Virginia seeks to move up use of stimulus money for higher ed

The state will seek a waiver from the federal government that would allow Virginia to move forward stimulus funding to help offset more than $196 million in budget cuts to higher education this year.

Secretary of Finance Richard D. Brown told the State Council of Higher Education for Virginia yesterday that it appears the state will qualify for the federal waiver that is required to use $91.5 million in stimulus money this fiscal year instead of next.

Gov. Timothy M. Kaine announced Sept. 8 that he would seek federal permission to move forward that stimulus funding, which had been set aside for higher education in fiscal 2011. Using the stimulus money now would reduce the state cuts to higher education this fiscal year to about $105 million.

Brown told SCHEV that the lower revenue forecast in August means the state should qualify for a waiver of what's known as the "maintenance of effort" requirement. The guideline requires states to provide support for education at the same or greater level as they provided in fiscal 2006, but a waiver can be sought if support is proportional based on 2009 state revenues.

Brown said that using the stimulus funding this year will not necessarily reduce the 2011 amount, but the state will need to recalculate the distribution of money between higher education and K-12. The state has been allocated $983.9 million in stimulus funding for education, with about one-third remaining for fiscal 2011.

Brown's briefing came as SCHEV works on its spending recommendations to the General Assembly for the next budget biennium, which begins July 1.

The council, an advisory agency that coordinates Virginia's higher-education system, received a report showing the decline of state support for higher education since 1992.

State support fell by about 18 percent per in-state student at four-year schools during that time, while tuition revenue rose by approximately 90 percent.

Virginia lags behind other states in its support, resulting in a greater reliance on tuition for revenue, SCHEV was told. Virginia ranks 40th nationally in state and local appropriations per student, but 20th in revenue collected from tuition and fees.

"Virginia's got to do a better job," said council member Alan L. Wurtzel.

He said SCHEV should "make a stronger case to the General Assembly that Virginia can afford and should afford" to increase its investment in higher education.

In other action, SCHEV approved budget requests for an additional $1.4 million for the 15-year-old Virtual Library of Virginia and $2 million to establish a new Virginia Virtual Computing Lab.

Contact Karin Kapsidelis at (804) 649-6119 or .