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House Higher Education Discusses the Interim

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Yesterday the House Higher Education committee held a work session on interm planning.

Several members of the committee shared potential ideas and discussion points for the interim. Among those mentioned by members include the need to fully understand the budgetary impacts on students and the institutions, to re-examine remedial education, and to engage in the public with regard to higher education.

In addition Chair Seaquist proposed a series of meetings across the state – at each of the four-year, public campuses – with the intention  of getting to know higher education in Washington better and to discuss issues impacting higher education in an effort to develop a 2012 legislative agenda.

Washington Senate Passes Operating Budget

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The Senate passed the biennial operating budget this afternoon.

With only one week left in the regular 2011 legislative session, the action taken by the Senate moves the state closer toward closing the budget gap.

The operating budget now goes to the House for agreement. Since the proposals are different a conference committee will be established. Budget conferees are expected to include Senators Murray, Kilmer, Zarelli and Representatives Hunter, Sullivan,  and Alexander.

House Education Appropriations Committee Discusses Interim Plans

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This morning the House Education Appropriations committee held a work session on interm planning.

Several members of the committee shared potential ideas and discussion points for the interim. Among those mentioned with regard to higher education included nonresident vs. resident enrollments, teacher preparation, the gap between those who graduate from high school and those that enroll in some form of postsecondary education, and the use of technology.

2011 Legislative Session: Week 15

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This is the last week of the regular session, though it is expected that the Legislature will return for a special session.

Operating Budget
Today (April 18) the Senate will take floor action on the operating budget. Once the Senate passes the operating budget the bill will return to the  House for agreement. Since the proposals are different a conference committee will be established. Budget conferees are expected to include Senators Murray, Kilmer, Zarelli and Representatives Hunter, Sullivan,  and Alexander.

Capital Budget
On Tuesday the Senate is expected to take action on their proposed capital budget and move it out of committe and to the floor. A Senate Ways & Mean executive session is scheduled for 2:30 p.m.

The capital budget discussion is being framed within the context of Senate Joint Resolution 8215 which would seek a constitutional amendment to phase down the debt limit from 9 to 7 percent in half-percent increments. The action would begin in Fiscal Year 2016 and continue through FY  22.  In addition the resolution would shift the state’s bond model from a three-year rolling average to a ten-year rolling average. 

The resolution is being discussed as a way to reduce debt service payments in the operating budget. For the 2011-13 biennium, the hit to the operating budget is about $2 billion on the bonds.

While there are several supporters there are also several skeptics. Skeptics argue that the shift in capacity will limit the size of the capital budget for the next few biennia and will make it tougher to fund a broad array of construction projects.

Other Legislative Work
Throughout the week, legislators will be focused on moving legislation forward in the process. This will consist of each chamber taking action on bills that are necessary to implement the budget and bills that require either chamber to concur or not concur on changes made to the bill in the opposite chamber. If either chamber does not concur with the changes then a conference committee will be established to find a compromise.

In addition, this week’s schedule includes limited committee meetings – primarily focused on interim planning – with most of the time spent on the House and Senate floor.

Special Session
The Legislature still must still pass a biennial operating and capital budget and more than sixty bills required to meet the changes and requirements in the budgets. With this heavy lift ahead a special session is certain. The question is when.

Talk on The Hill suggests that the Legislature will sine die on Thursday with a return as early as Monday, April 25 if there is a commitment to finish up quickly.  The Legislature could also opt for a rolling recess.  A rolling recess would only require essential legislators and staff to show up for work, leaving others to be called in when a deal is agreed upon. The Governor is expected to make an announcement later this week.

Special Session Expected

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Yesterday Governor Gregoire announced that a special session is expected. 

After discussions with House and Senate leadership it is unlikely that they will be able to complete their work by April 24 the last day of the regular session. 

Though the budget process continues to move forward, the Senate passed out the biennial operating budget from Committee to floor last night, the Legislature must still find agreement on the operating and capital budgets and enact over 75 bills necessary to implement the budget.

The real question is when will the special session begin. Senate and House leadership have indicated that they would like to take a short weekend break and then resume work. But Gregoire said she wasn’t certain if she’d call them back immediately. The governor also said any special session needed to be limited in scope.

Washington Senate Moves Operating Budget Bill Out of Committee

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This afternoon the House Ways & Means Committee took action on the proposed biennial operating budget.  The Committee passed the budget to the floor.

The Senate’s proposed budget reduces state funding to higher education by $617.5 million. Of the total reduction to higher education, state funding for community and technical colleges is $200.3 million (14.4 percent) below the maintenance level and state funding for the four-year, public institutions is $417.3 million (29.8%) lower.

Under this proposed budget state funding for Evergreen is reduced by $14.28 million over the biennium. The reductions to Evergreen’s state funding were offset in part by tuition increases for the 2011-13 biennium as stated in the budget. As a result, the net cut to state funding for Evergreen is $5.78 million (-5.5%).

The budget now goes to the Senate floor – as soon as Monday – for further consideration.

U.S. House Passes FY12 Budget Resolution

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Today the U.S. House of Representatives passed a proposed FY2012 resolution with a vote of 235-193.

The budget would  impact higher education in several ways.

  • Rolls back  the 2012-13 maximum Pell Grant to FY2008 levels, resulting in a maximum Pell Grant of $2,090 for the 2012-13 academic year.
  • Calls for the repeal and defunding of the Healthcare and Education Reconciliation Act (HCERA), which includes mandatory funding for the Pell Grant program. This could further lower the maximum grant by $690. 
  • Changes to limit the lifetime limits of the Pell Grant program
  • Rescinds recent expansions to the Need Analysis formula
  • Eliminates administrative cost allowances to schools
  • Repeals the expansion of income-based repayment provisions in the Student Aid and Fiscal Responsibility Act (SAFRA), and 
  • Eliminates interest subsidies on all Stafford Loans.

The budget resolution is a nonbinding resolution that sets broad spending levels that appropriations’ committees use to set specific spending levels for federal programs. In addition, it is unlikely that the Democratic-controlled Senate will approve the measure.

The U.S. House Democrats offered a substitute FY2012 budget resolution that was defeated by the House. The Democrats’ substitute proposed using mandatory spending to maintain the maximum Pell Grant at $5,550 and to pay for this by reducing spending on other programs. The substitute resolution also established a deficit neutral reserve fund for college affordability’ to allow the House Budget Committee Chairman to revise the allocations, aggregates, and other appropriate levels in the resolution for legislation that makes college more affordable, including efforts to maintain the maximum Pell grant award, as long as it does not increase the deficit.

Congress Passes FY 11 Spending Bill

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Yesterday the U.S. Senate and House passed a long-term continuing resolution that will fund the federal government through the end of the current fiscal year. The House passed the resolution with a vote of 260-167 and the Senate passed the same legislation with a vote of 81-19.

The resolution prevented a shut-down of the federal government last week. Congress had previously passed a series of short-term resolutions in lieu of a consensus on a final spending package. The most recent short-term continuing resolution expired today.

The resolution will preserve the $5,550 maximum Pell Grant for the 2011-12 award year and delay elimination of second Pell awards until after this summer. The reductions in the resolution also affect others student financial aid programs, including the Federal Supplemental Educational Opportunity Grant (FSEOG) and federal work study for the 2011-12 academic year. 

Overall the resolution reduces state spending by $38.5 million from non-defense, discretionary FY10 spending levels.  The President is expected to sign the bill.

House Committee Takes Action on Key Higher Education Bills

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The House Ways & Means Committee held a marathon executive session. Among the bills moved out of committee this evening were two major pieces of legislation that will impact higher education – House Bill 1795 and House Bill 1981.

Both bills now move to the House floor for consideration.

House Bill 1795
The bill allows  four-year colleges and universities to set tuition for all students for four years, through the 2014-15 academic year. After 2015, tuition for resident undergraduates will be set by the governing boards of the four-year institutions within certain parameters tied to the global challenge states and state funding. For example if state funding for an institution falls below state funding levels for FY 2011, an institution’s governing board may increase tuition so as not to exceed the 60th percentile of the tuition at GCS institutions.

In addition, the bill requires public baccalaureate institutions to increase current funds held for financial aid from 3% of tuition and fees to 5%, freezes the building fee to 2010-11 levels, and requires institutions to mitigate tuition increases for students at 125% or below of the median family income if they exceed tuition levels established in the budget.

Finally the bill contains provisions related to federal tax credits, transfer language, performance and accountability, and regulatory relief for higher education institutions.

House Bill 1981
The bill makes several changes to retirement related policies for higher education employees.  Among the changes is a narrower definition of eligible employees for Higher Education Retirement Plans. Under this bill only faculty and senior academic administrators are eligible for the plan. Senior academic employees are defined as institutional presidents, vice presidents, vice  presidents, deans, directors, chairs, and executive heads of major administrative or academic divsions who hold concurrent faculty appointment with rank.

In addition the bill caps benefits at 6%, alters postretirement employment criteria for employees, and eliminates the supplemental benefit.

Finally the bill was amended in committee to require employers contribute one-half of one percent of salaries into a non-appropriated Higher Education Retirement Plan (HERP) Supplemental Benefit fund beginning January 1, 2012. The dollars deposited into the fund will be managed by the State Investment Board.

Senate Holds Public Hearing on Proposed Capital Budget

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The Senate Ways & Means Committee held a public hearing on the proposed biennial capital budget this afternoon.

The Senate’s proposed capital budget provides for $1.23 billion in bond-supported capital budget capacity for the state. The proposed capital budget is 21% smaller than the current 2009-11 biennim in total funds and a third smaller in bond funded projects.

The Senate’s proposed capital budget provides $590 million for higher education facilities. Over half of the funds go to the four-year institutions. This includes partial funding for Evergreen’s Communications Building and full funding for the science lab renovation.

The Evergreen State College testified with concerns about the proposed capital budget. While Evergreen supports the commitment to funding for infrastructure needs at Washington’s higher education institutions (including Evergreen’s Science Lab I 2nd Floor Renovation), the College expressed concern with regard to the lower funding level proposed for the Communication Building renovation. The College requested $10.77 million and the budget provides for $9.16 million. The College asked the Senate to fully fund this project.