent Review/Action: No previous Council review/action Previous review/action Date: October 25, 2015 Action: The Council calculated a need for $2,662,902,545 from the general fund and $524,135,406 from nongeneral funds and debt proceeds to support the capital outlay needs of the Commonwealth’s system of public higher education

Background Information/Summary of Major Elements:

The State Council of Higher Education (SCHEV), under authority of the Code of Virginia, evaluates the need among the Commonwealth’s public institutions of higher education for new academic and administrative space under its Fixed Asset Guidelines. These guidelines also address the prioritization of requests for major renovations and capital improvements. Having developed a comprehensive data collection system which captures essential information related to the level and discipline of instructional activity, the size and condition of existing facilities and the productivity with which these facilities are used, SCHEV produces empirically based recommendations for the equitable distribution of financial resources among the colleges to support their primary missions of instruction, research and public service. The Council’s capital outlay recommendations have long been regarded as an important source of impartial and objective analysis in the development of the Commonwealth’s long-range fixed asset planning for higher education.

The General Assembly has provided funding for higher education capital outlay projects through general obligation bonds twice this century along with other significant capital initiatives over the years. As a result, the need for additional space has been greatly reduced. Based on 2016 actual enrollments and projected 2022 enrollments, only GMU and NVCC are in need of space for Educational and General (E&G) programs. The 2016 space utilization report – a measure of physical productivity at institutions - showed that less than half of the institutions met their classrooms and class labs utilization standards at their campuses. However, all six

September 2017 Agenda Book 215 doctoral institutions demonstrated research space need for a total of 1.3 million square feet in 2022.

Higher education institutions requested a total of 168 capital outlay projects for 2018- 2024. The requests included projects for new construction, renovation, infrastructure improvements, and land acquisition. Based on the Council’s Fixed Assets Guidelines, staff reviewed 140 capital outlay project requests that have a general fund component in 2018-2024. Of guideline-approved projects, eight facilities are used for research or have a combined use for educational and general programs and research with a total funding request of $639 million, accounting for 6% of the total project cost.

Of the 140 capital outlay project requests SCHEV staff reviewed, 14 projects were either authorized for detailed planning by the General Assembly in previous sessions or for equipment funding of authorized construction. Staff listed these projects for funding information only.

For the rest of the reviewed project requests, staff made assessments and assigned priorities based on a combination of the SCHEV Fixed Assets Guidelines and programmatic reviews from site visits and discussions with institutional experts in the following groups:

Priority 1 -- These are projects that meet the Council’s Fixed Asset Guidelines or are considered critical to supporting the capital outlay needs of Virginia’s system of higher education. Also included in this group are projects that address ADA, security issues and infrastructure improvements for energy efficiency and mechanical, electrical and plumbing (MEP) systems.

Priority Group 1.B – These are projects that address critical state wide capital outlay needs and have compelling programmatic justifications but do not meet the space need and productivity criteria under the Council’s Fixed Asset Guidelines.

Priority 2 – These are projects that do not meet the space and productivity criteria in the Council’s Fixed Asset Guidelines but have some compelling programmatic justification.

Priority 3 – These are projects that do not meet the space and productivity criteria in the Council’s Fixed Asset Guidelines and have less immediate space and programmatic need.

Priority 4 – These are non-guideline requests. No assessment is made.

Definition of 9(c) and 9(d) Debt

Article X, Section 9 of the Constitution of Virginia outlines the Constitutional provisions for State debt. State debt can be divided into two broad categories according to restrictions in the Constitution:

September 2017 Agenda Book 216 - General Obligation Debt – Debt issued by the Commonwealth and supported by the full faith and credit of the State (Section 9(a), 9(b) and 9(c) debt): and

- Non-General Obligation Debt – Debt issued by Commonwealth agencies, institutions and authorities not supported by the full faith and credit of the State (Section 9(d) debt).

Section 9(c) Debt is long-term debt for revenue-producing capital projects. This debt is issued as “double-barrelled” bonds which are backed by both the net revenues of the projects and the full faith and credit of the Commonwealth. Net revenues derived from the projects are pledged and expected to provide for the payment of debt service. Issuance of 9(c) debt requires a two-thirds vote of each house of the General Assembly and certifications by the Governor that net revenues from the projects will be sufficient to meet both principal and interest payments on the debt. Section 9(c) bonds are issued through the Treasury Board. These bonds have largely replaced auxiliary enterprise debt issued directly by higher education institutions and backed by such projects as dorm revenues and the Department of the Transportation toll road bonds backed by toll revenues.

Section 9(d) Debt is considered to be non-general obligation debt of the Commonwealth because it is not backed by the full faith and credit of the Commonwealth. The issuance of Section 9(d) bonds is authorized by general law. Such debt is repaid from a number of sources, including, appropriations of general and non-general fund revenues by the General Assembly, revenues of self-supporting enterprise systems, or payments from local governments.

Materials Provided:

SCHEV’s Higher Education Capital Outlay Assessments for 2018-2024

Financial Impact: The attachment shows SCHEV assessments and priority by institution and project.

SCHEV Capital Outlay Assessments For Project Requests with a General Fund Component in 2018-2024

Table 1: Total Requested Funding by Fund and Priority Group

VCBA/ Priority Group General Fund Nongernal Funds 9(C ) Debt Total Requested Funding Total Projects 9(D ) Debt SCHEV Priority Group 1 $850,350,500 $500,000 $0 $84,676,000 $935,526,500 25 SCHEV Priority Group 1.b $254,835,400 $14,658,600 $0 $0 $269,494,000 7 Included in Resolution $1,105,185,900 $15,158,600 $0 $84,676,000 $1,205,020,500 32 Projects in Appropriation Acts $191,861,519 $0 $0 $47,697,738 $323,059,988 14 SCHEV Priority Group 2 $1,629,771,408 $33,603,680 $5,858,700 $58,001,011 $2,110,808,419 74 SCHEV Priority Group 3 $739,792,050 $0 $45,440,000 $0 $785,232,050 19 SCHEV Priority Group4 $0 $3,000,000 $0 $0 $3,000,000 1 Not Included in Resolution $2,561,424,977 $36,603,680 $51,298,700 $105,698,749 $3,222,100,457 108 Total Requests $3,666,610,877 $51,762,280 $51,298,700 $190,374,749 $4,427,120,957 140

September 2017 Agenda Book 217 Table 2: Total Requested Funding by Fund and Institution

Total VCBA/ InstitutionGeneral FundNongernal Funds9(C ) Debt Requested Total Projects 9(D ) Debt Funding CNU 43,732,000 0 0 043,732,000 2 CWM 302,409,968 0 0 0305,579,150 12 GMU 416,604,289 0 060,748,711477,353,000 8 JMU 171,791,7493,000,000 014,800,000189,591,749 7 LU 39,847,320 603,680 0 040,451,000 4 NSU 148,360,500 028,140,000 0176,500,500 3 ODU 136,575,000 0 03,810,000139,885,000 3 RU 118,800,000 0 0 0118,800,000 4 UMW 219,270,500 0 08,751,500228,022,000 9 UVA 24,500,00014,000,000 043,797,73882,297,738 3 UVAW 32,200,000 0 0 032,200,000 1 VCU 739,209,000 017,300,00011,900,000848,740,549 15 VCCS 456,384,000 0 0 0840,403,000 31 VMI 172,835,78024,658,6005,858,7006,191,800209,599,500 19 VSU 105,268,0002,500,000 0 0107,768,000 5 VT 412,175,0007,000,000 040,375,000459,550,000 9 VT-Ext 124,300,000 0 0 0124,300,000 3 EVMS 2,347,771 0 0 02,347,771 2 Total 3,666,610,87751,762,28051,298,700190,374,7494,427,120,957 140

Table 3: Total General Fund Requests by Institution and Priority Group

Projects Already in Total GF Institution Priority 1 Priority 1.b Priority 2 Priority 3 Priority 4 Appropriation Requests Acts CNU $0 $0 $0 $43,732,000 $0 $0 $43,732,000 CWM $90,980,000 $0 $149,940,000 $57,925,150 $0 $3,564,818 $302,409,968 GMU $280,996,000 $48,680,000 $86,928,289 $0 $0 $0 $416,604,289 JMU $22,200,000 $0 $120,500,048 $0 $0 $29,091,701 $171,791,749 LU $0 $0 $37,359,320 $0 $0 $2,488,000 $39,847,320 NSU $0 $129,600,500 $0 $18,760,000 $0 $0 $148,360,500 ODU $3,380,000 $0 $133,195,000 $0 $0 $0 $136,575,000 RU $0 $0 $79,000,000 $36,425,000 $0 $3,375,000 $118,800,000 UMW $84,610,000 $0 $130,660,500 $0 $0 $4,000,000 $219,270,500 UVA $0 $0 $24,500,000 $0 $0 $0 $24,500,000 UVAW $0 $0 $32,200,000 $0 $0 $0 $32,200,000 VCU $0 $0 $100,000,000 $551,900,000 $0 $87,309,000 $739,209,000 VCCS $41,552,000 $54,425,000 $357,307,000 $0 $0 $3,100,000 $456,384,000 VMI $29,507,500 $15,729,900 $96,548,480 $31,049,900 $0 $0 $172,835,780 VSU $6,700,000 $6,400,000 $33,235,000 $0 $0 $58,933,000 $105,268,000 VT $166,125,000 $0 $246,050,000 $0 $0 $0 $412,175,000 VT-Ext $124,300,000 $0 $0 $0 $0 $0 $124,300,000 EVMS $0 $0 $2,347,771 $0 $0 $0 $2,347,771 Total $850,350,500 $254,835,400 $1,629,771,408 $739,792,050 $0 $191,861,519 $3,666,610,877

Timetable for Further Review/Action:

This item is for discussion purposes only. Action is scheduled to be taken at the October meeting.

September 2017 Agenda Book 218

SCHEV Assessment of Institutional Capital Outlay E&G Project Requests for Project Requests with a General Fund Component in 2018-2024

SCHEV Priority 1 -- These are projects that meet the Council’s Fixed Asset Guidelines or are considered critical to supporting the capital outlay needs of Virginia’s system of higher education. Also included in this group are projects that address ADA, security issues and infrastructure improvements for energy efficiency and mechanical, electrical and plumbing (MEP) systems.

(A) Projects that address ADA and security issues SCHEV Institution Request Title Project Type Total Project Cost General Fund Nongeneral Fund 9(C) Debt 9(D) Debt Priority CWM Improve: Access and Accessibility Infrastructure 1 Improvements-Handicapped Access $5,416,000 $5,416,000 $0 $0 $0 CWM Renovate: Washington Hall 1 Improvements-Life Safety Code $25,050,000 $25,050,000 $0 $0 $0 CWM Replace: Jones and Morton Halls 1 Improvements-Life Safety Code $52,000,000 $52,000,000 $0 $0 $0 VMI Improvements to Post Wide Safety and Security Phase 1 1 Improvements-Other $5,000,000 $5,000,000 $0 $0 $0 VMI Improvements to Post Wide Safety and Security Phase 2 1 Improvements-Other $10,000,000 $10,000,000 $0 $0 $0 VMI Renovate Old Hospital 1 Improvements-Life Safety Code $1,254,000 $1,254,000 $0 $0 $0 VMI Renovate Moody Hall 1 Improvements-Other $13,253,500 $13,253,500 $0 $0 $0 VSU Improve Infrastructure for Campus Safety, Security, Energy Reduction and System Reliability 1 Improvements-Infrastructure Repairs $7,200,000 $6,700,000 $500,000 $0 $0 VT Address Campus Fire Alarms and Accessibility 1 Improvements-Life Safety Code $5,500,000 $5,500,000 $0 $0 $0 VT Address Library Code Compliance 1 Improvements-Life Safety Code $5,500,000 $5,500,000 $0 $0 $0 Total 10 $130,173,500 $129,673,500 $500,000 $0 $0

(B) Projects that meet the E&G or research space need criteria (B.1) Facilities that are used for E&G or combine E&G and research uses SCHEV Institution Request Title Project Type Total Project Cost General Fund Nongeneral Fund 9(C) Debt VCBA/9(D) Debt Priority GMU Construct Academic VIII/Research IV 1 New Construction $170,004,000 $127,503,000 $0 $0 $42,501,000 GMU Renovate Science & Tech I 1 Improvements-Other $68,650,000 $68,650,000 $0 $0 $0 GMU Renovate King Hall & Construct New Addition 1 New Construction/Improvement $84,843,000 $84,843,000 $0 $0 $0 VT Replace Randolph Hall 1 New Construction $182,500,000 $155,125,000 $0 $0 $27,375,000 Total 4 $505,997,000 $436,121,000 $0 $0 $69,876,000

(B.2) Facilities that are used for research SCHEV Institution Request Title Project Type Total Project Cost General Fund Nongeneral Fund 9(C) Debt VCBA/9(D) Debt Priority CWM Construct: Population Lab 1 New Construction $8,514,000 $8,514,000 $0 $0 $0 VT-Ext. Improve Center Woods Complex 1 Improvements-Infrastructure Repairs $5,600,000 $5,600,000 $0 $0 $0 VT-Ext. Construct Animal Production and Livestock Facilities Phase II 1 New Construction $24,300,000 $24,300,000 $0 $0 $0 VT-Ext. Construct Global System Sciences Complex 1 New Construction $94,400,000 $94,400,000 $0 $0 $0 Total 4 $132,814,000 $132,814,000 $0 $0 $0

(C) Projects that address energy efficiency and MEP infrastructure improvements SCHEV Institution Request Title Project Type Total Project Cost General Fund Nongeneral Fund 9(C) Debt VCBA/9(D) Debt Priority JMU East Campus Infrastructure Phase 1 1 New Construction $37,000,000 $22,200,000 $0 $0 $14,800,000 ODU Replace Koch Hall Mechanical System 1 Improvements-Energy Efficiency $3,380,000 $3,380,000 $0 $0 $0 UMW Renovate Simpson Library 1 Improvements-Other $25,250,000 $25,250,000 $0 $0 $0 UMW Renovate George Washington Hall 1 Improvements-Other $38,235,000 $38,235,000 $0 $0 $0 UMW Renovate Fine and Performing Arts Center 1 Improvements-Infrastructure Repairs $21,125,000 $21,125,000 $0 $0 $0 VCCS Renovate Stone Hall Building, Patrick Henry CC 1 Improvements-Other $12,676,000 $12,676,000 $0 $0 $0 VCCS Renovate A.L. Philpott Technical Center & MET Complex Building 1, Patrick Henry CC 1 New Construction/Improvement $28,876,000 $28,876,000 $0 $0 $0 Total 7 $166,542,000 $151,742,000 $0 $0 $14,800,000 Total Priority 1 25 $935,526,500 $850,350,500 $500,000 $0 $84,676,000

September 2017 Agenda Book 219

SCHEV Assessment of Institutional Capital Outlay E&G Project Requests for Project Requests with a General Fund Component in 2018-2024 (cont.)

SCHEV Priority Group 1.B – These are projects that address critical state wide capital outlay needs and have compelling programmatical justifications but do not meet the space need and productivity criteria under the Council’s Fixed Asset Guidelines.

SCHEV Institution Request Title Project Type Total Project Cost General Fund Nongeneral Fund 9(C) Debt9(D) Debt Priority GMU Renovate Enterprise Hall 1.b Improvements-Other $48,680,000 $48,680,000 $0 $0 $0 NSU Construct Interdisciplinary Science and Arts Building 1.b New Construction $110,600,500 $110,600,500 $0 $0 $0 NSU Improve Wayfinding, Vehicular Circulation, and Campus Boundary 1.b New Construction $19,000,000 $19,000,000 $0 $0 $0 VCCS Renovate and Expand Fincastle Hall, Wytheville CC 1.b Improvements-Other $27,160,000 $27,160,000 $0 $0 $0 VCCS Replace Engineering & Automotive Buildings, Alexandria Campus, Northern Virginia CC1.b New Construction $27,265,000 $27,265,000 $0 $0 $0 VMI Renovate Cameron Hall 1.b Improvements-Other $30,388,500 $15,729,900 $14,658,600 $0 $0 VSU Renovate Gandy Hall for Centralized Student and Academic Services 1.b Improvements-Other $6,400,000 $6,400,000 $0 $0 $0 Total Priority 1.b 7 $269,494,000 $254,835,400 $14,658,600 $0 $0

September 2017 Agenda Book 220 SCHEV Assessment of Institutional Capital Outlay E&G Project Requests for Project Requests with a General Fund Component in 2018-2024 (cont.)

SCHEV Priority 2 – These are projects that do not meet the space and productivity criteria in the Council’s Fixed Asset Guidelines but have some compelling programmatic justification.

SCHEV Institution Request Title Project Type Total Project Cost General Fund Nongeneral Fund 9(C) Debt 9(D) Debt Priority CWM Construct Integrated Science Center, Phase 4 2 New Construction $74,916,000 $74,916,000 $0 $0 $0 CWM Construct: Fine and Performing Arts Complex, Phase 3 2 New Construction/Improvement $40,100,000 $40,100,000 $0 $0 $0 CWM Construct: Sanitary Sewer 2 Improvements-Infrastructure Repairs $3,479,000 $3,479,000 $0 $0 $0 CWM Improve: Swem Library 2 Improvements-Other $10,715,000 $10,715,000 $0 $0 $0 CWM Renovate: Ewell Hall 2 Improvements-Infrastructure Repairs $20,730,000 $20,730,000 $0 $0 $0 EVMS Renovate Temporal Bone Lab 2 Improvements-Infrastructure Repairs $1,512,771 $1,512,771 $0 $0 $0 EVMS Replace Two Hofheimer Hall Air Handling Units 2 Improvements-Infrastructure Repairs $835,000 $835,000 $0 $0 $0 GMU Improve Telecommunications Infrastructure Phase 1 2 Improvements-Infrastructure Repairs $11,419,000 $11,419,000 $0 $0 $0 GMU Improve Telecommunications Infrastructure Phase 2 2 Improvements-Infrastructure Repairs $22,915,000 $13,267,785 $0 $0 $9,647,215 GMU Improve Telecommunications Infrastructure Phase 3 2 Improvements-Infrastructure Repairs $18,456,000 $9,855,504 $0 $0 $8,600,496 GMU Renovate Campus Library, Phase II 2 Improvements-Other $52,386,000 $52,386,000 $0 $0 $0 JMU Carrier Library Renovation and Addition 2 Improvements-Other $99,977,299 $99,977,299 $0 $0 $0 JMU Renovate Johnston Hall 2 Improvements-Other $20,522,749 $20,522,749 $0 $0 $0 LU Renovate and Expand Facilities Annex Building 2 Improvements-Other $15,752,000 $15,752,000 $0 $0 $0 LU Renovate Coyner Hall 2 Improvements-Other $7,119,000 $7,119,000 $0 $0 $0 LU Renovate Lankford Building 2 Improvements-Other $15,092,000 $14,488,320 $603,680 $0 $0 ODU Construct a New Health Sciences Building, Phase I 2 New Construction $73,742,000 $74,242,000 $0 $0 $0 ODU Construct a Student Services Building 2 New Construction $62,763,000 $58,953,000 $0 $0 $3,810,000 RU Renovate/Construct Center for Adaptive Innovation and Creativity 2 Improvements-Other $79,000,000 $79,000,000 $0 $0 $0 UMW Construct Fine and Performing Arts Center 2 New Construction $61,000,000 $61,000,000 $0 $0 $0 UMW Dahlgren Campus Phase II 2 New Construction $30,414,000 $30,414,000 $0 $0 $0 UMW Improvements to Gari Melcher's Museum 2 New Construction/Improvement $5,770,000 $5,770,000 $0 $0 $0 UMW Physical Plant Renovation and Addition 2 New Construction/Improvement $24,725,000 $24,725,000 $0 $0 $0 UMW Renovate Goolrick Hall 2 Improvements-Infrastructure Repairs $17,503,000 $8,751,500 $0 $0 $8,751,500 UVA The Fralin Museum of Art at the University of Virginia 2 New Construction/Improvement $28,000,000 $14,000,000 $14,000,000 $0 $0 UVA Thornton Hall B Wing Renovation 2 Improvements-Other $10,500,000 $10,500,000 $0 $0 $0 UVAW Renovate Sandridge Science Center Lab Wing 2 New Construction/Improvement $32,200,000 $32,200,000 $0 $0 $0 VCCS Construct Academic Building for Emerging and Applied Technologies/Replace Princess Anne, Tidewater2 New Construction $41,075,000 $41,075,000 $0 $0 $0 VCCS Construct Advanced Integrated Manufacturing (AIM) Center, Hampton Campus, Thomas Nelson CC2 New Construction $49,704,000 $250,000 $0 $0 $0 VCCS Construct Advanced Manufacturing and Industrial Systems Center, Portsmouth Campus, Tidewater2 CC New Construction $33,463,000 $250,000 $0 $0 $0 VCCS Construct Applied Technology Center/Renovate Mechanical Technology Building, Virginia Highlands2 CC New Construction/Improvement $18,175,000 $250,000 $0 $0 $0 VCCS Construct Automotive Tech Building/Renovate Veterinary Tech Building, Blue Ridge CC 2 New Construction/Improvement $17,455,000 $250,000 $0 $0 $0 VCCS Construct Joint Use Library w Albemarle County, Piedmont Virginia CC 2 New Construction $20,320,000 $250,000 $0 $0 $0 VCCS Construct New Academic (STEM) Building, Parham Road Campus, J. Sargeant Reynolds CC 2 New Construction $41,427,000 $250,000 $0 $0 $0 VCCS Construct New Academic STEM Building (CN6), Chesapeake Campus, Tidewater 2 New Construction $47,694,000 $250,000 $0 $0 $0 VCCS Construct New Health Sciences Center and Renovate Robb Hall, Mountain Empire CC 2 New Construction/Improvement $33,587,000 $33,587,000 $0 $0 $0

September 2017 Agenda Book 221 SCHEV Assessment of Institutional Capital Outlay E&G Project Requests for Project Requests with a General Fund Component in 2018-2024 (cont.)

SCHEV Priority 2 – These are projects that do not meet the space and productivity criteria in the Council’s Fixed Asset Guidelines but have some compelling programmatic justification.

SCHEV Institution Request Title Project Type Total Project Cost General Fund Nongeneral Fund 9(C) Debt 9(D) Debt Priority VCCS Construct Phase I Stafford County Center, Germanna CC 2 New Construction $41,088,000 $250,000 $0 $0 $0 VCCS Construct Regional Center for Transportation, Logistics, and Truck Driving, Tidewater CC 2 New Construction $59,443,000 $250,000 $0 $0 $0 VCCS Construct Regional Workforce Solutions Center, Virginia Beach Campus, Tidewater CC 2 New Construction $38,644,000 $250,000 $0 $0 $0 VCCS Construct STEM-H Building in the Rockbridge County Area, Dabney S. Lancaster CC 2 New Construction $19,356,000 $250,000 $0 $0 $0 VCCS Renovate Academic Classroom Building (Phase II) - Glenns and Warsaw, Rappahannock CC 2 Improvements-Other $13,959,000 $13,959,000 $0 $0 $0 VCCS Renovate and Expand Rooker for Advanced Manufacturing and Credentialing Center, New River CC2 Improvements-Other $44,337,000 $44,337,000 $0 $0 $0 VCCS Renovate Brown Library Building to a Learning Resource Center, Virginia Western CC 2 New Construction/Improvement $24,300,000 $24,300,000 $0 $0 $0 VCCS Renovate Franklin Campus, Paul D. Camp CC 2 Improvements-Other $21,592,000 $21,592,000 $0 $0 $0 VCCS Renovate Godwin (CG) Academic Building, Annandale Campus, Northern Virginia CC 2 Improvements-Infrastructure Repairs $36,600,000 $36,600,000 $0 $0 $0 VCCS Renovate Houff Student Center, Blue Ridge CC 2 Improvements-Other $8,656,000 $8,656,000 $0 $0 $0 VCCS Renovate Learning Resource Center (LRC), Virginia Highlands CC 2 Improvements-Other $15,125,000 $15,125,000 $0 $0 $0 VCCS Renovate Learning Resource Center, Danville CC 2 Improvements-Other $11,881,000 $11,881,000 $0 $0 $0 VCCS Renovate Main Building, Daniel Campus, Southside Virginia CC 2 Improvements-Infrastructure Repairs $24,965,000 $24,965,000 $0 $0 $0 VCCS Renovate Webber Hall, Virginia Western CC 2 Improvements-Other $20,300,000 $20,300,000 $0 $0 $0 VCCS Renovate/Retrofit Walker Building, Norfolk Campus, Tidewater CC 2 Improvements-Other $19,734,000 $19,734,000 $0 $0 $0 VCCS Replace Buchanan and Tazewell Halls, Southwest Virginia CC 2 New Construction $38,446,000 $38,446,000 $0 $0 $0 VCU Humanities and Sciences Phase II, Admin and Classroom Bldg. 2 New Construction $35,000,000 $35,000,000 $0 $0 $0 VCU Oliver Hall Physical Science Wing Renovation 2 Improvements-Other $41,000,000 $41,000,000 $0 $0 $0 VCU Renovate Sanger Hall, Phase III 2 Improvements-Other $32,000,000 $24,000,000 $0 $0 $8,000,000 VMI American Legion Improvements 2 Improvements-Infrastructure Repairs $1,240,000 $1,240,000 $0 $0 $0 VMI Barracks Energy Efficiency Improvements 2018-2020 2 Improvements-Energy Efficiency $15,966,700 $15,966,700 $0 $0 $0 VMI Construct Corps Physical Training Facility Phase 3 (Aquatic Center) 2 New Construction/Improvement $41,250,000 $31,250,000 $10,000,000 $0 $0 VMI Expand Hinty Hall and Improve Lackey Park 2 Improvements-Other $12,736,300 $6,877,600 $0 $5,858,700 $0 VMI Historic Preservation Improvements Phase I 2 Improvements-Other $3,445,800 $130,000 $0 $0 $3,315,800 VMI Historic Preservation Improvements Phase II 2 Improvements-Other $5,574,800 $5,574,800 $0 $0 $0 VMI Improvements to 309 Letcher Avenue (Admissions) 2 Improvements-Infrastructure Repairs $1,100,000 $1,100,000 $0 $0 $0 VMI Renovate Cocke Hall Annex for Engineering Laboratories 2 Improvements-Other $20,000,000 $20,000,000 $0 $0 $0 VMI Renovate Outdoor Running Track 2 Improvements-Other $1,365,500 $1,310,880 $0 $0 $0 VMI Renovate Smith Hall 2 Improvements-Other $9,964,600 $9,964,600 $0 $0 $0 VMI Virginia Museum of the Civil War Improvements 2 Improvements-Other $6,009,900 $3,133,900 $0 $0 $2,876,000 VSU Construct Pedestrian Walkway on University Avenue 2 Improvements-Infrastructure Repairs $10,000,000 $8,000,000 $2,000,000 $0 $0 VSU Renovate and Construct Addition to Johnston Memorial Library for Technology One Stop 2 New Construction/Improvement $25,235,000 $25,235,000 $0 $0 $0 VT Construct Academic Support and Student Success Center 2 New Construction $14,800,000 $14,800,000 $0 $0 $0 VT Construct Corps Leadership and Military Science Building 2 New Construction $49,900,000 $29,900,000 $7,000,000 $0 $13,000,000 VT Construct Data Analytics and Decision Sciences Building 2 New Construction $75,000,000 $75,000,000 $0 $0 $0 VT Construct Undergraduate Science Laboratory Building 2 New Construction $75,000,000 $75,000,000 $0 $0 $0 VT Renovate Robeson Hall 2 Improvements-Other $44,600,000 $44,600,000 $0 $0 $0 VT Renovate/Replace Brooks Center 2 Improvements-Infrastructure Repairs $6,750,000 $6,750,000 $0 $0 $0 Total Prority 2 74 $2,110,808,419 $1,629,771,408 $33,603,680 $5,858,700 $58,001,011

September 2017 Agenda Book 222 SCHEV Assessment of Institutional Capital Outlay E&G Project Requests for Project Requests with a General Fund Component in 2018-2024 (cont.)

SCHEV Priority Group 3 – These are projects that do not meet the space and productivity criteria in the Council’s Fixed Asset Guidelines and have less immediate space and programmatic need.

SCHEV Institution Request Title Project Type Total Project Cost General Fund Nongeneral Fund 9(C) Debt9(D) Debt Priority CNU Construct and Improve: Plant Operations Building 3 New Construction/Improvement $5,550,000 $5,550,000 $0 $0 $0 CNU Integrated Science Center, Phase III 3 New Construction $38,182,000 $38,182,000 $0 $0 $0 CWM Construct: Facilities Maintenance Shops 3 Improvements-Infrastructure Repairs$11,151,000 $11,151,000 $0 $0 $0 CWM Construct: Jamestown Place 3 New Construction $46,774,150 $46,774,150 $0 $0 $0 NSU Physical Education and Athletic Building 3 New Construction $46,900,000 $18,760,000 $0 $28,140,000 $0 RU Improve Campus Utilities Infratructure Umbrella Project 3 Improvements-Other $10,525,000 $10,525,000 $0 $0 $0 RU Renovate McConnell Hall 3 Improvements-Other $25,900,000 $25,900,000 $0 $0 $0 VCU Classroom Building 3 New Construction $85,000,000 $85,000,000 $0 $0 $0 VCU Construct Class Labs/Maker Space 3 New Construction $83,200,000 $83,200,000 $0 $0 $0 VCU Efficient Office Building 3 New Construction $70,000,000 $70,000,000 $0 $0 $0 VCU Health Sciences Library/Health Affairs Academic Buildnig 3 New Construction $85,000,000 $85,000,000 $0 $0 $0 VCU Performing Arts/Exhibit Phase 1 3 New Construction $85,000,000 $85,000,000 $0 $0 $0 VCU Performing Arts/Exhibit Phase 2 3 New Construction $51,300,000 $51,300,000 $0 $0 $0 VCU Renovate Health Sciences Classrooms 3 Improvements-Other $8,700,000 $8,700,000 $0 $0 $0 VCU Renovate James Branch Cabell Library 3 Improvements-Other $50,000,000 $50,000,000 $0 $0 $0 VCU Renovation of McGuire Hall 3 Improvements-Other $51,000,000 $33,700,000 $0 $17,300,000 $0 VMI Renovate Carroll Hall 3 Improvements-Infrastructure Repairs$12,330,200 $12,330,200 $0 $0 $0 VMI Renovate Richardson Hall and Kilbourne Hall Annex 3 Improvements-Other $10,205,900 $10,205,900 $0 $0 $0 VMI Renovate Shell Hall 3 Improvements-Other $8,513,800 $8,513,800 $0 $0 $0 Total Priority 3 19 $785,232,050 $739,792,050 $0 $45,440,000 $0

SCHEV Assessment of Institutional Capital Outlay E&G Project Requests for Project Requests with a General Fund Component in 2018-2024 (cont.)

SCHEV Priority 4 – These are nonguideline requests. Assessment is deferred.

SCHEV Institution Request Title Project Type Total Project Cost General Fund Nongeneral Fund 9(C) Debt 9(D) Debt Priority JMU Blanket Property Acquisition 4 Acquisition $3,000,000 $0 $3,000,000 $0 $0 Total Priority 4 1 $3,000,000 $0 $3,000,000 $0 $0

September 2017 Agenda Book 223 STATE COUNCIL OF HIGHER EDUCATION FOR VIRGINIA COUNCIL MEETING JULY 18, 2017 MINUTES

Mr. Fralin called the meeting to order at 12:20 p.m. in the Hamel Hall, Room H109, John Tyler Community College, Midlothian, Virginia. Council members present: Rosa Atkins, Marge Connelly, Heywood Fralin, Henry Light, Gene Lockhart, Stephen Moret, Carlyle Ramsey, Minnis Ridenour, and Thomas Slater.

Council members absent: Ken Ampy, William Murray, and Katharine Webb.

In accordance with Council’s policy on emergencies, Ms. Connelly was allowed to participate by phone because her flight to Richmond had been canceled.

Staff members present: Lee Andes, Peter Blake, Beverly Covington, Joe DeFilippo, Dan Hix, Alan Edwards, Jodi Fisler, Wendy Kang, Tod Massa, Jean Mottley, Sylvia Rosa-Casanova, Lee Ann Rung, and Yan Zheng. Cameron O’Brion from the Office of the Attorney General was also in attendance.

CALL TO ORDER AND ANNOUNCEMENTS

Mr. Fralin welcomed Dr. Rosa Atkins to the Council and read her bio. Dr. Atkins is the superintendent of Charlottesville City Schools. Dr. Atkins said she looked forward to her service on the Council.

RECEIPT OF PUBLIC COMMENT

Mr. Fralin reported that no requests for public comment had been received. He invited comments from those in attendance; no one came forward.

APPROVAL OF MINUTES

On a motion by Mr. Lockhart and seconded by Dr. Ramsey, it was suggested that the following minutes be approved in block: PCAB May 15, 2017, Council meeting May 16, 2017, Executive Committee May 15, 2017, Ad Hoc Research Committee May 16, 2017, and June 27, 2017, special meeting. The motion was approved unanimously (8- 0).

REMARKS FROM TED RASPILLER, PRESIDENT, JOHN TYLER COMMUNITY COLLEGE (JTCC)

Mr. Fralin thanked President Raspiller for hosting the Council meetings and read his bio.

September 2017 Agenda Book 224

Dr. Raspiller spoke about the early learning summer camps in STEM-H and reported that the camps were in session during the Council’s meeting.

Dr. Raspiller reported that JTCC is celebrating its 50th anniversary this year. The original campus is located in Chester. He said the mix of programs and students is approximately the same at both campuses. Dr. Raspiller highlighted programs available at each campus and discussed the counties served by each. A 25,000 s.f. workforce center is under construction and will be attached to the conference center on the Chester campus.

He spoke about the popularity of dual enrollment which provides students with a credential before graduating from high school. JTCC has a partnership with Reynolds Community College and indicated that JTCC has been involved in shared services for quite some time. Dr. Raspiller answered questions from members.

REPORT OF THE AGENCY DIRECTOR

Mr. Blake highlighted some of the recent activities from his written report and summarized the meetings he has attended over the last several weeks. Details of his report were included in the agenda book.

BRIEFING ON THE ROLE OF HIGHER EDUCATION IN ECONOMIC DEVELOPMENT (VEDP)

Mr. Moret spoke about the current role higher education plays in economic development and explained ways to further enhance its role over time.

He noted Virginia does not rank well among site consultants in workforce development when grading features important to business development (quality, cost and availability of talent). Though many good efforts are underway in this arena in Virginia, VEDP is working with the Virginia Community College System (VCCS) to make improvements.

Mr. Moret reviewed the purposes of a college education and spoke about malemployment of college graduates in America and Virginia. Post-recession, approximately 45% of all individuals in the U.S. labor force with a bachelor’s degree were malemployed or unemployed. He defined malemployment as working in a job that does not leverage college level skills. He provided charts and information about the issues and addressed potential policy directions for the Commonwealth and SCHEV. Mr. Moret answered questions from members.

Mr. Fralin suggested that Mr. Moret provide a list of specific things he believes SCHEV can either initiate or improve upon to better assist higher education to become more effective in the area of economic development. He also suggested that Mr. Moret develop a list of actions institutions could take that could be discussed

September 2017 Agenda Book 225 during SCHEV’s 6-year plan meetings with the institutions. Mr. Moret agreed to provide this information.

The chairman called for a break at 2:00 p.m. The meeting resumed at 2:15. Dr. Ramsey did not return after the break.

REPORTS FROM THE COMMITTEES

Report from Academic Affairs Committee

In Ms. Webb’s absence, Mr. Lockhart chaired the Committee. He asked Dr. DeFilippo to provide information about the following items from the Committee:

Action on Programs at Public Institutions

Dr. DeFilippo provided a brief overview. The Committee’s recommendations were seconded by Mr. Slater and the following resolutions were approved unanimously (7- 0):

BE IT RESOLVED that the State Council of Higher Education for Virginia grants approval to George Mason University to initiate a Master of Science (M.S.) degree program in Criminal Justice (CIP: 43.0104), effective spring 2018.

BE IT RESOLVED that the State Council of Higher Education for Virginia grants approval to Old Dominion University to initiate a Master of Science (M.S.) degree program in Sport Management (CIP: 31.0504), effective fall 2017.

BE IT RESOLVED that the State Council of Higher Education for Virginia grants approval to Thomas Nelson Community College to initiate an Associate of Fine Arts degree program in Visual Arts (CIP: 50.0701), effective fall 2017.

Action on Policy on Student Learning Assessment and Quality in Undergraduate Education

Dr. DeFilippo provided a summary and said the document updates the current policy, development of which is a statutory Council duty. He reported that the requirement to develop the policy is also Initiative #1 from The Virginia Plan for Higher Education. Dr. DeFilippo indicated that multi-year plans will be developed and reported to Council. Mr. Lockhart congratulated Drs. DeFilippo and Fisler for collaborating with the institutions on this effort.

Mr. Fralin pointed out that the Committee discussed job success and competitive salary within the field of study. It was decided not to include these in the policy at this time, but Committee members agreed to continue the effort and consider inclusion of those measures in the future. Mr. Slater suggested that the measures be circulated to members as well as the institutions. The Committee’s recommendation was seconded by Mr. Slater and the following resolution was approved unanimously (7-0):

September 2017 Agenda Book 226 BE IT RESOLVED that the State Council of Higher Education for Virginia approves the Policy on Student Learning Assessment and Quality in Undergraduate Education, effective immediately, and directs staff to implement its provisions collaboratively with public institutions of higher education.

Status Report on Accrediting Council for Independent Colleges and Schools (ACICS) Schools Operating in Virginia

Dr. DeFilippo provided a status report on ACICS schools operating in Virginia and directed members to review the materials in the agenda book related to this item. He reminded members of SCHEV’s responsibility to take possession of student records if an institution fails to receive accreditation.

Mr. Fralin suggested that staff develop a consumer advisement statement to better inform the public that SCHEV’s certificate to operate is not an endorsement but rather fulfillment of a Virginia regulation.

Mr. Lockhart said the Committee also received a report from staff and had a discussion of updates to The Virginia Plan for Higher Education, particularly Initiatives #1 and #4. Mr. Massa provided an update to the Committee on the Virginia Longitudinal Data System (VLDS). Mr. Lockhart encouraged members explore the SCHEV research website to review the data and consider ways in which it can be used. He suggested that a volunteer working group of Council members work with staff between meetings to find ways to use the VLDS data to answer questions and add value to the Commonwealth. He said this would not be a formal committee, but a small working group. More information on this initiative will be forthcoming.

Report from Resources and Planning Committee

Ms. Connelly reported on the following items from the Committee:

Action on Full Cost Report

The Committee’s recommendation was seconded by Mr. Lockhart and the following resolution was approved unanimously (7-0):

BE IT RESOLVED that the State Council of Higher Education for Virginia approves the 2017-18 Full Cost Report.

Action on Financial Assistance for Industry-Based Certification and Related Programs – SCHEV Guidance Document

The Committee’s recommendation was seconded by Mr. Ridenour and the following resolution was approved unanimously (7-0):

BE IT RESOLVED that the State Council of Higher Education for Virginia approves the amended guidelines for usage of state need-based financial aid for industry-based certification and related programs that do not qualify for

September 2017 Agenda Book 227 other sources of student financial assistance. Council delegates to staff to make future non-substantive administrative changes to the program as needed.

Ms. Connelly reported that the Committee also received a briefing on enrollment projections and degree estimates and discussed the Virginia Guaranteed Admission Program (VGAP) regulation amendments. She asked Mr. Andes to provide a brief update to the Council. This item will be brought to the Council for action in September.

The Committee also received updates to The Virginia Plan for Higher Education, specifically Initiatives #2 and #3. Ms. Connelly encouraged members to review the presentation that is posted on the website. The Virtual Library of Virginia (VIVA) is doing a data pilot with promising results to encourage institutions to work together to reduce costs.

Ms. Connelly said the Committee reviewed various options related to funding and she encouraged members to review the options on page 128. She suggested that more time be allocated for a staff discussion on this topic. Mr. Slater said Mr. Hix did a good job of reviewing the history of this item with the Committee. Mr. Fralin said this subject is timely and could be shared with gubernatorial candidates to provide them with innovative suggestions to make higher education more affordable. He also suggested that discussion of these options could be productive in the six-year plan discussions with institutions.

RECEIPT OF ITEMS DELEGATED TO STAFF

Mr. Blake noted the categories of recent actions taken by staff on behalf of the Council. He encouraged members to bring questions to his attention. Mr. Fralin reminded members that these items involve matters for which Council has delegated authority to staff, which is the reason they do not require Council action. As required, a copy of these actions is attached to the minutes.

ACTION ON 2018 MEETING SCHEDULE

The schedule and locations for the 2018 calendar year were confirmed by staff and on motion by Mr. Lockhart and seconded by Mr. Ridenour, the following resolution was approved unanimously (7-0):

BE IT RESOLVED that the State Council of Higher Education for Virginia approves the following meeting schedule for calendar year 2018 and requests that staff distribute the information to all Council members:

Briefings and/or committee meetings on Monday afternoon - meetings on Tuesday (with the exception of one-day meetings):

 January 9 – SCHEV Offices (Richmond)  March 19-20 – travel to public institution (CNU)

September 2017 Agenda Book 228  May 21-22 – travel to private institution TBD – May 21 will include a meeting with private college presidents)  July 17 – travel to public institution (Richard Bland College)  September 17-18 – travel to public institution (UMW) – September 17 will include a meeting with public college and university presidents)  October 29-30 – SCHEV Offices (Richmond)

NEW BUSINESS

Mr. Fralin informed members that all are invited and encouraged to participate in future meetings of the Executive Committee.

He suggested that while Council members routinely receive reports of The Virginia Plan for Higher Education at each meeting, he felt members could be more involved in its implementation. He suggested that two members be assigned to each of the six initiatives and be responsible for conferring with staff and reporting at each meeting. Ms. Connelly suggested that members choose an initiative that aligns with the Committee assignments on which they sit. Mr. Fralin asked staff to determine the assignments.

Mr. Fralin said it was important that Council members understand the issues in which the Council will prioritize and be able to explain them to the Governor and legislature. He noted particularly: the next phase of restructuring (including funding); economic development; and ways to reduce costs for students and their families.

OLD BUSINESS

Mr. Blake said in response to the Council’s request to report on staff development, he has been working with Mr. Ridenour and will provide an update at the next meeting when more time can be allocated to the discussion.

ACTION ON RESOLUTION FOR DEPARTING COUNCIL MEMBER

Mr. Fralin asked Mr. Lockhart to read the following resolution, which was seconded by Ms. Connelly and approved unanimously (7-0):

WHEREAS, Pamela R. Moran served as an exemplary member of the State Council of Higher Education for Virginia and as a member of the Council’s Academic Affairs Committee from 2013 to 2017; and

WHEREAS, Dr. Moran ably fulfilled the role as the Council’s first school superintendent, and provided her expertise and insightful perspective to the Council’s work; and

September 2017 Agenda Book 229 WHEREAS, she demonstrated her strong dedication to the students of the Commonwealth by assisting the Council to work collaboratively to bridge the gap between secondary and post-secondary education; and

WHEREAS, Dr. Moran approached her work on the Council with enthusiasm and always conducted herself and the Council’s business with dignity, understated resolve, and a steadfast desire to ensure that Virginia’s colleges and universities maintain the highest standards of excellence in higher education; and

WHEREAS, Dr. Moran worked diligently to help formulate and advance The Virginia Plan for Higher Education, which will continue to have a strong and positive impact on future generations in the Commonwealth;

WHEREAS, her cooperative nature served the Council well in making public policy and budget recommendations to the Governor and General Assembly; and

WHEREAS, she will continue to work for the best interests of Virginia higher education and will remain a trusted friend and valued advisor as the Council continues its important work of advancing Virginia through higher education; therefore be it

RESOLVED, that the State Council of Higher Education for Virginia expresses its sincere gratitude and appreciation to Pamela R. Moran for her distinguished service and commitment to advancing the well-being of higher education in Virginia, and extends to her best wishes for continued success in all future endeavors.

ADJOURNMENT

Mr. Blake reminded members that the next meeting will be held on September 18-19 at Norfolk State University. The September 18 schedule will include a joint meeting with the public college presidents.

The Chairman adjourned the meeting at 3:10 p.m.

______Henry Light Council Secretary

______Lee Ann Rung Director, Executive and Board Affairs

September 2017 Agenda Book 230 Items Delegated to Director/Staff

Pursuant to the Code of Virginia, § 23.1-203 and Council’s “Policies and Procedures for Program Approval and Changes,” the following items were approved/not approved as delegated to staff:

Program Actions

Institution Degree/Program/CIP Effective Date The College of CIP Code Approved: Change the CIP Fall 2017 William and Mary code of the Doctor of Philosophy in Computer Science from 11.0101 to 11.0701 George Mason Facilitated Staff Approval: Bachelor of Spring 2018 University Science degree program in Statistics (27.0501). [Conferral: Spring 2020] George Mason Substantial Program Modification Fall 2017 University Approved: Modify the credit hours of the Master of Science in Biostatistics (26.1102) from 36 to 30 Longwood Title Change Approved: Change the title Fall 2017 University of the Bachelor of Arts and Bachelor of Science degree program in Anthropology (45.0201) to Anthropology and Archaeology (45.0201) Old Dominion Substantial Program Modification Fall 2017 University Approved: Modify the credit hours, add a new delivery format, and change the name of the Doctor of Philosophy in Public Administration and Urban Policy (44.0401) with 60 credit hours to a Doctor of Philosophy in Public Administration and Policy (44.0401) with 49 credit hours Old Dominion Spin-Off Program Approved: Fall 2017 University Spin-off a Master of Science degree program in Speech-Language Pathology (51.0203) from the existing Master of Science in Education in Speech-Language Pathology (51.0204) Old Dominion Title Change Not Approved: Change the June 26, 2017 University title of the Bachelor of Arts degree program in Theatre and Dance (50.0501) to a Bachelor of Arts degree program in Theatre Arts (50.0501) Virginia Tech CIP Code Approved: Change the CIP Summer 2017 code of the Graduate Certificate in Technology Management from 52.1206 to 14.3501

September 2017 Agenda Book 231

Pursuant to the Code of Virginia, § 23.1-203 and Council’s “Policies and Procedures for Program Approval and Changes,” the following items were reported:

Diploma, Certificate, Discontinued and Modified Programs

Institution Degree/Program/CIP Effective Date George Mason Simple Program Modification: Modify the Fall 2017 University credit hours and change the name of the Graduate Certificate program in Teaching Students with Autism (13.1013) with 12 credit hours to a Graduate Certificate program in Autism Spectrum Disorders (13.1013) with 15 credit hours Old Dominion Initiate two new Graduate Certificate Fall 2017 University programs [Conferral: Spring 2018]  Human Performance Technology (30.0601);  Modeling and Simulation in Oceanography (40.0607) Radford University Initiate two new Undergraduate Certificate Fall 2017 programs [Conferral: Spring 2018]  Cybersecurity (11.1003);  Geospatial Intelligence (45.0702) University of Initiate a new Graduate Certificate in Fall 2017 Virginia Teaching Gifted Learners in PreK-12 Education (13.1004) [Conferral: Spring 2018] Virginia Initiate a new Graduate Certificate in Health Fall 2017 Commonwealth Behavior Coaching (51.2207) [Conferral: University Summer 2018] Virginia Simple Program Modification: Add an Fall 2017 Commonwealth online delivery format to the Doctor of University Education in Leadership (13.0401) [Conferral: Spring 2020] Virginia Simple Program Modification: Modify the Fall 2017 Commonwealth credit hours of the Doctor of Philosophy University degree program in Biostatistics (26.1102) with 77 credit hours to 78 credit hours Virginia Tech Initiate three new Graduate Certificate Fall 2017 programs [Conferral: Spring 2018]:  Economic Risk and Global Inequality (44.0504);  Human Sexuality Studies (30.1701);  Urban Computing (11.0199)

September 2017 Agenda Book 232 Pursuant to the Code of Virginia, Section § 23.1-211 and Council’s “Commonwealth of Virginia Policy on the Reciprocal Authorization of Distance Education and Related Activities,” the following items were approved as delegated to staff:

National Council for State Authorization Reciprocity Agreements (NC-SARA) Approvals

Institution Effective Date University of Fairfax April 27, 2017

Pursuant to the Code of Virginia, § 23.1-203 and Council’s “Policies and Procedures for Internal and Off-Campus Organizational Changes,” the following items were approved as delegated to staff:

Institution Change/Site Effective Date University of Create the Department of the Carter G. June 7, 2017 Virginia Woodson Institute for African American and African Studies. The Department will be located in the College and Graduate School of Arts and Sciences. The Department will oversee undergraduate course offerings in African American and African Studies, make it possible for tenure- track and tenured faculty to have their tenure home in a department, and will enhance the recruitment of faculty and students. Virginia State Create the Department of Educational June 1, 2017 University Leadership from the Department of Administrative and Organizational Leadership and the Department of Doctoral Studies. The Department will reside in the College of Education. The Department will administer and coordinate two academic degree programs. The reorganization of the two departments will facilitate faculty collaboration on research and grant activities, allow for a more seamless approach to maintain curricular offerings, and reduce operating costs.

September 2017 Agenda Book 233 Pursuant to the Code of Virginia, § 23.1-213 to 229 and section 8VAC-40-31-90 of the Virginia Administrative Code, the following items were approved as delegated to staff:

Postsecondary, Non-Degree Institutions Certified to Operate in the Commonwealth of Virginia

Institution Location(s) Effective Date Agile 1 Tech IT Training School Manassas, VA June 12, 2017 Byers Technical Institute Buena Vista, VA May 22, 2017 Coding Dojo McLean, VA June 26, 2017 Greenlink Training Institute Arlington, VA May 24, 2017

Approved Changes for Certified Institutions

Institution Name Effective Date Change/Additional Location(s) Embry Riddle Aeronautical University Branch Campus: May 24, 2017 Quantico, VA

Institutional Student Financial Aid Plans

Pursuant to §4-5.01.b.1.a of the Virginia Acts of Assembly, staff has reviewed each individual institution's plan for expenditure of its appropriation for undergraduate student financial assistance and assumptions and calculations for determining the cost of education and student financial need. The institutions' reports have been received and reviewed in accordance with the Appropriation Act.

September 2017 Agenda Book 234

State Council of Higher Education for Virginia Agenda Item

Item: Council #D5 – Report of the Agency Director

Date of Meeting: September 19, 2017

Presenter: Peter Blake, Director [email protected]

Most Recent Review/Action: No previous Council review/action Previous review/action Date: Action:

Background Information/Summary of Major Elements: N/A

Materials Provided: Report of the Agency Director.

Financial Impact: N/A

Timetable for Further Review/Action: N/A

Resolution: N/A

September 2017 Agenda Book 235 State Council of Higher Education Director’s report September 19, 2017

Six-year plan meetings: We completed the biennial six-year plan meetings with the colleges and universities. Jean Mottley ably led the group hosting the meetings, which includes the Secretary of Finance, the Secretary of Education, the director of the Department of Planning and Budget, the staff directors of the House Appropriations and Senate Finance Committees and the SCHEV director. Dr. Mottley sent comments to all of the institutions. The institutions have until October 1 to respond to comments, at which time the final plans will be posted on the SCHEV website.

2017-18 tuition and fees: Public colleges and universities set tuition rates this spring for the 2017-18 academic year. Average tuition and mandatory fees at four-year institutions will be approximately $12,702, an increase of $565 over last year. Community college prices will increase by $120 to $4,508. The average increase for room and board at 4-year institutions is 3%, the lowest annual increase since 2001. As we have done annually for decades, SCHEV produced a detailed tuition and fee report, a summary of which is attached. The full report can be found here: http://schev.edu/docs/default-source/Reports-and-Studies/2017/tuition-and-fees- report-2017-18-exec-summary.pdf

General Professional Advisory Committee meeting: On August 28, Governor McAuliffe, Secretaries Moran and Trent and Deputy Secretaries O’Holleran and Molliet-Ribet participated in the regular meeting with public-institution presidents to discuss the recent events in Charlottesville and at the University of Virginia, the potential impacts on other institutions, and the administration’s responses and associated plans. Presidents expressed appreciation and vowed to follow up with feedback and suggestions; they also offered to participate in the Commonwealth’s response to Hurricane Harvey.

Boards of visitors orientation: We are excited by this year’s agenda. Featured speakers include Governor McAuliffe, Belle Wheelan (president of the Southern Association of Colleges and Schools Commission on Colleges), and Rick Legon, President of the Association of Governing Boards. We are completing the details of Council member participation. Council members Tom Slater and Katie Webb served on this year’s planning committee. The event will be held October 24-25 at the Virginia Historical Society in Richmond, with an evening reception on October 24 at the Virginia Museum of Fine Arts.

Center for investigation of campus sexual assault: In 2016, the Governor and the General Assembly appropriated $100,000 to SCHEV to study and design a pilot program for a regional center for the investigation of incidents of sexual and gender- based violence at the Commonwealth’s institutions of higher education. SCHEV completed the study and submitted its findings August 1. In studying and devising this concept, in consultation with Virginia’s institutions of higher education, law enforcement, victims’ advocates and the Office of the Attorney General, the report concluded that the regional-center model entails too many difficulties and unresolved

September 2017 Agenda Book 236 problems to make it feasible at this time. The full report can be found here: http://schev.edu/docs/default-source/Reports-and- Studies/2017/2017regionalcenterpilotprogramreport.pdf

GEAR UP program: SCHEV’s GEAR UP Virginia (GUV) program is completing year three of our $22 million seven-year grant from the U.S. Department of Education. The federal grant is designed to increase the number of low-income students who are prepared to enter and succeed in postsecondary education. It operates in 15 school divisions and offers college preparatory services and skills development to a cohort of students beginning in the 7th grade. The GEAR UP Class of 2020, made up of 4,168 students, entered high school this year as freshman. We will follow these students with services throughout high school and into their first year of college. The program partnered with James Madison University, University of Virginia and Old Dominion University to offer overnight campus learning experiences to more than 200 students this summer. Plans for the future, already underway, include a partnership with the Virginia College Advising Corps to provide more support for students at local GUV schools as they face critical decision points and deadlines in their junior and senior years of high school. Additional information about the program is attached.

Management fellows program: SCHEV submitted to the Virginia Management Fellows Program a proposal for a 12-month internship opportunity for a master’s-level fellow to assist in data analytics and website development. The project includes reporting on The Virginia Plan’s goal to be the best-educated state by 2030. The fellows program is a project of the Virginia Secretary of Finance Ric Brown.

Deferred Action for Childhood Arrivals (DACA): President Trump’s decision to rescind this program affects approximately 12,000 young adults in Virginia. Of those, approximately 1,300 are enrolled in Virginia’s public colleges and universities and receive in-state tuition. The Department of Homeland Security has issued statements outlining processes by which it will review initial and renewal applications. Eligibility for in-state tuition for fall 2017 is unaffected by this announcement. Staff is working with the Office of the Attorney General to assess other impacts of this executive action.

Out and about: Beverly Covington and I have been visiting legislators, often in their home offices. We will continue to meet with as many people as we can between now and the General Assembly session. I spent a day on the campus of Virginia Tech and a day in Norfolk meeting with various stakeholders. Wendy Kang and I attended the quarterly meeting of the University-based Economic Development at UVA’s College at Wise. Selected SCHEV staff attended the State Higher Education Executive Officers annual policy conference and led panel discussions and other presentations.

September 2017 Agenda Book 237 2017-18 Tuition and Fee Report: Highlights The first goal of The Virginia Plan for Higher Education, the statewide strategic plan, is to provide affordable higher-education access for all. The alignment of state appropriations, financial aid, and tuition and fees is critical to achieving this goal. Therefore, the State Council of Higher Education for Virginia creates an annual report on tuition and fees at the Commonwealth’s public colleges and universities. 1. Tuition & Fees: The average tuition and mandatory fees for instruction-related activities for in-state undergraduate students will increase by $422 (5.4%) in the 2017-18 academic year. That means an average increase of $437 (5.3%) at four-year institutions and $120 (2.7%) at community colleges. In comparison, these charges increased by 4.6% last year. Tuition and all mandatory fees — including athletic, student health service, and student government fees — will increase $546 (4.8%). This compares to last year’s increase of 4.6%. In total including room and board charges, Virginia undergraduate students will pay on average $860 (3.9%) more at four-year institutions. The increase in this total is the lowest in 16 years. 2017-18 full-time iIn-state undergraduate student charges

Tuition and Tuition and Total Charges E&G Fees % Incr. All Fees % Incr. (incl. R&B) % Incr. 4-Year Insts. $8,614 5.3% $12,702 4.7% $22,987 3.9% RBC $5,790 9.7% $7,830 9.7% $19,310 13.9% VCCS $4,493 2.7% $4,508 2.7% $4,508 2.7% All Inst. $8,205 5.4% $11,933 4.8% $21,683 4.4% 2. Historical perspective of tuition & fee increases: The Commonwealth has an official tuition policy premised on the rationale that higher education yields both public and private benefits. However, there is an inverse relationship between state funding and the rate at which tuition has increased at Virginia’s public higher-education institutions. When the state provides additional support to public higher education, institutions are better able to control the rate at which they increase tuition. When the state reduces its funding, institutions increase tuition to help offset budget cuts. The chart below depicts the average annual increase in tuition and mandatory E&G fees for in-state undergraduate students over the past 18 years. Average annual increases in tuition and E&G fees for in-state undergraduate students FY2001-FY2018

September 2017 Agenda Book 238 3. Tuition cost-share trend & affordability: The Commonwealth established a funding policy goal of a 67%/33% cost share between the state and students in 2004. The state reached its highest level support at 77% in 2001-02. A combination of budget cuts and tuition increases has reduced the state’s share of the cost since 2002. In FY2018 the state is expected to pay 47% while the student share is estimated at 53%, matching a record high and making the state’s share 20 percentage points lower than the target of 67%.

Cost-share relationship between the state and in-state undergraduate students

4. Total cost increases: Besides instruction-related activities, institutions manage fees charged for self-supported services such as student-life related activities, room and board. The chart shows institutions can manage fee revenue well and have a better control in annual fee increases in comparison of the relationship between state support and tuition increases.

Annual increases of in-state undergraduate cost by type at four-year institutions

5. Virginia’s tuition & fees rank among all states: In 2017-18, in-state undergraduate tuition and fees at Virginia public institutions are estimated to rank ninth-highest in the nation for the doctoral/research category. Tuition and fees at the comprehensive institutions are expected to

September 2017 Agenda Book 239 rank 4th highest nationally. Charges at Virginia two-year colleges have steadily increased since 2000, setting new historical levels over the last five years. Tuition and fees at Virginia two-year colleges are estimated to rank seventh-highest nationally in FY2018. Virginia rank among all states1,2 (in-state undergraduate tuition and fees at public institutions) Estimated Institution Category 1989-90 1993-94 2000-01 2009-10 2016-17 2017-18 3 Doctoral/Research Institutions 5th 8th 19th 16th 10th 9th

Comprehensive Institutions 3rd 3rd 6th 10th 5th 4th

Two Year Colleges 33rd 25th 40th 29th 9th 7th

Note: (1) Based on full-time in-state undergraduate tuition and fees in IPEDS. (2) Ranking is from highest cost to least cost. (3) VA charges are actual tuition and fees in FY18. Charges in other states are estimated by applying 2016-17 national increase rates of 2.5% for doctoral and 2.1% for comprehensive institutions, and 2.3% for public two-year colleges published in "Trends in College Pricing 2016" by the College Board.

Source: IPEDS Institutional Characteristics and College Board.

6. Tuition as a share of per-capita disposable income: As a percentage of per-capita disposable income (income available for spending and saving), the average total cost for an in-state undergraduate student living on campus at a four-year institution is estimated at 47.7% in FY2018 (see Chart 5). This measure of affordability has crept steadily higher from a low point (more affordable) of 31.4% in FY2002 and has surpassed the historical peak (least affordable) of 47% set last year. The trend line for our two-year institutions is similar.

September 2017 Agenda Book 240 7. 2017-18 full-time in-state undergraduate student charges by institution

Tuition and Mandatory Mandatory Tuition and Total Average E&G Fees Non-E&G Fees Mandatory Fees Room and Board1 Total Institutions Charge % Incr $ Incr Charge % Incr $ Incr Charge % Incr $ Incr Charge % Incr $ Incr Charge % Incr $ Incr GMU $8,672 5.7% $468 $3,252 5.0% $156 $11,924 5.5% $624 $11,090 3.4% $360 $23,014 4.5% $984 ODU $6,648 4.7% $300 $3,702 0.1% $4 $10,350 3.0% $304 $10,122 3.0% $298 $20,472 3.0% $602 UV A 2 $13,810 2.2% $295 $2,258 2.7% $59 $16,068 2.3% $354 $10,992 2.5% $266 $27,060 2.3% $620 V CU $11,483 4.5% $494 $2,141 0.0% $0 $13,624 3.8% $494 $10,187 2.7% $268 $23,811 3.3% $762 VT $11,263 2.9% $322 $1,967 2.9% $56 $13,230 2.9% $378 $8,690 3.2% $266 $21,920 3.0% $644 CWM3 $16,506 4.4%/0% $696 $5,538 2.1% $114 $22,044 3.8%/0.5%/0.6%/0.6% $810 $11,799 3.7% $417 $33,843 3.8%1.6%/1.7%/1.8% $1,227 CNU $8,270 5.1% $400 $5,384 3.9% $200 $13,654 4.6% $600 $11,224 2.8% $310 $24,878 3.8% $910 UVA-Wise $5,529 3.0% $160 $4,296 3.0% $126 $9,825 3.0% $286 $10,314 -0.3% ($32) $20,139 1.3% $254 JMU $6,250 6.0% $354 $4,628 3.0% $134 $10,878 4.7% $488 $10,112 3.9% $384 $20,990 4.3% $872 LU $7,620 3.7% $270 $5,100 4.3% $210 $12,720 3.9% $480 $10,418 4.8% $474 $23,138 4.3% $954 UMW $8,306 4.5% $358 $3,822 5.5% $200 $12,128 4.8% $558 $10,216 2.8% $278 $22,344 3.9% $836 NSU $5,478 3.0% $160 $3,558 4.0% $138 $9,036 3.4% $298 $9,866 4.0% $376 $18,902 3.7% $674 RU $7,461 5.9% $416 $3,166 4.3% $130 $10,627 5.4% $546 $9,131 2.1% $185 $19,758 3.8% $731 V MI $8,884 5.0% $423 $9,330 3.3% $299 $18,214 4.1% $722 $9,236 3.0% $268 $27,450 3.7% $990 VSU $5,547 3.0% $161 $3,179 3.0% $93 $8,726 3.0% $254 $10,880 3.0% $318 $19,606 3.0% $572 RBC4 $5,790 9.7% $510 $2,040 9.7% $180 $7,830 9.7% $690 $11,480 16.9% $1,660 $19,310 13.9% $2,350 V CCS5,6 $4,493 2.7% $120 $14 0.0% $0 $4,508 2.7% $120 N/A N/A N/A $4,508 2.7% $120

Avg. 4-yr Insts7 $8,614 5.3% $437 $4,088 3.2% $128 $12,702 4.7% $565 $10,285 3.0% $296 $22,987 3.9% $860 Avg. All Insts 7 $8,205 5.4% $422 $3,728 3.4% $123 $11,933 4.8% $546 $10,360 3.8% $381 $21,683 4.4% $904

(1) Charges listed here represent the weighted average double occupangy room charge and the maximum weekly meal plan offered, not necessarily the plan used by most students.

(2) The 2017-18 tuition and mandatory E&G fees are increased by 2.2% for all levels of students. Freshman and sophomore is $13,810, junior is $12,788 and senior students is $11,766. The weighted charges of four levels of students are $13,043.50 for tuition,

$15,301.50 for tuition and all fees, and $26,293.50 for total charges includng room and board.

(3) The 2017-18 tuition and mandatory E&G fees for first-time freshmen and transfer students is $16,506, an increase of 4.4% over 2016-17. Tuition for other levels of students has 0% increase. The weighted charges of four levels of students are $14,748.50 for tuition,

$20,286.50 for tuition and all fees, and $32,085.50 for total charges including room and board. The college adopted a guaranteed tuition for incoming in-state undergraduate students in 2013-14. The tuition charged in their freshman year is frozen for all four years of their undergraduate attendance.

(4) It should be noted that the RBC data has been updated to reflect 30 credit hours per year for full-time students for both 2016-17 and 2017-18.

(5) Northern Virginia (NVCC), J.Sargent Reynolds (JSRCC), Tidewater (TCC), Thomas Nelson (TNCC), Virginia Western (VWCC), Piedmont Virginia (PVCC), Germana (GCC) and John Tyler (JTCC) have tuition differentials in addition to the systemwide tuition.

The differentials per academic year are as follows: NVCC-$792; JSRR-$123; TCC-$60; TNCC-$60; VWCC-$60, PVCC-$30, GCC-$30, and JTCC-$30.

(6) Other mandatory fees vary by college, ranging from $69.90 to $865.50 per academic year, and are not included in this summary. N/A in Average Room and Board is because VCCS does not have this charge. (7) Increases for tuition and mandatory E&G fees and total are weighted to account for variable tuition charges at CWM and UVA.

September 2017 Agenda Book 241

GEAR UP Virginia 2014-2021 (Gaining Early Awareness and Readiness for Undergraduate Programs) Funded by the U.S. Department of Education Administered by the State Council of Higher Education for Virginia

About GEAR UP Virginia: In effort to increase student college enrollment and success and to transform the lives of low-income families and their communities, GEAR UP Virginia (GUV) began offering college preparatory services and skills development to a cohort of 7th grade students at 28 middle schools in 15 school districts beginning in 2014-15. These GUV students will receive support through their first year of college, following high school graduation in 2020. Beginning in 2015-2016, GUV also offers critical college preparation services annually to up to 50 homeless youth (priority students), during their senior year at four school divisions, and supports them through their first year of college.*

Goals and Objectives: Goals are to: 1) increase the academic performance and college preparation of GUV students; 2) increase the number of students in rigorous courses; 3) increase knowledge of college and financial aid among students and their families; 4) improve college readiness rates; and 5) increase college enrollment rates.

Number of Students Served: GUV currently serves 4,168 10th graders and up to 50 Priority Population homeless students annually for 6 years (up to 300 total).

Activities and Services: GEAR UP services include: 1) tutoring and mentoring; 2) summer programs to promote transition to high school and, later, transition to college; 3) professional development for teachers in core academic areas; 4) college and financial aid awareness workshops for students/parents; 5) visits to a variety of colleges; 6) counseling and advising related to college and career; 7) academic services in high school so that students do not need remediation in college; and 8) outreach to help high school graduates as they transition to postsecondary education.

According to our most recent survey, GUV students and parents found College Visits, Educational Field Trips, Tutoring, and Financial Workshops most helpful for helping students decide what to do after graduation.

GEAR UP Virginia Student Demographics (based upon 2016-17 Annual Performance Report):  6% of students are considered to be Limited English Proficient (LEP)  11% of GUV students have an Individualized Educational Program (IEP)  9% of GUV students are Latino  54% of GUV students are African American  71% average free/reduced lunch eligibility rate amongst GUV feeder schools

September 2017 Agenda Book 242

GEAR UP Scholarship: GUV students are eligible to receive a one-time award of up to $2,000 and no less than $600 for one term, depending on their college enrollment level (full-time, three-quarter- time, half-time, and less than half-time).

GEAR UP Virginia Quick Facts:  99% of GUV students were promoted to the 9th grade at the end of the 2015-16 school year.  33% of GUV parents participated in at least one GEAR UP activity according to our last survey.  26% of GUV students visited a college campus in the 9th Grade.  During 9th grade, GUV students participated in 28,290 hours of face-to-face tutoring, 2053 hours of mentoring, and 3153 hours of academic and career planning.  During 9th grade, GUV students engaged in over 3,200 online “homework help” tutoring sessions on Tutor.com. GEAR UP Virginia 2014-2021 Participating Divisions

School Division Superintendent Region Charlotte County 8 - Southside Charlottesville Public Schools 5 - Valley Covington Public Schools 6 - Western Danville Public Schools 6 - Western Dinwiddie County Public Schools 1 - Central VA Fredericksburg Public Schools 3 - Northern Neck Harrisonburg Public Schools 5 - Valley King & Queen County Public Schools 3 - Northern Neck Lynchburg Public Schools* 5 - Valley Newport News Public Schools* 2 - Tidewater Petersburg Public School* 1- Central Roanoke Public School* 6 - Western Suffolk Public Schools 2 - Tidewater Sussex County Public Schools 1 - Central Westmoreland County Public Schools 3 - Northern Neck 15 School Divisions *Divisions participating in the homeless youth services pilot initiative (priority)

Partners: Virginia Department of Education, Project Hope – Education for Homeless Children and Youth, University of Virginia, University of Richmond, Virginia State University, Virginia Tech, Old Dominion University, Virginia Commonwealth University, Mary Baldwin College, James Madison University, Virginia Community College System, Virginia Latino Higher Education Network, Virginia College Access Network, ACT, College Board, Virginia College Savings Plan, Princeton Review, and participating school divisions and other program stakeholders from surrounding communities.

September 2017 Agenda Book 243 Summary of Executive Committee Actions & Discussions (Chair: H. Fralin)

#A2, Discussion of SCHEV Legislative and Budget Proposals

September 2017 Agenda Book 244 Summary of Academic Affairs Committee Actions & Discussions (Chair: K. Webb)

#B3, Action on Programs at Public Institutions

BE IT RESOLVED that the State Council of Higher Education for Virginia grants approval to John Tyler Community College to initiate an Associate of Fine Arts degree program in Theatre (CIP: 50.0501), effective fall 2018.

BE IT RESOLVED that the State Council of Higher Education for Virginia grants approval to Northern Virginia Community College to initiate an Associate of Science degree program in Criminology and Criminal Justice (CIP: 43.0104), effective spring 2018.

#B4, Action on Revocation of Certificate to Operate (American College of Commerce and Technology)

WHEREAS, as a result of an audit conducted by SCHEV staff in February 2016, ACCT was found to be in violation of the Virginia Administrative Code (Exhibit 2, attached hereto and incorporated herein); and

WHEREAS, in accordance with Virginia law, ACCT exercised its rights to both an informal conference and formal hearing under the Administrative Process Act (APA) (Exhibits 3 and 4, attached hereto and incorporated herein); and,

WHEREAS, in accordance with the recommended decision resulting from the formal hearing, SCHEV entered into a Consent Agreement with ACCT to allow ACCT time to come into compliance with SCHEV regulations (Exhibit 5, attached hereto and incorporated herein); and

WHEREAS SCHEV conducted a re-audit of ACCT in June 2017 to determine the institution’s compliance with the three unresolved items of non- compliance reviewed by the hearing officer; and,

WHEREAS upon re-auditing ACCT, SCHEV staff found ACCT to be in non-compliance with two of the three items reviewed (Exhibits 6, 7, 8, and 9, attached hereto and incorporated herein); and

WHEREAS in accordance with the recommendation of the hearing officer and the terms of the Consent Agreement, SCHEV may now continue the process of revocation of ACCT’s certificate to operate;

THEREFORE, BE IT RESOLVED, in accordance with § 23.1-221 of the Code of Virginia, and with the regulations set forth in Part VII of 8VAC40-31, (i) that the State Council of Higher Education for Virginia (SCHEV), for the reasons stated herein, hereby revokes the American College of Commerce and Technology’s (ACCT) Certificate to Operate in the Commonwealth of Virginia, effective immediately; and

September 2017 Agenda Book 245 (ii) that the proprietors of ACCT shall make arrangements for the transfer of student records to SCHEV or another institution of postsecondary education approved by SCHEV within thirty days of the date of revocation, in accordance with subsection D of 8VAC40-31-280.

#B5, Report on Advance Placement (AP) / International Baccalaureate (IB) Implementation

September 2017 Agenda Book 246 Summary of Resources and Planning Committee Actions & Discussions (Chair: M. Connelly)

#C3, Action on Virginia Guaranteed Admission Program (VGAP)  BE IT RESOLVED that the State Council of Higher Education for Virginia approves the amended regulations for the Virginia Student Financial Assistance Program. Council delegates to staff to make future non-substantive administrative changes to the program, as appropriate.

#C4, Discussion of Enrollment Projections and Degree Estimates

#C5, Discussion of 2018-20 Systemwide Operating Budget:  Condition of Virginia Higher Education Funding  Virginia Higher Education Opportunity Act/TJ21 Funding Model  Options for Systemwide Budget and Policy Recommendations

#C6, Discussion of 2018-20 Systemwide Capital Outlay Budget:  Maintenance Reserve  New Capital Outlay

September 2017 Agenda Book 247

State Council of Higher Education for Virginia Agenda Item

Item: Council #D7 – Discussion of Updates to The Virginia Plan for Higher Education

Date of Meeting: September 19, 2017

Presenters: Peter Blake, Director [email protected]

Most Recent Review/Action:

No previous Council review/action Previous review/action Date: The Council receives updates at every meeting relative to The Virginia Plan, the most recent being July 18 at John Tyler Community College.

Background Information/Summary of Major Elements: At its September 2015 meeting Council approved six priority initiatives in support of goals of The Virginia Plan.

Materials Provided: Brief updates on selected activities related the initiatives are included in the agenda materials. Individual Council members will provide additional details.

Financial Impact: N/A

Timetable for Further Review/Action: N/A

Resolution: N/A

September 2017 Agenda Book 248

INITIATIVE 1: Coordinate the development and implementation of programs that align resources from pre-K-12, colleges, universities and other public sources to ensure affordable, efficient and effective pathways for students in all parts of the state.

Report on college access SCHEV recently released a report on college access. The report categorized school divisions by levels of economically disadvantaged students and the rate at which high school graduates enrolled in postsecondary education. It also identified services available to students and challenges faced by access providers (http://www.schev.edu/index/reports/schev-reports/access-study). The report includes recommendations informed by a taskforce that included Council member Carlyle Ramsey and former member Pam Moran. SCHEV staff presented the report to regional superintendents on September 7 (see item below).

Dual enrollment and general education transfer SCHEV has established an Advisory Committee on Dual Enrollment and General Education Transfer to assist with implementation of two bills passed in the 2017 General Assembly: HB1662 (Dual Enrollment and General Education) and SB 1234 (Passport Credit Program). The committee met July 20 and will hold its second meeting in October.

State and regional secondary partnership meetings SCHEV staff worked closely with Virginia Department of Education over the summer to identify opportunities for greater engagement with secondary schools. This included meetings between Peter Blake and State Superintendent of Public Instruction Steve Staples and with senior leadership at SCHEV and VDOE. On September 7, SCHEV staff met with the Superintendent Staples and with eight regional superintendent representatives. Participants agreed that SCHEV staff and local education leaders should participate in regional meetings over the coming months. We will invite Council members as those meetings occur. In addition, at the suggestion of Council member Rosa Atkins, SCHEV is pursuing engagement at the upcoming Virginia Association of State Superintendents’ November conference.

INITIATIVE 2: Seek legislative changes that support stable and sustainable public funding for higher education, such as a constitutional amendment, a dedicated funding source, and a revenue stabilization fund.

General Professional Advisory Committee meeting Council member Marge Connelly led a discussion with public college and university presidents on the Council’s emerging budget recommendations and other matters related to both Initiatives 2 and 3.

September 2017 Agenda Book 249

Finance Advisory Committee meeting Dan Hix led a discussion with public college and university chief financial officers on the Council’s emerging budget recommendations and other matters related to both Initiatives 2 and 3.

Recommendations for 2018-20 biennium At the September meeting, the Council will continue its deliberations relative to recommendations for operating budgets, capital appropriations, and student financial aid. Budget materials are included in this agenda book as Resources and Planning Committee Items C5 and C6. They relate to both Initiatives 2 and 3.

INITIATIVE 3: Review and recommend potential initiatives for further restructuring and shared services that enhance institutional and administrative flexibility and improve quality and efficiency.

Advancing additional restructuring As part of the six-year planning process, colleges and universities submitted proposals for additional administrative and operational restructuring. Most of the items are technical and can be handled administratively. The larger, policy- oriented items – notably around enrollment and tuition management – remain part of the Council’s larger discussion around budget and policy recommendations. Council member Minnis Ridenour has engaged university leaders on areas of further restructuring. He has encouraged them to think broadly about opportunities and to describe how restructuring has benefited both the institutions and the Commonwealth.

INITIATIVE 4: Collaborate with institutions to measure the quality of undergraduate education, including civic engagement of graduates and relevance to demand occupations across regions of the state.

Policy on student learning assessment and quality in undergraduate education Following Council’s approval in July of the new assessment policy, SCHEV convened a college and university leaders to implement the new policy. The group has begun to discuss a draft assessment plan template, which will be distributed to all institutions with a timeline for completion once the template has been finalized. The advisory group will have its first in-person meeting on October 2 and will discuss, among other things, the process by which plans and reports will be reviewed. Council members have been continuously engaged in this policy development through discussions and actions of the Academic Affairs Committee.

The policy contains the following aspirational statement on quality in undergraduate education: A high-quality college education must promote students’ intellectual and personal growth in ways that equip them to succeed in work and life. Higher education seeks to impart learning that is broadly relevant, intellectual skills that are rigorous and widely adaptable, and dispositions

September 2017 Agenda Book 250

and knowledge that contribute to a productive role in one’s personal and social relations. To that end, a college education in Virginia — regardless of major or specialized field of study — ideally should emphasize  Broad learning about science, society, technology, arts and humanities, human diversity, and global cultures and interdependence;  Intellectual and practical skills that support evidence-based reasoning and innovation—including analysis, communication, critical and creative thinking, quantitative fluency, information literacy, and collaborative problem solving;  Integrative and adaptive learning, including the demonstrated ability to apply knowledge, skills, and responsibilities to complex problems and new settings;  Personal and social responsibility, including ethical reasoning, civic and democratic knowledge and engagement, global acumen, and the capacity to work productively with diverse people and perspectives.

Virginia public higher education policy on course credit for Advanced Placement, Cambridge, College Level Examination Program and International Baccalaureate A full report is provided as Academic Affairs Committee Item B5. As per Council’s direction, SCHEV has implemented the policy collaboratively with attention to particular institutional missions, quality standards and student success. Staff periodically will review with Council the impact of the policy on both student outcomes and efficacy in supporting student pathways. Council members have been continuously engaged in this policy development through discussions and actions of the Academic Affairs Committee.

Wage and debt outcomes Staff is working to update the existing wage and debt outcomes data by academic program major and institution. Existing wage and debt reports are available on the website. SCHEV staff also is creating an advisory group, including Council members, to guide its work related to the use of data to inform policy actions. http://research.schev.edu/apps/info/Reports.Guide-to-the-Post-Completion- Wages-of-Graduates.ashx http://research.schev.edu/apps/info/Reports.Guide-to-the-Graduate-Debt- Reports.ashx

INITIATIVE 5: Launch a communications strategy to address public knowledge and benefits of higher education, through Council reports, traditional media, social media and other means.

Media reach SCHEV initiatives and reports reached 4.7 million Virginians through traditional “earned” media and 680,000 through social media in the period July 19-

September 2017 Agenda Book 251

September 7, 2017, calculated as the total audience for articles, broadcasts and online posts citing SCHEV.

Tuition and fees report In July and August, staff distributed the annual Tuition and Fees Report – an analysis of tuition, fees and other costs to students and families at Virginia institutions – in multiple forms: as a web page, four-page executive summary and as a full report. Prominent media placements followed in newspapers, TV and radio.

Student-focused resources website Staff gathered input from community-access providers, SCHEV’s Executive Roundtable on College Access in Virginia and others on how SCHEV could best present information to high school students about postsecondary options in Virginia. Based on this information and input from Council member Katie Webb, staff developed a website with informational resources for 11th- and 12th- graders and their families as well as college counselors and advisers; initial testing is scheduled for October. The launch aligns with the start of SCHEV’s 1- 2-3 Go! outreach initiative, which helps students prepare, apply and pay for college.

Weekly news digest Staff creates and distributes the weekly Commonwealth of Education newsletter and digest of information about higher education in Virginia, now completing its first year. Subscriptions have increased 90% in the 12 months since launch to 647 subscribers including institution leadership, media and policymakers. Staff plans a subscriber survey to refine the newsletter.

SCHEV Talks Staff launched a series of discussions and presentations at SCHEV offices; the first presentation in July, led by Council member Katie Webb, discussed communicating the value of higher education. Scheduled topics for fall include: SCHEV’s work to assess quality and creativity in higher education; and innovation in the workplace and what it means for higher education, led by Council member Ken Ampy.

INITIATIVE 6: Promote economic development for the Commonwealth by implementing a long-term plan that supports recruitment and retention of research faculty, provides matches to federal and private research grants and enhances commercialization of higher education research.

Virginia Research Investment Fund (VRIF) grant competition In early August, SCHEV received 10 proposals from public institutions for the first round of the VRIF grant competition. Staff member Lynn Seuffert reviewed the applications for compliance with the Call for Proposals, on which Council had advised the Virginia Research Investment Committee (VRIC), and she recruited a panel of subject-matter experts and venture capitalists to serve as the external-review team. The VRIC, on which Council Chair Heywood Fralin

September 2017 Agenda Book 252

and Director Peter Blake sit, will meet in November and/or December to review the top-scoring proposals and decide to which to award VRIF grants.

Research-asset assessment study In July and August, SCHEV staff Jennifer Brooks and Alan Edwards completed the procurement of a contract with a consultant to create an assessment of the Commonwealth’s research assets in higher education, federal facilities and the private sector. Council members Henry Light and Tom Slater attended the Virginia Research Investment Committee meeting on August 24 and participated in the discussion with TEConomy Partners managing director Mitch Horowitz. TEConomy Partners will conduct the project in phases, each of which should end in time to inform: (i) the Center for Innovative Technology’s work on its update to the Research and Technology Strategic Roadmap; (ii) VRIC’s review of the top-scoring proposals for the first round of Virginia Research Investment Fund grants; (iii) the 2018 legislative session; and (iv) the Council’s broader considerations of academic research.

Virginia Economic Development Partnership strategic planning process Council member Stephen Moret is leading the process; SCHEV director Peter Blake serves on a VEDP advisory committee.

Virginia Chamber of Commerce Blueprint 2025 Council member Gene Lockhart and SCHEV staff member Wendy Kang participated in the chamber’s planning committee to guide the new strategic plan for the Virginia Chamber. SCHEV submitted recommendations for consideration aligned with The Virginia Plan for Higher Education’s objective, goals and initiatives.

September 2017 Agenda Book 253

State Council of Higher Education for Virginia Agenda Item

Item: Council #D8 - Receipt of Items Delegated to Staff

Date of Meeting: September 19, 2017

Presenter: Peter Blake, Director [email protected]

Most Recent Review/Action: No previous Council review/action Previous review/action Date: March 20, 2002, July, 2002, September 2006 Action: The Council approved delegation of certain items to staff

Background Information/Summary of Major Elements:

Council delegated certain items to staff for approval and reporting to the Council on a regular basis.

Materials Provided:

Program actions approved/not approved:  Central Virginia Community College  George Mason University  Northern Virginia Community College  Old Dominion University  Virginia Commonwealth University

Diploma, Certificate, Discontinued and Modified Programs reported:  The College of William and Mary in Virginia  George Mason University  Virginia Commonwealth University  University of Virginia

National Council for State Authorization Reciprocity Agreements approved:  Blue Ridge Community College

Internal and Off-Campus Organizational Changes approved:  Christopher Newport University  The College of William and Mary in Virginia  Virginia Polytechnic Institute and State University

September 2017 Agenda Book 254 Postsecondary, Non-Degree Institutions Certified to Operate in the Commonwealth of Virginia  A16 Coding Training Institute  DATS of Virginia  DB Tech Training  Excel Health Institute  New York Code and Design Academy  Tidewater Medical Training

Approved Changes for Certified Institutions  Southeastern University (SEU) at Lifepoint Church

September 2017 Agenda Book 255 Items Delegated to Director/Staff

Pursuant to the Code of Virginia, § 23.1-203 and Council’s “Policies and Procedures for Program Approval and Changes,” the following items were approved/not approved as delegated to staff:

Program Actions

Institution Degree/Program/CIP Effective Date Central Virginia New Degree Program Approved: Fall 2017 Community Associate of Applied Science degree College program in Fire Science Technology (43.0203). [Conferral Fall 2018] George Mason New Degree Program Not July 24, 2017 University Approved: Bachelor of Science degree program in Business (52.9999) Northern Virginia Spin-Off Program Not Approved: Spin-off August 17, 2017 Community an Associate of Science degree program in College Criminology and Criminal Justice (43.0301) from an existing Associate of Applied Science degree program in Administration of Justice (43.0103) Old Dominion CIP Code Change Approved: Change the Fall 2017 University CIP code of the Bachelor of Science degree program in Environmental Health from (51.9999) to (51.2202) Virginia Substantial Modification Not Approved: July 13, 2017 Commonwealth Doctor of Philosophy degree program in University Nursing (51.3808)

Pursuant to the Code of Virginia, § 23.1-203 and Council’s “Policies and Procedures for Program Approval and Changes,” the following items were reported:

Diploma, Certificate, Discontinued and Modified Programs

Institution Degree/Program/CIP Effective Date The College of William Initiate a new Graduate Certificate in Fall 2017 and Mary in Virginia Autism Spectrum Disorder (13.1013) [Conferral: Spring 2018] George Mason Simple Program Modification: Fall 2017 University Add an online delivery format to the Master of Laws in Global Antitrust Law and Economics (22.0205). [Conferral: Spring

September 2017 Agenda Book 256 Institution Degree/Program/CIP Effective Date 2018] Virginia Simple Program Modification: Fall 2017 Commonwealth Add an online delivery format to University the Master of Business Administration degree program in Business Administration (52.0201). [Conferral: Summer 2019] Virginia Simple Program Modifications: Add an Fall 2017 Commonwealth online delivery format to the following University degree programs: Spring 2019 Conferral:  Master of Education in Educational Leadership (13.0401);  Master of Social Work in Social Work (44.0701) Spring 2018 Conferral:  Post Master’s Certificate in Educational Leadership (13.0401) University of Virginia Initiate two new Graduate Certificate Fall 2017 programs [Conferral: Spring 2017]  American Studies (05.0102);  Gender and Sexuality Studies (05.0207)

Pursuant to the Code of Virginia, § 23.1-203 and Council’s “Policies and Procedures for Internal and Off-Campus Organizational Changes,” the following items were approved as delegated to staff:

Institution Change/Site Effective Date Christopher Rename the Department of Government to October 1, 2017 Newport University the Department of Political Science. The Department has been re-named to provide an accurate description of the academic interest of faculty and the curricular focus of programs offered by the department. The College of Rename the Department of Psychology August 16, 2017 William and Mary to the Department of Psychological in Virginia Sciences. The Department has been re-named to reflect research activity and productivity, and emphasize the department’s commitment to the science orientation of psychology. The College of Close the Peninsula Center, an off- August 15, 2017 William and Mary campus instructional site, located at 11828 in Virginia Fishing Point Drive, Suite 112, Newport

September 2017 Agenda Book 257 Institution Change/Site Effective Date News, VA 23606 Virginia Establish an off-campus instructional site: August 1, 2017 Polytechnic Virginia Tech Research Center-Arlington Institute and State located at 900 North Glebe Road, Second University Floor, Arlington, Virginia 22203

Pursuant to the Code of Virginia, § 23.1-211 and Council’s “Commonwealth of Virginia Policy on the Reciprocal Authorization of Distance Education and Related Activities,” the following items were approved as delegated to staff:

National Council for State Authorization Reciprocity Agreements (NC-SARA) Approvals

Institution Effective Date Blue Ridge Community College August 21, 2017

Pursuant to the Code of Virginia, § 23.1-213 to 229 and section 8VAC-40-31-90 of the Virginia Administrative Code, the following items were approved as delegated to staff:

Postsecondary, Non-Degree Institutions Certified to Operate in the Commonwealth of Virginia

Institution Location(s) Effective Date A16 Coding Training Institute Richmond, VA July 26, 2017 DATS of Virginia Fairfax, VA March 29, 2017 DB Tech Training Woodbridge, VA July 10, 2017 Excel Health Institute Manassas, VA August 16, 2017 New York Code and Design Academy Ashburn, VA April 17, 2017 Tidewater Medical Training Hampton, VA Aug 1, 2017 Virginia Beach, VA

Approved Changes for Certified Institutions

Institution Additional Effective Date Location Southeastern University (SEU) at Fredericksburg, VA August 17, 2017 Lifepoint Church

September 2017 Agenda Book 258 State Council of Higher Education for Virginia Agenda Item

Item: Council #D10 – Old Business

Date of Meeting: September 18, 2017

Presenter: Peter Blake, Director [email protected]

Most Recent Review/Action: No previous Council review/action Previous review/action Date: Action:

Background Information/Summary of Major Elements:

The Council has asked that two items be presented as Old Business at its meetings. One item includes a list of Council priorities presented at previous meetings.

From the July meeting, Council requested the following items:  A presentation on student retention, progression and graduation  A formation of an advisory body for the Virginia Longitudinal Data System  Additional research on presentation made by Stephen Moret relative to “malemployment” and actions institutions can take to stimulate greater economic development  A public statement about defining SCHEV’s certification of an institution to operate

The second item Council asked to be included as Old Business is a periodic review of SCHEV staff development initiatives. Director Blake will present information related to staff development at the September meeting.

Materials Provided: N/A

Financial Impact: N/A

Timetable for Further Review/Action: These items will remain on the Old Business agenda until they are removed.

Resolutions: N/A

September 2017 Agenda Book 259