The Washington fund for innovation and quality in higher education program is established. The student achievement council shall administer the program and shall work in close collaboration with the state board for community and technical colleges and other local and regional entities. Through this program the student achievement council may award on a competitive basis incentive grants to state public or private nonprofit institutions of higher education or consortia of institutions to encourage programs designed to address specific system problems. Each institution or consortia of institutions receiving the award shall contribute some financial support, either by covering part of the costs for the program during its implementation, or by assuming continuing support at the end of the grant period. Strong priority will be given to proposals that involve more than one sector of education. Institutions are encouraged to solicit nonstate funds to support these cooperative programs.