RICHMOND - Virginia's public colleges scored a major victory in their drive for financial flexibility Tuesday when key members of a study commission endorsed the concept of granting schools varying levels of autonomy.

House Speaker Bill Howell said he plans to introduce legislation that would free all public colleges from some state bureaucracy but would also enable individual institutions to petition the state for "a higher level of autonomy." Howell, R-Stafford County, did not explain further. But the statement from Howell - as well as similar sentiments expressed by the other members of the commission studying the issue - will probably bolster efforts by Virginia Tech and other universities to reduce red tape.

"The commission seems to be narrowing its focus," said Leonard Sandridge, executive vice president and chief operating officer of the University of Virginia. "We are making progress."

For more than a year, officials at Tech, UVa and the College of William and Mary have been talking with legislative leaders about handling more of their own finances and administrative functions with less direct oversight from Richmond.

The original "chartered university" proposals would have granted the institutions broad authority to set tuition and fees, erect buildings on campus and even offer nonfaculty employees benefits without previous approval from the state. The institutions also sought to close their state funding shortfalls by keeping and then reinvesting more of the money generated by tuition, research and for-profit ventures.

In return, the schools agreed to accept a smaller share of future increased spending on higher education, enroll nearly 2,500 additional students and increase financial aid budgets.

That plan was eventually broadened to offer three levels of decentralization encompassing all public colleges, regardless of size.

On Tuesday, legislative analysts working with the commission recommended a more modest decentralization plan. The proposal would allow all schools to dispose of property, manage small construction projects, set tuition, arrange leases and supplement nonfaculty pay with private money without pre-approval from Richmond.

In return, the state would expect each college's governing board to set specific goals, offer assurances on access and affordability and develop long-range plans.

College officials described the staff plan as a good "beginning point" but requested that the commission go further.

"True, we have common needs that need attention, but we have many, many differences ... in resources, capabilities, issues, mission and vision," said Glenn DuBois, chancellor of the Virginia Community College System and chairman of a group representing the presidents of Virginia's public colleges.

At least four commission members spoke in favor of different levels of autonomy.

"I also think the institutions have made a strong case that one size really doesn't fit all, and that some institutions are ready and able to shoulder a greater measure of autonomy and greater measure of responsibility," Howell said.

Some speakers questioned whether the tuition increases would drive away prospective low-income students.