Monthly Archives: September 2011

Governor Convenes First Meeting to Establish the Council for Higher Education

Posted on by

This week marked the first meeting of the Higher Education Steering Committee charged to establish the Council for Higher Education.

In the 2011 legislative session the Washington Legislature passed Senate Bill 5182 which eliminates the Higher Education Coordinating Board on July 1, 2012 and creates the Council for Higher Education and the Office of Student Financial Assistance.

The legislation established the Higher Education Steering Committee, chaired by Governor Gregoire, to make recommendations regarding the functions and purpose of the Council for Higher Education.

The meeting served to introduce committee members and to provide context and background information. The Committee spent a good part of the meeting engaged with Dennis Jones and Aims McGuinness,  National Center for Higher Education Management Systems, around the topic of higher education governance in the United States.

The committee also reviewed the possible state-level higher education governance functions that may be established under the Council of Higher Education. This will serve as a foundation for future discussions regarding the essential functions that should be performed at the state level.

The next meeting of the Steering Committee is scheduled for October 10.

HECB Meets with An Eye to the Future

Posted on by

On Thursday the Higher Education Coordinating Board held their monthly meeting in Olympia. 

The Board received an update from the State Economist on Washington’s economic and revenue forecast and  the impact to higher education.

The majority of the meeting was focused on current efforts to update the Strategic Master Plan for  higher education in Washington. The HECB is required to update its Strategic Master Plan four years after its development in 2008.

A handful of business, community and institutional representatives shared their perspectives with a focus on three key questions:

  • What are the looming policy issues for higher education over the next three to five years?
  • What should compromise the “public agenda” for higher education in Washington?
  • Where should the state focus our scarce resources to make progress toward increasing education attainment?

The representatives included David Fisher (Washington Roundtable), George Scarola (League of Education Voters), David Zeeck (The News Tribune), Jim Fridley (UW Professor/Council of Faculty Representatives), Mike Bogatay (Washington Student Association), Lloyd Butler (Pacific Northwest University), and faculty and students from the community and technical colleges.

U.S. House Releases Education Appropriations Bill

Posted on by

Today the U.S. House Appropriations Committee their  draft fiscal year 2012 Labor, Health and Human Services (LHHS) funding bill. The legislation includes funding for programs within the Department of Labor, the Department of Health and Human Services, the Department of Education, and other related agencies.

In total, the draft bill includes $153.4 billion in discretionary funding, which is $4 billion (-2.5%) below the fiscal year 2011 enacted level and $27.5 billion (-15.2%) below the President’s budget request. The funding levels reflect the overall change in fiscal year 2012 discretionary spending to $1.043 trillion – the amount to which the House, Senate, and White House agreed in the recent debt ceiling legislation.

The Department of Education is funded at $69 billion in the legislation, which is $2.4 billion (-3%) below last year’s level and $11.5 billion (-14%) below the budget request. The bill eliminates more than 30 programs that are duplicative, inefficient, or unauthorized, including the Administration’s “Race to the Top” program.

  • Title I Program – These basic grants to local school districts that help all children become proficient in reading and math are funded at $15.5 billion, which is $1 billion above last year’s level.
  • Pell Grants– The maximum Pell Grant award is continued at $5,550. In addition, the bill includes reforms to the program to reduce costs by $3.6 billion in the next year alone. These reforms include: limiting the lifetime eligibility for Pell Grants to 6 years (down from 9 years); rolling back recent and unnecessary changes to the qualification formula; eliminating eligibility for students who attend school less than half time or students who do not have a high school diploma or GED; and better targeting the funding to the neediest students.
  • Special Education – Special Education grants to states are funded at $12.7 billion in the legislation – an increase of $1.2 billion above last year’s level. This will raise the federal percentage of special education funding from 16.1% to 17.3%, allowing states and communities to better fund required special education services.

A subcommittee mark up of the draft LHHS bill released today has not yet been rescheduled.

U.S. Senate Panel Approves Funding Bill for Higher Education

Posted on by

Last week the U.S. Senate’s Subcommittee on Labor, Health and Human Services, Education & Related Agencies approved a spending bill for higher education and research.

The bill makes several reductions to higher education and research. Among the reductions is $190 million in FY12 to the National Institutes of Health and the elimination of the National Center for Research Resources.

The bill does provide sufficient funding to maintain the maximum Pell Grant award of $5,550. To fund the Pell Grant the Senate proposes ending the interest subsidy on undergraduate student loans during the six-month grace period after a student graduates. The end of the interest subsidy is another impact to student borrower  benefits. In July Congress voted to end the in-school interest subsidy on federal loans to graduate students and eliminate the interest-rate reduction for on-time loan repayment for all borrowers as part of an effort to close the shortfall in the Pell program.

In addition to the Pell funding the Senate would provide same level support for Federal Work Study and the Supplemental Educational Opportunity Grant as in 2011. Finally the Senate provides $20 million for a new program to speed the translation of basic reserach into treatments and cures.

The full Senate Appropriations Committee is expected to consider the bill this week. It is unclear as to the fate of the bill beyond this step. The U.S. House has indicated that they will not take up the Senate’s version of the bill and word on the street is that it is unlikely Congres will pass a stand-alone spending measure for education and research. Instead Congress is expected to pass one or more continuing resolutions financing programs at the 2011 levels and eventually consolidating the bills into a single omnibus spending bill later this year.

Gregoire Calls Special Session; Agencies Submit Where Reductions Would Come From

Posted on by

Late last week Governor Gregoire announced that she would call the Washington Legislature back to Olympia on November 28 for a special session that could last up to thirty days by law.

The Legislature is charged with finding $2 billion in state funding reductions to fill the $1.4 billion gap expected between state revenues and projected state expenses, expected further erosion in revenues in the November 17 forecast, and calls for the state to have some money left in the general fund on July 1, 2013, when it starts the next fiscal biennium.

Legislative leaders and the top budget writers will go over plans with the governor’s staff in the next two months to prepare for the session. Word on the street is that the Governor will release her proposed budget reductions the week of October 24.

Some of the ideas that are likely to emerge in the Governor’s work may be found in state agency submissions to reduce public services and programs in response to the Governor’s request for proposals to reduce budgets by first 5% and then 10%.

Revenues Fall; Special Session Under Consideration

Posted on by

This morning the September state economic and revenue forecast was released.  The forecast shows the state faces a projected shortfall of $1.4 billion for the 2011-13 biennium.  With approximately $163 million in reserves, this creates a $1.2 billion hole in the state budget.

Washington’s Chief Economist, Dr. Arun Raha set the context for the latest reduction in state revenues. According to Raha, consumer and business confidence continues to be low, uncertainty in the European economy remains high, and  job growth continues to be weak with a steady unemployment rate of 9.3%.

Forecast estimates show a decline in revenue of $500 million in FY12 with the remaining $900 million in FY13. In addition to the $1.4 billion, legislators are focused on rebuilding state reserves, which could make the reductions to the state budget closer to $2 billion.

So what is next. It appears that the Governor and budget writers in both chambers are coalescing around the idea that early action is needed and to accomplish this the best vehicle would be a special session prior to the 2012 supplemental session in January.  If a special session is called there appears to be agreement that it should be short and concise, with most of the decisions being made prior to convening the Legislature.  

Timing for a special session appears to be ranging from the end of October to after the November forecast.

State Revenue Forecast This Week; Next Steps

Posted on by

On Thursday the September Economic and Revenue Forecast for Washington will be released. No one is expecting good news, in fact the talk on The Hill is how bad is the bad news going to be.

The Context

Word on the street predicts the shortfall could be as deep as $2 billion, with a likely drop in revenue to fall somewhere between $1-$2 billion. The state currently only has $163 million in reserves to last through June 2013 with the rainy day fund taken into account.

In August declining revenues led Governor Gregoire to ask state agencies – including higher education – to identify how to cut up to 10% of their budgets. A 10% reduction of all state agency budgets is estimated to yield $1.7 billion.

Revenue

The potential negative impact of a large decline in state revenues has led some Democrats to again raise the need to raise taxes and other new revenues in addition to cuts. Among the topics up for discussion includes a spring ballot measure to raise taxes.

Those historically opposed to increasing revenue have not ruled tax options out. However consideration of additional revenue for many cautious of increasing taxes must come after exhausting other options such as elimination of state programs and reform of agency operations to maximize efficiencies.  

It is unlikely the Legislature would be able to pass the threshold to raise revenues which requires a supermajority in both the House and Senate. So any increase in revenue will likely have to go to voters.

Going Forward

So what happens after Thursday. Over the last month talk of a special session in late October or early November has dominated discussions. Last week Gregoire stated that she would be unable to make the necessary reductions to balance the budget.

In order for the Governor to make the cuts on her own (i.e. without the Legislature) she would have to make across-the-board cuts. In comments last week Gregoire indicated that across-the-board cuts are no longer a viable option, information she has shared with legislative leaders. This is in part because certain state agencies cannot take further reductions, such as the Department of Corrections, without immediate and dire impacts to the citizens of Washington.

Though an across-the-board approach seems to be off the table, the Governor did not go as far as to say for certain that she would call a special session prior to the 2012 supplemental session in January. This is in part because she and others are waiting to find out if the drop in revenue is primarily in this fiscal year or next. If it is in the 2012-13 year lawmakers may be able to wait until the scheduled legislative session to solve the budget shortfall.

The idea of a special session has been met with mixed reaction. Budget writers in Olympia have shared the idea that if a special session is called they would prefer a one-day special session that would require a plan be developed and have the votes to pass prior to the special session. 

Last week Senator Zarelli, the Ranking Minority Leader on the Senate Ways & Means Committee, outlined an entirely different approach to that of a special session. He proposed the creation of a bipartisan panel to find solutions to the state’s ongoing budget problems.

In a blueprint calling for early action to balancing the state budget, Zarelli proposes the Legislature convene a bipartisan group to undertake a close examination of the workings of state government and make comprehensive detailed recommendations to the Legislature by January 1. 

The group would be charged with looking at both short- and long-term solutions to help solve the immediate budget crisis and to propose forward-thinking recommendations to bring long-term budget solutions.

The group would consist of two legislators appointed by each caucus member. One legislator would be from the caucus member’s own caucus and one from the other caucus within that particular chamber.  In addition the group would include a ninth member to serve as a non-voting chair.

Stay tuned…

Obama’s Plan Would Provide $30 billion for Education

Posted on by

Today President Obama sent the American Jobs Act  to Congress.

The Act, unveiled last week, is focused on stimulating job growth and the economy. The $450 billion plan- to be paid for through spending cuts identified by the bipartisan deficit-reduction committee which met for the first time last week – includes a variety of efforts ranging from an extension and expansion of the cut in payroll taxes;  an overhaul of unemployment insurance, and aid to states to prevent the layoffs of 280,000 teachers while supporting the hiring of tens of thousands more.

Among the areas for investment, the President proposes $30 billion to repair and modernize buildings at elementary and secondary schools and also community college campuses.

Of the $30 billion, $5 billion is earmarked to build and renovate facilities and other infrastructure at community and tribal colleges. According to the White House the funds would bolster college “infrastructure in this time of need while ensuring their ability to serve future generations of students and communities”.

The Seattle Times and Other Major Players Kick-Off Campaign to Support Public Baccalaureate Education

Posted on by

Yesterday The Seattle Times and five co-sponsors launched a year-long public education campaign – The Greater good Campaign– focused on reinforcing the broad positive contributions of Washington state’s higher education system on Washington’s job creation and quality of life.

The Seattle Times is co-sponsoring the campaign with The Bellevue Collection, Safeco Insurance, Davis Wright Termaine, Microsoft, and Rowley Properties.

The goal of the campaign – which is both a print and online campaign- is first to build broad awareness that public higher education should not be seen as a personal privilege for individual students, but that the state’s higher-education system provides a much larger public good, creating jobs, enhancing competitiveness, economic growth and innovation.

In addition the campaign is focused on illustrating that the best public investment the Legislature can make in these uncertain economic times is in the state’s public universities.

Over the next year the campaign will feateru facts and messages reinforcing its “Greater good” theme.

Fall is Here….What to Expect This Season

Posted on by

Over the summer higher education leaders, institutions, and organizations have focused on implementation and planning of the multiple work groups, reports, and meetings that emerged from the work of the legislative session.

As a major signal that summer is at its end – Labor Day Weekend – here is a look at some of the work and next steps that will be highlights of much of this blog between now and the New Year.

 Special Session

Estimates suggest that the September Economic & Revenue Forecast could show a decline in state revenues of up to $1.5 billion.  The August revenue report showed that new state tax-collections were $9.4 million less than was forecasted. The state currently has a reserve of approximately $162 million through June 2013 without taking into account the September 15 forecast.

In response to the decline in state revenues since June, the Governor asked all state agencies (including Evergreen) to prepare for possible reductions by submitting 5% first-priority reductions and a second 5% for a total of 10% reductions in state funding as part of each agency’s 2012 supplemental budget request.

If the September revenue forecast is as bad as it is rumored to be, the likelihood that a special session will be called prior to the 2012 supplemental session is good. If the Legislature is called back, budget writers have commented that if called back they would like to come up with a plan before returning to Olympia.  This suggests the development of a plan in early fall with a rumored November date for a special session.

2012 Supplemental Session

The development and submittal of agency operating and capital budget requests for the 2012 supplemental session are underway.  Evergreen along with other state agencies will submit its request, including the 5% and 10% budget reductions, by the end of September. Between September and November the Office of Financial Management will reveiw the requests. During this same time Evergreen and the other public, baccalaureate institutions will also provide their requests to the Higher Education Coordinating Board. In December the Governor will submit her proposped operating and capital budgets to the Legislature who will convene in early January.

Council of Higher Education

During the 2011 session Washington Legislature passed legislation that would eliminate the Higher Education Coordinating Board and create the Council of Higher Education.  To establish the Council a higher education steering committee was identified in the legislation to be appointed by the Governor.

Over the next few months the steering committee will meet to determine the mission, scope, and membership of the Council of Higher Education. The steering committee will be chaired by Governor Gregoire and includes the following members:

  • Senator Derek Kilmer
  • Senator Randi Becker
  • Representative Larry Seaquist
  • Representative Larry Haler
  • Jim Gaudino, President, Central Washington University
  • Michael Young, President, University of Washington
  • Gerald Pumphrey, President, South Puget Sound Community College
  • Charlie Earl, Executive Director, State Board for Community & Technical Colleges
  • Betty Hyde, Director, Department of Early Learning
  • Garry Kipp, Executive Director, Assciation of Washington School Principals
  • Jane Noland, Citizen
  • Bill Robinson, Citizen

Washington Legislature

Over the next few months several legislative committee hearings are scheduled to discuss the budgetary and policy impacts of the 2011 session and to prepare for the 2012 supplemental session.  The majority of legislative committees will not meet until December during Assembly Days.

Particular to higher education, the  House Higher Education Committee will meet four times between September and November. Each meeting will take place in a different region of the state (Spokane, Ellensburg, Seattle, Olympia, and Skagit Valley).  Each meeting will include participation by regional higher education institutions, presentations and panel discussions with a focus on ways to meet the state’s higher education needs.