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SB231 • 2026

Community Colleges and Virginia Community College System, State Board for; funding model, report.

<p class=ldtitle>A BILL to direct the State Board for Community Colleges and the Virginia Community College System to develop a community college funding model for the Commonwealth, and an implementation plan for such model, that balances base adequacy support and performance with outcomes-based funding; report.</p>

Education Labor
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Head
Last action
2026-02-03
Official status
Continued
Effective date
Not listed

Plain English Breakdown

The candidate explanation included claims about the bill encouraging specific types of programming for adult learners which are not explicitly stated in the official source material. The bill text mentions incorporating best practices but does not specify detailed encouragement for certain demographics.

Community College Funding Model for Virginia

This bill directs the State Board for Community Colleges and the Virginia Community College System to develop a new funding model that balances base adequacy support with performance-based funding, focusing on student success and economic benefits.

What This Bill Does

  • Requires the State Board for Community Colleges and the Virginia Community College System to develop a community college funding model for the Commonwealth.
  • The model must balance base adequacy support with outcomes-based funding that rewards improvements in student progress, program completion, credential attainment, wage impacts after graduation, and continuing education.
  • Encourages community colleges to offer programs tailored to adult learners, including those over 24 years old, parents, and students from low-income backgrounds.
  • Incorporates best practices from existing workforce development programs like the New Economy Workforce Credential Grant Program and FastForward Program.
  • Requires the State Board to report progress and findings to legislative committees by specific deadlines.

Who It Names or Affects

  • The State Board for Community Colleges
  • Virginia Community College System

Terms To Know

Outcomes-based funding
A type of funding that rewards educational institutions based on the results they achieve, such as student success rates and economic benefits.
Base adequacy support
Basic financial support provided to ensure community colleges can cover essential costs for operations.

Limits and Unknowns

  • The bill does not specify how the funding model will be implemented or funded.
  • It is unclear what specific changes will be made to current practices based on this new model.
  • The effectiveness of the new funding model and its impact on community colleges are yet to be determined.

Bill History

  1. 2026-02-03 Finance and Appropriations

    Continued to 2027 in Finance and Appropriations (15-Y 0-N)

  2. 2026-01-29 Senate

    Fiscal Impact Statement from Department of Planning and Budget (SB231)

  3. 2026-01-22 Education and Health

    Reported from Education and Health and rereferred to Finance and Appropriations (14-Y 0-N)

  4. 2026-01-19 Higher Education

    Assigned Education sub: Higher Education

  5. 2026-01-12 Senate

    Prefiled and ordered printed; Offered 01-14-2026 26100802D

  6. 2026-01-12 Education and Health

    Referred to Committee on Education and Health

Official Summary Text

State Board for Community Colleges and Virginia Community College System; funding model; report.
Directs the State Board for Community Colleges (the State Board) and the Virginia Community College System to develop a community college funding model for the Commonwealth, and an implementation plan for such model, that balances base adequacy support and performance with outcomes-based funding. The bill requires the State Board to provide an interim report to the Chairs of the Senate Committee on Education and Health and the House Committee on Education by November 1, 2026, and a final report to the Chairs of the Senate Committee on Education and Health, the Senate Committee on Finance and Appropriations, the House Committee on Education, and the House Committee on Appropriations by November 1, 2027.

Current Bill Text

Read the full stored bill text
A BILL to direct the State Board for Community Colleges and the Virginia Community College System to develop a community college funding model for the Commonwealth, and an implementation plan for such model, that balances base adequacy support and performance with outcomes-based funding; report.

Be it enacted by the General Assembly of Virginia:

1.
§ 1.
That the
State Board for
Community Colleges
(the State Board)
and the Virginia Community College System
are
directed to develop
a
community college funding model for the Commonwealth
,
and an implementation plan for such model
,
that balances base adequacy support and
performance
with

outcomes-based funding
. The model shall ensure that state resources both sustain core operations and reward measurable improvements in
(i)
student progress,
(ii)
program completion,
(iii)
attainment of credentials,
(iv) wage impacts following program completion
, and
(v)

continu
ing
postsecondary education and training. The funding model
shall
be developed to encourage
community colleges
to provide programming and services
that
better meet the learning needs and preferences of adult learners, including
adul
ts
older than 24 years of age,
student
-
parents
, and
students from low-income backgrounds. The
model

shall
also
incorporate

and account for
the
best practices
of
the
New Economy Workforce Credential Grant Program established pursuant to Article 4.1 (§
23.1-627.1
et seq.) of Chapter 6 of Title 23.1 of the Code of Virgin
ia
, and the FastForward Program established by the
Virginia Community College System
in developing
the performance-based funding structure
,
given such program's

demonstrated

positive impacts

on
student earnings and economic
opportunities
.
The State Board shall also develop such funding model in a manner
that
realizes
cost efficiencies through
utilization of a Virginia Community College System-
wide shared services
system
,
including
shared
business
service
operations
,
specialized
career and technical education,
and workforce development learning and training programs.

The

State Board
shall
provide an interim report on
its findings and progress
made in developing such model and implementation plan
to the Chairs of the Senate Committee on
Education and Health
and
the
House Committee on
Education
by November 1, 202
6, and shall provide a final report
on the funding model and its implementation plan
, including a comprehensive
report of all
findings
and any recommendations
related thereto,
to the Chairs of the Senate Committee on Education and Health,
the
Senate Committee on Finance
and Appropriations,
the
House Committee on Education
, and
the
House Committee on Appropriations
by November 1, 202
7.