                                 CODE OF VIRGINIA

PUBLIC INSTITUTIONS OF HIGHER EDUCATION; SIX-YEAR PLANS; INSTITUTIONAL
PARTNERSHIP PERFORMANCE AGREEMENTS (§ 23.1-306)

A. The governing board of each public institution of higher education shall (i)
develop and adopt biennially in odd-numbered years and amend or affirm
biennially in even-numbered years a six-year plan for the institution; (ii)
submit a preliminary version of such plan to the Council, the General Assembly,
the Governor, and the Chairmen of the House Committee on Appropriations, the
House Committee on Education, the Senate Committee on Education and Health, and
the Senate Committee on Finance and Appropriations no later than July 1 of each
odd-numbered year; and (iii) submit preliminary amendments to or a preliminary
affirmation of each such plan to the Council, the General Assembly, the
Governor, and the Chairmen of the House Committee on Appropriations, the House
Committee on Education, the Senate Committee on Education and Health, and the
Senate Committee on Finance and Appropriations no later than July 1 of each
even-numbered year. Each such preliminary plan and preliminary amendment to or
preliminary affirmation of such plan shall include a report of the
institution&#8217;s active contributions to efforts to stimulate the economic
development of the Commonwealth, the area in which the institution is located,
and, for those institutions subject to a management agreement set forth in
Article 4 (&#xA7; 23.1-1004 et seq.) of Chapter 10, the areas that lag behind
the Commonwealth in terms of income, employment, and other factors. Each such
preliminary plan and preliminary amendment to or preliminary affirmation of such
plan shall be submitted as a report document as provided in the procedures of
the Division of Legislative Automated Systems for the processing of legislative
documents and reports. No such preliminary plan, amendments, or affirmation
shall be posted on the General Assembly&#8217;s website.

B. The Secretary of Finance, the Secretary of Education, the Director of the
Department of Planning and Budget, the Executive Director of the Council, the
Staff Director of the House Committee on Appropriations, and the Staff Director
of the Senate Committee on Finance and Appropriations, or their designees, shall
review each institution&#8217;s preliminary plan, amendments, or affirmation and
provide comments to the institution on such plan, amendments, or affirmation by
September 1 of the relevant year. Each institution shall respond to any such
comments by October 1 of that year and submit a finalized version of such plan,
amendments, or affirmation to the Council, the General Assembly, the Governor,
and the Chairmen of the House Committee on Appropriations, the House Committee
on Education, the Senate Committee on Education and Health, and the Senate
Committee on Finance and Appropriations no later than December 1 of that year.
Each such finalized version shall be submitted as a report document as provided
in the procedures of the Division of Legislative Automated Systems for the
processing of legislative documents and reports and shall be posted on the
General Assembly&#8217;s website.

C. Each plan shall be structured in accordance with, and be consistent with, the
objective and purposes of this chapter set forth in &#xA7; 23.1-301 and the
criteria developed pursuant to &#xA7; 23.1-309 and shall be in a form and manner
prescribed by the Council, in consultation with the Secretary of Finance, the
Secretary of Education, the Director of the Department of Planning and Budget,
the Executive Director of the Council, the Staff Director of the House Committee
on Appropriations, and the Staff Director of the Senate Committee on Finance and
Appropriations, or their designees.

D. Each six-year plan shall (i) address the institution&#8217;s academic,
financial, and enrollment plans, including the number of Virginia and
non-Virginia students, for the six-year period; (ii) indicate the planned use of
any projected increase in general fund, tuition, or other nongeneral fund
revenues; (iii) be based upon any assumptions provided by the Council, following
consultation with the Department of Planning and Budget and the staffs of the
House Committee on Appropriations and the Senate Committee on Finance and
Appropriations, for funding relating to state general fund support pursuant to
§§ 23.1-303, 23.1-304, and 23.1-305 and subdivision 9; (iv) be aligned with
the institution&#8217;s six-year enrollment projections; and (v) include:

   1. Financial planning reflecting the institution&#8217;s anticipated level of
   general fund, tuition, and other nongeneral fund support for each year of the
   next biennium;

   2. The institution&#8217;s anticipated annual tuition and educational and
   general fee charges required by (i) degree level and (ii) domiciliary status,
   as provided in &#xA7; 23.1-307;

   3. Plans for providing financial aid to help mitigate the impact of tuition
   and fee increases on low-income and middle-income students and their families
   as described in subdivision 9, including the projected mix of grants and
   loans;

   4. Degree conferral targets for undergraduate Virginia students;

   5. Plans for optimal year-round use of the institution&#8217;s facilities and
   instructional resources;

   6. Plans for the development of an instructional resource-sharing program with
   other public institutions of higher education and private institutions of
   higher education;

   7. Plans with regard to any other incentives set forth in &#xA7; 23.1-305 or
   any other matters the institution deems appropriate;

   8. The identification of (i) new programs or initiatives including quality
   improvements and (ii) institution-specific funding based on particular state
   policies or institution-specific programs, or both, as provided in subsection
   C of &#xA7; 23.1-307; and

   9. An institutional student financial aid commitment that, in conjunction with
   general funds appropriated for that purpose, provides assistance to students
   from both low-income and middle-income families and takes into account the
   information and recommendations resulting from the review of federal and state
   financial aid programs and institutional practices conducted pursuant to
   subdivisions B 2 and C 1 of &#xA7; 23.1-309.

E. In developing such plans, each public institution of higher education shall
consider potential future impacts of tuition increases on the Commonwealth
Savers Plan and ABLE Savings Trust Accounts (&#xA7; 23.1-700 et seq.) and shall
discuss such potential impacts with the Commonwealth Savers Plan. The chief
executive officer of the Commonwealth Savers Plan shall provide to each
institution the Plan&#8217;s assumptions underlying the contract pricing of the
program.

F. 1.  In conjunction with the plans included in the six-year plan as set forth
in subsection D, each public institution of higher education, Richard Bland
College, and the Virginia Community College System may submit one innovative
proposal with clearly defined performance measures, including any request for
necessary authority or support from the Commonwealth, for a performance pilot.
If the General Assembly approves the proposed performance pilot, it shall
include approval language in the general appropriation act. A performance pilot
shall advance the objectives of this chapter by addressing innovative requests
related to college access, affordability, cost predictability, enrollment
management subject to specified commitments regarding undergraduate in-state
student enrollment, alternative tuition and fee structures and affordable
pathways to degree attainment, internships and work study, employment pathways
for undergraduate Virginia students, strategic talent development, state or
regional economic development, pathways to increase timely degree completion, or
other priorities set out in the general appropriation act.

   2. A performance pilot may include or constitute an institutional partnership
   performance agreement, which shall be set forth in a memorandum of
   understanding that includes mutually dependent commitments by the institution,
   the Commonwealth, and identified partners, if any, related to one or more of
   the priorities set forth in subdivision 1 or set forth in a general
   appropriation act. No such institutional partnership performance agreement
   shall create a legally enforceable obligation of the Commonwealth.

   3. No more than six performance pilots shall be approved in a single session
   of the General Assembly.

   4. Development and approval of any performance pilot proposal shall proceed in
   tandem with consideration of the institution&#8217;s six-year plan, as
   follows:
   				a. An institution that intends to propose a performance pilot shall
   communicate that intention as early as practicable, but not later than April 1
   of the year in which the performance pilot will be proposed, to the reviewers
   listed in subsection B, the co-chairmen of the Joint Subcommittee on the
   Future Competitiveness of Virginia Higher Education, and the Governor. In
   developing a proposed performance pilot, the institution shall consider the
   Commonwealth&#8217;s educational and economic policies and priorities,
   including those reflected in the Virginia Plan for Higher Education issued by
   the Council, the economic development policy developed pursuant to &#xA7;
   2.2-205, the strategic plan developed pursuant to &#xA7; 2.2-2237.1, relevant
   regional economic growth and diversification plans prepared by regional
   councils pursuant to the Virginia Growth and Opportunity Act (&#xA7; 2.2-2484
   et seq.), and any additional guidance provided by the Joint Subcommittee on
   the Future Competitiveness of Virginia Higher Education and the Governor.
   				b. An institution that submits a performance pilot shall include the one
   innovative proposal with clearly defined performance measures, and any
   corresponding authority and support requested from the Commonwealth, with its
   submission of the preliminary version of its six-year plan pursuant to clause
   (ii) of subsection A or with its preliminary amendment or affirmation
   submission pursuant to clause (iii) of subsection A.
   				c. The reviewers listed in subsection B, or their designees, shall review
   and comment on any proposed performance pilot in accordance with the six-year
   plan review and comment process established in subsection B and may expedite
   such review and comment process to facilitate the executive and legislative
   budget process or for other reasons. No later than October 15 of the relevant
   year, the reviewers shall communicate to the Governor and the Chairmen of the
   House Committee on Appropriations and the Senate Committee on Finance and
   Appropriations their recommendations regarding each performance pilot
   proposal. Such recommendations shall include the reviewers&#8217; comments
   regarding how the proposed performance pilots, individually and collectively,
   support the strategic educational and economic policies of the Commonwealth.
   				d. Each performance pilot proposal shall include evidence of its approval
   by the institution&#8217;s governing board and, if accepted, shall be
   referenced in the general appropriation act.

HISTORY: 2011, cc. 828, 869, §§ 23-38.87:15, 23-38.87:17; 2016, cc. 149, 588;
2018, c. 487; 2019, cc. 794, 795; 2024, c. 217; 2025, c. 144.