The Senate Ways & Means Committee will hold a public hearing on the Senate’s proposed operating buget today (April 13) at 2:30.
The budget reduces funding for higher education by $617.5 million. This is 22.1% below the amount needed to continue the current level of programs and activities at Washington’s public higher education institutions.
In addition to these reductions the budget also eliminates the Higher Education Coordinating Board and replaces it with the Council for Higher Education and the Office of Student Financial Assistance. Finally the budget makes several changes to financial aid in Washington.
The Higher Education Sector
Of the total reduction to higher education, state funding for community and technical colleges is $200.3 million (14.4 percent) below the maintenance level and state funding for the four-year, public institutions is $417.3 million (29.8%) lower. The Evergreen State College is reduced by $14.278 million and authorized to increase tuition by 14% per year for the biennium.
In addition, each institution’s tuition waiver authority was maintained at the level established by institution for Fiscal Year 2010.
These reductions were offset in part by tuition increases at all public higher education institutions. The proposed budget authorizes tuition increases of 16% per year for the University of Washington, Washington State University, and Western Washington University; 14% for Central Washington University and The Evergreen State College; 12% for the community and technical colleges; and 11% for Eastern Washington University.
Additionally, the Senate proposes to provide greater tuition flexibility to four-year institutions of higher education by granting full-tuition setting authority beginning in 2013-15 through 2017-19. Under this proposal institutions would be required to negotiate a performance contract with the Office of Financial Management and the Higher Education Coordinating Board if they plan to raise tuition beyond 11% at WWU, UW, and WSU or 9% at Evergreen, CWU, and EWU. In addition institutions would be required to eliminate any tuition increase beyond this threshold for those students with incomes below 125% of median family income.
The Evergreen State College
Under this proposed budget state funding for Evergreen is reduced by $14.28 million over the biennium.
- -$12.152 million in reduced state funding which includes the following: (1) $10.598 in reduced state funding, and (2) $1.554 million in biennialized across-the-board reductions from the December supplemental.
- -$1.92 million to reflect a 3% salary reduction
- -$426,000 to reflect temporary furloughs
- $220,000 for various studies for the Washington State Institute for Public Policy
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 to state funding for Evergreen is $5.78 million (-5.5%)
Higher Education Coordinating Board and Financial Aid
The Senate’s proposed budget eliminates funding for the Higher Education Coordinating Board. All funds associated with non-financial aid programs are transferred to a new state agency the Council of Higher Education (SB 5182). In addition, all funds associated with financial aid programs are transferred to a new state agency, the Office of State Financial Assistance, also established in SB 5182.
The Senate’s proposed budget provides funds to the State Need Grant and the State Work Study program to offset the cost to recipients of resident undergraduate tuition increases at each institution of higher education. Though funds are provided to offset costs to the State Work Study program, overall funding is reduced for this program.
The reductions to the State Work Study program are the result of making permanent changes made during FY 2011 including increasing the required employer share of wages and discounting non-resident student eligibility for the program.
In addition awards to students at private institutions are reduced to align with the average annual tuition increase experienced by private institutions (3.5%).
Despite the financial support for the State Need Grant and State Work Study programs, several other state financial aid programs were suspended. These programs include:
- Health Professionals Conditional Scholarship program
- Small grant programs including the Community Matching Grant program, WICHE student exchange, and Foster Care Endowed Scholarship
- Future Teachers program
- WAVE and Washington Scholars