Monthly Archives: April 2011

WA Senate Release Biennial Budgets

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This evening the Washington Senate released its proposed biennial operating and capital budgets along with a supplemental budget for the current fiscal year.

2011-2103 Operating Budget
The proposed biennial budget makes approximately $4.8 billion in total reductions. The budget reduces funding for higher education by $617.5 million. Of this amount, 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 $12.152 million and authorized to increase tuition by 14% per year for the biennium.

In addition to the reductions to higher education the proposed budget makes the following reductions to achieve a total savings of $4.8 billion.

  • $861 million – Elimination of Initiative 728
  • $212 million – Elimination of K-4 class enhancement
  • $95 million – Implementation of average daily attendance in K-12 public schools
  • $361 million – End automatic COLAs for PERS Plan 1 and TERS Plan 1
  • $428 million – 3% salary reduction to state, higher education, and K-12 employees
  • $184 millin – Reform to the Disability Lifeline cash program
  • $122 million – Reduction to Basic Health Plan
  • $110 million – Reduction in Hospital payments
  • $98 million – Reduction of 10% to Medicaid personal care hours
  • $51 million – Reduction to Disability Lifeline-Medical program

The Senate’s proposed budget also makes $455 milion in transfers from various accounts to maximize the General Fund state resources. In addition the budget assumes a net increase of $32 million in new revenues through a combination of legislation reducing revenue and legislative/budget actions increasing revenue.

2011-13 Capital Budget
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 funding for Evergreen’s Communications Building and science lab renovation.

Federal Funding Legislation for Current Year Would Impact Higher Education

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Last Friday the U.S. House and Senate along with the White House agreed to a long-term continuing resolution that would fund the federal government for the remainder of FY 2011.  The deal reduces federal spending by $38.8 billion.

Congress also passed a short-term budget gap bill that expires this Thursday which will allow for time to develop the full legislation needed to implement the agreement. The short-term budget gap bills includes $2 billion in reductions.

The budget deal preserves the maximum Pell Grant but ends year-round Pell grants (See summaries posted by the House and Senate Appropriations Committees). In addition, the budget makes reductions to several research and education programs.   The bill would eliminate the Byrd Honors Scholarship Program and the Leveraging Educational Assistance Partnership (LEAP) program and reduce funding for several programs without completely eliminating them. These cuts include:

  • $20 million cut from the Federal Supplemental Education Opportunity Grants (SEOG)
  • $25 million cut from the Federal TRIO Programs
  • $20 million cut from the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP)

The summary posted by the House Appropriations Committee also indicates a 0.2% across-the-board cut for all federal programs. It remains unclear exactly how this across-the-board cut will affect federal student aid programs.

Overall, the bill cuts federal spending by nearly $40 billion, the largest cut to federal spending in a single year. It cuts a host of education programs including Teach for America, Even Start, and Education Technology State Grants, as well as other federal programs including emergency first responders, the National Endowment for the Arts and high-speed rail. Cuts to ED programs were relatively small compared to cuts to the Departments of Transportation, Housing and Urban Development, Commerce, Justice, Labor and Health and Human Services.

Congress is expected to vote on the bill as early as Thursday.

House Capital Budget Moves to the Floor

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This morning the  House Capital Budget Committee moved the proposed biennial capital budget out of committee and to the House floor. The committee adopted several amendments of which none impact Evergreen.
The capital budget proposes $629.1million in total funds for higher education, including $430.5 million in state bonds.  The four-year public baccalaureate institutions received $167.3 million in state-bonds.  This includes funding for Evergreen’s Communications Building, science lab renovation, and a predesign for the Lecture Hall.

Senate to Release Budget This Evening

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The Washington Senate will release a proposed 2011-13 operating budget this evening (April 12).

A press conference is scheduled for 5:30 and it is expected that the budget will be available soon after the press conference.

The press conference will be followed by a public hearing tomorrow (April 13) at 2:30 on the proposal in the Ways & Means Committee.

House Votes on Operating Budget and Sends It to the Senate

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The House passed a proposed biennial operating budget on Saturday. With a vote of 53-43, the budget now goes to the Senate.

With only two weeks left in the regular 2011 legislative session, the action taken by the House this weekend moves the state closer toward closing the budget gap and heading home.

The Senate is expected to release their proposed biennial budgets on Tuesday. Also on Tuesday the House Capital Budget Committee is expected to move the House’s proposed biennial capital budget out of committee and to the floor

House Expected to Vote on Biennial Operating Budget Today

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Yesterday the House Ways & Means Committee debated amendments to the proposed biennial operating budget on the House floor. The House is expected to pass the bill some time today (Saturday April 9).
The House  adopted several amendments of which a handful impact higher education.

Among the changes made to the bill is language to eliminate a proviso dedicated to the Latino/a Educational Achievement Project (LEAP) bilingual teacher mentoring program in the amount of $75,000 in each year ($150,000 total) in the Office of the Superintendent of Instruction and redirect these funds to the  to the Professional Educator Standards Board (PESB) for alternate route and teacher recruitment programs, including pipeline for paraeducators, retooling to teach math and science, and the recruiting Washington teachers program.

In addition, lanuage was added to provide $50,000 each fiscal year out of the existing appropriation for the Office of Financial Management to contract with the Washington State Quality Award for training, outreach and assessments for public agencies and their vendors. 

The language also instructs all state agencies, except the community and technical colleges,  to track and report employees trained in performance management; provide to the Government Management and Accountability Program (GMAP), State Auditor’s Office and the Joint Legislative Audit and Review Committee copies of their Washington State Quality Award (WSQA)  assessment, and to post the results to the GMAP’s website; to integrate performance management, including the Washington State Quality Award assessment, into agencies strategic plans. The community and technical colleges were amended out of the  requirement for community colleges to conduct a full Washington State Quality Award assessment by June 30, 2013.

Finally, language was included that directs the Office of Financial Management to estimate on an annual basis the percentage of Washington households with incomes in the middle-income bracket or higher, and provide a report to the Governor and appropriate committees of the legislature and directs the Work Force Training and Education Board to include in its comprehensive plan specific strategies to increase the percentage of middle-income bracket or higher households, as calculation by the Office of Financial Management and developed by the agency or educational institution that will lead each strategy.

2011 Legislative Session: Week 14

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Budgets, budgets, budgets…this is again the focus of the upcoming week.

The House will begin debate on their proposed biennial budget this afternoon. Several amendments have already been introduced.  The House is expected to vote on the budget tomorrow (Saturday, April 9).

On Monday or Tuesday the Senate is expected to release their proposed 2011-13 operating and capital biennial budgets. Public hearings and further action on the Senate’s proposed budget will follow.

In addition to action on the budgets, legislators will have a long week on the floor of each chamber. 

On Tuesday (April 12), the Legislature faces another major deadline requiring each chamber to consider bills from the opposite chamber. With that in mind, this week’s schedule includes limited committee meetings – primarily focused on the budgets or interim planning – with most of the time spent on the House and Senate floor as another major deadline looms.

House Operating Budget Moves to the Floor

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Yesterday the House Ways & Means Committee moved the proposed biennial operating budget out of committee and to the House floor. The bill was approved on a vote of 16-11 in committee.

The committee adopted several amendments of which a handful impacted higher education. Among the changes was the elimination of the reserve hold back for progress on academic metrics in FY13 for all institutions.  Though the hold back remains for FY12 language was added which requires the Governor in making the determination to release these funds to make all best efforts to recognize the unique role, missions, types of communities and student populations of each institution of higher education.

In addition language was added to clarify that biennial funding for STEM enrollments for all institutions are for increased enrollments and each institution must report to the Legislature at the end of each academic year on how these funds affected STEM graduation rates.
Finally, $4.7 million was restored to the Higher Education Coordinating Board.
The budget was brought to the floor late this afternoon. It is expected that  tomorrow (Friday) the House will begin debate on amendments. Final passage of the budget proposal is planned for Saturday.  As for the Senate it is expected that they will release their budget early next week.

Senate Hears Key Higher Education Policy Bill

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Yesterday the Senate Ways & Means Committee held a public hearing on several bills that have been deemed necessary to implement the budget.  Among the bills heard by the committee was a bill that would provide a framework for higher education with regard to tuition, financial aid, and accountability and performance measures over the next four biennia (2011-2019).

Senate Bill 5915 would appropriate tuition in the operating budget for the 2011-13 biennium for all institutions and then allow for tuition flexibility beginning in the 2013-2015 biennium through the 2017-2019 biennium for all students. After 2019 tuition setting authority would revert back to the Legislature.

The tuition flexibility established in the bill beginning in 2013 is contingent on the successful negotiation of a performance contract and full mitigation of any tuition increase above 9% for Evergreen, CWU, and EWU and 11% for WWU, UW, and WSU for all students at 125% or below Median Family Income (MFI).

In addition the bill includes metrics established in the National Governor’s Association Complete to Compete initiative, a new Baccalaureate Incentive Program, efforts to increase federal tax credit requirements, and transfer provisions.

Representatives from the business community and the higher education institutions, including Evergreen, testified in support of the bill.  Testimony focused on the benefits the bill would provide to students and institutions of higher education.

House Republicans Unveil Alternative State Budget

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Yesterday the House Republicans introduced an alternative biennial budget. The Republicans used thirteen principles to guide their budget decisions.

The House Republican’s proposed biennial operating budget reduces state funding for higher education by $482 million (House Democrats -$482 million).

The Higher Education Sector
The majority of the total reduction to higher education came in the form of straight-up cuts to the four-year and two-year sector- $353.8 million (House Democrates -$353.8 million). In addition, the across-the-board reductions taken during the December supplemental budget by all public higher education institiutions were biennalized and included in the 2011-13 budget – $102.2 million (House Democrats -$102.2 million). The baccalaureate institutions and the community and technical colleges were also reduced one-time to reflect the fact that enrollment levels may be temporary – $26.3 million (House Democrats -$26.3 million). Finally, waiver authority for higher education institutions was capped at actual fiscal year 2010 levels and funding was reduced to reflect the difference between previous waiver authority and actual usage of the waiver – $71.6 million (House Democrats $0). 

Finally, state funding levels were  reduced to reflect a funding cap on higher education retirement plans (HERPs) of 6% – $49.6 million (House Democrats -$57.1 million). This is recognized as savings in the proposed budget.

The reductions in the House Republican proposal were offset in part by tuition increases at all public higher education institutions. The proposed budget authorizes tuition increases of 13 percent per year for the University of Washington, Washington State University, and Western Washington University; 11.5% per year for Central Washington University, The Evergreen Staate College, and Eastern Washington University; and 11% per year for the community and technical colleges – $379 million (House Democrats $379 million).

Despite the dramatic reductions in state funding and the tuition increases, the four-year public higher education institutions received additional funding of $1.5 million for Eastern Washington University, Central Washington University, and The Evergreen State College to provide, wrap-around services for low-income students (House Democrats $1.5 million). The Republicans did not include additional funding for STEM that was part of the House Democrat’s proposal.

The Republican proposal also includes $5 million for the Baccalaureate Incentive Program. Dollars would be distributed to the four-year, public higher education institutions based on demonstrated improvement in reducing the number of credits earned by students in excess of the number needed for graduation. This was not included in the House Democrat proposal. In addition, the House Republicans did not include the required hold back of funds for demonstrated improvement in metrics which measure academic progress and completion rates that was part of the House Democratic proposal.   

The Evergreen State College
Under this proposed budget state funding for Evergreen is reduced by $15.8  million over the biennium (House Democrats -$16.3 million).   This includes a combination of reductions in state funds and policy additions:

  • -$10.31 million in reduced state funding (House Democrats -$10.38 million)
  • -$1.92 million to reflect a proposed 3% salary reduction (House Democrats -$1.92 million
  • -$1.55 million for biennialized across-the-board reductions in December supplemental (House Democrats  $1.55 million)
  • -$1.024 million as a result of the 6% funding cap on HERPs (House Democrats – $1.024 million)
  • -$940,000 in one-time reduction (House Democrats -$940,000)
  • -$698,000 to reflect increase tuition revenue from tuition waivers (House Democrats – $0)
  • $500,000 to provide for wrap-around services for low-income students (House Democrats $500,000)
  • $150,000 in various studies for the Washington State Institute for Public Policy. (House Democrats $225,000)

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 state funding for Evergreen is $8.45 million (-8.1%) compared to a reduction of $9.02 million, which is a net cut of 8.6% in the Democrat’s proposal.

Financial Aid
The House Republicans maintained funding for the State Need Grant at the same level as the House Democrats ($103.1 million).

The Republican’s proposal does not make the same policy changes to the State Need Grant that the House Democrats did in their proposal. In other words the Republicans maintained awards and award sizes for students attending private non-profit and for-profit higher education institutions.

Despite the increased financial support for the State Need Grant, several state financial aid programs are suspended for the 2011-13 biennium. The one exception is State Work Study. The Republicans reduced funding for work study but do not suspend it .  Those programs suspended include:

  • Health Professionals program
  • Washington Scholars
  • Washington Award for Vocational Excellence
  • College Assistance Migrant Program
  • Community Scholarship Matching Grant Program
  • Leadership 1000
  • Western Interstate Commission for Higher Education student exchange
  • Foster Care Endowed Scholarship
  • Child Care matching grant