Tag Archives: Capital Budget

Federal Appropriations for Education Signed Into Law

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Recently President Obama signed into law an omnibus appropriations bill for Fiscal Year 2015. The bill:

  • Provides level-funding for the Department of Education
  • Increases funding to Title I and special education grants to states
  • Funds $250 million towards the Preschool Development Grants program
  • Funds an increase of $100 to the maximum Pell Grant – the new maximum grant is $5,830

In addition the bill makes several cuts. Among the most significant is $21.6 million from the Investing in Innovation Fund and $58.8 million from the Teacher Incentive Fund.

Governor’s Budget Released

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On Thursday Governor Inslee released his proposed 2015-17 Operating and Capital budgets.  The budget – Book 2- reflects the Governor’s focus that “after more than a decade of cutting vital services and neglecting obligations,… it is time to start reinvesting in Washington”. The budget proposes a mix of spending cuts, new revenue and reserves to pay for education and services.

The Governor also submitted, as required by law, a budget – Book 1 – that would provide for a balanced budget within existing revenues.

Governor’s Proposed Biennial Operating Budget

The Governor’s proposed budget – Book 2 – invests $2.3 billion in education.  Under his proposal the budget would provide funding to reduce class sizes statewide for kindergarten through third grade, meet the state’s commitment to fully fund basic education, make major investments in early learning, target investments to increase student success and boost graduation rates and freeze resident undergraduate tuition.

The budget also makes a number of other investments:

  • Increase mental health bed capacity to prevent inappropriate boarding of psychiatric patients
  • Hire more than 100 child protective and child welfare services workers to speed up investigations of abuse and neglect and ensure safe conditions for children in foster care
  • Boost staffing levels at state parks to restore services and catch up on a backlog of maintenance work
  • Implement the Governor’s proposed market-based carbon pollution reduction program
  • Prevent and respond to oil spills along rail lines and reduce toxics in our waters
  • Provide modest pay raises for state employees

The budget proposes tax and revenue changes ($1.4 billion) in combination with reserves and reductions to support the biennial operating budget. The budget uses $450 million from reserves and includes $211 million in General Fund spending reductions. Finally the proposal maximizes federal funds and shifts general fund costs to other fund sources to save an additional $212 million.

Among the tax and revenue changes is a new capital gains tax ($798 million) on the sale of stocks, bonds, and other assets to increase the share of state taxes paid by the wealthiest taxpayers, new revenue from a market-based carbon pollution reduction plan ($380 million), and a repeal of a sales tax exemption for trade-ins valued over $10,000 ($105 million).

 Higher Education

The Governor’s proposed budget freezes tuition for undergraduate, resident students for the biennium. No additional dollars are provided to offset the tuition freeze. The Governor will also introduce legislation to: (1) return tuition setting authority to the budget, (2) eliminate differential tuition, (3) repeal negotiation of Higher Education performance plans, (4) repeal publication of the 60th percentile global challenge states comparisons, and (5) amend financial aid mitigation provided with tuition setting authority so that any institution that exercised tuition setting authority above levels assumed by the legislature in 2011-13 and 2013-15 will continue to provide the financial aid mitigation.

In addition the budget makes an investment in math and science for each of the public baccalaureate institutions and the CCTCs and provides compensation at 3% and 1.8% for classified, professional, and faculty employees. The proposed funding only recognize the general fund portion. The remaining funding to support the compensation request is presumed to come from tuition but the budget prohibits increases in resident undergraduate tuition. This is also reflected in the health benefit increase. The budget also makes a handful of specific investments in other programs including the health professions, ocean acidification, and renewable energy.

Finally the budget maintains current funding for the State Need Grant and increases funding for the College Bound Scholarship program to recognize caseload increases.

It is worth noting that the Governor’s proposed budget without new revenues would result in a 10% reduction to higher education.

Evergreen

Under the Governor’s budget tuition would be frozen for undergraduate, resident students for the biennium at Evergreen. No additional investments are made to the College to offset the tuition freeze.

In addition the budget invests in math and science at Evergreen and provides compensation at 3% and 1.8% for classified, professional and faculty employees. The funding levels for compensation only recognizes the general fund portion, or just over a third of the cost. The remaining funding to support the compensation request is presumed to come from tuition but the budget prohibits increases in resident undergraduate tuition. This would require institutions to fund the rest from institutional dollars. For Evergreen this is $1.82 million. This split is also reflected in the health benefit increase. Evergreen would need to provide an estimated $169k.

Finally the budget requires Evergreen to report on STEM outcome measures, provides funding for several Washington State Institute for Public Policy studies in Evergreen’s allocation, and retains budget language in support of the Longhouse.

It is worth noting that the Governor’s proposed budget without new revenues would result in a 10% reduction to higher education, this would be a reduction of $2.13 million annually to Evergreen.

Capital Budget
Governor Inslee also proposed a biennial capital budget for higher education. The Governor provided funding for several projects across higher education. This includes funding for three projects at Evergreen – Lecture Hall Renovation Construction, Lab I Basement Construction funding, and Seminar I Renovation Predesign.  The budget also provides authorization to purchase the Tacoma Campus property.

In addition the budget includes funds to support facilities preservation, minor works, and preventative facility maintenance and building system repairs.

Next Steps

The Governor’s budget is the first of many budgets that will be released to address the 2015-17 biennium. While the Governor’s budget is the first step in the budget development process, there will be at least four more legislative budgets to review as the legislative session progresses.

The Washington Legislature will convene on January 12 to begin its work to develop a biennial budget.  Over the next 105 days, the House and Senate will hold work sessions and public hearings on the gubernatorial proposed budgets as well as the budgets put forth by each chamber before finalizing a conference budget.

Evergreen Submits Biennial Budget

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Late last week Evergreen along with other state agencies and higher education institutions submitted the College’s 2015-17 biennial operating and capital budgets to the Office of Financial Management (OFM). OFM anticipates the arrival of 165 agency budget requests for consideration in the development of the Governor’s biennial budget proposal due in December.

Operating Budget

Evergreen’s operating budget seeks to build on the state’s leadership over the last biennium to support the first investment above maintenance level funding since the beginning of the Great Recession. Evergreen experienced an increase in state funding of 5.2% in the 2013-15 biennium. The investment by the state reduced the financial burden on students and families. Even with the enacted biennial budget, however state funds and tuition remain far below the level of support received prior to the Great Recession.

Within this context Evergreen’s operating budget builds on the 2013-15 biennial budget as a first step in a multi-biennial approach to stabilize funding for students, faculty and staff by supporting higher education. Evergreen is asking the state to maintain the support and investment the College received in the prior biennium. The request focuses on the need to support critical infrastructure for the College including market-rate compensation and maintenance operations. In addition the request asks for additional support to ensure that current programs and services are maintained at a level that recognizes student and state demands.

In particular the request proposes building on Evergreen’s quality STEM undergraduate programs, especially in the area of computer science and current efforts to reach out to underrepresented student populations with a focus on Latina/o students.

Finally, in accordance with OFM instructions, the College submitted a 15% budget reduction, which would more than reverse the gains made in higher education in recent years and dramatically impact Evergreen’s strong performance. After years of budget reductions the college would have very few options for absorbing a cut of this magnitude. At the same time further tuition increases are likely to suppress student demand especially given Evergreen’s commitment to serve low-income students.  To meet this level of reduction Evergreen would make reductions at the expense of current access to higher education.

Capital Budget

Evergreen’s biennial capital budget is consistent with prior submissions and continues to tightly integrate operating and capital budgets.  The request focuses on preservation of the College’s facilities and infrastructure. The request emphasizes the construction of the Lecture Hall Renovation as Evergreen’s top priority.  In addition the request includes funding for the Science Lab I basement construction and Seminar I Renovation predesign and design. The request also asks for authorization to enter into a Certificate of Participation through the Office of the State Treasurer for $12.5 million for the purchase of a permanent site for the Tacoma program. Finally the request includes funds for minor works and facilities preservation.

House Capital Budget Advances Higher Education Efficiencies Bill

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This morning the House Capital Budget advanced the higher education efficiencies bill to the floor.

The bill changes to business practices resulting in greater efficiency and effectiveness for Washington’s public baccalaureate institutions. In particular to capital construction SB 6362 would increase the predesign project limit for capital projects from $5 million to $10 million.

House Capital Committee Advances Budget to the Floor

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This morning the House proposed Capital Budget was advanced from Committee to the Floor.

The House Capital Budget provides 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 $5 to renovate the Carver Academic Center at Western Washington University.

House Capital Budget Committee Hears Supplemental Capital Budget

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This morning began early with the House’s proposed Capital Budget scheduled for a public hearing.

Evergreen, along with other higher education stakeholders, testified to the impact of the supplemental budget on institutions and students.

Evergreen thanked the Legislature for providing the College 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 Evergreen’s Tacoma program. Evergreen noted that the certificate of participation would allow the College to establish a permanent site for the program, which has been in existence for over 30 years, by redirecting the current lease rate toward the purchase of a permanent location for the program. The impact of this action would be to create equity in an owned existing building and provide Evergreen and its students with certainty with regard to the future of the program, benefiting not only the College but the State.

The House Capital Budget 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 $5 to renovate the Carver Academic Center at Western Washington University.

Washington House Releases Supplemental Budgets

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

The House’s proposal would boost the state’s $33.6 billion dollar budget by approximately $170 million. The majority of the increase goes to maintaining current services. The major changes to maintenance level include mandatory caseload, utilization, and federal match rate adjustments in health care, staff mix and enrollment changes in K-12; College Bound Scholarship adjustments in higher education; caseload adjustments in TANF/WCCC;  Hospital Safety Net Assessment and Affordable Care Act Implementation adjustments; and self-insurance and workers compensation premium adjustments.

The budget also includes approximately $82 million in policy level increases. Among those changes included are $60 million for K-12 for materials, supplies, and operating costs; $18 million in community mental health funding increases; and $4 million in higher education increases in addition to $5 million to support the Real Hope Act.

Higher Education

The supplemental budget proposed by the House 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 to the State Need Grant in response to the Real Hope Act and $2 million to support the Institute of Protein Design at the University of Washington and matching funds to support a federal grant for the Jet Fuels Center of Excellence at Washington State University.

The budget also maintains the ability for public baccalaureate institutions to raise tuition beyond appropriated tuition levels for the 2014-15 academic year. The budget includes clarifying language that underscores the requirement that institutions that raise tuition beyond appropriated levels must mitigate the impact to students with additional financial aid.

Capital Budget

The House also proposed a supplemental capital budget for higher education. The House 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 $5 million to renovate the Carver Academic Center at Western Washington University.

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.

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.