Yesterday the House Republicans introduced an alternative biennial budget. The Republicans used thirteen principles to guide their budget decisions.

The House Republican’s proposed biennial operating budget reduces state funding for higher education by $482 million (House Democrats -$482 million).

The Higher Education Sector
The majority of the total reduction to higher education came in the form of straight-up cuts to the four-year and two-year sector- $353.8 million (House Democrates -$353.8 million). In addition, the across-the-board reductions taken during the December supplemental budget by all public higher education institiutions were biennalized and included in the 2011-13 budget – $102.2 million (House Democrats -$102.2 million). The baccalaureate institutions and the community and technical colleges were also reduced one-time to reflect the fact that enrollment levels may be temporary – $26.3 million (House Democrats -$26.3 million). Finally, waiver authority for higher education institutions was capped at actual fiscal year 2010 levels and funding was reduced to reflect the difference between previous waiver authority and actual usage of the waiver – $71.6 million (House Democrats $0). 

Finally, state funding levels were  reduced to reflect a funding cap on higher education retirement plans (HERPs) of 6% – $49.6 million (House Democrats -$57.1 million). This is recognized as savings in the proposed budget.

The reductions in the House Republican proposal were offset in part by tuition increases at all public higher education institutions. The proposed budget authorizes tuition increases of 13 percent per year for the University of Washington, Washington State University, and Western Washington University; 11.5% per year for Central Washington University, The Evergreen Staate College, and Eastern Washington University; and 11% per year for the community and technical colleges – $379 million (House Democrats $379 million).

Despite the dramatic reductions in state funding and the tuition increases, the four-year public higher education institutions received additional funding of $1.5 million for Eastern Washington University, Central Washington University, and The Evergreen State College to provide, wrap-around services for low-income students (House Democrats $1.5 million). The Republicans did not include additional funding for STEM that was part of the House Democrat’s proposal.

The Republican proposal also includes $5 million for the Baccalaureate Incentive Program. Dollars would be distributed to the four-year, public higher education institutions based on demonstrated improvement in reducing the number of credits earned by students in excess of the number needed for graduation. This was not included in the House Democrat proposal. In addition, the House Republicans did not include the required hold back of funds for demonstrated improvement in metrics which measure academic progress and completion rates that was part of the House Democratic proposal.   

The Evergreen State College
Under this proposed budget state funding for Evergreen is reduced by $15.8  million over the biennium (House Democrats -$16.3 million).   This includes a combination of reductions in state funds and policy additions:

• -$10.31 million in reduced state funding (House Democrats -$10.38 million)
• -$1.92 million to reflect a proposed 3% salary reduction (House Democrats -$1.92 million
• -$1.55 million for biennialized across-the-board reductions in December supplemental (House Democrats  $1.55 million)
• -$1.024 million as a result of the 6% funding cap on HERPs (House Democrats – $1.024 million)
• -$940,000 in one-time reduction (House Democrats -$940,000)
• -$698,000 to reflect increase tuition revenue from tuition waivers (House Democrats – $0)
• $500,000 to provide for wrap-around services for low-income students (House Democrats $500,000)
• $150,000 in various studies for the Washington State Institute for Public Policy. (House Democrats $225,000)

The reductions to Evergreen’s state funding were offset in part by tuition increases for the 2011-13 biennium as stated in the budget. As a result, the net cut state funding for Evergreen is $8.45 million (-8.1%) compared to a reduction of $9.02 million, which is a net cut of 8.6% in the Democrat’s proposal.

Financial Aid
The House Republicans maintained funding for the State Need Grant at the same level as the House Democrats ($103.1 million).

The Republican’s proposal does not make the same policy changes to the State Need Grant that the House Democrats did in their proposal. In other words the Republicans maintained awards and award sizes for students attending private non-profit and for-profit higher education institutions.

Despite the increased financial support for the State Need Grant, several state financial aid programs are suspended for the 2011-13 biennium. The one exception is State Work Study. The Republicans reduced funding for work study but do not suspend it .  Those programs suspended include:

• Health Professionals program
• Washington Scholars
• Washington Award for Vocational Excellence
• College Assistance Migrant Program
• Community Scholarship Matching Grant Program
• Leadership 1000
• Western Interstate Commission for Higher Education student exchange
• Foster Care Endowed Scholarship
• Child Care matching grant