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House Ways & Means Committee Amendments Provide Exemption for Higher Education Employees From Statewide Salary Freeze

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Two amendments proposed to Substitute Senate Bill 6382, which would extend a salary freeze on exempt and Washington Management Service Employees statewide, will allow an exception of certain Higher Education employees.

Including those already excepted, those employees spared from the salary freeze are, according to the amendment language, “exempt higher education personnel for critical retention purposes or additional summer quarter responsibilities,” and other exempt personnel covered under collective bargaining agreements.

SSB 6382, the first Senate bill to be considered by the House Ways & Means Committee during this session, was passed out of committee. A procedural point was made by staff that the two amendments will be considered as one when the bill is referred to Rules Committee.

Evergreen Speaks to Race to the Top Legislation

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A trio of bills were heard before the House Education Committee today that would better position Washington for Race to the Top dollars. The Race to the Top Fund provides competitive grants to encourage and reward States that are creating the conditions for education innovation and reform at the K-12 level.

Washington plans to apply for Race to the Top in the second phase. 

Evergreen weighed in on two of the three bills heard by the House Education Committee.

Evergreen expressed support with concerns regarding Senate Bill 3059. SB 3059 expands opportunities for teacher preparation by requiring all teacher preparation programs to provide alternative routes to earning a teaching credential.

Evergreen expressed concerns with regard to the lack of funding that accompanies the mandate laid out in SB 3059. Without additional funds to support this effort, Evergreen could find itself assuming the costs of developing and implementing an alternative route program at a time of declining resources for higher education.

In addition, Evergreen raised the strength to the state of the varied missions among higher education institutions. The requirement in the bill to create an alternative route program may require the Collee to move away from Evergreen’s mission and the mission of the College’s teacher preparation programs.

Evergreen encouraged the Committee to consider an amendment that would remove the mandate language in the bill.

Several other organizations and individuals, including the Professional Educators Standards Board (PESB) and the Washington Education Association (WEA), testified to the legislation before the House Committee.

Randy Dorn, Superintendent of Public Instruction, spoke to all three bills before the Committee. He stated Washington needs legislation that strengthens current accountability and data systems to allow the state to be a player in the arena of the Race to the Top.

He also recognized that the Race to the Top criteria is built on the priorities of  the federal government. He encouraged policymakers to keep in mind the need to determine what works for Washington and move these efforts forward.

Members of Higher Education Community Weigh in on Bill that Would Change State Need Grant Eligibility

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On Wednesday the House Committee on Higher Education held a public hearing on House Bill 2936, introduced by Representative Anderson in an effort to increase efficiencies in the state financial aid system. Evergreen did not testify during the hearing.

The intent of the bill, as articulated by Representative Anderson, would be to encourage younger students to enter higher education and keep financial aid paced with budget cuts. The mechanisms proposed to accomplish these goals – limiting State Need Grant eligibility to individuals under the age of twenty-nine and cutting off the award after two years – came under criticism by individuals testifying. Those voicing opposition included the State Higher Education Coordinating Board, the Council of Presidents, the State Board of Community and Technical Colleges, members of the Council of Faculty Representatives, the Washington Student Association, the State Workforce Board, and the Independent Colleges of Washington State. Concerns included the exclusion of older students, who represent high percentages of community and trade college students as well as those who transfer into baccalaureate programs from community colleges, as well as those who do not move through the higher education system in traditional time frames.

Bills Move Quickly

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A familiar and quick-paced trend has appeared on The Hill. Bills are introduced, heard via a public hearing one day and the next are moved out of committee either to the floor or an appropriations committee.

This is to be expected as committee cut-off dates near (early next week) and the Legislature approaches the half-way mark in the session (4th week is next week).

So here is the latest news:

Evergreen Supported Legislation

The Senate Govenrment Operations & Elections held a public hearing and moved Senate Bill 5041. SB 5041 encourages agencies to contract and purchsefrom veteran-owned businesses. Evergreen supported the legislation which was reinforced with testimony in favor of the bill by The Council of Presidents.

The House Higher Education Committee held a public hearing on House Bill 2930. House Bill 2930 extends the Future Teacher Conditional Scholarships to students seeking a mathematics endorsement.

Evergreen testified in support of the bill and encouraged policymakers to work towards offering similar scholarship opportunities in the future to individuals seeking endorsements in special education and ELL. 

Legislation of Concern to Evergreen

The House Commerce & Labor Committee held a public hearing on House Bill 2805. House Bill 2805 requires contractors on public works projects (i.e. higher education capital projects) that are over $1 million to provide additional reporting. 

Evergreen expressed concerns with regard to additional reporting at a time of declining resources and the potential for increased costs to public works projects.

HB 2805 is expected to be moved out of committee later today.

Bills of Interest to Evergreen

The Senate Ways & Means Committee held a public hearing on Senate Bill 6572. Evergreen did not weigh in during the public hearing but is tracking this legislation as it moves through the process.

Senate Bill 6572 eliminates several inactive funds and accounts and transfers any remaining balances in these accounts to the General Fund. In addition, any balances in the School Construction Revolving Fund are transferred to the General Fund.

The accounts and funds to be eliminated include: City and County Advance Right-of-Way Revolving Account; Community and Technical College Fund for Innovation and Quality Account; Dairy Products Commission Facility Account; Data Processing Building Construction Account; Education Technology Account; Energy Efficiency Construction Account; Fruit Commission Facility Account; Geothermal Account; K-20 Technology Account; Morrill Account; Personal Health Services Account; Prescription Drug Purchasing Account;Regional Transportation Investment District Account; Purpose District Research Services Account; Two-year Student Child Care in Higher Education Account; Warren G. Magnuson Institute Trust Account; Washington Fruit Express Account; and Washington Service Corps Scholarship Account.

No further action has been scheduled on this bill.

Greater Government Accountability

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This morning the Senate Operations & Elections Committee held a public hearing on Senate Bill 6362.

Senate Bill 6362 relates to government accountability. In an effort to learn more, I attended the hearing.  Evergreen did not weigh in on the bill.

Senate Bill 6362 builds on an evolving effort to improve state government accountability and transparency. In the mid-nineties the Joint Legislative Audit and Review Committee (JLARC) was created to make state government operations  more effective, efficient, and accountable. JLARC employs the State Auditor and conducts performance audits, program evaluations, sunset reviews, and other analyses to meet its objectives.

In 2005, the Legislature passed legislation that created the Citizen Advisory Board to improve efficiency, effectiveness, and accountability in state government. The Board works in sync with the State Auditor.

In the fall of 2005, Washingtonians passed Performance Audits of Government Act (PAGA) which increased the role of the State Auditor by allowing this office to conduct independent, comprehensive performance audits of state and local governments. 

Senate Bill 6362 would focus the State Auditor’s work on verifying the efficiency of the top ten government priorities identifiedy by the Legislature. As a result, in addition to audits of programs and activities by agency, SB 6362 would permit audits of identified priorities.

So what are these priorities? They are:

1.  Student achievement in K-12

2. Quality and respect for public workforce

3. Value of state college or university education

4. Health of state citizens

5. Security of the state’s vulnerable children and adults

6. The economic vitality of business and individuals

7. Statewide mobility of people, goods, information, and energy

8. Safety of people and property

9. Quality of the state’s natural resources

10. Cultural and recreational opportunities throughout the state.

Each year, under SB 6362, JLARC would select one of the ten priorities and determine the relative priority of all programs and actitivies within that category. Those priorities identified as the highest would be subject to a performance audit by the State Auditor to determine that the programs and activities are operating at maximum efficiency. Those priorites determined to be the lowest would have a less demanding assessment.

The tasks identified under SB 6362 would be funded through a 30% allotment of funds assessed against the Performance Audits of Government Account.

The only group to testify during the public hearing for SB 6362 came from Washington newspapers in support of the bill.

T.G.I.F, Senate Committee Hears Purchasing Bill

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Senate Higher Education & Workforce Development Committee met this afternoon. The bill of interest to Evergreen was Senate Bill 6413.

Senate Bill 6413 allows institutions of higher learning to purchase personal services; materials, supplies, or equipment; or information services made by state institutions of higher education by using contracts entered into by, for, or through group purchasing organizations.

Kathleen Haskett, Evergreen’s Purchasing & Contracts Manager, testified in support of SB 6413. She expanded on the changes the bill would provide for higher education purchasing policies and the potential costs savings to the institution.

Legislature Week 3: What is Happening

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Several work sessions and public hearings are scheduled on critical issues that impact higher education the third week of session. To learn more follow the links below.

This week the focus of the higher education policy committees (i.e. House Higher Education and Senate Higher Education & Workforce Development) plan to tackle several critical issues impacting Washington’s institutions including performance agreements, system design, teacher preparation, tuition policy, three-year degree, and financial aid.

In addition, the appropriations committees (i.e. Senate Ways & Means and House Ways & Means) will meet to continue their work on budget related matters.

New Revenue Sought by Closing Loopholes, Taxing Income

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On Friday three bills constituting an overhaul of Washington State’s tax system were introduced – two in the Senate (SB 6713 and SB 6714) and one in the House of Representatives (HB 3070). The Senate bills were introduced at the request of the Washington State Department of Revenue by Ways and Means co-chair Senator Rodney Tom and co-sponsored by several of his colleagues in committee.

Senate Bill 6713 effectively ends exemptions on sales of certain livestock equipment, as well as on the compensation of certain corporate officers, which the bill does not recognize as a legal exemption, but as “a widespread misunderstanding among corporate directors that the business and occupation tax does not apply to the compensation they receive for serving as a director of a corporation.” The bill proposes to clear up this misunderstanding by holding corporate officers responsible for their obligation via the Department of Revenue.

Senate Bill 6174 promises to close tax loopholes on real estate transactions and the use of certain digital materials (including downloads, software and online video services). The closing of these loopholes will be facilitated by an interest rate on all unpaid taxes.

House Bill 3070 levies an tax on the income of individuals in the State of Washington by way of a graduated scale based on earned income and marital status. Unlike previous proposals that sought to only tax incomes in the six figures, HB 3070 levies a tax on all eligible earners. The following tables break down the tax proposal:

For married taxpayers filing jointly:

If taxable income is:. . . . . . . . . . . . . . . . . . . . . . . . The tax is:
Not over $49,900 . . . . . . . . . . . . . . . . . . . . . . . . 2.2% of taxable income
Over $49,900 but not over $120,650 . . . . . . . . . . . .$1,098 plus 3.5% of the excess over $49,900
Over $120,650 . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,574 plus 6.0% of the excess over $120,650

For “head of household:”

If taxable income is:. . . . . . . . . . . . . . . . . . . . . . . . The tax is:
Not over $37,425 . . . . . . . . . . . . . . . . . . . . . . . . 2.2% of taxable income
Over $37,425 but not over $90,488 . . . . . . . . . . . . $823 plus 3.5% of the excess over $37,425
Over $90,488 . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,681 plus 6.0% of the excess over $90,488

And for single or married filing separately:

If taxable income is:. . . . . . . . . . . . . . . . . . . . . . . . The tax is:
Not over $24,950 . . . . . . . . . . . . . . . . . . . . . . . . .2.2% of taxable income
Over $24,950 but not over $60,325 . . . . . . . . . . . . .$549 plus 3.5% of the excess over $24,950
Over $60,325 . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,787 plus 6.0% of the excess over $60,325

Each of the bills was referred to fiscal committees – Ways and Means in the Senate and Finance in the House.

Bills Galore in Higher Education Committees

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Evergreen ran the gauntlet this morning in an attempt to be in multiple places at once. On Tuesdays, the House and Senate higher education committees meet at the same time. As a result, Tuesdays are always a high exercise day as higher education folks strategically move from one committee to the other and back again.

Amid this structured chaos, Evergreen was able to weigh in on multiple bills heard in both committees that impact higher education in various ways.

In the House Higher Education Committee, The Evergreen State College spoke to the College’s support for HB 2858 and HB 2854. House Bill 2858, a.k.a. the purchasing bill, would allow four-year, public institutions to participate in group purchasing. The use of group purchasing would provide Evergreen with additional cost savings.

House Bill 2854 moves forward policy implemented during the 2009 legislative session. HB 2854 would build on the establishment of the Higher Education Loan Program (HELP) by creating the HELP account, establish criteria for student participation and establish annual limits on loans to be granted under this program. The Evergreen State College testified in support, along with students, the HECB, and career colleges. Taking the lead from the sponsor of the bill, Rep. Kenney, Evergreen’s testimony: (1) emphasized the importance of first funding grants and work study opportunities for students before considering loans and (2) recognized the important of low-interest, public loan options for students pursuing a college education.

In addition, Evergreen expressed concerns regarding House Bill 2655 and House Bill 2822. House Bill 2655 implements the Higher Education Coordinating Board’s System Design Study completed in 2009. Evergreen is concerned that the bill, as drafted, does not reflect the recommendations of the HECB’s study. Evergreen is working, through the Council of Presidents, with the HECB to ensure that the final draft does reflect the hard work of the System Design Work Group. Evergreen also expressed similar concerns regarding Senate Bill 6355 the companion bill to HB 2655.

Finally, House Bill 2822 would require higher education institutions to include proposed tuition and fee rates for the next two-year period as a component of the institution’s proposed operating budget outlines submitted to the HECB. The Evergreen State College, along with the University of Washington, and community colleges acknowledged the work of the HECB on tuition policy over the past year, but expressed concerns regarding the limits that HB 2822 would place on an institution’s ability to consider tuition as the last dollar in once the state established appropriation and financial aid funding levels.

On the Senate side, Evergreen supported Senate Bill 6357 which would create consistency with regard to academic recognition of prior experience.

Finally, Evergreen expressed opposition to Senate Bill 6358 which would fiscally penalize students if they accumulate more than 125 percent of credits, drop more than 25 percent of credits, or remain on academic probation for more than one quarter or semester. Evergreen is concerned the proposed policies outlined in the bill would negatively impact retention and the pursuit of a college education for students.

Bills Moving to Floors for Action

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A handful of bills have moved to the House and Senate floor for action this week.

House Bill 2561, a.k.a the Jobs Creation bill, was passed by the House 57-41 on Wednesday.

House Bill 2561: (1) Authorizes the State Finance Committee to issue $861 million in general obligation bonds, to be known as Jobs Act Bonds (Act), for the purpose of creating jobs by constructing capital improvements that lead to energy-related cost savings in public schools, state colleges and universities, and other public facilities; (2) Appropriates funds for grants to public school districts, public higher education institutions, state and locally-owned facilities, and facilities owned by subdivisions of the state; and (3) Directs the Secretary of State to submit the short title, intent and bond authorization sections of the Act to the people for adoption and ratification or rejection in the next general election to be held in the state.

In addition, Senate Bill 2561, if enacted, would be a vehicle by which Evergreen could seek funding for the design and construction of the Biomass Gasification Project that the College is seeking funds for a feasibility study this session. Evergreen will continue to work to move this successfully move this bill through the Senate.

The House amended HB 2561 to correct the name  of the account that funds are drawn from to pay debt service and directs the State Treasurer to move funds to pay debt service to the bond retirement. In addition, changes were made to the time in which a project that does not use Energy Savings Performance Contracting must verify energy and operational savings for 10 years  or until the project has paid for itself, whichever is shorter.

Engrossed House Bill 2651 now moves to the Senate Ways & Means Committee for consideration.  

House Bill 2858 was passed by House Higher Education on Wednesday. House Bill 2858 provides institutions of higher education the authority to participate in group purchasing agreements.

Kathleen Haskett, Evergreen’s Purchasing & Contracts Manager, testified in support of HB 2858. She expanded on the changes the bill would provide for higher education purchasing policies and the potential costs savings to the institution.

More and more bills are expected to move to the floor and opposite chamber this week and next as the first cut-off date (February 2) looms for policy bills.