Virginia Higher Education Opportunity Act of 2011: Bill Summary

The Virginia Higher Education Opportunity Act of 2011 (SB 1459/HB 2510), which passed the legislature unanimously, aims to increase the number of college graduates who are prepared for the top job opportunities while also reforming and innovating how higher education is provided. A study conducted by the Weldon Cooper Center for Public Service found that, for every $1 Virginia invests in higher education, $13 is generated in economic output. The clear return on investment helped the legislation garner widespread support.

The act’s provisions are centered around three main goals: reform-based investment in higher education, affordable access for low- and middle-income students and improved economic opportunity.

Reform-Based Investment

• Creates incentives for institutions to meet the goals of the legislation, which include increased enrollment, increased degree completion, improved retention and graduation rates, increased research output, and increased degree production in STEM fields. Incentives also exist for achieving efficiency gains through year-round use of campus facilities, online courses, resource sharing and better use of technology.
• Creates a Higher Education Advisory Committee that brings together executive, legislative and institutional representatives to assess how colleges and universities are progressing toward the goals of the Higher Education Opportunity Act.

Affordable Access

• Establishes a model for stable higher education funding, and commits both the state and institutions to increasing financial aid for low- and middle-income students.
• Provides performance-based funding for institutions that meet the goals listed above.

Economic Opportunity

• Establishes a goal to confer an additional 100,000 degrees over the next 15 years.
• Creates a public-private partnership to increase degree attainment in high-demand science, technology, math and engineering (STEM) fields and in health care professions. The partnership will develop and implement strategies to improve STEM education in K-12 grades so that students are better prepared to study those fields in college. The partnership will provide financial incentives to encourage students to pursue STEM and health care degrees at Virginia’s colleges.
• Establishes “economic opportunity metrics” to help students understand the economic value of various degree programs as they make career choices, and to help policymakers as they allocate funding. The metrics may include market demand for the degree, earning potential and employer feedback.