SCHEV seeks $58.7 million more for student aid

The State Council of Higher Education for Virginia will urge the General Assembly to appropriate an additional $58.7 million in undergraduate financial aid over the next two years to offset the decrease in state support that has resulted in higher tuition.

Noting the declining fortunes of the state's colleges and universities, SCHEV yesterday adopted a resolution that set student aid as its top priority for the 2010-12 budget biennium.

"Virginia higher education is at a tipping point," said Christine T. Milliken, the council's chair.

The council is seeking an increase in financial aid for in-state undergraduates of $19.9 million for fiscal 2011 and $38.8 million for 2012.

The 2009 General Assembly increased student financial aid by $10 million, bringing funding to about $128 million a year. SCHEV was told that at four-year public schools, nearly 66 percent of that aid for 2007-08 went to families with incomes of less than $50,000. For two-year colleges, that figure rose to nearly 85 percent.

Over the past decade, the average undergraduate award at four-year schools has increased from $2,124 to $3,267. But while the dollar amount has increased, the awards represent a decline based on the percentage of tuition and fees -- from 56 percent to 46 percent, said Lee Andes, SCHEV's assistant director for financial aid.

Andes said a spot check of state schools showed the need for financial aid is rising because of the recession.

One measure of that need is the number of students eligible for federal Pell Grants, which aid the neediest families. Some four-year schools report increases of 10 percent to 25 percent in Pell-eligible students, while community colleges are seeing an increase of 36 percent.

SCHEV also is recommending $17.7 million in additional aid for graduate students over the biennium, as well as $16.5 million more to maintain a grant program for Virginia residents attending the state's private universities.

Funding for that program, known as the Tuition Assistance Grant, would allow maximum awards of $3,200 to undergraduates and $1,900 to graduate students at nonprofit schools.

In its meeting at Virginia Commonwealth University, the council said Virginia trails other states in higher-education support. The national average for educational appropriation per student was $7,059 in 2008. In Virginia, it was $5,805 at four-year schools.

Nationally, the state ranks 40th in state and local appropriations per student. In a regional seven-state ranking from New York to North Carolina, Virginia ranks last.

SCHEV's resolution also urged that schools dedicate at least 5 percent of tuition increases for need-based aid for in-state students.

Noting the state's severe financial predicament, the council acknowledged other goals would have to wait, including salary increases for faculty, which lag behind peer institutions. An average 5.5 percent annual increase would be needed over the biennium, at a cost of $140 million, to raise salaries to the 60th percentile of what their peers make at comparable schools.

In remarks at the start of the meeting, VCU President Michael Rao said the university not only needs to increase its faculty numbers but also pay competitive salaries "to keep our good people here."

"What we really are most of all is our people," he said.

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