Monthly Archives: February 2011

2011 Legislative Session: Week 8

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This week the Legislature will turn its focus to the chamber floors.

On Friday, the Legislature passed another major deadline requiring all fiscal related bills to move from an appropriation committee to the floor.

With that in mind, this week’s schedule includes limited committee meetings with most of the time spent on the House and Senate floor as another major deadline looms.

Both the House and the Senate must move bills from the chamber in which the legislation originated to the opposite chamber by end of day March 7.

What is Going on in D.C. with Higher Education Funding?

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Over the past month Congress has taken a series of steps that would impact federal funding for higher education.

On February 19 the U.S. House passed a seven-month long continuing resolution (H.R. 1) to fund federal programs for the remainder of FY2011. H.R. 1 reduced spending by almost $60 billion compared to FY10 spending levels.  Among the reductions included in H.R. 1 are several that would reduce funding for higher education.

  • Reduces discretionary-funded maximum awards for the Pell Grant from $4,860 to $4,105.  When the mandatory funds ($690) are considered the 2011-12 maximum Pell Grant award would be $4,705. This is a 15% decrease from 2010-11;
  • Makes proportionate reductions to awards below the maximum;
  • Reduces Pell eligibility for some of the highest eligible Expected Family Contribution groups;
  • Prohibits the U.S. Department of Education from using FY11 appropriations to implement, administer, or enforce gainful employment regulations;
  • Provides no funding for the Federal Supplemental Educational Opportunity Grant (FSEOG) and the Leveraging Educational Assistance Partnership (LEAP). Both programs provide financial grants to students who qualify for financial aid; and
  • Reduces President Obama’s proposed FY11 budget request by $100 billion.

An unintended consequence of the reduction to the Pell Grant included in H.R. 1 is the potential for the bill to trigger a provision in last year’s student-loan-overhaul law that conditions additional support for the Pell on Congress’ maintaining a “base” maximum award of $4,860. Under the overhaul, if lawmakers reduced the base below $4,860 the Pell Grant would become ineligile for mandatory “add ons” to the maximum starting in 2014.

According to an analysis by the Center on Budget and Policy Priorities, reducing the base by $845 to $4,105 as H.R. 1 proposes would result in the loss of $870 in mandatory money in 2014. Taken together, those reductions would cut the maximum award from the current $5,550 to $4,025.

The Senate has indicated that the reductions in H.R. 1 are too deep and are expected to release their version of a spending bill this week. It is expected that the Senate version will include nearly $25  billion in reductions, most of which were proposed by the Obama administration’s FY12 budget request. 

Despite all of this Congress has only five days to agree on a FY11 spending bill before the current continuing resolution bill expires on March 4 (this Friday). 

In a move that could temporarily prevent a government shutdown, if no agreement is reached by March 4, the House Republicans have proposed a short-term extension of federal funding that would continue to fund most federal programs at current levels for an additional two weeks (until March 18). In addition the extension would trim $4 billion from the budget. 

The reductions in the short-term Republican funding bill include earmarks that Congress had already agreed not to continue and programs that the President targeted for elimination in his FY12 budget, including LEAP. 

Senate Democrats have signaled some acceptance to the short-term proposal to allow more time to negotiate out a FY10 bill.

Federal Hearing on the Burden of Federal Education Regulations

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Tomorrow the U.S. House Education and Workforce Committee will hold a hearing to discuss the burden on K-12 and higher education institutions casued by federal education regulations.

The hearing, titled “Education Regulations: Weighing the Burden on Schools and Students” will feature testimony from the Council of Chief State School Officers, Loudoun County Public Schools, St. John’s College, and The Education Trust.

According to the Committee, this meeting is intended to “examine the scope of federal education mandates, including data collection requirements and paperwork burdens, and analyze how compliance with these mandates creates unnecessary hurdles for K-12 schools, colleges, and universities.”

Despite the Snow Appropriation Committees Plow Ahead

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While much of Olympia was quiet and covered in snow, the Capitol was busy hearing and moving bills through the process. Both the Senate and House Ways & Means Committees held marathon public hearings and executive sessions as Friday’s deadline looms.

Senate Ways & Means

The Senate Ways & Means Committee held a public hearing on two bills of particular interest to higher education – Senate Bill 5136 and Senate Bill 5182.

Senate Bill 5136 provides provisions of the state’s intent to partner with the Washington Governors University (WGU)  to establish Western Governors University-Washington and provide enhanced access to postsecondary education for all Washington students.  The Evergreen State College testified, on behalf of the Council of Presidents, with concerns with regard to the potential impact to state financial aid programs but took no position on the bill.

Senate Bill 5182 eliminates the Higher Education Coordinating Board and creates the Council forPerformance and Accountability in Higher Education. The purpose of the Council is to develop performance-based measures and goals for each state university, regional university, and the state college, linked to the role, mission, and strategic plan of the institution of higher education including (a) indicators and goals that measure outcomes concerning cost, quality, and timeliness of student progress toward degrees and certifications; (b) benchmarks and goals for long-term degree production, including discrete benchmarks and goals in particular fields of study; (c) the level of resources necessary to meet the performance outcomes, benchmarks, and goals, subject to legislative appropriation; (d) indicators and goals that measure outcomes concerning recruitment, retention, and success of students from diverse, underrepresented communities; and (e) a system of consequences for exceeding or for failing to achieve the goals or benchmarks.

The Evergreen State College testified in support of the bill and on behalf of the Council of Presidents. Evergreen stated that state government reform, including reform of higher education, is an important issue this session and SB 5182 offers an effective and efficient structure for higher education that is worth further consideration. 

House Ways & Means

The House Ways & Means Committee held a public hearing on three bills of interest to higher education.

House Bill 1666 would implement the recommendations from the Governor’s Higher Education Task Force. The legislation heard by the Committee this afternoon introduced substitute language to change the bill passed out of House Higher Education last week.

The second substitute would make the following changes and remove all other sections:

  • Add intent language that recognized the work of the Governor’s HigherEducation Task Force, the need to build on those recommendations, andthe need for the state’s citizens to achieve much higher levels of educational attainment
  • Require the Higher Education Coordinating Board in collaboration with a broad range of higher education stakeholders to review state achievement goals and capacity to meet those goals, including a consideration of socioeconomic status, and provide a preliminary assessment to the Legislature by August 15, 2011.
  • Make technical changes to the existing language regarding the Washington pledge endowment fund to accrue its own interest
  • Retain  degree targets and higher education institution action plans to achieve those targets

House Bill 1795 would establish the Higher Education Opportunity Act. The legislation heard by the Committee this afternoon introduced substitute language to change the bill passed out of House Higher Education last week.

The second substitute would make the following changes and remove all other sections:

  • Adds a requirement that beginning in the 2015-16 academic year, reductions or  
  • Clarifies that tuition setting authority is for four years, beginning in the 2011 academic year through the end of the 2014 academic year
  • Adds a requirement that beginning in the 2015-16 academic year, reductions or increases in tuition must be provided in the appropriations act when responsibility for setting tuition setting reverts to the Legislature.
  • Adds transfer provisions in addition to requiring higher education institutions to publish transferrable courses on their websites: 1) requiring that students who have earned direct transfer agreements associate degrees have junior standing at the receiving four-year higher education institution; and 2) requiring that institutions of higher education develop a one year certificate of general education requirements that is transferrable to any other public higher education institution.  

House Bill 1981 would alter existing retire/rehire policies for higher education institutions. In particular the bill would eliminate Public Employees’ Retirement System (PERS) and Teachers’ Retirement System (TRS) Plan 1 provisions permitting retirees to receive benefits while employed in retirement system-covered positions for up to 1,500 hours per year.

In addition the bill would add positions covered by a Higher Education Retirement Plan (HERP) to those included in the postretirement employment pension restrictions for PERS, TRS, the School Employees’ Retirement System, and the Public Safety Employees’ Retirement System.

Finally the bill would imit the employees to which state institutions of higher education may offer the HERP, instead of PERS Plans 2 or 3, to faculty and senior academic administrator employees; eliminate the HERP Supplemental Benefit for employees that enter the plan July 1, 2011, and provides the new employees the option of joining the TRS Plan 3 or PERS Plan 3;  require higher education institutions responsible for payment of HERP Supplemental Benefits to contract with and provide data to the Office of the State Actuary for periodic actuarial valuations and experience studies of the HERP plans; and limit state funding for the HERP plans to 6 percent of salary.

Appropriation Committees Continue to Hear Legislation that Would Impact Higher Education

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The appropriation committees in the Washington House and Senate were alive with activity this afternoon.  Both the House and Senate Ways & Means Committees heard numerous bills in preparation for the looming fiscal deadline this Friday.

House Ways & Means

The House Ways & Means Committee took up three bills that would impact higher education – House Bill 1663, 1792, and 1841.

  • House Bill 1663 removes higher education institutions from the requirement to seek an exemption from the Office of Financial Management with regards to purchasing from the Department of Corrections.
  • House Bill 1792 directs Washington State University to complete a strategic plan to establish a branch campus at Everett with the collaboration of the University Center at Everett Community College and the baccalaureate institutions that provide programs at the University Center at Everett Community College.
  • House Bill 1841 creates the Office of the Chief Information Officer (Office of the CIO) within the Office of Financial Management and an Information Technology Advisory Board to advise the Office of the CIO on information technology issues. Eliminates the Information Services Board.

Senate Ways & Means

The Senate Ways & Means Committee considered Senate Bill 5795. Senate Bill 5795 would use $250,000 of unclaimed prize money for FY11-12 and FY12-13 for the four-year Student Child Care in Higher Education Account.

U.S. House Passes Stop-Gap Spending Bill

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Earlier this week, the U.S. House of Representatives voted 235 to 189 to approve a stop-gap spending bill (H.R. 1). H.R. 1  would fund the federal government for the rest of FY2011 after the current continuing resolution expires on March 4.

H.R. 1 cuts discretionary-funded maximum awards for the Pell Grant from $4,860 to $4,105.  When the mandatory funds ($690) are considered the 2011-12 maximum Pell Grant award would be $4,705. This is a 15% decrease from 2010-11.

In addition, the bill makes proportionate reductions to awards below the maximum, reduces Pell eligibility for some of the highest eligible Expected Family Contribution groups, and prohibits the U.S. Department of Education from using FY11 appropriations to implement, administer, or enforce gainful employment regulations.

The bill also provides no funding for the Federal Supplemental Educational Opportunity Grant (FSEOG) and the Leveraging Educational Assistance Partnership (LEAP). Both programs provide financial grants to students who qualify for financial aid. Finally, the bill reduces President Obama’s proposed FY11 budget request by $100 billion.

H.R. 1 now goes to the U.S. Senate for further consideration.

Senate Ways & Means Committee Hears Bills

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To meet the second major legislative deadline this Friday – to move fiscal related bills – the Senate Ways & Means Committee heard sixteen bills this afternoon.

Two bills heard by the Committee today, in particular, would directly impact higher education – Senate Bill 5616 and Senate Bill 5569.

Senate Bill 5616 requires all public high schools in the state to work toward the goal of offering a sufficient number of high school courses to give students the opportunity to earn the equivalent of one year’s worth of postsecondary credit and must inform students and their families about these opportunities.

In addition, the bill requires institutions of higher education to develop a master list of postsecondary courses that can be fulfilled, for lower division general education requirements, by achieving an agreed-upon score on Advanced Placement, International Baccalaureate, or other recognized college-level proficiency exams or by meeting demonstrated competencies.

The Evergreen State College is working with staff to include similar language to that included in the House companion bill which would provide language to ensure institutions of higher education who provide an alternative approach to teaching and learning are encompassed.

Senate Bill 5569 would make changes to postretirement employment provisions for Plan 1 of the Teachers Retirement System (TRS 1). Specifically the postretirement employment provisions of Plan 1 of TRS 1 would apply when a retired member enters service with either an institution of higher education in an instructional capacity or any school or educational service district. Postretirement employment of in non-instructional position in an institutionof higher education are not restricted.

The Evergreen State College signed-in to support SB 5616 but did not testify. Evergreen took no position on SB 5569.

Fiscal Committees Move Legislation

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This Friday marks the second major deadline of the session. All bills referred to fiscal committees in both chambers must have moved to the floor by end of day on February 25.

In preparation for this looming deadline all of the appropriation committees in the Senate and the House were busy today hearing and moving bills forward in the process.

House Higher Education Appropriations

The House Higher Education Appropriations Committee took action on two bills that would impact higher education.

House Bill 1849 creates the Washington State Education Council (Council). The overall mission of th Council is to: provide strategic oversight and advocacy of public education, including early learning, K-12 education in the common schools, and postsecondary education; and recommend policies and strategies to make the public education system student-focused and able to provide seamless service delivery across all sectors.

The substitute bill passed by the Committee revises the mission of the Council to focus on recommending policies, strategies and a governance structure for the public education system and makes the Council temporary, expiring the provision on  June 30, 2013. 

 In addition, the substitute revises the Legislative intent that guides the Council’s Transition Plan: to establish a primary strategic oversight and advocacy board for the public education system and consolidate supervision over matters pertaining to the public education system within a primary state agency.

House Bill 1808 requires all public high schools in the state to work toward the goal of offering a sufficient number of high school courses to give students the opportunity to earn the equivalent of one year’s worth of postsecondary credit and must inform students and their families about these opportunities. In addition, the bill requires institutions of higher education to develop a master list of postsecondary courses that can be fulfilled, for lower division general education requirements, by achieving an agreed-upon score on Advanced Placement, International Baccalaureate, or other recognized college-level proficiency exams or by meeting demonstrated competencies.

The substitute bill passed by the Committee clarifies language to include career and technical education and provides language to ensure institutions of higher education who provide an alternative approach to teaching and learning are encompassed.

Senate Ways & Means

The Senate Ways & Means Committee took action on two bills that would provide for regulatory relief for institutions of higher education.

Senate Bill 5268 would remove the exisiting requirement for approval by the Director of the Office of Financial Management with regard to meetings of members in any of the five classification groups associated with part-time boards and commissions affiliated with institutions of higher education. In addition, the bill would exempt institutions of higher education from the restrictions on personal service contracts, equipment acquisition, travel, and employment.

Senate Bill 5519 modifies public contracting limits and procedures.

Both Senate Bill 5519 and 5268 now move to Senate Rules.

2011 Legislative Session: Week 7

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This week the Legislature will turn its focus to the appropriation committees.

The appropriation committees in each chamber will hold public hearings and executive sessions as legislators turn their attention to acting on bills by a February 25th self-imposed deadline.

This week’s schedule includes conversations on postretirement issues; efficiency and regulatory relief bills; governance; and financial aid. Please see the links below for a list of all the hearings that may be of interest.

Governor Signs Supplemental Budget with Some Vetoes

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On Friday the Governor signed legislation that would reduce state funding and decrease the current shortfall in this fiscal year.  

Though the majority of the funding reductions sent to the Governor by the Legislature were approved, the Governor did veto a handful of items, worth about $6 million in cuts. 

In her veto letter, Governor Gregoire stated:

  • Percent Pay Reductions: The legisatively passed budget would reduce the pay of many non-represented state employees by 3 percent beginning April 1 for a savings of $3.4million in the state General Fund.  While the Governor’s 11-13 budget proposal includes an employee pay reduction for all state employees, the early implementation date in this bill is not achievable and would have unintended consequences.
  • Depart of Information Services, Prohibition on Expenditures to Equip the State Data Center: Budget language prohibits DIS from spending any funds for the purchase or installation of equipment for the new State Data Center. This prohibition will not save any money and will significantly delay Data Center operation and budget savings made possible by the consolidaiton of existing data centers.
  • Communications Staff Savings: The budget requires agencies to achieve $10 million of savings through reduction in communications functions in the executive branch. Given the importance of the work performed by these employees, ranging from providing information on real-time traffic to public health concerns to unemployment insuranced and licensed child care facilities and the budget, it is difficult to see how the public would be served through the sudden and dramatic elimination of these staff.
  • Management Efficiencies in the Department of Social and Health Services: The budget requires DSHS to achieve state General Fund savings of $1.7 million by reducting management staff and administration in addition to achieving other efficiencies. The proposed reductions would jeopardize the department’s ability to implement the program changes required in the budget.

Despite the passage of the supplemental budget the state remains in the red. In total, the budget slashes the estimated deficit by about $370 million, with about $242 million in cuts and $125 million in transfers.

The Office of Financial Management estimates that the remaining projected deficit for this current fiscal year is $226 million, adding in the money not saved from the vetoes. The fiscal year ends in June.

“The March forecast will provide remaining information to complete the final supplemental,” Gregoire said in a statement. “The Legislature now must turn its attention to the immediate challenge of addressing the 2011-13 budget. This will not get easier with time.”

Among some of the ideas to finish patching up the deficit to the current fiscal year is delaying state payments to school districts by one day, essentially kick up the payment to the next two-year budget.

Lawmakers have spent more than a month of the 105-day legislative session trying to come up with this agreement, and now, Gregoire and legislators will have to tackle an estimated $5 billion deficit in the next two-year budget, which is roughly $37 billion.

The Senate voted 37-10 and the House voted 55-41 to approve the package.