Monthly Archives: April 2011

Washington Senate Moves Operating Budget Bill Out of Committee

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This afternoon the House Ways & Means Committee took action on the proposed biennial operating budget.  The Committee passed the budget to the floor.

The Senate’s proposed budget reduces state funding to higher education by $617.5 million. 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.

Under this proposed budget state funding for Evergreen is reduced by $14.28 million over the biennium. 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%).

The budget now goes to the Senate floor – as soon as Monday – for further consideration.

U.S. House Passes FY12 Budget Resolution

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Today the U.S. House of Representatives passed a proposed FY2012 resolution with a vote of 235-193.

The budget would  impact higher education in several ways.

  • Rolls back  the 2012-13 maximum Pell Grant to FY2008 levels, resulting in a maximum Pell Grant of $2,090 for the 2012-13 academic year.
  • Calls for the repeal and defunding of the Healthcare and Education Reconciliation Act (HCERA), which includes mandatory funding for the Pell Grant program. This could further lower the maximum grant by $690. 
  • Changes to limit the lifetime limits of the Pell Grant program
  • Rescinds recent expansions to the Need Analysis formula
  • Eliminates administrative cost allowances to schools
  • Repeals the expansion of income-based repayment provisions in the Student Aid and Fiscal Responsibility Act (SAFRA), and 
  • Eliminates interest subsidies on all Stafford Loans.

The budget resolution is a nonbinding resolution that sets broad spending levels that appropriations’ committees use to set specific spending levels for federal programs. In addition, it is unlikely that the Democratic-controlled Senate will approve the measure.

The U.S. House Democrats offered a substitute FY2012 budget resolution that was defeated by the House. The Democrats’ substitute proposed using mandatory spending to maintain the maximum Pell Grant at $5,550 and to pay for this by reducing spending on other programs. The substitute resolution also established a deficit neutral reserve fund for college affordability’ to allow the House Budget Committee Chairman to revise the allocations, aggregates, and other appropriate levels in the resolution for legislation that makes college more affordable, including efforts to maintain the maximum Pell grant award, as long as it does not increase the deficit.

Congress Passes FY 11 Spending Bill

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Yesterday the U.S. Senate and House passed a long-term continuing resolution that will fund the federal government through the end of the current fiscal year. The House passed the resolution with a vote of 260-167 and the Senate passed the same legislation with a vote of 81-19.

The resolution prevented a shut-down of the federal government last week. Congress had previously passed a series of short-term resolutions in lieu of a consensus on a final spending package. The most recent short-term continuing resolution expired today.

The resolution will preserve the $5,550 maximum Pell Grant for the 2011-12 award year and delay elimination of second Pell awards until after this summer. The reductions in the resolution also affect others student financial aid programs, including the Federal Supplemental Educational Opportunity Grant (FSEOG) and federal work study for the 2011-12 academic year. 

Overall the resolution reduces state spending by $38.5 million from non-defense, discretionary FY10 spending levels.  The President is expected to sign the bill.

House Committee Takes Action on Key Higher Education Bills

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The House Ways & Means Committee held a marathon executive session. Among the bills moved out of committee this evening were two major pieces of legislation that will impact higher education – House Bill 1795 and House Bill 1981.

Both bills now move to the House floor for consideration.

House Bill 1795
The bill allows  four-year colleges and universities to set tuition for all students for four years, through the 2014-15 academic year. After 2015, tuition for resident undergraduates will be set by the governing boards of the four-year institutions within certain parameters tied to the global challenge states and state funding. For example if state funding for an institution falls below state funding levels for FY 2011, an institution’s governing board may increase tuition so as not to exceed the 60th percentile of the tuition at GCS institutions.

In addition, the bill requires public baccalaureate institutions to increase current funds held for financial aid from 3% of tuition and fees to 5%, freezes the building fee to 2010-11 levels, and requires institutions to mitigate tuition increases for students at 125% or below of the median family income if they exceed tuition levels established in the budget.

Finally the bill contains provisions related to federal tax credits, transfer language, performance and accountability, and regulatory relief for higher education institutions.

House Bill 1981
The bill makes several changes to retirement related policies for higher education employees.  Among the changes is a narrower definition of eligible employees for Higher Education Retirement Plans. Under this bill only faculty and senior academic administrators are eligible for the plan. Senior academic employees are defined as institutional presidents, vice presidents, vice  presidents, deans, directors, chairs, and executive heads of major administrative or academic divsions who hold concurrent faculty appointment with rank.

In addition the bill caps benefits at 6%, alters postretirement employment criteria for employees, and eliminates the supplemental benefit.

Finally the bill was amended in committee to require employers contribute one-half of one percent of salaries into a non-appropriated Higher Education Retirement Plan (HERP) Supplemental Benefit fund beginning January 1, 2012. The dollars deposited into the fund will be managed by the State Investment Board.

Senate Holds Public Hearing on Proposed Capital Budget

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The Senate Ways & Means Committee held a public hearing on the proposed biennial capital budget this afternoon.

The Senate’s proposed capital budget provides for $1.23 billion in bond-supported capital budget capacity for the state. The proposed capital budget is 21% smaller than the current 2009-11 biennim in total funds and a third smaller in bond funded projects.

The Senate’s proposed capital budget provides $590 million for higher education facilities. Over half of the funds go to the four-year institutions. This includes partial funding for Evergreen’s Communications Building and full funding for the science lab renovation.

The Evergreen State College testified with concerns about the proposed capital budget. While Evergreen supports the commitment to funding for infrastructure needs at Washington’s higher education institutions (including Evergreen’s Science Lab I 2nd Floor Renovation), the College expressed concern with regard to the lower funding level proposed for the Communication Building renovation. The College requested $10.77 million and the budget provides for $9.16 million. The College asked the Senate to fully fund this project.

House Committee Hears Bill To Change Scope of the Higher Education Coordinating Board

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This afternoon the House Ways & Means Committee held a public hearing on legislation that would narrow the scope of work for Washington’s Higher Education Coordinating Board (HECB) primarily as a result of reductions in funding for the Board.

House Bill 2074 would retain several current functions of the HECB and remove others. Among those duties that are retained with the Board is the administration of the state’s financial aid programs, strategic planning for the state’s higher education system, some functions for collecting and collating data from higher education institutions on their accountability measures, and evaluating the need for various programs based on employer demand, and some other programmatic functions.

The bill would remove several current requirements. These include:  

  • Need assessments for proposed major expansions or mission changes of public institutions of higher education, and removes the requirement to assess the need for teacher preparation courses.
  • The evaluation and recommendation of operating and capital budget requests from the public four-year institutions and the community and technical college system.
  • The cost study measuring costs of instruction, costs to provide degrees in specific fields, and costs for precollege remediation; and removes the requirement that the HECB determine and transmit approved undergraduate and graduate educational costs to the boards of regents and  trustees of the public institutions of higher education.
  • Coordination and development of transfer and articulation policies.
  • Establishment of  minimum college admission standards.

Senate Holds Public Hearing on Proposed Biennial Budget

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This afternoon the Senate Ways & Means Committee held a public hearing on the Senate’s proposed operating biennial operating budget.

The Senate’s proposed budget reduces state funding to higher education by $617.5 million. 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.

Under this proposed budget state funding for Evergreen is reduced by $14.28 million over the biennium. 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%).

Representatives from key higher education stakeholder groups – including the Geoduck Student Union representative to the legislature, the Evergreen Council of Faculty representative, and the Director of Government Relations from Evergreen – testified to the impact of the proposed budget on students, faculty, and institutions.

Overall testimony acknowledged the dramatic reduction to higher education and the impact of this to Washington. Several stakeholders advocated for continual support of the budget’s funding for the State Need Grant program and the State Work Study program.  In addition, testimony showed appreciation for the open dialogue between senators and key stakeholders regarding the budget throughout its development and clarity within the budget.  Finally, stakeholders asked to continue to work with policymakers around personnel related reductions in the budget and some technical aspects of the bill.

House Higher Education Committee Honors Faculty and Discusses Interim Planning

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This morning the House Higher Education Committee took a moment amid the chaos of the final days of session to honor and recognize faculty at Washington’s public, baccalaureate institutions.

Ralph Murphy, the Council of Faculty Representative for The Evergreen State College, introduced two faculty among several that the Council shared with the Committee regarding faculty who have attained awards recognizing their teaching excellence in higher education. 

Two faculty members – Dr. Zack , Associate Professor of Entomology and Director of the M.T. James Entomological Collection, at Washington State University and Professor Hauck, Electrical Engineering, at the University of Washington – shared with the Committee their work and provided an on-the-ground perspective as faculty at Washington’s public, four-year institutions.

In addition the Committee heard from several stakeholders regarding thoughts and ideas that may shape the Committee’s interim work.  Representatives from the Higher Education Coordinating Board, the community and technical colleges, the State Workforce Board, the independent institutions, and career and technical institutions shared their thoughts and comments with the Committee.

In addition representatives from the various public baccalaureate institutions also shared their thoughts. All of the institutions that spoke supported the concept put forward by the Chair to hold meetings at our campuses in conjunction with our community college partners during the interim.  

The Evergreen State College testified to the need to take the time to understand the cumulative impact of the shift away from state funding towards tuition on students and campuses, what institutions are doing in response, and what are the next steps. In addition, it is critical to examine the impact of policy bills passed  and policy issues discussed  this session including financial aid, types of degrees, and diversity among students served.

Other topics that were highlighted include continuing efforts to identify areas that would provide regulatory relief for institutions, work dedicated to new legislation passed this session, and the development and establishment of the Complete to Compete accountability and performance framework.

A Closer Look at Higher Education in the Senate’s Proposed Biennial Budget

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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

Last Major Deadline Passes in the Legislature

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The last major legislative deadline prior to the end of the 2011 regular session passed this evening.

Today marked the last day to take action on a bill that started in the opposite chamber. The exception is any legislation deemed necessary to implement the budget (NTIB).

Several bills that would impact higher education are still active in the legislative process after today’s deadline.

  • Senate Bill 5442 allows state and regional universities and TESC may develop accelerated baccalaureate degree programs that will allow academically qualified students to obtain a baccalaureate degree in three years without attending summer classes or enrolling in more than a full-time class load during the regular academic year.
  • Senate Bill 5304 requires the Caseload Forecast Council to provide a forecast of College Bound Scholarship Program recipients who will attend college.
  • 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 1822 expresses the Legislature’s intent to partner with Washingto Governors University to establish WGU-Washington and provide enhanced access to postsecondary education for all Washington students.

The bills that passed this deadline and were not deemed NTIB will then move back to their origianl chamber if they were changed in the opposite chamber. The original chamber must either concur with any changes or dispute changes. For the bills that cannot be reconciled through this process a conference committee will be established to address the difference between the two chambers and try to find some compromise.

A conference committee is expected on the budget bills but may be needed on some policy bills. A conference committee consists of two House and Senate members from the majority party and one House and Senate member from the minority party. Once the conferees agree on what is in the conference bill the only action in either chamber is a yes or no vote. No further amendments are allowed.