A review of Virginia’s state-run investment plans provided some good news earlier this week, but questions about whether the legislature should step in to reprioritize those funds were raised.
Jamie Bitz, the head analyst from the nonpartisan Joint Legislative Audit and Review Commission, had good news for those with money in Virginia’s Retirement System: “Its 10-year return exceeded the benchmark by more than most other public pension plans than the others we looked at.”
The agency’s presentation showed Washington State’s Investment Board was at the top of the list, with a 9.7% return over 10 years; Virginia was 6th on that list at 8.2%.
But a review of Virginia529, an independent state agency that manages a collection of savings accounts for Virginians and beyond, led to some questions.
Its link with national partners has made it one of the largest education savings programs in the country, and while that’s led to increased revenue via fees collected from out-of-state-participants, legislators wondered if those extra funds could be better spent.
“The fiduciaries of this trust fund, the board of Virginia529, is best placed to make those decisions on those educational opportunities," said Virginia529 CEO Mary Morris.
But Delegate Mark Sickles, who chaired the JLARC meeting, said Virginia529 wasn’t performing as well as some legislators like and they may push to make changes with how the funds are managed.
“I want to dig down and find out whether we can do a better job of using the funds,” Sickles told Radio IQ.
Among possible changes is a pair of efforts that sought to create a scholarship program funded by excess funding from the agency. Both were submitted during the 2024 session but were continued — and could be considered — in 2025.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.