The Southwest Virginia Higher Education Center’s executive director, David Matlock, told trustees the center finished fiscal year 2020 in strong shape and is on track to balance the FY2021 budget despite a significant drop in non‑general revenue from conferences and events.

Matlock said the center’s five‑year average for non‑general revenue is roughly $275,000–$280,000; this fiscal year the center now projects about $40,000 from those sources, roughly $235,000 below normal, but he said the agency has cut expenses and will use reserves if needed to meet operational needs. Matlock said the center budgeted a contingency fund of about $1.2 million and expects to meet or exceed that level.

Matlock and operations officer Jeff Webb presented the construction and renovation work. Webb described a roughly 6,000‑square‑foot addition that adds storage, office and classroom space, a canopy for loading, two ~750‑square‑foot storage rooms, a new freight elevator and a 300‑kilowatt natural‑gas generator to support the Grand Hall. He said the addition includes a new catering kitchen grease trap and repaving of the service area.

When asked about total cost, Matlock said the original contract was about $2.4 million and that the finished cost, including the generator and other work, will likely be closer to $2,728,000.

Webb said the new addition and office renovation will allow the center to expand its testing services and better accommodate 50–60 testing agencies that use the facility for professional licensing and academic exams. He said a new testing center check‑in area will have observation windows to meet testing companies’ monitoring requirements and that the freight elevator and storage will improve event setup efficiency.

Webb outlined follow‑on projects: replacement of the building’s fire alarm system (Simplex unit), an HVAC replacement and rezoning project covering more than 70 ceiling units with an expected completion the following April, exterior glazing replacement for energy efficiency, new furniture, and floor coverings in stages. He invited trustees to tour the site once COVID‑19 conditions permit.

Matlock also noted the center is managing about $8 million in foundation grants (largely Virginia Tobacco Commission grants) with roughly $4 million in remaining balances, and said the foundation chair will provide a fuller report at the June meeting.

No formal votes were taken on budget or capital items during the meeting; staff reported status and next steps and will bring required approvals back to the board as needed.