House Ways & Means Hears Higher Education Pension Related Legislation

This afternoon the House Ways & Means Committee heard two pieces of legislation that would propose changes to the current pension policies for higher education institutions.

House Bill 1083 eliminates Public Employees’ Retirement System (PERS) and Teachers’ Retirement System (TRS) Plan 1 provisions permitting retirees to receive benefits while employed in retirement system-covered positions for up to 1,500 hours per year. In addition, the bill would add positions covered by the Higher Education Retirement Plan to those included in the postretirement employment pension restrictions for PERS, TRS, the School Employees’ Retirement System, and the Public Safety Employees’ Retirement System.

House Bill 1262 limits the employees to which state institutions of higher education may offer the Higher Education Retirement Plan (HERP), instead of the Public Employees’ Retirement System(PERS) Plans 2 or 3, to faculty and senior academic administrator employees.

In addition, the bill eliminates the HERP Supplemental Benefit to employees that enter the plan after the effective date of the act; replaces the defunct Public Pension Commission with the Select Committee on Pension Policy on the committees responsible for overseeing the HERPs; creates a presumption that retirees that return to work for their previous employers fewer than three months after his or her accrual date did not separate from service; and applies the PERS post-retirement employment rules to positions covered by the HERPs.

Representatives from the University of Washington, Washington State University, and community and technical colleges testified in support of the bills with concerns.

House Higher Education Moves More Bills

This afternoon the House Higher Education Committee moved some legislation forward for further consideration.

The Committee took action on three bills:

House Bill 1522 would require collaboration among higher education institutions and state agencies to increase the number of students who receive credit for prior learning and increase the types of credits awarded for prior learning.

The bill was amended in three ways: (1) Adds a focus on quality of prior learning assessments in addition to increasing quantity of credits awarded under the goals for the Work Group; (2) Emphasizing improvement and not consistency for one of the work group goals to avoid any potential for standardization of practices that do not fit with an institution’s mission; and (3) Requiring the HECB to staff the prior learning work group instead of the State Board of Community and Technical Colleges.

The bill passed out of committee.

House Bill 1089  prohibits an institution that provides a specialized format version of instructional material to a student with a print access disability from requiring the return of the material.

The bill was amended to allow institutions to require the return of the specialized format materials that were transcribed or translated at the expense of the institution where the cost of making a reproduction of the translation or transcription is more than 100 dollars.

The bill was passed out of committee.

House Bill 1425 removes responsibility from the Higher Education Coordinating Board for: (1) developing evaluation and performance measures in order to evaluate the effectiveness of the programs in a Health Sciences and Services Authority; and (2) reporting to the Legislature on a biennial basis.

The bill passed out of committee.

The Committee also held a public hearing on HB 1586 and HB 1650.  The Evergreen State College signed-in to support HB 1650.

House Bill 1650 allows part-time students who are accepted for enrollment for at least three credits to be eligible for the State Need Grant, by removing the pilot status of the program and the expiration date and restores child support payments in computations of financial need for part-time students applying for the State Need Grant.

Finally, the Committee held a work session on the Governor’s proposed budget and tuition setting and the Community and Technical Colleges’ Student Achievement Initiative.

The House Higher Education Committee will meet again on Wednesday at 8:00 a.m.

2011 Legislative Session: Week 5

The next week will be filled with public hearings and then executive sessions as legislators turn their attention to acting on bills by a February 18th self-imposed deadline.

Next week’s schedule includes conversations on the link between performance and funding; postretirement issues (HB 1083 & HB 1262); a work session on four-year institutions; and several efficiency and regulatory relief bills (SB 5268, SB 5516).  Please see the links below for a list of all the hearings that might be of interest.

Senate Passes Supplemental Budget

This morning the Washington Senate passed (38-9) a striking amendment to the supplemental budget bill (ESHB 1086), the House version of the operating supplemental budget.

The supplemental budget brought to the Senate floor this morning was amended and passed out of the Senate Ways & Means Committee on Thursday.  The Committee adopted a handful of amendments during the executive session, including language to add back funds each four-year, public baccalaureate institution pays as members of the Council of presidents that were reduced in the original bill.

The Senate’s supplemental budget still reduces higher education by $25.4 million through a tuition transfer from the institutions -public 2-year and 4-year – to the Higher Education Coordinating Board for financial aid.

In addition,  funding reductions were retained to the Higher Education Coordinating Board ($909,000), Workforce Employment and Training (ESD) ($318,000), and the following HECB programs and services ($632,000): (1) College Readiness Program, (2) Health Sciences and Services Authority (HSSA), (3) student financial aid administration, and (4) the Technology Transformation Task Force. 

The next step is to convene a conference committee comprised of three senators ( two Democrats and one Republican) and three representatives (two Democrats and one Republican) to iron out the differences between the two budgets. Once there is agreement, the bill will be voted on by both chambers with no opportunity for amendments, and then sent to the Governor for her signature.

House Higher Education Committee Hears Legislation

This morning the House Higher Education Committee heard several proposed bills, ranging from purchasing to membership on community and technical college boards.

The following bills were heard:

  • HB 1568 – Regarding appointing members to the boards of trustees for community colleges and the state board for community and technical colleges.
  • HB 1477 – Authorizing the board of trustees at Eastern Washington University to offer educational specialist degrees.
  • HB 1663 – Removing the requirement that institutions of higher education purchase from correctional industries.
  • HB 1631 – Providing for academic employee salary increments for community and technical colleges.
  • HB 1451 – Eliminating the goal of global challenge state funding levels.

The Evergreen State College signed in support for HB 1477 and HB 1663 and did not take a position on the community college related legislation.

Evergreen also submitted written testimony to the Committee in support of House Bill 1451. As stated in our testimony, Evergreen supports the elimination of the Global Challenge State (GCS) framework.  We believe the elimination of this framework will simplify and clarify accountability metrics for Washington’s four-year, public baccalaureate institutions and allow the state to refocus on maintaining access to college for Washington residents.

The GCS framework was established in 2002 as part of the New Economy Index (NEI). The framework lasted for only two-years. Currently, the New Economy Index no longer exists and the states identified in 2002 have not been updated since 2004.

College Promise Coalition Elevates Higher Education at The Capitol

This morning the College Promise Coalition, a coalition that advocates for the colleges and universities, alongside students, parents, faculty, alumni, labor and business leaders, and education advocates in order to urge the legislature to make higher education a top priority, held a media event at The Capitol.

Students from two- and four-year institutions opened the event announcing the Coalition, its importance and the broad support within the Coalition for higher education in Washington.  In addition, the students shared how their lives have been impacted as funding for institutions has declined.

Following the student President Les Purce – The Evergreen State College,  President Elson Floyd – WSU, President Roy Heyndrickx – St Martin’s, Ana Mari Cauce – UW Dean of Arts and Sciences, the College Success Foundation, and faculty and union representatives shared what is at stake for the state regarding reductions to higher education investments over the last few years, spoke to the value of the student experience, and recognized the need for investments in access.

Senate Proposes Supplemental Budget

Higher education takes a hit in the Washington Senate’s proposed FY11 supplemental budget. On Wednesday the Senate released their proposed supplemental budget and held a public hearing on the legislation.

Under the Senate’s proposal higher education funding is reduced in total by $27.412 million, including $25.4 million through a tuition transfer from the institutions -public 2-year and 4-year – to the Higher Education Coordinating Board for financial aid.

In addition, the proposed Senate supplemental budget would reduce funding to the Higher Education Coordinating Board ($909,000), Workforce Employment and Training (ESD) ($318,000), and the following HECB programs and services ($632,000): (1) College Readiness Program, (2) Health Sciences and Services Authority (HSSA), (3) student financial aid administration, and (4) the Technology Transformation Task Force. Finally, the proposed supplemental reduces the funds each four-year, public baccalaureate institution pays as members of the Council of presidents ($168,000).

In addition, the proposed supplemental budget makes reductions in several other parts of the state budget including the Basic Health Plan and the Disability Lifeline program.

Legislators are trying to close a $588 million shortfall in the fiscal year that ends this June. Neither of the proposed supplemental budgets closes the budget gap in the current fiscal year, both proposals leave an approximate $200 million shortfall. 

The Senate Ways & Means Committee will hold an Executive Session on the proposed supplemental budget at 3:30 this afternoon.

House and Senate Committees hear Governor’s Bill Implementing Task Force Recommendations

The House Higher Education Committee and the Senate Higher Education and Workforce Committee held public hearings today on House Bill 1666. The legislation has yet to be assigned a bill number in the Senate.

As Gov. Chris Gregoire and the Task Force announced in December, the proposal would alter the policies that currently structure funding, transfer, and accountability for higher education in Washington.

The bill would set degree production targets to increase 27 percent over 2010 levels by 2018. In addition, the legislation establishes a state funding baseline, tuition flexibility and funding levels for four-year public baccalaureate institutions comparable to institutions in other states; creates an endowment for low and middle income students who wish to obtain a baccalaureate degree and a tax credit for businesses that contribute; adopts new performance measures for four-year public baccalaureate institutions and creates a program to incentivize progress; and requires the creation of a one year transferrable certificate and other measures to ease student transfer and increase recognition of prior learning.

Both committees heard from business, including the big ones (i.e. Microsoft and Boeing), members of the Task Force, faculty, and the institutions of higher education, including The Evergreen State College.  The testimony was clearly in favor of the work of the Task Force and the elevation of higher educatin in the minds of those in Olympia but was accompanied with the need to continue to work on the bill.

No further action is scheduled for the bill at this time.

Higher Education Opportunity Act Introduced in Washington

Today Representative Carlyle, Vice Chair for House Higher Education, launched the Higher Education Opportunity Act.

Carlyle stated “the trend in the Legislature is to reduce funding for the institutions of higher education under the operating assumption that they can continue to absorb the cuts without measurable or meaningful consequences for students, faculty, families and supporters. The trend of decreasing state support and increasing tuition seems virtually unstoppable. The question is not whether this trend will continue but how we can get a handle on the negative consequences for the middle class and more intelligently manage this structural shift.”

The Higher Education Opportunity Act would: 

  • Tuition-Setting Authority: For a four year window between academic years 2011 and 2014, public baccalaureate institutions are granted full local authority to set tuition rates for all students. After that four year time frame, tuition-setting authority for in-state undergraduates reverts back to the Legislature.
  • Dramatically Increasing Financial Aid for the Middle Class: Fifty percent of all tuition raised above a 7 percent ‘base’ per year at public baccalaureate institutions must be protected, reserved and spent by the institutions to fund new financial aid to directly increase assistance for the middle class. This allows students from families earning from 70% of medium family income (about $56,000 for a family of four–the current level of aid) to 125% of medium family income can receive substantial financial aid to mitigate the negative effects of rising tuition.
  • Institute a Radical Commitment to the Leverage Federal Tax Credits and Incentives: Strong requirements are put in place for higher education institutions to inform, educate and reach out to students about highly valuable federal tax credits available to them such as the American Opportunity Tax Credit and the Lifelong Learning tax credit.
  • Acknowledging Multiple Kid Family Costs for the Middle Class: In assessing higher education financing challenges, the Higher Education Coordinating Board (HECB) is required for the first time to consider family size as part of the family contribution for students of the state need grant, and is also required to establish criteria for awards that is not solely based on “first come, first served.”
  • Guaranteed Education Tuition (GET Program): The Committee on Advanced Tuition Payment (state treasurer, HECB director, OFM director, program participant and business rep) are required to review tuition levels and recommend a possible “GET II.”
  • Higher Education Institutional Accountability: The National Governor’s Association Complete to Compete Metrics are established in statute.
  • Eliminating Reports and Studies that are Duplicative or Unnecessary: Over the years the Legislature, Governor and boards have saddled the institutions with a huge number of reports, studies and data requests that may or may not be useful. This plan moves forward to eliminate the burden while keeping quality data available for public policy decision makers.

At a press conference this morning, Carlyle  shared that this legislation is a work in progress and needs time to ripen.  The bill is expected to be heard before the House Higher Educationo Committee next week.