HJR 197 “requests the State Council of Higher Education to consider the establishment of a public four-year degree granting institution of higher education in South Central Virginia in developing its systemwide needs assessment plan for higher education in the Commonwealth. The institution must strengthen and support existing public and private institutions of higher education in the South Central Virginia region. In its deliberations to develop the plan, the Council shall (i) solicit the participation of and collaborate with all interested parties, and (ii) evaluate all available options, including, but not limited to, the creation of a branch campus of an existing institution in the South Central Virginia region. This resolution is identical to SJR 86."

The generosity and commitment of the Harvest Foundation to the citizens of Martinsville and Henry County in offering a $50 million challenge grant to the Commonwealth will surely be remembered for years to come in the Virginia higher education community. Through the efforts of the Foundation and the leadership of former JMU president and chancellor, Dr. Ron Carrier, and his assembled team, a great deal of attention has been brought to the plight of Southside Virginia and its related needs. Most especially, SCHEV thanks Dr. Carrier and the Harvest Foundation for the exceedingly innovative proposal they have brought forward and the opportunity to watch it develop and evolve so quickly in such a short period of time. The Harvest Foundation should be commended for its support of, and commitment to, Dr. Carrier’s vision for the New College of Virginia (NCV).

Likewise, President Patricia Cormier of Longwood University, President Roseanne Runte of Old Dominion University, and President Max Wingett of Patrick Henry Community College are to be commended for their proposed Collaborative 2+2 Program.

SCHEV has spent three days in public hearings in Martinsville, Danville, and Richmond, many months reviewing the NCV and Collaborative proposals, data about Southside (and the rest of the state) and studying various options for postsecondary education in the Southside region.

This is new ground for the Commonwealth, as it has not created a new institution since the creation of Virginia State University in 1882. The state constitution and the Code of Virginia are both silent on the how and when of this issue. Virginia’s history of creating four-year institutions has been based on an incremental model of expanding Normal Schools or allowing existing institutions to create branch campuses that eventually become independent institutions. This model has worked admirably well for the state.

In studying the available data, SCHEV finds that:

1) While projections suggest minor overall population growth in the region, three localities – Danville, Martinsville, and Henry County – will likely face population losses through the end of the decade.

2) Despite projections of significant growth in enrollment at community colleges in Southside, the great bulk of this growth comes from displaced workers receiving up to 24 months of benefits under the Trade Act. The Trade Act is designed to assist workers who have lost their jobs because of the globalization of the market place – either through off-shoring of jobs or increased imports.

3) The average total cost of education at a public four-year institution, represents from one-third to one-fifth of the median family income of families in Southside and Southwest Virginia.

4)There are compelling merits for both the New College of Virginia and the Collaborative proposals. However, from an economic development standpoint, neither is a guarantee of real transformation for Southside without new jobs to attract and hold graduates and from an educational standpoint the NCV proposal is untried.

5) Unemployment rates are substantially higher in both Southside and Southwest Virginia than in the rest of the state. At the same time, percentages of working age adults without a high school diploma are quite high, up to 47% in some localities, and the levels of college attainment are correspondingly low – much lower than the rest of the state. This makes it especially difficult to bring high wage jobs to the area.

6) Wise County, Virginia, home of the University of Virginia’s College at Wise, is also beset with unemployment and loss of industries, suggesting that the mere presence of a postsecondary institution does not necessarily ensure a strong economic base for the region.

7) Apart from its innovative program, which may find significant appeal, the most notable attribute NCV brings to the region is 124 well-paying jobs and an annual payroll of some ten million dollars. This alone should stimulate some new growth in the region. The Collaborative proposal provides about half the direct impact.

8) Neither party as yet has conducted an objective and thorough needs assessment of the region to determine what programs/opportunities are most needed and desired and if there is sufficient demand to support a four-year program.

9) Finally, the creation of a new institution in Southside, one that focuses on rural student populations, is unlikely to reduce the increased enrollment demand pressures that the Commonwealth is currently struggling with. If NCV were to be created and successful in enrolling new groups of students, the creation of NCV would create a new market, one outside of the current demand model. Thus, the nine million dollars of general fund appropriations that would be targeted to NCV would be unavailable for solving the demand issues that the Commonwealth already faces.

However, given the high rates of unemployment and economic turmoil brought on by the loss of the tobacco, textiles, and furniture industries, and the great distances from places like Martinsville and Danville to a Virginia public four-year institution, a compelling case can be made for the Commonwealth to provide additional postsecondary educational opportunities in Southside Virginia. Before making a specific recommendation on creating a new institution, however, SCHEV believes an objective needs assessment is required to validate that there is sufficient demand and need for educational programs and to determine which of the various possibilities suggested will best meet that need.

In light of these findings, SCHEV is not ready to endorse fully the proposed New College of Virginia, or the creation of any new institution in Southside. While much is found in the NCV proposal that is of great interest, there are still a number of unresolved issues. Most notably, apart from the needs assessment that has yet to be conducted is the issue of the potential increase in demand if NCV is created, while not resolving existing enrollment demand pressures. Until SCHEV and others have the opportunity to pursue this further, it is recommended that the Commonwealth move at a slower pace.

Further, it is the sense of SCHEV that the General Assembly and the Governor consider funding the following recommendations for immediate action, thus delaying possible implementation of the NCV proposal by not more than an additional year.

1. Conduct an objective needs assessment, with an accompanying broad survey of interest of all levels of high school students, to determine the most appropriate higher education model and types of programs needed and desired. Cost estimate: $50,000-$100,000.

2. Develop a high profile website to act as a gauge for program demand, perhaps in conjunction with VirginiaMentor, to determine what programs students in Southside actually want. Perhaps develop a similar website for business and industry to express their anticipated need for future graduates. Of course, this could be expanded for statewide use as well. Cost estimate: $50,000-$100,000.

3. Delay creation of any new institution until both proposals can be thoroughly studied and the proponents of each, as well as any new providers, can talk through the possibilities of collaboration on a single joint effort. The Secretary of Education has expressed interest in leading this discussion.

4. Fund up to 100 localized “Super-TAG" awards for Fall 2005 for local students at $1,500 per year as a pilot program to determine the efficacy of providing additional TAG funds to local students to attend the local private institutions. Cost estimate: up to $150,000.

5. Encourage the Harvest Foundation to fund, in partnership with the Commonwealth, K-12 support for college readiness – tutoring, basic skills, and GED attainment programs. Using a 1:1 match, begin to expand the base of potential students ready for a baccalaureate degree program, regardless what option is chosen later. This effort could make a material difference in college readiness and the attractiveness of the Southside workforce. Cost: up to $2,500,000 (state share).

6. Curriculum evaluation and development for all parties proposing to deliver additional services in Southside, after successful completion of an objective needs assessment pointing to a need for four-year programs. Cost estimate: $100,000.

If it is the will of the Legislature to act affirmatively in the 2005 Session to create a new public, degree-granting institution in Southside, it is SCHEV’s recommendation that the Assembly should adopt the proposal of Longwood University, Old Dominion, and Patrick Henry Community College, i.e., the Collaborative proposal. The Collaborative proposal is more affordable at a time when the Commonwealth is still struggling with how to best fully fund its existing institutions. The Collaborative proposal comes with immediate accreditation of the Southern Association of Colleges and Schools (SACS) Commission on Colleges and is thus able to award Title IV Federal financial aid. And finally, it is in the best tradition of how Virginia has built the institutions of its world-class system of higher education.

At the same time, SCHEV commends the Harvest Foundation for its incredible generosity in offering a $50 million challenge grant to the Commonwealth. It is the sincerest wish of the Council and its staff to work with the Secretary of Education and the Harvest Foundation to find a way to work towards a shared solution if the Assembly elects not to move forward with the New College of Virginia at this time.

Funding the Collaborative need not preclude future funding of the New College of Virginia if an object needs assessment demonstrates there is adequate demand for this new and innovative approach to higher education.