Governor Names Scholarship Board

This week Governor Gregoire appointed seven members to a board of directors to administer a scholarship program for middle-income families.

The members to the board are: Jim Albaugh, CEO of Boeing Commercial Airplanes; Brad Smith, General Counsel for Microsoft Corp; Mack Hogans, Senior Executive at Weyerhauser Co.; Kimberly Harris, CEO of Puget Sound Energy; Theresa Gillespie, Partner at Trilogy International Partners wireless communications investment company; Jim Sinegal, CEO Costco Wholesale Corp.; and Jerry Grinstein, former CEO of Delta Air Lines.

Esstablished in legislation passed during the 2011 session, the Opportunity Scholarship Program and the Opportunity Expansion Program were created to mitigate the impact of tuition increases, increase the number of baccalaureate degrees in high employer demand and other programs, and invest in programs and students to meet market demand fields of study while filling middle income jobs with a sufficient supply of skilled workers. 

The program is paid for through a public-private partnership. The scholarships are funded through $5 million form the state and $55 million form Boeing and Microsoft.

Governor Gregoire Releases Education Reform Proposal

This week Govenror Gregoire released six education reforms focused on promoting high-quality teaching through renewed professional growth opportunities.

The reforms recommended by the Governor are based on “the premise that student learning and educational attainment are boosted by great teaching…(and that ) thoughtful coordination and better student transitions also contribute positively to student learning’.

Education Reforms

  • Change the current evaluation system for teachers and principals.
  • Require all school districts to adopt updated policies for making staffing decisions.
  • Establish the Office of Student Achievement to focus on the goal of increasing the educational attainment of Washingtonians.
  • Prioritize time for student learning by eliminating the requirement for individual learning plans for students in the Learning Assistance Program and allowing exemptions to the culminating project high school graduation requirement.
  • Change the schedule of district audits.
  • Create university laboratory schools to nurture innovation and excellenct to help students succeed.

The Office of the Governor will draft legislation to implement each of these reforms and introduce the bills in the 2012 supplemental session.

Legislature Adjourns Special Session; Passes Some Education Legislation

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

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.

Governor Releases 2012 Supplemental Capital Budget

Yesterday Governor Gregoire released her proposed 2012 supplemental capital budget.  The proposed capital budget makes a handful of changes to higher education capital funding, but does not alter Evergreen’s capital funding for FY2012.

These include:

  • Reducing the state building construction account at the state level for the Jobs Act for K-12 Public Schools & Higher Education Institutions by $225,000
  • Reducing the Bid Savings Contingency Pool by $6.5 million
  • Funding $246,000 for the Capital Projects Advisory Review Board
  • Reducing funds to the UW for Anderson Hall Renovation by $1.553 million
  • Funding UW Minor Capital Repairs $4.019 million
  • Reducing minor works for health, safety, and code requirements at Eastern Washington University by $157,000
  • Funding for CWU for combined utilities $273,000

Governor Releases Supplemental Budget and Proposes Revenue Package

This morning Governor Gregoire released her proposed 2012 supplemental budget and a revenue proposal.

2012 Supplemental Budget
The proposed supplemental budget reduces public services and programs by $1.7 billion and leaves an ending balance of $601.5 million for the remainder of the current biennium.

Higher Education
The Governor’s proposed supplemental budget reduces state support for higher education by $168.2 million. This includes a $160.1 million reduction to the two- and four-year public institutions. This represents a reduction of 17% in state funding for UW, WSU, and WWU; 16% for EWU, CWU, and Evergreen; and 13% for the community and technical colleges. For Evergreen this is an additional reduction of $2.95 million in state support. In addition, the Governor proposes suspension of the state work study program ($8.1 million) beginning fall 2012.

The Governor’s supplemental budget does make an investment in graduating more engineers ($7.6 million). These funds are directed towards the UW and WSU to enroll additional engineering students.

Governor’s Revenue Proposal

The Governor’s revenue proposal would raise more than $830 million in revenue. Gregoire recommended revenue options that support or have limited negative effects on the state’s economic recovery, promote fairness among taxpayers, simplify the state’s tax structure, and provide immediate benefits to address the budget shortfall.

The majority of funds would come from a 0.5% temporary increase in the sales tax (est. $494.1 million). The revenue generated from an increase in the sales tax would go to education ($411 million), long-term care and developmental disability services ($42 million), and public safety ($41 million). Of the new revenue for education $160 million would go to offset the proposed reduction to the two- and four-year public institutions in the Governor’s proposed 2012 supplemental budget.

The Governor recommends the remaining revenue come from an array of options such as imposing a $10 fee per invoice issued to a taxpayer for unpaid taxes and imposing a 1.5% gross receipts tax on gambling and lottery winnings. Her proposal divides additional revenue to be approved by the Legislature into two groupings: (1) revenue increases that would require a simple majority vote of the Legislature ($59 million) and (2) increases that would require a two-thirds vote of the Legislature ($282 million).

The Governor’s proposal does include recommended priorities if the Legislature does arrive at additional revenues beyond the increase in the sales tax. Among these priorities is support for the state work study program ($8.1 million).

The Legislature returns to Olympia next Monday (November 28) to consider the Governor’s proposed budget and develop their own proposals.

Governor Invests in Higher Education to Support Aerospace Industry

Yesterday Governor Gregoire held a news conference at Renton Technical College to announce proposals to invest in education to ensure the Boeing 737 MAX is built and manufactured in Washington.

The proposal provides $9.8 million in funding to support aerospace education.

  • $7.6 million to the UW and WSU to enroll 775 more engineering students;
  • $1.5 million with additional support from companies, foundation, and donors to create a Center for Aerospace Technology Innovation at UW and WSU to support university research that will grow the aerosapce sector and lead to new jobs in Washington;
  • $450,000 to expand the Launch Year program and provide 12 high schools with aerospace curriculum support to prepare high school students to enter the workforce. The investment would also provide two Skills Centers with aerospace manufacturing support to help train additional high school students; and
  • $250,000 to add “Project Lead the Way” courses at 10 high schools which focus on problem-solving using STEM fields and skills.

In addition the proposal includes the creation of a Governor’s Aerospace Office to provide focus, direction, oversight, and coordination to grow Washington’s aerospace industry.

The funds would come from a variety of sources including reserves and state dollars.

Third Meeting on Council of Higher Education Takes Place

Last week the Governor convened the third meeting of the Higher Education Steering Committee charged to establish the Council for Higher Education.

The Committee received an overview from the Washington Educational Research and Data Center focused on the data the Center compiles across education sectors.

The Committee then delved into several critical unresolved topics with regard to a new state-level entity, including functions, goals, and structure.

Several representatives provided their views on the functions that a new entity should focus, including the four-year public baccalaureates and members of the committee. Among the functions identified for a state level entity were the analysis of outcomes and performance, long-range planning, information and advocacy, and consumer protection.

The Committee then spent a considerable amount of time hearing about and discussing potential goals and structures for the new Council of Higher Education. Committee members received a presentation by Aims McGuinness from the National Center for Higher Education Management Systems on different proposals with regard to goals and structures.

McGuinness offered two options for goals to be tracked by a new state entity. Option A included goals ranging from college participation of recent high school graduates to degrees granted in high demand fields. Option B included the range of metrics in Option A plus additional goals that consider that all children that enter kindergarten healthy, and emotionally, socially, and cognitively ready to succeed in school and life and all students that leave high school demonstrate that they are college- and career-ready.

McGuinness also offered two alternatives for structuring a new state entity. The first alternative focuses on higher education. The intention would be to establish a higher education coordination and policy analysis entity that would focus on strategic planning and policy analysis, seamless student transitions, and program administration and oversight.

The second alternative would focus on all sectors of education. The intention would be to create an education coordination and policy analysis entity that focuses on the same functions as in the first alternative but extends to all sectors of education.

The Committee is scheduled to meet for its final meeting on November 15.

Governor Lays Out Budget Reduction Ideas for Legislature

At a press conference Thursday, October 27, Gov. Chris Gregoire presented a list of approximatlely $4 billion in “budget reduction alternatives,” including her “preliminary choices” to bridge a projected $1.4 billion shortfall in the current biennium and provide for a reserve of $600 million for the remainder of the biennium.

In announcing her choices for $2 billion in reductions, transfers and eliminations, the governor noted that the upcoming November 17 revenue forecast was likely to bring more bad news so it was important to meet the projected gap as well as plan for the future.

For higher education, her preliminary choices list represents $174 million in cuts and eliminations, including a 15% reduction to institutions (both two-year and four-year) and the elimination of the State Work Study Program.

In addition the Governor identified other potential areas for reduction or elimination including elimination of the State Need Grant and reductions to institutions of up to 20%.

Staff to the governor and the state budget office indicated the governor believed it was important to lay out all the possible cuts to programs in the “unprotected” part of the state operating budget.  The governor’s press conference on TVW can be viewed here.

In a letter to the Washington Legislature the Governor identified the principles that guided the development of the budget alternatives.

  • Washington state’s economic recovery must be a top priority;
  • Washington’s children deserve the best public education we can provide to ensure their future success and that of our state;
  • Washington’s vulnerable citizens continue to need protection despite -and perhaps in part due to – these tough times;
  • Our citizens must be safe in their homes and communities;
  • Service delivery is a more important investment of declining tax dollars than is advocacy; and
  • These principles must evolve when funding is tight. Our citizens should be served to the best of  our ability with limited available funds.

She closed her letter to legislators by stating “I look forward to receiving your input in the next few weeks as we work together in the special session on behalf of the people of Washington”.

The Washington Legislature will return to Olympia to consider Governor Gregoire’s supplemental budget on November 28.

Governor Releases Budget Alternatives

This morning Governor Gregoire released a list of budget reduction alternatives. The list of alternatives is designed to jump start budget conversations for the upcoming special session on November 28 which will focus on solving the state’s projected $2 billion shortfall.

The list is not the Governor’s 2012 supplemental budget, though it does provide some insight into where potential budget reductions will take place and where future reductions may occur if revenues continue to decline over the biennium.

The total budget reduction alternatives includes reductions beyond the $2 billion shortfall to provide legislators and stakeholders with a full array of potential budget reduction options.  However, the Governor does identify specific reductions from the list that may be included in her 2012 supplemental budget proposal to be released in late November (estimated date is November 28). 

The budget reduction alternatives make several reductions that will impact higher education, though not all of these are identified as potential items to be included in her 2012 supplemental budget. The items identified as tentative for inclusion in the Governor’s supplemental budget are in bold.

Financial Aid

  • $303 million – Eliminate the State Need Grant
  • $68.4 million – Alternative to Elimination: Reduce maximum State Need Grant award by 25% 
  • $30.6 million – Alternative to Elimination: Limit State Need Grant eligibility to public institutions
  • $25.5 million – Alternative to Elimination: Reduce State Need Grant eligibility to 55% of Median Family Income
  • $8 million – Suspend State Work Study program

Institutions

  • $222 million – Reduce state support to college and universities (two- and four-year) by 20%
  • $166 million- Reduce state support to colleges and universities (two- and four-year) by 15%
  • $111 million – Reduce state support to colleges and universities (two- and four-year) by 10%

 Other

  • $40 million- Eliminate National Board certification bonuses for teachers
  • $8.4 million – Alternative to Elimination: Reduce National Board certification bonuses for teachers
  • $38 million – Impose 10 furlough days
  • $37 million – Impose additional 1% salary reduction or K-12 employees (one year)
  • $32.7 million – Impose additional 1% salary reduction for state employees (one year)
  • $28 million – Impose health contributions for general government employees (one year)
  • $16 million – Alternative to Imposing health contributions: Reduce employer (state) monthly per-employee contribution from $850 to $825
  • $20 million – Reduce monthly state allocation for K-12 employee health benefits
  • $15 million – Reduce LEOFF Plan 2 employer contribution to actuarially necessary rates
  • $11.4 million – Suspend step increases (one year)
  • $9.7 million – Alternative to suspending step increases: Exclude employees who earn less than $2,500 per month
  • $4 million – Adjust contributions to Judicial Retirement System to payout rate
  • $476,000 – End sick leave cash-outs for employees who are not retiring

Responses to Governor Gregoire’s list of budget alternatives continue to emerge from legislative leadership including the House Democrats, Senate Democrats and Senate Republicans.

Further details regarding the 2012 supplemental budget will emerge over the next two months. Important dates along the way include the November 17 revenue forecast, the release of the Governor’s supplemental budget in late November, and the call by the Governor for legislators to return to Olympia at Noon on November 28 for a thirty-day special session, during which we will see additional budget proposals.  Finally conversations regarding revenues continue at the state level as the Governor and legislators engage in discussions about potential options to consider during the special session.