During the 2016 session, the General Assembly and Governor established the New Economy Workforce Grant Program (WCG). This grant program, the first of its kind in the nation, provides a pay-for-performance model for funding noncredit workforce training that leads to a credential in a high-demand field. The program also includes requirements for students to complete the program in order to avoid paying additional costs. A summary of the major components of the program is included below. Additional information is available through the Code of Virginia.

The purpose of this report is to provide a review of FY 2022 activities of the New Economy Workforce Credential Grant to the General Assembly and the Virginia Board for Workforce Development, as outlined in § 23.1-627.7.

Summary of Findings for FY 2022

In FY 2022, the Virginia Community College System and the Southern Virginia Higher Education Center offered training aligned to high-demand occupations and fields as identified by the Virginia Board for Workforce Development. Observations from FY 2022 include:

• Institutions offered training in 10 high-demand occupational fields.

• Collectively, institutions reported 11,533 enrollments in FY 2022, a 28% increase from FY 2021 and the most since the inception of the program.

• Of the 11,448 enrollments included in this report, 11,429 completed training. Among program completers, 8,794 went on to earn a credential. Both of these levels are increases of more than 30% from the previous fiscal year. The rates of completions and credentials remained relatively stable at 99% and 77% respectively.

• Most racial and ethnic groups share high program completion rates, but gaps exist in credential completion: 66% of Asian American students earned their credential, 11 points below the program average of 77%. Black or African American students’ credentialing rate was nine points below the average, and Hispanic students’ rate was six points below.

• The average tuition paid by students was $802, up from $767 in FY 2021. The average state cost per credential attained was $1,850, a $63 increase from FY 2021.

• The program with the highest enrollments was Commercial Driver’s License (class A), with more than 21% of enrollments. Medical Assistant had the second highest enrollments, accounting for 6% of all enrollments in FY 2022.

• Most students who earned their credential saw an increase in earnings. Median annual wages increased approximately $6,120, or 23%, in the 12 months following program completion.

• Two-thirds of enrollments entered a postsecondary training program in Virginia for the first time. The median age was 32 years old.