Positive State Budget News as We Begin March

March 1, 2021 / Uncategorized

On Thursday, Feb. 25, conferees from the Virginia House and Senate reached an agreement on the 2020-2022 biennium budget, and this weekend, that agreement was passed by both. A veto session will be held April 7 with Governor Northam’s signature to follow thereafter. What has emerged from the process thus far is a very good budget for community colleges and the students we serve.

First, some background:

  • Virginia’s economy is not suffering as much as the national economy, which has resulted in a much more positive near-term forecast. However, because of the limited impact of the pandemic on state revenues, the forecast is that the Commonwealth may not experience the level of post-pandemic growth that other states may see.
  • Because of the strength of the state’s economy, new resources of over $1B were identified, as compared to the initial budget forecast in August. This allowed for total spending across Virginia’s biennium budget of $135B and provided more resources for, among other line items, VCCS and state employee raises.

Specifically, the biennium budget coming out of the General Assembly provides for the following:

  • $36M in G3 funding, the full amount requested by Governor Northam; $34.5M will go directly to student workforce scholarships with $1.5M allocated to marketing costs. An additional $2.5M is included to support advisors to work with students in G3 programs.
  • $15M to maintain affordable access, fund operational costs and provide financial aid was added by the General Assembly–with $2.5M of these dollars earmarked for additional advisors. Thus, in all, $5M has been dedicated to advisors at the 23 Virginia community colleges.
  • $2.3M in new need-based student aid added by the General Assembly above and beyond the funds allocated through G3.
  • $10.1M for unavoidable cost increases was also added by the General Assembly.
  • Raises of 5% with a start date of July 1. The strength of this raise reflects an acknowledgement that any movement on salaries in year one of the biennium was shelved due to the pandemic. As Virginia’s revenue projections moved in a positive direction, both the Governor and the General Assembly saw the opportunity to provide more support for the state’s workforce. VCCS reports that the authorizing language for the raise includes all faculty, staff and adjunct faculty, and the system is extending the salary increase to wage employees as well.

Given the negative budget outlook in so many states, this level of investment by Virginia’s Governor, House and Senate is simply extraordinary, and we are very, very grateful! On behalf of NOVA, I have sent thank you notes to our full delegation and the Governor, and if you wish to write a note of thanks, I am certain it would be appreciated. Reach out to Director of Governmental Relations, Dana Kauffman (tkauffman@nvcc.edu), if you don’t know who represents your home or your campus in the General Assembly.