Author Archives: garverj

Governor to Sign Budget Bills into Law Next Week

Posted on by

A bill signing ceremony has been scheduled – Wednesday, June 15- to act on the operating and capital budget bills and all remaining policy bills that have not been signed to date.

Among the bills to be signed by the Governor is the 2011-13 operating budget (HB 1087), and the two bills that comprised the capital budget (HB 1497- capital budget and HB 2020 – bond authorization bill).  In addition the Governor will consider action on the compensation reduction bill (SB 5860), legislation to create the Department of Enterprise Services (SB 5931), and a  bill that makes several changes to Higher Education Retirement Plans and retire-rehire practices at higher education institutions (HB 1981).

Boeing and Microsoft Make Endowment Real

Posted on by

Yesterday two of Washington’s major private employers – Microsoft and Boeing – each gave $25 million to start the Washinton Opportunity Scholarship program.

The program was established under legislation signed by Governor Gregoire on Monday.

House Bill 2088 creates an endowment for students pursuing a baccalaureate degree in a high demand field.

The Opportunity Scholarship Program and the Opportunity Expansion Program to mitigate the impact of tuition increases, increase the number of baccalaureate degrees in high employer demand and other programs, and invest in programs and students to meet market demand fields of study while filling middle-income jobs with a sufficient supply of skilled workers.

The Opportunity Scholarship Board is established to identify eligible education and training programs for purposes of the opportunity scholarship, select institutions of higher education to receive opportunity expansion awards, set fundraising goals, and solicit funds. 

The Opportunity Scholarship Program will be funded by a combination of private and state moneys. The state match, which must be appropriated by the Legislature, is earned for private contributions made after the effective date and must be paid beginning the later of January 1, 2014, or the first year with state revenues 10 percent higher than those received in fiscal year 2008. The state match payments are capped at $50 million annually.

The Opportunity Expansion Program will be funded with voluntary contributions of high technology research and development tax credits.

 

Governor Signs Multiple Higher Education Bills

Posted on by

Yesterday the Governor signed a suite of higher education related bills that will alter higher education in Washington over the next biennium.

The most dramatic changes to higher education come from House Bill 1795 signed into law by the Governor.  In broad strokes the bill: (1) Provides tuition setting authority to the public, baccalaureate institutions in Washington for eight years and provides increased institutional financial aid to offset tuition increases; (2) Creates a consistent, uniform, and transparent performance measurement system; and (3) Tightens existing transfer policies and expands prior learning opportunities.

The bill, as passed by the Legislature, also provided regulatory relief for the institutions ranging from changes to procurement thresholds to the elimination of restrictions on equipment, travel, and meeting spaces. However, the Governor vetoed most of this section.

Another major change will come from the passage and signing into law of Senate Bill 5182.  This bill eliminates the Higher Education Coordinating Board and creates the Council for Higher Education and the Office of Student Financial Assistance as of July 1, 2012.

To guide this restructuring effort a steering committee on higher education is created to establish the purpose, functions, and membership of the Council. The Steering Committee is chaired by the Governor or the Governor’s designee and includes four legislators and equal representation from higher education sectors in the state.

The Governor did veto a portion of Senate Bill 5182 that reflected a technical error. As the bill was drafted the effective date of the transfer of powers would occur prior to the creation of the new office of student financial assistance on July 1, 2012. The Governor vetoed this section of the bill with the acknowledgement that the new higher education steering committee will make recommendations concerning higher education governance prior to the 2012 legislative session and the expectation is that the transfers of authority will be considered as part of these recommendations.

Over the next year the Higher Education Coordinating Board will remain in place and focus on a narrower portfolio of work to reflect the reduction in funding for the agency.

The Governor also signed legislation that will alter the Committee which oversees Washington’s Guaranteed Education Tuition (GET) program. Senate Bill 5749 makes the following changes:

  • The existing two members of the Committee on Advanced Tuition Payment are appointed by the Governor for four-year terms instead of an unspecified period of time.
  • Two additional representatives from private business are added and will be appointed by the Governor for four-year terms.
  • The Committee must use the State Actuary in reviewing the GET program rather than a nationally recognized actuary, though the Committee may consult with a nationally recognized actuary.
  • A legislative advisory committee to the Committee on Advanced Tuition Payment is established to provide advice regarding the administration of the program including but not limited to pricing guidelines, the tuition unit price, and the unit payout value.

Finally the Governor signed into law legislation that will create an endowment for students pursuing a baccalaureate degree in a high demand field.

House Bill 2088 creates the Opportunity Scholarship Program and the Opportunity Expansion Program to mitigate the impact of tuition increases, increase the number of baccalaureate degrees in high employer demand and other programs, and invest in programs and students to meet market demand fields of study while filling middle-income jobs with a sufficient supply of skilled workers.

The Opportunity Scholarship Board is established to identify eligible education and training programs for purposes of the opportunity scholarship, select institutions of higher education to receive opportunity expansion awards, set fundraising goals, and solicit funds. 

Economic Review Mixed

Posted on by

A slowed economic recovery is on the horizon for Washington.

Last Friday, State Economist, Dr. Arun Raha, provided policymakers and others with an economic review that suggests while the economy is improving it is doing so at a slower pace.

Raha cites sustained high gas prices and disruptions to the manufacturing supply chain  due to power shortages in Japan as the culprits.  Despite these hiccups the recovery is continuing and may even pick up momentum in the second half of the year.

Policymakers in Olympia expect that revenues will be lower than projected when the revenue forcast is released on June 16, but believe the state has sufficient budget reserves to handle this.

Sine Die

Posted on by

After a 105-day regular session and a 30-day special session the Washington State Legislature adjourned the 2011 legislative session this evening.

The 2012 supplemental session will convene on January 9, 2012.  To keep up on all the happenings between now and then stay tuned…

Senate Passes Operating and Capital Budgets; Budgets Now Head to Governor

Posted on by

This evening the Washington Senate passed the conference operating and capital budgets for the 2011-13 biennium. 

2011-2103 Operating Budget
The Senate passed the operating buget with a vote of 34-13. The conference biennial budget addresses a $4.9  billion shortfall, making approximately $4.5 billion in policy level reductions. The budget reduces funding for higher education institutions by $535 million.  The Evergreen State College is reduced by $12.152 million and authorized to increase tuition by 14% per year for the biennium.

In addition the budget maintains the state need grant to offset budgeted tuition increases to students and reduces, but does not eliminate , state work study.

Bond Bill

With a vote of 46-1, the Senate passed legislation (HB 2020)  to provide $1.4 billion in new state general obligation bonds to support the 2011 Supplemental and 2011-13 Capital Budget. In addition the bill reduces 2011 Supplemental bond appropriations by $32 million.

Capital Budget

With a vote of 47-0, the Senate passed the 2011-13 capital budget (HB 1497). The  2011-13 Capital Budget authorizes $3.1 billion in new capital projects, of which $1.4 billion are financed with new state general obligation bonds.

It is the combination of HB 1497 and HB 2020 that will provide the funds to support Evergreen’s capital projects

Senate Passes Endowment Bill; Heads to Governor

Posted on by

Late this afternoon the Washington Senate passed legislation that would establish an endowment for students studying in high-demand fields.

HB 2088 creates the Opportunity Scholarship Program and the Opportunity Expansion Program to mitigate the impact of tuition increases, increase the number of baccalaureate degrees in high employer demand and other programs, and invest in programs and students to meet market demand fields of study while filling middleincome jobs with a sufficient supply of skilled workers. 

 House Bill 2088 now goes to the Governor.

House Passes Trio of Bills to Implement Capital Budget

Posted on by

This morning the Washington House passed a series of bills that together will implement the capital budget for the 2011-13 biennium.

State Debt Limit

With a vote of 79-14 the House passed legislation to reduce the state debt limit. Senate Bill 5181 requires the State Finance Committee to recommend a working debt limit for purposes of budget development for capital bond appropriations that is lower than the constitutional debt limit. The working debt limit must be updated periodically following the Economic and Revenue Forecast Council’s forecasts, and may be modified in response to extraordinary economic conditions.

The State Finance Committee must recommend the following working debt limits: 
  •  8.5 percent for the 2015-2017 biennium
  • 8.25 percent for the 2017-2019 biennium;
  • 8 percent for the 2019-2021 biennium; and
  • 7.75 percent for the 2021-2023 biennium and thereafter.

The State Finance Committee may reduce or delay the issuance of bonds if an issuance would result in exceeding the recommended working debt limit. Finally, the Governor and the Legislature must develop capital bond budgets within the recommended working debt limit.

In addition the bill creates a Commission on State Debt to assist the Legislature in examining the kinds of debt incurred by the state, and the limits on the amount and use of debt.

The twelve-member Commission is chaired by the State Treasurer, and also includes the Director of the Office of Financial Management, four legislative members, and six independent members.

Bond Bill

With a vote of 84-10, the House passed legislation (HB 2020)  to provide $1.4 billion in new state general obligation bonds to support the 2011 Supplemental and 2011-13 Capital Budget. In addition the bill reduces 2011 Supplemental bond appropriations by $32 million.

Capital Budget

With a vote of 94-0, the House passed the 2011-13 capital budget (HB 1497). The  2011-13 Capital Budget authorizes $3.1 billion in new capital projects, of which $1.4 billion are financed with new state general obligation bonds.

It is the combination of HB 1497 and HB 2020 that will provide the funds to support Evergreen’s capital projects.

All three bills now go to the Senate for further consideration.

Legislature Releases Conference Capital Budget

Posted on by

The Legislature released a conference agreement on a biennial capital budget.

The conference capital budget provides for $1.1 billion in bond-supported capital budget capacity for the state.

The conference capital budget provides $496.5 million for higher education facilities. Over half of the funds go to the four-year institutions. This includes funding for Evergreen’s Communications Building (partial funding) and science lab renovation.