Virginians have clear expectations for their higher education institutions: affordability, accessibility and value for state investment. Nonprofit private colleges and universities in Virginia are meeting these demands, providing substantial benefits to students, families and taxpayers alike. To measure the significant contributions of this sector to the commonwealth, the Council of Independent Colleges in Virginia Inc. (CICV), representing 27 institutions, commissioned an economic impact study. Authored by Mangum Economics, a Richmond-based firm, the report titled “The Economic Contributions of CICV’s Private Colleges and Universities to Virginia in Academic Year 2022-2023” sheds light on the sector’s positive impact.
In addition to highlighting the pivotal role nonprofit private colleges play in developing a skilled, well-educated citizenry, the Mangum Report quantifies a significant impact on the state’s economy at a great return to the taxpayer. According to the Mangum Report, Virginia’s nonprofit private institutions are a potent economic force, employing nearly 30,000 people statewide and generating an impressive $4.6 billion in economic output in the academic year 2022-2023. Spending from CICV’s private colleges and universities, out-of-state students and out-of-state visitors also directly and indirectly supported approximately $2.0 billion in associated wages and benefits.
This considerable economic and educational contribution is delivered without taxpayer support for operations or facilities. While Virginia’s public four-year colleges and universities received approximately $1.6 billion from the state in FY 2023, the primary financial support for nonprofit private institutions flows directly to students through the state’s Virginia Tuition Assistance Grant, or TAG. TAG is a 50-year-old program designed to support educational accessibility for all Virginians without respect to financial need. In FY 23, the state invested $86 million toward the education of 20,822 in-state students through TAG. In turn, CICV’s member institutions generated $157.0 million in state and local tax revenue, or nearly $2 for each invested.
Any taxpayer investment in higher education should be examined on its merits and return. On these measures, Virginia nonprofit private colleges and universities shine. The Mangum Report details the strategic efficiency of state investment in private higher education through TAG, where public investment is put to its highest and best use. Specifically, in 2023, taxpayer support awarded to students at TAG-eligible private institutions per degree was $7,790; meanwhile, by the same token, the public institution cost per degree was $37,930. Taxpayer support per in-state full-time equivalent student at private colleges was $2,155 versus $10,355 for those attending public institutions.
The Mangum Report highlights that CICV’s private colleges and universities are not just part of Virginia’s higher education system but a critical component. They contribute substantially to the state’s economy, enhance educational options and help develop a skilled and educated workforce — all at significant returns on taxpayer investment. In the academic year 2022-23, data from CICV institutions showed that students and faculty provided 548,214 hours of volunteer service. The Mangum Report quantified the value of that volunteer service at the current minimum wage for a total annual in-kind contribution to host communities at approximately $6.9 million in 2022-23.
For policymakers and community leaders, the findings from the Mangum Report serve as a reminder that strategic investments in nonprofit private higher education can yield rich dividends in economic growth and societal advancement. As Virginia continues to navigate the complexities of funding higher ed, the role of private colleges and universities should be acknowledged and supported, especially through increasing the TAG award to $6,000 this biennium. A high-quality, cost-effective education with economic prosperity for the commonwealth will result.
Virginia’s private colleges and universities are models for strategic state investment. With economic and societal benefits, they demonstrate that it is possible to pursue excellence and inclusivity. As the General Assembly fashions a new two-year state spending plan, legislators must balance fostering an environment of thrift with thoughtfulness. Strategic higher education funding, particularly in TAG, can ensure the commonwealth remains a place of opportunity and progress.
Christopher K. Peace is president of Virginia Private Colleges and previously served 14 years as a member of the Virginia House of Delegates (2006-2020). He may be reached at chris@cicv.org.
