Authority: Title 2.1 2.2, Chapter 5.4 2, Article 4; § 2.1-51.10:1 2.2-201A, Code of Virginia.

A.1. In furtherance of its work in the development of funding guidelines for public colleges and universities as set forth in Item 1, and pursuant to the recommendations of the Governor's Commission to Evaluate the Needs and Goals of Higher Education in Virginia in the 21st Century, it is the intent of the General Assembly that institutions of higher education develop strategic plans that promote and sustain the quality, access, accountability, and affordability of Virginia's public institutions of higher education.

2. By October 15, 2000, each four-year public institution of higher education, Richard Bland College, and the Virginia Community College System shall submit to the Secretary of Education a progress report on implementing its current strategic plan, including the progress it has made in meeting the following objectives:

a. Improve the quality of instruction, public service, research, and student life;

b. Maximize student access to higher education and minimize the cost to students and the state; and

c. Enhance administrative efficiency and productivity.

3.a. As part of its report, each institution shall evaluate its progress on the objectives identified in the strategic plan and identify the resources needed to meet the objectives. The progress report shall include benchmarks or other measures, where applicable, for use in assessing an institution's progress toward the objectives set out above.

b. The report also shall include proposals for enhancing managerial autonomy and streamlining operations as a means for improving managerial flexibility in meeting its strategic plan objectives.

4. The progress report shall be prepared according to a format approved by the Secretary of Education and the State Council of Higher Education and distributed to institutions no later than July 1, 2000.

5. By December 1, 2000, the Secretary of Education shall report to the Chairmen of the Senate Finance Committee and the House Appropriations Committee on the status of the institutions' strategic plans, including the items enumerated above. Based on the strength of the institutions' strategic plan reports, the Secretary's report may include a recommendation to the 2001 General Assembly on which institutions should be considered for development of specific institutional performance agreements, pursuant to the report of the Governor's Commission to Evaluate the Needs and Goals of Higher Education in Virginia in the 21st Century. Such a recommendation shall include a process for developing an agreement and a plan for incorporating the funding recommendations of the Joint Subcommittee on Higher Education Funding Policies into the performance agreement.

B. The Secretary of Education is hereby authorized to make allocations to qualified zone academies of the portion of the national zone academy bond limitation amount to be allocated annually to the Commonwealth of Virginia pursuant to Section 1397E of the Internal Revenue Code of 1986, as amended, and to provide for carryovers of any unused limitation amount. In making such allocations, the Secretary of Education is directed to give priority to allocation requests for qualified zone academies having at least 35 percent free lunch participation and either (i) located in federal enterprise communities or (ii) located in cities and counties within which federal enterprise communities are located.

C.1. The Distance Learning Steering Committee, established in Item 127 E of Chapter 935, 1999 Acts of Assembly, shall be continued. In carrying out its work, the Committee shall seek support from public and private colleges and universities to assess distance learning issues, including ways to provide for interoperability among institutions for such issues as student application, registration, and transfer of credit. By October 15, 2000, the Steering Committee shall report its findings and recommendations to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees. The report shall include a recommendation on funding needed to improve and expand distance learning and distributed education.

2. This appropriation includes $250,000 the first year from the general fund for the Electronic Campus of Virginia to develop and maintain a comprehensive electronic entry point for on-line higher education courses and programs.

D. The Secretary of Education, with the assistance of the Department of Education and the State Council of Higher Education, shall examine the regulation of proprietary schools to determine the most appropriate agency within the Education Secretariat to regulate these schools. The Secretary of Education shall report the findings and recommendations from this examination to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees by November 15, 2000.

E. The Secretary of Education, in cooperation with the Superintendent of Public Instruction, the Commissioner of the Department of Social Services, the Commissioner of the Department of Health and the Director of Juvenile Justice, shall review the Commonwealth's past and present usage of and opportunities for federal grants and funds related to early childhood reading initiatives. In addition, the Secretary shall recommend additional actions to maximize the Commonwealth's utilization of all available funding sources by federal and state government and private sector initiatives aimed at assisting children and their families with early family assisted reading, pre-school programs for early learning, K-3 reading initiatives, and after-school learning assistance programs which will assist children in reading at grade level when they reach third grade. The Secretary shall report the findings to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees by November 1, 2002.

F. 1. Each institution of higher education, including the Virginia Community College System, shall develop a tuition and fee policy for each fiscal year of the 2002-04 biennium. The policy shall be expressed in a plan to be approved by the Governor and shall be subject to the conditions set forth in § 4-2.01 b. of this act. The plan shall include, but not be limited to, the following components:

a. The tuition and fees to be charged to in-state students, out-of-state students, undergraduate students, graduate students and professional students, for both the regular school year, the summer session and any session other than the regular school year. Any increase in tuition and mandatory educational and general fees to in-state undergraduate students shall not exceed $200 for the total school year including the summer session.

b. The total tuition and fee revenue to be generated from each category of student and for each session.

c. The total revenue to be generated from the entire plan.

d. A comparison between the current tuition and fees for fiscal year 2001-02 and the charge proposed under the plan, as to both the category of the charge and the total revenue generated under the existing tuition and fee structure and the proposed structure, for each year of the 2002-04 biennium.

2. The institution shall submit its plan for the first year of the 2002-04 biennium (fiscal year 2003) no more than fifteen days after enactment of this act, to the Secretary of Education.

3. The Secretary of Education, in consultation with the State Council of Higher Education and the Department of Planning and Budget, shall review and make recommendations on the plan. The Secretary of Education shall submit his recommendations to the Governor. The Governor shall act on the proposed plan by June 15, 2002. The Governor shall approve, modify, or reject the plan.

4. The Secretary of Education shall transmit a copy of the plan as approved by the Governor for each institution of higher education to the Chairmen of the House Appropriations and Senate Finance Committees.