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Leidos wins $331M Army IT contract

The U.S. Army has awarded a $331 million IT contract to Leidos to modernize its network, the Reston-based Fortune 500 federal contractor announced Monday.

The Army Program Executive Office for Command, Control, Communications and Network (PEO C3N), formerly known as the PEO C3T, awarded the contract, which has a one-year base period of performance with four one-year option periods for a total contract value of $331 million if all options are exercised. 

“We are proud to partner with the Army in deploying the Global Unified Network, which will enhance interoperability and security across all levels of operations,” Steve Hull, president of Leidos’ digital modernization sector, stated in a news release. “This initiative not only aligns with the Army’s Network Modernization Strategy but also aims to position us at the forefront of advancing military communication capabilities in an increasingly complex global landscape.”

The Army Unified Network plan, unveiled in 2021, addresses information technology, encompassing hardware, software and infrastructure. Using software-defined networking technologies, an approach that allows for the building and managing of networks with software, Army officials plan to transition to a zero trust cybersecurity model, and sunset the Joint Regional Security Stacks, an IT security program, according to Leidos. Under the contract, the Reston company will deploy the Army’s Global Unified Network to individual Army sites, delivering “a standardized, orchestrated modern network architecture.”

Leidos provides technology, engineering and science services to defense, intelligence, civil and health market customers. It has about 48,000 employees and reported approximately $15.4 billion in 2023 revenue.

U.Va. dedicates Ramon W. Breeden Jr. Commerce Grounds

The University of Virginia on Friday dedicated the Ramon W. Breeden Jr. Commerce Grounds plaza and officially named “Breeden Way,” located adjacent to the McIntire School of Commerce.

The honor is in recognition of Breeden’s legacy as founder and chair of Virginia Beach-based real estate company The Breeden Co., as well as his philanthropy to U.Va., his alma matter, according to a media advisory.

In September 2023, U.Va. announced Breeden, a 1956 McIntire graduate, had given $50 million to support business education and athletics. The gift was divided between the university’s McIntire Expansion Project, a renovation and expansion of U.Va’s commerce school, and the Virginia Athletics Master Plan. 

“The McIntire School broadened my education and gave me confidence in myself. I have many friends who attended Ivy League schools, and I can stand toe to toe with them in business, as I got just as good an education and, in some cases, better,” Breeden said in an interview with Virginia Business earlier this year. “McIntire taught me not to give up and to keep pushing on in life.”

The McIntire expansion includes construction of a new building, Shumway Hall, on the southeast corner of U.Va’s lawn as well as a renovated Cobb Hall and a host of outdoor meeting areas, expanded walkways and green spaces.

The athletics plan calls for a new athletics complex, including a 90,000-square-foot home for U.Va’s football program, an Olympic sports center to support to more than 750 student-athletes and the Center for Citizen Leaders and Sports Ethics. Cavaliers celebrated the opening of the 93,000 square-foot football operations center facility opened on June

Breeden, who founded the real estate development company in 1961, served as a member of the McIntire Foundation Board from 1994 to 1996 and also served on its advisor board. In January 2022, he stepped down as president and CEO of his company, naming Timothy Faulkner his successor. Breeden also co-founded Commerce Bank, which was purchased by Branch Bank & Trust, and he then served as a state director of BB&T, now part of Truist Financial Group.

Roanoke EDA delivers on Artspace funding

Artspace, a Minnesota-based ​​nonprofit that develops affordable housing for artists and creative spaces, plans to build a mixed-use affordable housing project for artists and their families in Roanoke, at the massive Riverdale redevelopment project planned for the Southeast quadrant of the city.

“This will be their first Virginia project,” Duke Baldridge, vice-chair of the Roanoke Economic Development Authority, told members of City Council during an Oct. 7 meeting. “Not Norfolk, not Charlottesville, not Northern Virginia.”

Currently, Artspace has 59 affordable housing developments across the United States, with another 10 under construction, including the South Main Artspace lofts in Memphis, Tennessee, and the Tashiro Arts Building in Seattle.

Artspace’s project is estimated to cost $20 million, according to Baldridge. Tenants living at Roanoke’s Artspace project will need to make between 30% and 60% of the area median income, he told council members; 80% would be $48,350 for a one-person household.

In a letter dated Sept. 3, which Riverdale real estate director Ed Walker shared with the media last week, Artspace executives noted that they require local buy-in for their projects. They want $150,000 by Nov. 1 and another $300,000 by January 2025 to cover predevelopment.

The funding will allow Artspace to submit a low-income housing tax credit by mid-March 2025, according to the letter. “If it doesn’t happen now, it’s waiting a year,” Roanoke vice-mayor Joe Cobb stressed at the Oct. 7 City Council meeting.

At the meeting, it didn’t appear that Artspace could necessarily count on receiving the city’s financial support. Council member Patricia White-Boyd pointed out that October is not the time of year when city councilors draft their budget; that typically happens during the summer.

“My thing is: how do you pay for it?” she asked.

Members of Roanoke’s Economic Development Authority answered that question partially Wednesday by unanimously voting to cover the $150,000 payment, using authority funds. This buys council members more time to figure out how to cover the remaining $300,000 due in January.

“We’ve generally been enthusiastic about finding ways to support workforce housing and affordable housing,” Baldridge said Friday.

A step forward

Lucas Koski, vice president of consulting at Artspace, said the money from the EDA allows the nonprofit to “move forward” and begin the due diligence process for the Roanoke development. Construction on Artspace’s project could be completed within 36 months of receiving the tax credit, according to Artspace’s letter.

Roanoke, like most U.S. cities, is grappling with a housing shortage, especially for mid- to lower-income households. A quarter of Roanoke households live in housing that costs more than 30% of household income, according to city documents.

“We’re eager, if we can, [to] be a small part of the solutions,” said Baldridge, who is president of Dominion Risk Advisors, a personal risk management and insurance company in Roanoke.

EDA chair Braxton Naff, owner of Appalachian Craft Provisions, a catering and private chef business, said the authority members were enthusiastic about providing the funding and hopes it serves as a catalyst to rally public and private support. “We cannot think of a better project to begin filling the gap in affordable workforce housing and lay the foundation for an outdoor and arts destination in Riverdale and Southeast Roanoke.”

Walker, a real estate developer who has changed Roanoke’s landscape by developing apartments in historic buildings, forged an agreement with the city in 2023, in which the EDA loaned Walker $10 million for Riverdale. If the project’s developers invest at least $50 million in the project through 2040, the loan will be forgiven. The redevelopment will take place on 120 acres on the sprawling former campus of American Viscose, a closed rayon plant.

In a third-quarter summary about Riverdale that Walker distributed last week, he noted the project will offer as many as 750 multifamily housing units, including Artspace’s project. Residences would be in both redeveloped and new buildings that range from market rate to “very affordable,” according to the summary. Plans also call for a five-story boutique hotel with a rooftop bar, as well as a brewery, offices, recreation offerings and even a possible Airstream glamping location.

The summary notes that in the 18 months since the project began, more than 2 million pounds of debris have been removed, and an “extensive environmental remediation” has been undertaken.

“At some point it’s going to be a city within a city over there,” Naff said at the Oct. 7 city council meeting.

New leadership

When Roanoke’s former city manager, Bob Cowell, submitted his resignation in May, Walker told the Roanoke Rambler that the sudden leadership change could affect Riverdale’s rate of progress.

In June, Roanoke City Council named Lydia Pettis Patton, the first female city manager of Portsmouth, as interim city manager while a search for a permanent replacement is conducted.

During an interview last week, Roanoke economic development director Marc Nelson said he thinks Walker’s earlier comments reflected his concern about whether with Cowell’s exit, the city would continue to support the mammoth project — “whether that support would be there.”

“I think it’s very much there,” Nelson said definitively.

Cowell’s style, Nelson added, was to handle administrative details on the front end and bring matters to City Council. “As opposed to Dr. Patton, whose style is very much, ‘Let’s bring this to council and have it discussed in the open and council can make a decision,” Nelson says.

Walker said Friday he’s confident in Patton’s leadership. “There’s just no way to have imagined that somebody could … take the reins and make as make as much of a contribution as she has in a short time,” he noted.

While no action was taken by City Council on Oct. 7, a few members made no secret of their support for Riverdale and Artspace.

Bev Fitzpatrick, an interim member of Roanoke City Council and a longtime Roanoke leader, put the project in historical perspective: “When Norfolk and Western dieselized in 1958 and the Viscose plant closed in 1958, we had 10,000 people out of work. We never had that kind of challenge in Roanoke since. “

Before that happened, Fitzpatrick said Southeast Roanoke was a “middle class, strong neighborhood,” but the loss of jobs changed the area, noting the work the Presbyterian Community Center does to address homelessness and poverty in that quadrant of Roanoke.

The Riverdale development and Artspace’s project has the potential to transform Southeast, Fitzpatrick said. “I can think of nothing more important in the city than the health of Southeast and moving it forward in a fundamental way.”

Editor’s note: This article has been updated to correct the details of Walker’s 2023 deal with the city. 

Raytheon to pay $950M+ to resolve fraud, bribery charges

The U.S. Department of Justice announced Wednesday that Arlington County’s Raytheon, a subsidiary of aerospace and defense contractor RTX, has agreed to pay more than $950 million to resolve multiple allegations that include fraud and bribing a Qatari official.

Under Wednesday’s settlement, Raytheon must pay the following penalties:

  • For two counts of major fraud in allegedly overcharging the U.S. Department of Defense by $111 million, Raytheon will pay a criminal monetary penalty of $146.78 million and $111.2 million in victim compensation.
  • Under a civil False Claims Act settlement related to the DOD allegations, Raytheon was penalized $428 million, but the $111.2 million in victim compensation will be credited toward that amount.
  • In the bribery case, filed in the Eastern District of New York, Raytheon will pay a criminal penalty of $230.4 million and pay forfeiture of $36.69 million. In addition, to resolve the Securities and Exchange Commission’s parallel investigation, Raytheon will pay $49.1 million in disgorgement and a civil penalty of $75 million, $22.5 million of which will go toward the criminal penalty.
  • For allegedly failing to disclose to the U.S. Department of State and the Directorate of Defense Trade Controls the bribes reportedly paid to a Qatari official, Raytheon will pay a financial penalty of $21.9 million.

Raytheon entered into a three-year deferred prosecution agreement Wednesday in the fraud case, which was filed in federal court in Massachusetts, and stems from charges that Raytheon employees allegedly provided false information to the U.S. Department of Defense that inflated costs for purchasing missile systems and operating and maintaining a radar system from 2012 through 2013, and 2017 through 2018. In addition to the financial penalties, Raytheon will have an independent compliance monitor for the next three years.

The bribery charges stem from a reported scheme among Raytheon employees between 2012 and 2016 to bribe a high-level official with the Qatar Emiri Air Force, a branch of the Middle Eastern country’s armed forces, to assist the contractor in obtaining and retaining their business. According to the DOJ, Raytheon made payments to the official by creating “sham subcontracts” for air defense studies, with funds going to the official.

In addition to the financial penalties, Raytheon and RTX have agreed to an independent compliance monitor for the next three years, as well as improvements and enhancements to the company’s compliance programs.

“The department is committed to holding accountable those contractors that knowingly misrepresent their cost and pricing data or otherwise violate their legal obligations when negotiating or performing contracts with the United States,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said in a statement.

In 2020, Raytheon merged with United Technologies to form Raytheon Technologies. In 2022, the company relocated its global headquarters from Massachusetts to Arlington. The company rebranded as RTX in 2023. 

“These legacy legal matters relate to conduct that occurred at Raytheon Company largely prior to 2020,” noted RTX spokesperson Chris Johnson in a written statement. “RTX is taking responsibility for the misconduct that occurred,” he added in the statement. “We have worked diligently during the investigations to remediate that misconduct and continue to do so.”

RTX noted it had set aside more than $1.2 billion to resolve pending legal matters in a July SEC filing. 

In August, the State Department announced RTX had agreed to pay $200 million to resolve allegations of violating the Arms Export Control Act and the International Traffic in Arms Regulations. 

With more than 185,000 employees globally, RTX reported $68.9 billion in sales in 2023.

Gordon Ramsay to open restaurant at Caesars Virginia

Cantankerous celebrity chef Gordon Ramsay plans to open a restaurant called Ramsay’s Kitchen at the $750 million Caesars Virginia casino in Danville by the end of 2024, the casino resort announced Tuesday. 

“Caesars Virginia sets the standard for approachable luxury, and I’m so proud to open my first [Virginia] restaurant here inside this beautiful resort,” Ramsay stated in a news release. “My longstanding partnership with Caesars has proven to be a fan favorite time and time again. I’m beyond excited to continue that here in the commonwealth of Virginia by sharing my take on global cuisine.”  

Born in Scotland, Ramsay grew up in England. His restaurants hold eight Michelin stars, a prestigious ranking given to restaurants with outstanding cooking. Ramsay is the star of several TV shows, including “Hell’s Kitchen” and “MasterChef.”

In a news release, Caesars Virginia described the restaurant’s menu as “elegant yet approachable.”  Dishes will include beef Wellington, vanilla mascarpone cheesecake and Virginia oysters. Ramsay’s Kitchen will be inspired by the chef’s travels, according to a news release, “taking guests on a global culinary journey infused with flavors close to home.”  

“Ramsay’s Kitchen brings an elevated dining option not just to our resort, but it brings a world-class option that the region hasn’t seen,” Chris Albrecht, senior vice president and general manager of Caesars Virginia, stated.

Ramsay’s Kitchen will be located adjacent to registration at the resort, steps off the casino floor, and will serve breakfast, lunch and dinner. The restaurant will offer more than 250 seating options, including a private dining room and an outdoor patio “with iconic views of Danville’s historic Three Sisters Smokestacks,” the news release states.   

In 2019, Lion Capital, a United Kingdom investment firm, reportedly agreed to fund $100 million over five years for 50% of Gordon Ramsay North America, Ramsay’s U.S. and Canadian restaurant business. Currently, Ramsay North America boasts 28 restaurants, several of which are in partnership with Caesars Entertainment, a hotel and casino entertainment company based in Nevada. Gordon Ramsay Restaurants worldwide portfolio includes an additional 58 international locations. 

The temporary Caesars Virginia casino in Danville, which received its casino license in April 2023 and opened in May 2023, reported $18.25 million in adjusted gaming revenues for September. All Virginia casinos reported cumulative revenues of $56.56 million for the month.

Set to open in late 2024 and owned by Caesars Entertainment and the Eastern Band of Cherokee Indians, the permanent Caesars Virginia resort casino will offer a 320-room hotel and more than 90,000 square feet of gaming space, including 1,500 slots, 79 live-action table games, 24 electronic table games, a World Series of Poker room and Caesars Sportsbook. Described as “Roman luxury meets Southern charm,” the Danville resort will also boast a full-service spa, pool, dining, bars and lounges, as well as 50,000 square feet of meeting and convention space. 

 

Bon Secours Hampton Roads Foundation promotes new president

The Bon Secours Mercy Health Foundation, which coordinates charitable giving for all hospitals, facilities, programs and services operated by Bon Secours Mercy Health, has named Carrie Miller president of its Bon Secours Hampton Roads Foundation, the health care system announced Monday.

Previously, Miller worked for close to a decade as senior gift officer for organizational giving at the regional foundation. Before that, Miller served as development and operations director for Junior Achievement of Greater Hampton Roads.

Miller has secured significant funding from private and government sources that have benefited community health programs, including the Care-A-Van, a free medical service that provides general medical care to uninsured adults and children, and the recent Healthy Food Pantry at the Community Health Hub in Portsmouth, the health system said.

Additionally, Miller has held leadership roles at Bon Secours Hampton Roads, including serving as a member of the market’s executive leadership committee, acting as the market liaison for advocacy and government affairs and chairing the sponsorship committee.

Miller has a bachelor’s degree in health science from Clemson University and a master’s degree in public health from the University of Virginia.

Currently, a priority for the foundation is enhancing facilities, like the expansion of Bon Secours Harbour View Medical Center in Suffolk, which is currently the focus on a $1 million fundraising campaign to build a new surgical medical center.

Bon Secours operates three hospitals and medical centers and one outpatient facility in Hampton Roads. The Bon Secours Richmond Health System offers a network of seven acute hospitals, primary and specialty care practices, ambulatory care sites and continuing care facilities across a 24-locality region.

Appian taps new chief revenue officer

Mark Dorsey is the Appian’s new chief revenue officer, the McLean cloud computing and software company announced Oct. 11.

He replaces Christopher Jones, who left in April to become chief revenue officer for New Relic, a software developer based in San Francisco.

Dorsey, who has a MBA from the Carroll School of Management at Boston College, will lead Appian’s global sales operations and will report to Appian founder, CEO and Chairman of the Board Matt Calkins.

“He’s a natural leader with a talent for creating high-performing, scalable teams,” Calkins stated in a news release.

Dorsey boasts more than a quarter of a century of experience leading sales teams at cloud and software as a service companies. Most recently, he worked for Alteryx, an analytics software company, as senior vice president of sales. He also worked at a seven-year stint at Oracle, the cloud technology company. As senior vice president of enterprise cloud sales, Dorsey led the cloud business for Oracle’s top 1,000 North American accounts.

In July, the Virginia Court of Appeals called for a new trial in the corporate espionage civil case between  Appian and Massachusetts rival Pegasystems. The three-judge panel stated Appian was improperly relieved of the burden of proving that Pega financially benefited from misappropriating Appian’s trade secrets.

In May 2022, Appian won a record $2.03 billion award against Pega in Fairfax County Circuit Court over allegations that Pega used multiple methods to spy on its rival from 2012 to 2020. Appian has appealed the decision to the Supreme Court of Virginia.

Appian had 2,243 full-time employees at the end of 2023, with 1,518 of those based in the United States. The company reported $545.4 million in 2023 revenue, up 17% over 2022.

Centra names permanent CEO

Lynchburg-based health system Centra has selected interim leader Richard Tugman as its president and CEO, overseeing a health system that serves more than 500,000 patients in Central and Southern Virginia, operating four hospitals, five medical centers and numerous primary care and specialty practices.

Tugman had served as interim CEO since March, replacing Amy Carrier, who’d been CEO since 2021.

Asked in March about Carrier’s departure, Dr. Tom Nygaard, chairman of the health system’s board, told WSET, “We felt that it was time for the organization to move on. Take a bit of a different direction,”

Tugman also served as Centra’s interim CEO for several months before Carrier’s hiring, following the January 2021 departure of former Centra CEO Dr. Andrew Mueller, who left to become CEO of MaineHealth in Portland, Maine.

From 2016 to 2021, Tugman had been CEO of Piedmont Community Health Plan, a health insurance subsidiary of Centra Health. In April, Piedmont, which stopped offering individual health insurance in 2023, announced it would stop selling group commercial health insurance at the end of 2024. Piedmont will “wind down its business” in 2025 and “some period beyond,” according to a news release.

“For more than two years, Piedmont has explored ways to increase its critical mass to become more competitive with national insurers through potential partnerships and/or outside investments,” interim Piedmon CEO Ryan Ziemann said in an statement released in April. “While there was much outside interest in Piedmont, the company was unable to reach an agreement that would enable it to compete on a more level footing with its much larger competitors.”

Earlier in his career, Tugman was vice president and general counsel for Lynchburg’s Fleet Laboratories.

“Richard’s performance since his appointment in March 2024 as interim president [and] CEO, in addition to his leadership in the same role in 2021, validated the board’s full confidence, as well as that of our providers, caregivers and members of the communities in which Centra serves,” Nygaard said in a statement Thursday. “He has the ability to strategically guide the organization in its mission to provide access to the best health care now and into the future as we adapt to a challenging and changing health care environment.”

In late December 2023, Centra filed a $7 million lawsuit against Lynchburg Hematology-Oncology Clinic, an independent physicians group, stating that the clinic overbilled Centra for services from 2016 to 2021. In September, the case was dismissed.

The two parties “mutually and amicably resolved the lawsuit and related disputes” according to Emelyn Gwynn, a spokesperson for Centra.

LHOC’s professional services agreement with Centra expired at the end of March and LHOC providers then stopped treating patients at the Centra Alan B. Pearson Regional Cancer Center in Lynchburg, according to an announcement on the LHOC website. In April, Centra launched the Centra Hematology Oncology Clinics at the Pearson Cancer and at Centra Southside Community Hospital in Farmville.

Centra Health’s oncology department currently has two doctors in Farmville and seven in Lynchburg, with five more doctors starting “in the next few months,” according to Gwynn.

Four physicians who previously worked at LHOC now work for Centra, according to Gwynn. “Additionally, we have 12 advanced practice providers,” she said in a statement. “We are prioritizing the recruitment and interviews of more permanent providers to join CHOC. This will remain a top priority as we seek to build a long-term, sustainable team.”

 

Inova names president and chief of clinical enterprise

A surgeon who began working with Inova Health System in 1986 has been named president and chief of clinical enterprise following a national search, the Falls Church-based health system announced last week.

Dr. John Moynihan had been acting chief of clinical enterprise since March, while also serving as president of Inova Surgical Services, a position he has held since 2020.

In this role, Moynihan oversees care delivery sites, clinical service lines, research and education, providers and support services.

Initially a community-based physician, Moynihan performed the first laparoscopic gall bladder removal at Inova Fairfax in 1990. He joined Inova Medical Group in 2011.

“John has been a trusted leader and long-time partner in our mission to provide world-class health care,” Dr. J. Stephen Jones, president and CEO of Inova, said in a statement. “Having worked with Inova for nearly four decades, his deep knowledge of our organization and unwavering commitment to patient care make him the perfect fit for this role.” 

Moynihan earned his medical degree at Georgetown University. Board certified in general surgery, Moynihan completed a surgical residency at Georgetown and a peripheral vascular surgery fellowship at the University of Tennessee.

Inova employs more than 24,000 people across its five hospitals and numerous other facilities, including the region’s only Level 1 trauma center and Level 4 Neonatal Intensive Care Unit.

Three Va. universities have ‘some viability risks,’ report says

State researchers found Radford University, Virginia State University and the University of Mary Washington had “some viability risks,” according to a report released Monday, but none are in immediate danger of closing. 

The good news from the report conducted by the Joint Legislative Audit and Review Commission, which conducts program evaluation, policy analysis and oversight of state agencies for the Virginia General Assembly, is that not one of the state’s 15 public, four-year higher education institutions rated as having a high level of viability risk, meaning there’s no immediate or near-term action required for the schools to continue operating.  

Researchers focused on enrollment over the past decade and how schools are managing their finances, among other factors like institutional appeal to prospective students and age of buildings and other facilities.

In addition to the three colleges with “some risks,” JLARC analysts labeled four other schools — Christopher Newport University, Longwood University, Norfolk State University and the University of Virginia’s College at Wise — as “relatively low viability risk,” while each school has “at least one risk factor that should be monitored going forward.” 

Colleges and universities across the nation face the “enrollment cliff,” an expected decline in the number of traditional college-age students because of lower U.S. birth rates over the past two decades, and the same is true in Virginia. Rising tuition and room and board costs, as well as impressions that four-year colleges are only for the rich, contribute to lower enrollment, too.

The JLARC report also notes a possible declining interest in attending four-year institutions, pointing to a Pew Research Center survey that found 49% of 5,203 U.S. adults polled feel “it’s less important to have a four-year college degree today in order to get a well-paying job than it was 20 years ago.”

In Virginia, full-time enrollment declined between 2014 and 2023 at nine state universities, including Radford, VSU and Mary Washington, while six other universities saw increases in enrollment over the same period, according to the State Council of Higher Education for Virginia (SCHEV).

Radford had the state’s highest loss of enrollment at 29%, followed by Mary Washington at 20%. VSU saw a 5% decline over the past decade.

According to the report, Radford’s decline in enrollment is its biggest challenge, particularly since first-year student enrollment has fallen even more sharply by 38%, although the school expects its enrollment to stabilize for the 2024-25 academic year, with first-year enrollment increasing almost 30% from 1,100 freshmen in 2023 to 1,400 this year. Mary Washington, too, has lower enrollment, but it also contends with less money because of heavily discounted tuition, the report says, and “the age and condition of Mary Washington’s campus facilities also complicate the school’s efforts to recruit and retain students.”

As for VSU, the Petersburg-based HBCU has recorded enrollment growth over the past eight years, but its tuition revenue has fallen about 26% since 2015. It, too, has older facilities that need maintenance and has a lack of student housing, the report says.

Schools respond

In response to the report, leaders at the three universities said that there are some positive movements already underway at their campuses.

In a Sept. 10 letter to JLARC Director Hal Greer included in the report, Radford President Bret Danilowicz wrote that he believes a designation of “low risk” would be more appropriate for the university. Danilowicz, who was hired as president in 2022, also argues that JLARC’s enrollment methodology “can be improved upon,” by including new transfer students as well as first-year college students. 

Danilowicz added that the General Assembly could also authorize Radford to charge a reduced-rate tuition to out-of-state students that is not less than the tuition charged to in-state students, a change that “would allow Radford to offset recent enrollment declines, utilize available capacity on campus, and increase Virginia’s talent pipeline.” 

In a statement Tuesday, Radford noted it “values JLARC’s analysis of our institution’s current practices and outlook.”

As for Mary Washington, which has discounted its tuition and fees for several years and cut its staff by 20% mainly through attrition, its largest risk is in its financial strength. But in the past two years, the report states, “Mary Washington has made several changes to its foundation and its governance in the past two years, which should improve its financial health ratios in the future.” The school also has nearly $200 million in capital funding to renovate three academic buildings and build a new theater. 

In a memo to JLARC dated Sept. 18, UMW President Troy Paino wrote that the Fredericksburg university is grateful for the assessment. “Looking at indicators from the past … might leave one with the impression that UMW has done little to meet those challenges,” Paino wrote. “Nothing could be further from the truth.”

Paino goes on to note that the university has decreased institutional aid and is working to maintain its uniqueness as a “smaller, high-quality, primarily undergraduate institution.” He also points out in the memo that the university’s first-year enrollment has stabilized over the last three years and that enrollment of transfer students has increased.

Virginia State, one of Virginia’s two public historically Black colleges and universities along with Norfolk State University, has seen enrollment growth over the past eight years along with stable retention and graduation rates, according to JLARC. The report also notes that VSU has the highest percentage of students receiving a Pell grant of the state’s public four-year institutions.

A spokesperson provided a written statement from VSU responding to the report, which noted that the university’s leaders were not surprised by its findings. 

“In fact, they underscore what we already know, that as an HBCU, VSU has historically been underfunded compared to our contemporaries,” the statement said. 

“We recognize that while our cost has lowered our tuition revenue,” the statement continues, “it has increased access and contributed significantly to upward mobility and a more diverse workforce in the commonwealth. It has furthermore made us a highly sought-after educational option in Virginia as we remain one of the fastest-growing universities in the state.”

The rest of the pack

The report names Christopher Newport, Longwood, Norfolk State and U.Va. Wise as having “relatively low” viability risks, but that these four schools along with VSU, Radford and UMW should be monitored by members of OpSix, a state committee which reviews higher education institutions’ six-year operating plans. 

The state’s other eight public universities — George Mason, James Madison, Old Dominion and Virginia Commonwealth universities; the University of Virginia; Virginia Military Institute; Virginia Tech and William & Mary — are all deemed as having “very low viability risk” and require no action from the state.

Although the JLARC study included only Virginia’s public four-year schools, some of the state’s private colleges and universities also have shown lower enrollment numbers since the pandemic and worsening finances, although some have responded by lowering tuition costs, including Roanoke College, the University of Lynchburg, Randolph College, Virginia Union University and Bridgewater College. SCHEV Policy Analytics Director Tod Massa noted earlier this year that most of the state’s private school enrollment growth is attributable to Liberty University, the influential Lynchburg-based Christian university.

Monday’s JLARC report shows a 6% overall increase in public university enrollment from 2014 to 2023, and enrollment increases of 20% and higher at JMU, Mason and Virginia Tech, which showed the most improvement at 22%.

Additionally, the JLARC report recommends that SCHEV make its approval process for reviewing new academic programs less bureaucratic, a project underway under new director Scott Fleming.

“He was interested in reducing the threshold to initial approval and to raising the threshold for productivity review so that we would be more active in discontinuing non-productive programs,” Joseph DeFilippo, director of academic affairs for SCHEV, said Tuesday.

The reforms will be discussed at council’s meeting on Oct. 22, DeFilippo added.