Tag Archives: Governor

Governor to Sign Budget Bills into Law Next Week

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A bill signing ceremony has been scheduled – Wednesday, June 15- to act on the operating and capital budget bills and all remaining policy bills that have not been signed to date.

Among the bills to be signed by the Governor is the 2011-13 operating budget (HB 1087), and the two bills that comprised the capital budget (HB 1497- capital budget and HB 2020 – bond authorization bill).  In addition the Governor will consider action on the compensation reduction bill (SB 5860), legislation to create the Department of Enterprise Services (SB 5931), and a  bill that makes several changes to Higher Education Retirement Plans and retire-rehire practices at higher education institutions (HB 1981).

Boeing and Microsoft Make Endowment Real

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Yesterday two of Washington’s major private employers – Microsoft and Boeing – each gave $25 million to start the Washinton Opportunity Scholarship program.

The program was established under legislation signed by Governor Gregoire on Monday.

House Bill 2088 creates an endowment for students pursuing a baccalaureate degree in a high demand field.

The Opportunity Scholarship Program and the Opportunity Expansion Program 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 Opportunity Scholarship Board is established to identify eligible education and training programs for purposes of the opportunity scholarship, select institutions of higher education to receive opportunity expansion awards, set fundraising goals, and solicit funds. 

The Opportunity Scholarship Program will be funded by a combination of private and state moneys. The state match, which must be appropriated by the Legislature, is earned for private contributions made after the effective date and must be paid beginning the later of January 1, 2014, or the first year with state revenues 10 percent higher than those received in fiscal year 2008. The state match payments are capped at $50 million annually.

The Opportunity Expansion Program will be funded with voluntary contributions of high technology research and development tax credits.

 

Governor Signs Multiple Higher Education Bills

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Yesterday the Governor signed a suite of higher education related bills that will alter higher education in Washington over the next biennium.

The most dramatic changes to higher education come from House Bill 1795 signed into law by the Governor.  In broad strokes the bill: (1) Provides tuition setting authority to the public, baccalaureate institutions in Washington for eight years and provides increased institutional financial aid to offset tuition increases; (2) Creates a consistent, uniform, and transparent performance measurement system; and (3) Tightens existing transfer policies and expands prior learning opportunities.

The bill, as passed by the Legislature, also provided regulatory relief for the institutions ranging from changes to procurement thresholds to the elimination of restrictions on equipment, travel, and meeting spaces. However, the Governor vetoed most of this section.

Another major change will come from the passage and signing into law of Senate Bill 5182.  This bill eliminates the Higher Education Coordinating Board and creates the Council for Higher Education and the Office of Student Financial Assistance as of July 1, 2012.

To guide this restructuring effort a steering committee on higher education is created to establish the purpose, functions, and membership of the Council. The Steering Committee is chaired by the Governor or the Governor’s designee and includes four legislators and equal representation from higher education sectors in the state.

The Governor did veto a portion of Senate Bill 5182 that reflected a technical error. As the bill was drafted the effective date of the transfer of powers would occur prior to the creation of the new office of student financial assistance on July 1, 2012. The Governor vetoed this section of the bill with the acknowledgement that the new higher education steering committee will make recommendations concerning higher education governance prior to the 2012 legislative session and the expectation is that the transfers of authority will be considered as part of these recommendations.

Over the next year the Higher Education Coordinating Board will remain in place and focus on a narrower portfolio of work to reflect the reduction in funding for the agency.

The Governor also signed legislation that will alter the Committee which oversees Washington’s Guaranteed Education Tuition (GET) program. Senate Bill 5749 makes the following changes:

  • The existing two members of the Committee on Advanced Tuition Payment are appointed by the Governor for four-year terms instead of an unspecified period of time.
  • Two additional representatives from private business are added and will be appointed by the Governor for four-year terms.
  • The Committee must use the State Actuary in reviewing the GET program rather than a nationally recognized actuary, though the Committee may consult with a nationally recognized actuary.
  • A legislative advisory committee to the Committee on Advanced Tuition Payment is established to provide advice regarding the administration of the program including but not limited to pricing guidelines, the tuition unit price, and the unit payout value.

Finally the Governor signed into law legislation that will create an endowment for students pursuing a baccalaureate degree in a high demand field.

House Bill 2088 creates the Opportunity Scholarship Program and the Opportunity Expansion Program 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 Opportunity Scholarship Board is established to identify eligible education and training programs for purposes of the opportunity scholarship, select institutions of higher education to receive opportunity expansion awards, set fundraising goals, and solicit funds. 

Governor Signs Supplemental Budget with Some Vetoes

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On Friday the Governor signed legislation that would reduce state funding and decrease the current shortfall in this fiscal year.  

Though the majority of the funding reductions sent to the Governor by the Legislature were approved, the Governor did veto a handful of items, worth about $6 million in cuts. 

In her veto letter, Governor Gregoire stated:

  • Percent Pay Reductions: The legisatively passed budget would reduce the pay of many non-represented state employees by 3 percent beginning April 1 for a savings of $3.4million in the state General Fund.  While the Governor’s 11-13 budget proposal includes an employee pay reduction for all state employees, the early implementation date in this bill is not achievable and would have unintended consequences.
  • Depart of Information Services, Prohibition on Expenditures to Equip the State Data Center: Budget language prohibits DIS from spending any funds for the purchase or installation of equipment for the new State Data Center. This prohibition will not save any money and will significantly delay Data Center operation and budget savings made possible by the consolidaiton of existing data centers.
  • Communications Staff Savings: The budget requires agencies to achieve $10 million of savings through reduction in communications functions in the executive branch. Given the importance of the work performed by these employees, ranging from providing information on real-time traffic to public health concerns to unemployment insuranced and licensed child care facilities and the budget, it is difficult to see how the public would be served through the sudden and dramatic elimination of these staff.
  • Management Efficiencies in the Department of Social and Health Services: The budget requires DSHS to achieve state General Fund savings of $1.7 million by reducting management staff and administration in addition to achieving other efficiencies. The proposed reductions would jeopardize the department’s ability to implement the program changes required in the budget.

Despite the passage of the supplemental budget the state remains in the red. In total, the budget slashes the estimated deficit by about $370 million, with about $242 million in cuts and $125 million in transfers.

The Office of Financial Management estimates that the remaining projected deficit for this current fiscal year is $226 million, adding in the money not saved from the vetoes. The fiscal year ends in June.

“The March forecast will provide remaining information to complete the final supplemental,” Gregoire said in a statement. “The Legislature now must turn its attention to the immediate challenge of addressing the 2011-13 budget. This will not get easier with time.”

Among some of the ideas to finish patching up the deficit to the current fiscal year is delaying state payments to school districts by one day, essentially kick up the payment to the next two-year budget.

Lawmakers have spent more than a month of the 105-day legislative session trying to come up with this agreement, and now, Gregoire and legislators will have to tackle an estimated $5 billion deficit in the next two-year budget, which is roughly $37 billion.

The Senate voted 37-10 and the House voted 55-41 to approve the package.

House and Senate Committees hear Governor’s Bill Implementing Task Force Recommendations

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The House Higher Education Committee and the Senate Higher Education and Workforce Committee held public hearings today on House Bill 1666. The legislation has yet to be assigned a bill number in the Senate.

As Gov. Chris Gregoire and the Task Force announced in December, the proposal would alter the policies that currently structure funding, transfer, and accountability for higher education in Washington.

The bill would set degree production targets to increase 27 percent over 2010 levels by 2018. In addition, the legislation establishes a state funding baseline, tuition flexibility and funding levels for four-year public baccalaureate institutions comparable to institutions in other states; creates an endowment for low and middle income students who wish to obtain a baccalaureate degree and a tax credit for businesses that contribute; adopts new performance measures for four-year public baccalaureate institutions and creates a program to incentivize progress; and requires the creation of a one year transferrable certificate and other measures to ease student transfer and increase recognition of prior learning.

Both committees heard from business, including the big ones (i.e. Microsoft and Boeing), members of the Task Force, faculty, and the institutions of higher education, including The Evergreen State College.  The testimony was clearly in favor of the work of the Task Force and the elevation of higher educatin in the minds of those in Olympia but was accompanied with the need to continue to work on the bill.

No further action is scheduled for the bill at this time.

Governor’s Task Force Recommendations Focus of Hearing

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This afternoon the House Higher Education Committee held the first work session on the recommendations put forth by the Governor’s Task Force on Higher Education.

In December, the Governor’s Task Force on Higher Education announced recommendations to improve accountability and performance of the state’s colleges and universities, and consider whether changes should be made in the way the state governs its higher education system

The Committee heard from several panels that included a mix of task force members, staff to the Governor, and representatives from industry. Members of the Committee engaged the panels in a dialogue regarding process, outcomes, and the committment of business to ensure the recommendations are successful.

Evergreen Opens for House Higher Education

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This afternoon The Evergreen State College opened the House Higher Education Committee hearing.

Ken Tabbutt, Interim Provost, provided the Committee with a brief overview of Evergreen followed by details regarding the impact of the Governor’s proposed 2011-13 operating budget.  Tabbutt highlighted both the fiscal and the policy impacts of the proposed budget. 

  • State funding is reduced for Evergreen by 26.3% for the 2011-13 biennium.
  • Proposed tuition revenue generated leaves Evergreen’s General Operating Fund budget in deficit. The Governor’s budget does not take into account costs associated with over-enrollments and assumes greater  tuition revenue raising capacity
  • Under this proposal tuition revenue represents 63% of Evergreen’s budget compared to 57% last biennium.
  • Assumes Evergreen permanently sustains current over-enrolled levels (2010-2011 4,600 FTE, approx: 400 over-enrolled)
  • Provides funding for the State Need Grant
  •  Eliminates the current per-student funding based budgeting and replaces with degree production based model.
  • Provides $250,000 per year for TRIO program expansion
  • Evergreen is eligible to participate in a new baccalaureate incentive system ($5 million for all public, baccalaureate institutions)
  • Retains proviso limiting where reductions can be made from the prior biennium
  • Removes higher education institutions as recipients of Education Legacy Trust Funds.

In addition, Tabbutt shared with committee members the reductions and efficiencies the College has taken to meet reductions in state funding since 2008 and what is at risk if this trend continues.

Following Evergreen’s presentation the Higher Education Coordinating Board, the Workforce Board, and the State Community & Technical Colleges Board provided an overview of the impacts of the Governor’s proposed budgets on their work.

Governor Gives State of the State Address

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This afternoon Governor Gregoire addressed both chambers of the Washington Legislature, several public officials, and the citizens of Washington in her State of the State Address.

Governor Gregoire emphasized three points in her address.

  • The need to create a stable and secure financial future for the state
  • The realization that state government cannot do it all
  • The need to transform state government into a leaner and more efficient and effective system.

She reiterated her proposals to create a Department of Education and change the state ferry system into a regional operation. She also pointed to health care and pensions as critical areas of spending that need to be reigned in.

Finally, she urged the Legislature to take early action (ideally by February) on a supplemental bill to eliminate the remaining budget gap in the current fiscal year.

The Republican response to the State of the State was provided by first-time Representative Ann Rivers (R-LaCenter). 

In her comments, Representative Rivers stated that the Republicans are focused on two issues this session

  • Strengthening the economy by creating jobs
  • Balancing the state budget without raising taxes

In addition, she stated that education, health care, and transportation were important issues.