2005 Higher Education Restructuring Act

Governor Warner Approves William and Mary Plan Under the Higher Ed Restructuring Act of 2005

Governor Mark Warner has approved the College of William and Mary’s management agreement and board policies developed in support of the institution’s application for increased authority under the Higher Education Restructuring Act of 2005.

Earlier approved by the William and Mary Board of Visitors, the plan will now be submitted to the Virginia General Assembly for consideration during the 2006 session that begins in January.  The earliest the college’s new relationship with the state could take effect is July 2006.

“This plan will provide a more reliable funding model and additional operating flexibility for William and Mary.  More importantly, it signals the reinvigoration of the long-standing partnership between the Commonwealth and the college for the benefit of all Virginians,” said President Gene R. Nichol.  “In practical terms, our students and their parents will be able to develop more reliable financial plans.  Restructuring will also enable the college to address more effectively the needs of the Commonwealth and to reward more appropriately our faculty and staff.”

The financial stability promoted by the plan will enable the college to add faculty to critical areas, develop new curricular options and bring on line a host of new academic facilities to strengthen the teaching mission.  In addition, William and Mary will be able to advance its research, outreach and economic development missions significantly.

The extensive document is the product of several years of work by key members of the college’s board and administration.  Throughout the process, the William and Mary administration held a series of discussions with faculty, staff and students to seek their advice and to keep them informed of the status of negotiations with the state.  Additional meetings will be scheduled soon to inform campus constituencies of the result of the final negotiations.

An 18-page management agreement outlines the new relationship which grants expanded authority to the board in several key areas: capital projects, leasing of property, information technology, procurement of goods and services, human resources and financial management. 
Among the highlights of the various policies are the following elements:

Human Resources Policy

• All William and Mary employees remain state employees, and will participate in the Commonwealth retirement, health insurance, worker’s compensation and grievance systems.
• The college will develop its own human resources system in the future (possibly as early as July, 2007); classified employees who wish to remain in the state system may do so.  The new system would retain the employee’s participation in the state retirement, health, worker’s compensation and grievance systems; establish new classification and compensation plans; establish performance and evaluation processes; provide enhanced benefits; permit more flexibility in the use of leave and offer other advantages.
• All employees hired after the implementation of the new system would be covered by that system.  Periodically, remaining state classified employees would be given an opportunity to move to the new system.
• William and Mary may eventually seek to administer its own defined contribution plan that is current administered by the Virginia Retirement System.
• The board will approve the college’s human resources plan, as well as any subsequent changes to the plan.

Capital Outlay Policy

• The board will authorize all projects constructed with non-general funds (non-state funds).  The Commonwealth will continue to authorize projects financed with general funds or state debt.  William and Mary will assume all responsibility for the execution of the projects once they have been authorized, including the selection of contractors, execution of change orders, competitive negotiation and related functions.
• The board will designate a building official and code review office to oversee plans, specifications and documents for compliance with codes and standards.  The official will also perform inspections of the work in progress and the completed project.
• The board will have the authority to make improvements on land acquired or facilities constructed with non-general funds, as well as the authority to dispose of such property.

Financial Management Policy

• The board will be authorized to establish a financial management system for the college.
• The board will control and manage all moneys generated or received by William and Mary, including tuition, fees, research funds, auxiliary enterprise funds and others.
• The board will establish tuition, fee, room, board and other charges, with appropriate commitment provided to need-based grant aid for middle- and lower-income Virginia undergraduates.

Procurement Policy

• The college will be authorized to apply a core set of locally administered procurement policies and procedures governing the procurement of goods and services, including promoting competition to the maximum practical degree and conducting all procurement in an open, fair and impartial manner.
• William and Mary will continue to use the EVA system, and may choose to participate in all statewide contracts for goods and services.

Information Technology Policy

• The college will be exempt from state regulations governing information technology strategic planning, expenditure report, budgeting, project management, infrastructure and other areas.

Leasing Policy

• William and Mary may lease property, acquire easements and grant easements on college property.

For more information:

- Management agreement
- Academic plan
- Approved legislation
- State Ask