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 to avoid paying additional costs. A summary of the major components of the program is included below. The establishing statutes appear in Article 4.1 of Title 23.1 of the Code of Virginia.

The purpose of this report is to provide to the General Assembly and the Virginia Board for Workforce Development a review of FY 2023 enrollments, completions, costs and outcomes of the New Economy Workforce Credential Grant program, as outlined in § 23.1-627.7.

Summary of Findings for FY 2023

In FY 2023, the Virginia Community College System (VCCS) and the Southern Virginia Higher Education Center (SVHEC) offered training aligned to high-demand occupations and fields as identified by the Virginia Board for Workforce Development (VBWD). Observations from FY 2023 include:

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

• Collectively, institutions reported 13,428 enrollments in FY 2023, an 9% increase from FY 2022 and the most since the inception of the program.

• Of the 13,428 enrollments included in this report, 12,749 completed training. Among program completers, 9,539 went on to earn a credential. The rates of completions and credentials remained relatively stable at 95% and 71% respectively.

• Most racial and ethnic groups share high program completion rates, but gaps exist in credential completion: 62% of Asian American students earned their credential, 9 points below the program average of 71%. Black or African American students’ credentialing rate was 10 points below the average. Success rates by race/ethnicity are correlational and could be explained by other factors such as program selection.

• The average tuition paid by students was $849. The average state cost per credential attained was $2,014.

• The program with the highest enrollments was Commercial Driver’s License with more than 22% of enrollments. Medical Assistant had the second highest enrollments, accounting for 6% of all enrollments in FY 2022.

• Throughout the history of the program, median annual wages increased $9,350, or 38%, in the 12 months following program completion.

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