The Virginia Senate Education and Health Committee unanimously passed a bill yesterday granting the University more autonomy over the management and investment of certain funds. The Senate Finance Committee also passed the bill.
Del. William Fralin, R-Roanoke, who introduced HB 1740 at the end of last year, said the bill "allows the University to invest monies that they generate from non-general fund sources which would include student housing fees [and] insurance premiums from the health insurance plan."
He said the company that controls the University's endowment of $3.9 billion would take charge of the funds.
Fralin also said this legislation follows a bill "passed last year to give the University more expansion over their affairs."
The Finance Committee amended the bill so other funds will not fall under the control of the University, Fralin added.
"It will not allow the investment of tuition or affect operating expenditures," Fralin said.
Fralin said the bill had to go through the Finance Committee because it deals with collecting and spending state funds.
University spokesperson Carol Wood said the bill would benefit both the University and its students.
"The University would be able to invest portions of these non-general fund balances and reserves in longer-term instruments and as a result, we'd receive a greater return on our investments," Wood said. "Having a greater return would moderate the increases for fees charged to students for housing and to employees for health insurance. It will not result in any additional cost to the state."
Because the bill passed in the committees, the whole Senate will now vote on it, said Scott Leak, assistant to majority leader Sen. Walter Stosch, R-Richmond.
The committee will take the bill to the Senate today, he added. Senators will have two days to look over the bill before they vote.
Leak said that the final Senate vote will occur Tuesday.
According to Fralin, if the bill passes the Senate, it will return to the House. If approved by the House, it will then go to Gov. Tim Kaine who will either veto the bill or sign it into law.
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