Washington House Republicans Release 2012 Supplemental Operating Budget

On Friday, the Washington House Republicans released its proposed supplemental operating  budget for the remainder of the biennium.

2012 Supplemental Operating Budget Proposal
The proposed supplemental budget makes approximately $840 million in state funding reductions. The budget leaves $651 million in reserves and does not put forth a revenue package.

The budget reduces funding for higher education by $105.3 million. Of this amount, state funding for community and technical colleges is reduced by $14.5 million and state funding for the four-year, public institutions is $15 million lower. The Evergreen State College is reduced by $541,000.

The majority of the reductions to higher education come through policy changes to state funded financial aid programs. The State Need Grant program is reduced by $75.8 million. This reduction is achieved by altering eligibilty guidelines in two ways. First awards for students attending baccalaureate institutions are limited to 12 quarters (4 years) and for students attending two-year institutions their awards are limited to 6 quarters (2 years). In addition only those students who file their Federal Application for Federal Financial Aid (FAFSA) by the March 15th deadline would be eligible to receive a State Need Grant.

In addition the proposed budget would restore funding to private, for-profit institutions, previously reduced in the 2011 biennial budget. Finally the proposed budget maintains current funding for the state work study program and eliminates funding for remedial education for those under 20 at community colleges.

The proposed budget would also reduce state employee monthly health benefit funding rates form $850 to $800 ($33.1 million) and institute 24 days of furlough for all state employees, including those at higher education institutions, beginning July 1, 2012 ($91 million). The exception to the furloughs would be any state employees working for critical services such as corrections and hospitals.

In addition to the reductions to higher education the proposed budget makes the following reductions to achieve a total savings of $840 million.

  • Reduces funding to the Department of Ecology by 14%
  • Eliminates all general fund spending for the Puget Sound Partnership
  • Makes $33 million in administrative efficiencies in information technology, goods and services, personal service contracts, travel, equipment and cell phones.
  • Reduces most general government agencies by 5-10%

The House Republican’s budget proposal will be followed by a proposal put forth by the House Democrats on February 21. The Senate’s proposed operating budget is expected to follow next week.