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Senate Ways & Means Holds Hearing on Proposed Senate Operating and Capital Budgets

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On Tuesday afternoon the Senate Ways & Means Committee held a public hearing on the Senate’s proposed 2014 supplemental operating and capital budgets. Evergreen, along with other higher education stakeholders, testified to the impact of the supplemental budgets on institutions and students.

The Committee is expected to hold an executive session on the budgets later today.

Operating Budget

Evergreen thanked the Senate for the investment in higher education in the biennial budget and shared with the Committee Evergreen’s commitment to not increase tuition in either academic year of the biennium.  In addition, the College shared its support for the investment in the College Bound program, the State Need Grant with the passage of the Real Hope Act, and the Opportunity Scholarship.

Evergreen shared concerns with the committee about the inclusion of policy language to collect and distribute information with regard to student earnings post-graduation.  Citing the importance of accurate and clear post-graduation success data, Evergreen testified with specific concerns about the validity and integrity of the data to be collected as proposed. Evergreen shared its support for a proposed amendment that was offered by the University of Washington when similar language was considered in the House Higher Education Committee.

Finally Evergreen shared the impact of budget reductions to the College in the biennial budget including reductions related to the absorption of IT savings and Lean Management efficiencies.

With regard to higher education, the supplemental budget proposed by the Senate supports the investment made in higher education in the 2013-15 biennial budget. The budget does extend the current tuition freeze to the second year of the biennium.

The budget makes a handful of investments in higher education including $5 million for the State Need Grant which was expanded under the Real Hope Act and $25 million to expand Opportunity Scholarships available and match the additional private contributions received. In addition the budget includes language for the Washington Student Achievement Council to conduct an assessment of the higher education needs of the city of Covington, the Washington State Auditor to conduct an audit of the use of dedicated local and operating fee accounts by Washington’s public higher education institutions and the Education Research and Data Center to collect and publish short-term and long-term earnings and employment data for completers of higher education degrees.

Capital Budget

Evergreen thanked the Senate for providing Evergreen with the authority to enter into a certificate of participation, through the Office of the State Treasurer, to purchase the building the College currently leases for the College’s Tacoma program.

Evergreen shared concerns with regard to a budget shift which moves $855,000 from General Obligation Bonds to Evergreen’s Capital Projects Account Fund.

With regard to higher education the Senate provided funding for a small number of projects across higher education. This includes authority for Evergreen to enter into a certificate of participation to purchase the existing facility in Tacoma for the College’s Tacoma program; $2 million to remove, clean and dispose of two underground diesel oil tanks at Central Washington University; and $50,000 to conduct a budget evaluation study  of the Carver academic building renovation with OFM and Western Washington University.

As Policy Deadline Nears Committees Take Action on Legislation

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This weeks marks another major deadline in the legislative process as the Legislature marches forward toward the end of session in mid-March. House policy committees must advance Senate bills forward in the process by the end of Wednesday, February 26; the deadline in the Senate for House bills is Friday.

House Higher Education Committee

This morning the House Higher Education Committee held a series of public hearings on Senate bills that passed the floor last week.

Among the bills considered this morning was  legislation that would change business practices resulting in greater efficiency and effectiveness for Washington’s public baccalaureate institutions (SB 6362) and ensure that colleges and universities clearly disseminate their financial policies to students (SB 6358). The Committee also took executive action on bills heard in committee.

The Committee rounded out the meeting with a work session  focused on higher education transitions. The Committee heard updates with regard to two programs that focus on easing the transition to higher education: (1) the College Bound Scholarship and  (2) MESA Community College Program.

The Committee will meet next on Wednesday afternoon. This will be the last meeting prior to the policy cut-off for bills passed in the Senate to be considered  in the House.

Senate Higher Education Committee

This afternoon the Senate Higher Education Committee continued its work to advance gubernatorial appointments to higher education related boards. The Committee heard from nominations who would serve on the boards of Spokane and Spokane Falls Community College, Shoreline Community College, and the Washington Student Achievement Council.

Following the conversation with future Trustees the Committee held a series of public hearings on house bills. The Committee heard proposed legislation that would create an informational program to increase applications from high-achieving low-income students to selective institutions of higher education (HB 2694) and clean up outdated statutes pertaining to general obligation bonds that were issued for higher education capital projects and that have matured and provides expiration dates and clarifications for certain higher education provisions and programs (HB 2546).

The Committee also held a public hearing on House Bill 2613 which changes to business practices resulting in greater efficiency and effectiveness for Washington’s public baccalaureate institutions.

The Committee closed with an executive session. The Committee advanced several pieces of legislation  and moved multiple gubernatorial appointments forward. The legislation advanced included amended legislation to require higher education institutions to post department-level, budget unit-level, division-level, school-level, or college-level expenditure information on their respective web site within sixty days of the closing fiscal year  (HB 2336) and an amended bill to direct OFM to create a website with accessible information on revenues and expenditures and require all branch campuses to display specific data on the office of financial management’s dashboard for four-year institutions of higher education by December 1, 2014 (HB 2651).

The Committee will meet next on Thursday afternoon. This is the last meeting of the Committee before the Friday cut-off.

Senate Releases Supplemental Operating and Capital Budgets

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This afternoon the Washington Senate released a proposed 2014 Supplemental Operating and Capital budget.

The Senate proposal would boost the state’s $33.6 billion dollar budget by approximately $95.7 million. Of the $95.7 million over half  ($52.1 million) is focused on net policy enhancements and increases including $5 million for the State Need Grant due to the passage of the Real Hope Act and $25 million for the Washington State Opportunity Scholarship Program. Much of the remainder ($43.5 million) is associated with maintenance level changes for caseload and other adjustments based on current law requirements including $12 million for higher than anticipated College Bound enrollments.

The Washington House is expected to release a proposed supplemental operating and capital budget later this week.

Higher Education

The supplemental budget proposed by the Senate supports the investment made in higher education in the 2013-15 biennial budget.

The budget makes a handful of investments in higher education including $5 million for the State Need Grant which was expanded under the Real Hope Act and $25 million to expand Opportunity Scholarships available and match the additional private contributions received. In addition the budget includes language for the Washington Student Achievement Council to conduct an assessment of the higher education needs of the city of Covington, the Washington State Auditor to conduct an audit of the use of dedicated local and operating fee accounts by Washington’s public higher education institutions and the Education Research and Data Center to collect and publish short-term and long-term earnings and employment data for completers of higher education degrees.

The budget also extends the tuition freeze for the first half of the biennium to the second year of the biennium.

Capital Budget

The Senate also proposed a supplemental capital budget for higher education. The Senate provided funding for a small number of projects across higher education. This includes authority for Evergreen to enter into a certificate of participation to purchase the existing facility in Tacoma for the College’s Tacoma program; $2 million to remove, clean and dispose of two underground diesel oil tanks at Central Washington University; and $50,000 to conduct a budget evaluation study  of the Carver academic building renovation with OFM and Western Washington University.

Senate Higher Education Committee Holds Public Hearings on House Bills

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This week the Senate Higher Education Committee held a series of public hearings on legislation passed by the House. The bills ranged from changing the membership and provisions for the Opportunity Scholarship and its board (HB 1251 & HB 2612) to requiring a review of higher education dual credit coursework policies (HB 2285).

The Committee also heard about legislation (HB 2651) that would require the Washington Education Research and Data Center (ERDC) to include information on revenues and expenditures for each institution of higher education on the public, baccalaureate dashboard.

In addition the Committee heard House Bill 2336 which would require higher education institutions to post via the ERDC department-level budgets within sixty days of an institutions adoption of an annual fiscal budget. Evergreen expressed concerns regarding a proposed substitute to the bill regarding the lack of clarity about the definition of department, unit and division.  The public baccalaureate institutions currently provide budget information at the major activity level on the institutional websites in accordance with legislation passed in 2011.  Evergreen also posts similar information with regard to our allotments and reporting to the Integrated Postsecondary Education Data System (IPEDS).  The College also posts board approved budget policy that recognizes transparency on budgetary changes on the College’s website.

House Higher Education Committee Launches into Work

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Fresh off the floor, the House Higher Education Committee held a public hearing focused on legislation that would make changes to existing state financial aid programs.

One proposal – HB 2615 – would increase the GPA requirement to qualify for a State Need Grant and reduce the period of time a student would be eligible to receive a State Need Grant from five years to four years.

House Bill 2619 would change the current State Need Grant and College Bound programs from a need-based grant program to a “Pay It Forward” program. The bill would require students that receive grants toward tuition agree, through a grant contract, to make contributions to the program one year after completing their higher education program or one year after discontinuation of their higher education program based on their ability to pay contributions based on a percentage of income.

The Committee followed the public hearing with a work session focused on higher education capacity expansion for the state’s private career schools and regulating the private career schools in the State.

 

Revenue Forecast Released

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This morning the Washington State Economic and Revenue Forecast Council released the February revenue forecast.

The forecast shows that the biennial budget will experience a slight increase in revenues – $30 million – compared to the last forecast in November.

General Fund collections are expected to total $33 billion for the current biennium. The forecast for the 2015-17 biennium also increased by $82 million. This includes a projected increase of $51 million from marijuana production and sales, the first time this item has been included in the forecast. The total General Fund for 2015-17 is expected to be $35.7 million for the 2015-17 biennium. The initial forecast for 2017-19 projects a total of $38.7 billion.

Though the forecast shows the state moving in a positive direction, the news was mixed. The Office of Financial Management stated that revenue collections had not grown enough to trigger an automatic 1 percent pay increase for many state employees. The 2013-15 state budget included language that reflects current collective bargaining agreements with unions which would trigger a 1 percent salary increase as a result of increased state economic activity. The February forecast would need to be at least $200 million higher than what was forecast in September 2012. Revenue growth only increased by $11.7 million over this period.

The next revenue forecast is scheduled for release in June.

Legislature Meets Major Deadline

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On Tuesday by close of business all bills must have passed their respective chambers to be considered viable this session. Legislators put in several hours on the floor moving legislation forward to meet this deadline.

Several higher education related bills have been passed by the either the Senate or House and will be considered by the opposite chamber in the next two weeks. Here is just a sampling:

  • HB 2486: Allows the Department of Corrections to pay for postsecondary education degree programs and implement a program to provide postsecondary education.Referred to Senate Human Services and Corrections Committee.
  • HB 2546: Cleans up outdated statutes. In particular the bill decodifies certain statutes pertaining to general obligation bonds that were issued for higher education capital projects and that have matured and provides expiration dates and clarifications for certain higher education provisions and programs. Referred to Senate Higher Education Committee.
  • HB 2613: Changes to business practices resulting in greater efficiency and effectiveness for Washington’s public baccalaureate institutions. Among the changes proposed is permissive authority to prorate paychecks for faculty on nine-month appointments, to change payroll frequency from semi-monthly to biweekly and changes to existing reporting requirements. Referred to Senate Higher Education Committee.
  • HB 2694: Requires the Washington Student Achievement Council (WSAC) to design and implement, by the fall of 2015, a program that provides information to high-achieving, low-income high school students with the purpose of increasing the number of applications from this group of students to public baccalaureate institutions and independent, nonprofit baccalaureate degree-granting institutions in Washington. Referred to Senate Higher Education Committee.

 

  • SB 5318: Removes the one-year waiting period for veterans or active members of the military for purposes of eligibility for resident tuition.  Referred to House Appropriations Committee.
  • SB 5969: Provides for awarding academic credit for military training. Referred to House Higher Education Committee.
  • SB 6358: Ensures that colleges and universities clearly disseminate their financial policies to students. Referred to House Higher Education Committee.
  • SB 6362: Changes to business practices resulting in greater efficiency and effectiveness for Washington’s public baccalaureate institutions. Among the changes proposed is permissive authority to prorate paychecks for faculty on nine-month appointments, to change payroll frequency from semi-monthly to biweekly and changes to existing reporting requirements. Referred to House Higher Education Committee.
  • SB 6436: Creates a workgroup that will make recommendations to ensure the College Bound Program is viable, productive, and effective.  Referred to House Appropriations Subcommittee on Education.

DREAM Act Passes House; Heads to Governor’s Desk

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Last night the last bill to receive a vote on the House floor was the DREAM Act. Passed with strong bipartisan support (75-22), the bill now heads to Governor Inslee’s desk for his signature. He is expected to sign the bill into law.

The bill would allow students to be eligible for the State Need Grant program if they met the following criteria:

  • Completed the full senior year of high school and obtained a diploma at a Washington public or private high school, or received the equivalent of a diploma;
  • Lived in Washington for at least three years immediately prior to receiving the diploma or its equivalent;
  • Continuously lived in the state after receiving the diploma or its equivalent and until being admitted to a public institution of higher education; and
  • Provided to the institution an affidavit indicating that the individual will file an application to become a permanent resident at the earliest opportunity the individual is eligible to do so and a willingness to engage in other activities necessary to acquire citizenship.

Or

  • Granted Deferred Action for Childhood Arrival (DACA) Status;
  • Completed the full senior year of high school and obtained a diploma at a Washington public or private high school, or received the equivalent of a diploma;
  • Lived in Washington for at least three years immediately prior to receiving the diploma or its equivalent; and
  • Continuously lived in the state after receiving the diploma orits equivalent and until
    being admitted to a public institution of higher education.

WA Senate Confirms Evergreen Trustee

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This morning the Washington Senate, in a vote of 45-0, confirmed Fred Goldberg as a trustee to The Evergreen State College Board of Trustees.

Fred Goldberg is a philanthropist, Army veteran, banker and entrepreneur. He helped found Saltchuk Resources, a global logistics company, currently the largest private company in Washington State.  Recently retired from active management of the company, Fred continues to serve on the Saltchuk board.  As a banker, Fred saw the evolution of the Thurston County State Bank into Puget Sound National Bank and then into Key Bank, serving in various leadership roles throughout the decades.  He currently serves on the board of Columbia Bank.

Fred has deep roots in Olympia, where he operated his family’s third-generation furniture business, volunteered at the Washington State Capital Museum and helped the Panorama City retirement community regain financial stability in the 1990.

Washington Senate Honors Service of Retiring President

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This morning the Washington Senate opened by recognizing the long career and dedication to higher education of Dr. Rudolpho Arevalo.

Earlier this month Dr. Arevalo announced that he would retire this academic year as the President of Eastern Washington University (EWU).

Several members of the Senate rose to speak about the contributions and service Dr. Arevalo has provided to Washingtonians during his tenure at EWU. The resolution passed by the Senate recognized Arevalo’s contributions to the community and state with a special emphasis on his tireless work around the creation of opportunities and the advocacy for access to higher education for students from across the state.

On a more personal note, many of the Senators spoke to the integrity, humility, and kindness that is Dr. Arevalo. Recognized as a true gentleman, Dr. Arevalo’s footprint on EWU and higher education in Washington will continue well after he leaves.