The 2010 supplemental budget released this morning and likely to be passed by both chambers reduces funding for public services and programs by $755 million for the current biennium.
Among the reductions in the operating budget, higher education is impacted by both statewide changes and changes directed specifically towards higher education.
Statewide, the 2010 supplemental operating budget assumes $48 million in General Fund-State savings in the form of temporary state agency layoffs and management reductions (SB 6503). The Evergreen State College is reduced by a total of $568,000. This includes a reduction of $327,000 in general fund dollars and a reduction of $241,000 in non-state funds.
In addition, $30 million is expected in savings from increased efficiency in state information technology. The savings will be achieved through strategies outlined in House Bill 3178 (i.e. buying wireless service from master contracts and consolidation of email and phone services).
Specific to higher education, the budget provides funds for worker retraining, maintains much of the state funded student-financial aid programs; and minimizes reductions to colleges and universities to the extent possible.
The budget only increases funding for higher education in two areas. The budget provides $17.6 million for the Opportunity Express Account. The Account will fund an additional 3,800 full-time equivalent (FTE) unemployed workers to train at community and technical colleges for new jobs in high-demand fields.
The budget also provides $1 million to the Opportunity Express Account to provide financial aid for the additional community and technical college students who pursue training in high-demand fields.
Beyond these increases, the budget includes several budget reductions. The budget reduces state funding to the six public baccalaureate institutions and 34 community and technical colleges by an additional 6% overall for fiscal year 2011. The Evergreen State College was reduced by $1.291 million in addition to the reduction taken as part of the compensation-reduction bill (SB 6503).
As with implementation of the reductions in the original biennial budget, colleges and universities are expected to focus first on achieving savings through purchasing efficiencies, reduced energy use, administrative reductions, and program consolidations. The Legislature does acknowledge that the following are likely across higher education in Washington: reductions in course offerings, increases in class sizes, and reduced student support services.
The State Need Grant is maintained as enacted in the 2009-11 biennial budget. However, the State Work Study Program is reduced by approximately 30% in the second year of the biennium. The reduction will be realized through a combination of the following: maintaining average student earnings at the current level rather than increasing them to keep pace with the estimated costs of attendance; increasing the required employer share of wages from 35% to 50% for proprietary employers and from 20% to 30% for non-profits; and discontinuing student eligibility for the program.
It should be noted that the budget assumes the passage of Senate Bill 6409 which creates the Opportunity Pathways Account and funds this account by providing that all profits from in-state lottery games are to be used for student financial aid, early childhood education, and economic development. Funds from the Opportunity Pathway Account, $73.5 million, are appropriated to replace state general fund support for the State Need Grant, the State Work Study program, Washington Scholars, and the WAVE program.
Funding for the state funded GEAR-UP project to increase college awareness and preparedness among students is also reduced by 30%.
Funding is also suspended for several state supported student aid programs. The Legislature does continue to provide sufficient funds to complete commitments to current recipients. These programs include the Health Professional Loan & Scholarships, Education Opportunity Grants, Western Interstate Compact for Higher Education (WICHE) Professional Student Exchange program, and Future Teachers Scholarship.
The Washington Scholars and Washington Award for Vocational Excellence (WAVE) programs were not suspended but reduced. During the 2010-11 academic year, only one student (instead of three) will be awarded scholarships equivalent to at least 90 percent of full tuition and fees at a Washington public college or university. Similar to other financial aid programs, funding will continue to be made available for current recipients who were awarded scholarships in previous years to complete their studies.
Finally, a handful of other programs were reduced or suspended. During the second year of the biennium state matching funds are not provided to support innovations in childcare delivery at public universities and funding for the Leadership 1000 project is reduced by 50%.
Two programs were suspended. State contributions for the Foster Care Endowed scholarship are suspended for the second year of the biennium. In addition, state work study for math and science is suspended.