Tag Archives: Budget

Governor Signs Early Action Budget and Other Legislation Passed During Special Session

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Yesterday Governor Gregoire signed into law the early action budget passed by the Legislature last week. She vetoed a single proviso that directed the Department of Social and Health Services to maintain the physical plant and protect state assets at the closed Maple Lane School.

The budget implements a variety of state funding reductions, transfers and delayed payments to reach roughly $480 million in savings.  The early budget action by the Legislature reduces the state’s budget shortfall to approximately $900 million with plans to also set aside approximately $600 million in a reserve for the remainder of the biennium. This leaves nearly $1.5 billion for the Legislature to solve when they return in January.

Upon signing the budget bill the Governor asked lawmakers to give her a timeline on when they expect to resolve the remainder of the budget shortfall. She is asking lawmakers to find a solution early in the new year. Budget writers in Olympia have shared that work continues on the budget with consensus building on other areas to cut and several work groups forming around smaller projects within the budget.

In addition to the budget legislation, Governor Gregoire signed into law several policy bills that were passed by the Legislature during the special session. Among the bills signed into law three were  education related and together would do the following:

  • Establish grant programs for high schools to prepare students for jobs as entry-level aerospace assemblers; for skills centers to enhance manufacturing-skills programs; and for high schools to create specialized courses in science, technology, engineering and math.
  • Require the Professional Educator Standards Board to revise certification and certificate-renewal standards for elementary teachers and secondary science and math teachers to include knowledge and skills in science, technology, engineering, and math.
  • Allow Project-Lead-the-Way examinations to be included in the list of college-level proficiency exams that are recognized as a method for fulfilling postsecondary courses. Project-Lead-the-Way is a national organization that provides curriculum in science, technology, engineering, and math for middle and high schools.

Congress Reaches Pell Agreement

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Late this week  Congressional leaders reached agreement on an omnibus spending bill (H.R. 3671) that contains the nine remaining spending bills for 2012.

As a part of this package Congress agreed to maintain the maximum Pell Grant at $5,550. To pay for the Pell Grant program the bill tightens eligibility for grants and temporarily ends the interest subsidy on undergraduate student loans during the six-month grace period after a student graduates.

With regard to eligibility changes, under the bill, students would be limited to six years of Pell Grants, rather than the current nine. It remains unclear whether or not students who have already received at least six years of the grants would remain eligible for additional aid. In addition students who lack high-school diplomas or GED’s would no longer be allowed to qualify for the grants by taking an “ability to benefit” test.  Finally the bill would reduce the number of students who automatically qualify for the maximum Pell Grant by lowering the income cap for receiving an “automatic zero” expected family contribution from $30,000 to $23,000.

In addition to the changes to the Pell Grant program the bill impacts several other higher education related programs. Among the impacts are:

  • Increased funding for the National Institutes of Health by 1 percent;
  • Allowing the National Institutes of Health to go ahead with plans to create a new center to help pharmaceutical companies make drugs from universities’ research discoveries;
  • Providing flat funding for most student-aid programs, including the Supplemental Education Opportunity Grants and Federal Work-Study, and the Gear Up college-preparation programs; and
  • Increasing funding for TRIO college-prep programs by $15 million.

Votes on the budget are expected today in both the U.S. House and Senate. The latest continuing resolution experies today and if lawmakers do not pass the spending bill or another stopgap resolution by then much of the federal government could shut down.

 

Legislature Adjourns Special Session; Passes Some Education Legislation

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On Wednesday the Washington Legislature adjourned a seventeen day special session.

By the end of the seventeen days the Legislature had passed an early action budget package and some policy legislation ranging from benefits for military spouses to legislation focused on dealing with involuntary commitments of mental patients.

The budget bill passed by the Legislature reduces the shortfall by roughly 25% ($479.9 million) of the total problem ($2 billion). While some will argue that the special session did not achieve all that it could, the time provided legislators with the opportunity to receive public feedback on the Governor’s proposed 2012 supplemental budget and to begin budget conversations within their respective caucuses. In addition it provided agencies and stakeholders with the chance to get an earlier than usual glance at potential policy considerations.

In addition to the budget the Legislature passed three bills related to strengthening the aerospace industry in Washington. All three bills are education related and together would do the following:

  • Establish grant programs for high schools to prepare students for jobs as entry-level aerospace assemblers; for skills centers to enhance manufacturing-skills programs; and for high schools to create specialized courses in science, technology, engineering and math.
  • Require the Professional Educator Standards Board to revise certification and certificate-renewal standards for elementary teachers and secondary science and math teachers to include knowledge and skills in science, technology, engineering, and math.
  • Allow Project-Lead-the-Way examinations to be included in the list of college-level proficiency exams that are recognized as a method for fulfilling postsecondary courses. Project-Lead-the-Way is a national organization that provides curriculum in science, technology, engineering, and math for middle and high schools.

The Governor is scheduled to take action on the early action budget proposal and the legislation passed during the special session on December 20.

Washington Senate Passes Early Action Budget; Now Heads to Governor

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This afternoon the Washington Senate passed legislation that will reduce the current budget shortfall by nearly $500 million.

The Senate voted 42 to 6 to pass a budget package that consists of reductions to programs and services, fund shifts, and new revenues. The House passed the budget last night.

The bill now goes to the Governor for her signature.

House Passes Early Action Budget Proposal

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This evening the Washington House passed legislation that will reduce the current budget shortfall by nearly $500 million, setting up the potential for adjournment of the special session as early as tomorrow night.

The House voted 86 to 8 to pass a budget package that consists of reductions to programs and services, fund shifts, and new revenues.

The bill now goes to the Senate. Earlier today the Senate Ways & Means Committee passed its version of the budget proposal setting up a late morning or early afternoon vote tomorrow on the Senate floor.

Senate Appropriations Committee Moves Early Action Budget Proposal

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This afternoon the Senate Ways & Means Committee passed legislation that will reduce the current budget shortfall by $479.9 million.

The Committee considered a handful of amendments, but passed only a few that were technical in nature. The bill now goes to the Senate floor for consideration.

Both the Senate and the House will convene for floor sessions tomorrow morning.

House Appropriations Committee Moves Early Action Budget Proposal

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Early this morning the House Ways & Means Committee passed legislation that will reduce the current budget shortfall by $479.9 million.

The Committee considered a handful of amendments and passed three that were technical in nature. The bill now goes to the House floor for consideration as early as this afternoon.

On the Senate side, the Senate Ways & Means Committee will hold an executive session on the Senate’s early action budget proposal this afternoon.

Washington House and Senate Release Early Budget Action Proposals

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After a long weekend of discussions and negotiations, the Washington House and Senate each released an early budget action proposal.

Both proposals woud reduce the current budget shortfall, estimated at $1.4 billion, by $479.7 million. Nearly $51 million in both of the proposals will come from new revenue earned from quicker conversions of unclaimed property by the Department of Revenue. In addition, the proposals reduce agency and program budgets by $96.5 million with an additional $226.4 million in policy level changes. Finally the remainder of the funds come from $23.6 million in fund tranfers and an additional $82 million in unspent money from the prior biennium.

The proposals make minor changes to higher education.  Both proposals invest $1 million in the Aerospace Training Student Loan Program for students in certain aerospace training or educational programs. In addition both proposals reduce funding to higher education institutions to reflect savings in Washington’s Workers’ Compensation program due to reform legislation that passed during the 2011 legislative session.

The early action proposals by the Legislature still leave a $1.5 billion (approx. $900 million budget shortfall/ approx. $600 million in reserves) budget problem to be resolved in the 2012 supplemental session. It is expected that to reach a balanced approach the Legislature will need to enact additional reductions and administrative reforms as well as consider a revenue package(s).

In the meantime with an eye to adjournment as early as Friday, the House Ways & Means Committee and the Senate Ways & Means Committee will hold a public hearing on their respective proposals this afternoon. The House Ways & Means Committee has also scheduled an executive session on the House proposal tomorrow morning.

Higher Education Presents on Multiple Budgets

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This afternoon the public, baccaluareate institutions presented and testified on the future impacts of the operating budget and the capital budget.

Capital Budget

The four-year institutions were represented by the University of Washington and Evergreen before the House Capital Budget Committee.  Representing both the research and comprehensive institutions, the UW and John Hurley, VP for Finance & Administration at Evergreen, provided a joint presentation on the 10-year outlook for capital projects and funding at the six institutions.

The comprehensive institutions (EWU, WWU, CWU, and Evergreen) highlighted two major priorities over the next decade: (1) instructional needs will dominate capital projects and (2) the majority of minor works dollars from the state will focus on preservation and maintenance.

In addition the comprehensives spoke to the challenges reductions in state funds for capital and the downturn in the economy have had on institutional capital budgets. Among the challenges is the difficulty of modernizing instructional and lab space, reduced staff, and the need to move projects from the current biennium out to future biennia.

Finally the comprehensives highlighted the critical economic impact capital funding has on state and local economies, especially job creation and revenue.

Operating Budget

The four-year public higher education institutions testified with concerns regarding the Governor’s proposed supplemental budget for higher education before the House Education Appropriations and Oversight Committee.

The Governor’s proposed supplemental budget would reduce funding for Washington’s public baccalaureate institutions by double-digit percentages and suspend state work study.

Higher education representatives from the six public baccaluareate institutions in Washington, including The Evergreen State College, testified with concerns about further reductions to higher education and the impact on students.

Since 2008 state funding for Evergreen has declined by half.  To mitigate this dramatic loss of state funding over the last four years Evergreen has increased tuition by 70%, reduced institutional support (a.k.a. administration) by 32.3%, reduced the College’s workforce by over 8%, and suspended the Master of Education program and consolidate other programs among several other reductions and regorganizations.

Evergreen testified that further reductions would immediately impact students at the College. Over 80% of Evergreen’s students receive some form of financial aid, over 40% are low-income (at or below 150% of the federal poverty level), over 50% are community and technical college transfers, and nearly 30% are first-generation. 

Evergreen also expressed concerns about the impact of further reductions on the success of the College. Evergreen leads the public baccaluareate institutions in Washington in time to degree and is only behind the UW in four-year graduation rates.

Evergreen asked legislators in the coming months of budget discussions to: (1) Prioritize higher education in the budget, (2) Pursue a balanced approach to the budget, and (3) Remember that only six months ago the Legislature overhauled much of higher education, leaving little untouched with regard to policy changes and asked legislators to let these policy changes settle out and if new policy is considered to make sure it does not create new barriers to maximizing the success of students.