Decentralization in Higher Education (language only)

Item 278 #1c

Language
Page 183, strike lines 12 through 31 and insert:
"B.  The Secretary of Finance by December 20, 1998, shall recommend to the Chairmen of the Senate Finance and House Appropriations Committees whether decentralization pilot programs of selected finance and administrative functions currently under way within institutions of higher education shall be continued beyond June 30, 1999, and shall propose legislation that may be required to fully implement decentralization.  The Secretary's report shall also include information on the status, progress and success of decentralization projects that have been approved.  The Secretary of Finance, in consultation with the Secretaries of Administration and Education and the Director of the State Council of Higher Education, shall subject requests from the institutions for relief from rules, regulations, and reporting requirements in the areas of finance and accounting, the purchase of goods and services, and human resource management to rigorous review and shall not grant such requests unless the Secretary of Finance has a high degree of confidence in the capability of the institution to carry out the decentralized activity.  However, no decentralization pilot programs shall be authorized in the area of correctional enterprises and in the area of enterprises operated by the Department for the Visually Handicapped (Virginia Industries for the Blind); and, unless specifically authorized in this act, no decentralization pilot programs shall be authorized in the areas of capital outlay or telephone and data transmission service.  Prior to the Secretary of Finance authorizing any decentralization project, the board of visitors of the requesting institution must approve the project and agree to terms and conditions as prescribed by the Secretary, including central agency oversight, internal controls, internal audit, and post-audit evaluation requirements."

Explanation
(This amendment clarifies policy proposed in the budget bill, as introduced, on the decentralization of selected central agency administrative functions to the institutions of higher education.)