Yesterday the Governor signed a suite of higher education related bills that will alter higher education in Washington over the next biennium.

The most dramatic changes to higher education come from House Bill 1795 signed into law by the Governor.  In broad strokes the bill: (1) Provides tuition setting authority to the public, baccalaureate institutions in Washington for eight years and provides increased institutional financial aid to offset tuition increases; (2) Creates a consistent, uniform, and transparent performance measurement system; and (3) Tightens existing transfer policies and expands prior learning opportunities.

The bill, as passed by the Legislature, also provided regulatory relief for the institutions ranging from changes to procurement thresholds to the elimination of restrictions on equipment, travel, and meeting spaces. However, the Governor vetoed most of this section.

Another major change will come from the passage and signing into law of Senate Bill 5182.  This bill eliminates the Higher Education Coordinating Board and creates the Council for Higher Education and the Office of Student Financial Assistance as of July 1, 2012.

To guide this restructuring effort a steering committee on higher education is created to establish the purpose, functions, and membership of the Council. The Steering Committee is chaired by the Governor or the Governor’s designee and includes four legislators and equal representation from higher education sectors in the state.

The Governor did veto a portion of Senate Bill 5182 that reflected a technical error. As the bill was drafted the effective date of the transfer of powers would occur prior to the creation of the new office of student financial assistance on July 1, 2012. The Governor vetoed this section of the bill with the acknowledgement that the new higher education steering committee will make recommendations concerning higher education governance prior to the 2012 legislative session and the expectation is that the transfers of authority will be considered as part of these recommendations.

Over the next year the Higher Education Coordinating Board will remain in place and focus on a narrower portfolio of work to reflect the reduction in funding for the agency.

The Governor also signed legislation that will alter the Committee which oversees Washington’s Guaranteed Education Tuition (GET) program. Senate Bill 5749 makes the following changes:

• The existing two members of the Committee on Advanced Tuition Payment are appointed by the Governor for four-year terms instead of an unspecified period of time.
• Two additional representatives from private business are added and will be appointed by the Governor for four-year terms.
• The Committee must use the State Actuary in reviewing the GET program rather than a nationally recognized actuary, though the Committee may consult with a nationally recognized actuary.
• A legislative advisory committee to the Committee on Advanced Tuition Payment is established to provide advice regarding the administration of the program including but not limited to pricing guidelines, the tuition unit price, and the unit payout value.

Finally the Governor signed into law legislation that will create an endowment for students pursuing a baccalaureate degree in a high demand field.

House Bill 2088 creates the Opportunity Scholarship Program and the Opportunity Expansion Program to mitigate the impact of tuition increases, increase the number of baccalaureate degrees in high employer demand and other programs, and invest in programs and students to meet market demand fields of study while filling middle-income jobs with a sufficient supply of skilled workers.

The Opportunity Scholarship Board is established to identify eligible education and training programs for purposes of the opportunity scholarship, select institutions of higher education to receive opportunity expansion awards, set fundraising goals, and solicit funds.