Authority: Title 2.2, Chapter 2, Article 4, § 2.2-201A, Code of Virginia.

A.1. It is the intent of the General Assembly that institutions of higher education develop strategic plans, at least every four years, that promote and sustain the quality, access, accountability, and affordability of Virginia's public institutions of higher education.

2. Each four-year public institution of higher education, Richard Bland College, and the Virginia Community College System shall submit to the State Council of Higher Education, pursuant to Item 165, paragraph B 1, a progress report on implementing its current strategic plan, including the progress it has made in meeting the following statewide goals: a) enhancing instructional quality; b) accommodating enrollment demand; and c) increasing Virginia’s national standing with regard to sponsored research.

3. In implementing these statewide goals and their institutional goals, Virginia public colleges and universities shall apply the following guiding principles: a) maximize student access to higher education and minimize the cost to students and the state; b) enhance administrative efficiency and productivity; and c) streamline operations as a means for improving managerial flexibility.

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 or either located in federal enterprise communities or located in cities and counties within which federal enterprise communities are located.

C. The Secretary of Education is hereby authorized to make allocations of the portion of the tax-exempt private activity bond limitation amount to be allocated annually to the Commonwealth of Virginia pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (PL 107-16)(Section 142(k)(5) of the Internal Revenue Code of 1986, as amended) for the development of education facilities using public-private partnerships, and to provide for carryovers of any unused limitation amount. In making such allocations, the Secretary is directed to give priority to public-private partnership proposals that will serve as demonstration projects concerning the leveraging of private sector contributions and resources, the achievement of economies or efficiencies associated with private sector innovation, and other benefits that are or may be derived from public-private partnerships in contrast to more traditional approaches to public school construction and renovation. The Secretary is directed to report annually not later than August 31 (commencing August 31, 2002) to the Chairmen of the Senate Finance and House Appropriations Committees regarding any guidelines implemented and any allocations made pursuant to this paragraph.

D. 1. It is in the Commonwealth’s interest that Virginia’s system of higher education undertake actions necessary to serve more students, ensure degree or certificate completion, spur economic development, expand research capacities, and contribute to the quality of Virginia’s social and cultural lives, while at the same time minimizing costs to students and the state. As part of the Commonwealth’s commitment to support institutional efforts to address these statewide needs, the Educational and General Program appropriations in this act include an additional $39,361,687 from the general fund in fiscal year 2005 and $42,749,730 from the general fund in fiscal year 2006. These funds are intended to enhance state support for the cost of education, research, and service. The amounts cited in this paragraph are contingent upon the passage into law of the provisions contained in Enactment Nos. 2, 3 and 5 of Part 5 of introduced House Bill 30/Senate Bill 30 of the 2004 Session.

2. The Educational and General Program appropriations in this act include an additional $10,158,925 from nongeneral funds in fiscal year 2005 and $19,402,425 from nongeneral funds in fiscal year 2006. These additional funds represent other sources, including tuition revenues and institutional funds, which contribute to the cost of education, research, and service. The amounts cited in this paragraph are contingent upon the passage into law of the provisions contained in Enactment Nos. 2, 3 and 5 of Part 5 of introduced House Bill 30/Senate Bill 30 of the 2004 Session.

3. The Director, Department of Planning and Budget, shall allot the appropriations described herein upon authorization by the Secretary of Education that each college and university has submitted information on its respective efforts to meet the goals outlined above. Institutions shall submit this information, in a form and manner prescribed by the Secretary of Education, by August 1, 2004, to the chairmen of the House Appropriations and Senate Finance Committees, the Director, Department of Planning and Budget, and the State Council of Higher Education. Prior to the 2005 Session of the General Assembly, the State Council of Higher Education will present a preliminary report to the Governor and the General Assembly on actions taken and any recommendations related thereto.

E. Out of this appropriation, $50,000 the first year from the general fund and $50,000 the second year from nongeneral funds is designated to support establishment of the Virginia Cancer Research Fund.