Tag Archives: higher education

Senate Responds With Budget and Revenue Package

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This weekend  the Washington State Senate released and passed a proposed biennial operating budget for the 2013-15 biennium, along with a revenue package and reform legislation.

The budget released by the Senate is similar to the budget proposed at the end of April with two major exceptions.

The Senate passed three policy bills deemed necessary from the Senate’s perspective for a final budget deal.  The bills expand a worker’s compensation settlement program, reform the management of K-12 schools and places the emphasis  in the state budget on public education (early learning through higher education) by limiting spending on non-education programs. The education reform bill and the spending limit bill contain referendum clauses forcing a public vote on these issues.

In addition, the Senate passed a series of three revenue bills that would increase revenues to the state by approximately $300 million. The revenue package differs from the one passed last week by the House.

The Senate revenue package includes a requirement that non-residents apply for sales tax refunds instead of receiving these refunds automatically.  In addition the package includes two additional changes to current taxes including ending a tax break for residential phone services  and offering a fix to the recent ruling on the estate tax by the courts. The revenues generated from the telecommunications tax and the estate tax would go to support state human service programs.  The proposal passed by the Senate does not seek to close additional tax exemptions as put forward by the House.

Higher Education

The proposed budget assumes no increases in resident undergraduate tuition rates for the 2013-15 biennium. The budget provides $58.2 million in funding to support the core academic functions of the institutions of higher education and an additional $50 million in recognition of the institutions performance in support of statewide goals relating to student retention and degree completion. Finally the budget makes an investment in financial aid.

Additional dollars are provided to WSU to expand their medical programs in Spokane and to establish the Center on Ocean Acidification within the UW.

The investments in the Senate proposal are funded in part with dollars that would be generated from a 20% surcharge on international students who attend the two- and four-year public institutions.

Evergreen

For Evergreen the Senate’s proposed budget would require that tuition remain at zero for the 2013-15 biennium for undergraduate resident students. The College may increase tuition beyond this level but would be required to invest in institutional financial aid.

In addition the budget provides $1.159 million above maintenance level funding to  support the core academic functions of the institutions of higher education and $953,000  in recognition of the College’s performance in support of statewide goals relating to student retention and degree completion.

Finally, the Washington State Institute for Public Policy, a public service center of Evergreen, is funded to support six study/research projects for the Legislature.

House and Senate Democrats Release Proposed Operating Budget

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Today the Washington State House, in partnership with the Senate Democrats, released a proposed biennial operating budget for the 2013-15 biennium.

Overall the proposed budget addresses the state’s $2.6 billion budget problem through policy enhancements, fund transfers, reduced spending, and increased resources.

The House proposal makes $1.5 billion in additional policy enhancements, the majority of which are in K-12 ($955 million). Among the investments made include:

  • $839 million to K-12 to fund increased materials, supplies, and operating costs; reduce early elementary class size (K-3); fund pupil transportation and expand all-day kindergarten
  • $146 million for home care worker compensation
  • $68 million for postsecondary education financial aid
  • $30 million for Early Childhood Education Assistance Program enhancements
  • $25 million for debt service on anticipated new capital projects
  • $24 million for state parks

These enhancements as well as the other parts of the budget are funded through a combination of savings, reduced spending, and increased resources.

  • $509 million in fund transfers
  • $1.6 billion in reduced spending
  • $339 billion in increased revenue

The House proposal leaves $606 million in projected total reserves.

Higher Education

The House proposal makes an investment in higher education that moves in the right direction. The budget provides $11 million in targeted funding for state instructional support.

The proposed budget assumes a  3% tuition increase for all of the four-year public institutions and the community and technical colleges.

The budget includes language requiring the Office of Financial Management to convent a joint committee to propose an incentive funding model for the public baccalaureate institutions.

Finally the budget makes an investment in financial aid including the College Bound Scholarship program and the State Need Grant.

The House proposal continues the suspension of some small state financial aid programs from 2011-13 including suspension of Washington Scholars, WAVE, Health Professional Scholarships, and Future Teacher Scholarships.

Evergreen

For Evergreen the House’s proposed budget would allow tuition for undergraduate residents to increase by 3% per year of the biennium. The College may increase tuition beyond this level but would be required to invest in institutional financial aid.

In addition the budget appropriates $1.157 million for the purpose of instructional support. These funds include $405,000 in additional funds to support this effort and $752,000 that would come to the College if the proposed revenue budget (HB 2034) is passed.  If the revenue package is not passed by the Legislature, then the $752,000 would be met within existing college funds. Evergreen is required to provide a report by September 1, 2014 that provides the specific details on how these amounts were spent in the preceding fiscal year and any process changes or best-practices implemented in the College.

Finally, the Washington State Institute for Public Policy, a public service center of Evergreen, is funded to support a comprehensive study of the financial incentives promoting distributed generation in Washington and to provide primary staff support for a K-12 funding task force.

Next Steps

The House is expected to move the  proposed biennial operating budget out of committee this afternoon followed by a vote on the floor on either Thursday or Friday.

Washington Senate Committee Moves Higher Education Legislation

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Today the Washington Senate Ways & Means Committee took action on two higher education bills.

Senate Bill 5941 would reduce tuition by 3% for undergraduate resident students for the 2013-15 biennium at the public baccalaureate institutions and community and technical colleges. Beginning in 2015-16 through 2018-19 the public baccalaureates and the community and technical colleges could not raise resident, undergraduate tuition cannot exceed inflation.

The bill also allows for the following exception if SB 5942 passes. If the Legislature does not provide sufficient funding to meet baseline funding levels then the institutions can increase resident undergraduate tuition for the following academic year necessary to achieve the baseline funding levels.

Senate Bill 5942 would create a baseline level of funding beginning in 2014 that is equal to the maintenance level appropriations in the 2013-15 budget expressed as a per-resident student rate based on a three-year average of the number of actual FTE enrolled resident students. The per-resident student is also required to increase each fiscal year by the rate of inflation.

Also in 2014 any funds available after meeting the baseline levels or increases to higher education would be required to be distributed based on performance to institutions. The funds would be distributed on a proportional basis and for the public four-years based on a three-year average performance on five metrics.

  1. Average time to degree for undergraduate students
  2. Number of undergraduate high-demand degrees produced
  3. Freshman retention
  4. Low-income populations
  5. Space utilization

Finally the bill would establish a work group to review the per-resident student rates utilized to establish baseline funding and make recommendations for achieving equal funding for similar institutions by the 2017-19 biennium.

Three amendments were offered to SB 5942, though none of the amendments were passed.

  • Would strike the entire bill and replace it with language to direct the Office of Financial Management to convene a technical incentive funding model task force to design an incentive funding model to provide new incentive funding to four-year institutions of higher education that demonstrate improvement on existing performance measures and to control resident undergraduate tuition growth.
  • Would make students who are enrolled or accepted for enrollment for at least three-quarter credits or the equivalent semester hours, in a qualifying higher education program, eligible for the State Need Grant program.
  • Would require the State Auditor to conduct a comprehensive financial audit of UW and WSU.

Both bills were moved out of committee and to the Senate floor for further consideration.

 

Halfway Through Special Session

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Today marks the fifteenth day of the 30-day special session. This week the Capitol experienced an uptick in action.

This morning the House Finance Committee met to move legislation to make changes to the state’s estate tax for married couples.

House Bill 2064 is in response to the Bracken Decision — a state Supreme Court ruling that allows a spouse to transfer assets to a surviving spouse without paying taxes if they’re using a certain type of trust, known as a Qualified Terminable Interest Property trust. As a result of this ruling the state can no longer collect estate taxes on the trust when the surviving spouse dies. If passed the legislation would make changes to the estate tax law to prevent such refunds in the future

It is estimated that the decision could cost the state $160 million dollars over the next two years.  The Washington Department of Revenue will begin issuing tax refund checks in June worth about $40 million dollars because of the decision.

It is possible that the Washington House will take up the bill on the floor tomorrow.

In the Senate legislation is expected to be heard before the Ways & Means Committee on Friday regarding the estate tax.  Also on Friday the Senate Ways & Means Committee will hold a hearing on two higher education related bills.

Senate Bill 5936 would create a performance funding framework for higher education and Senate Bill 5937 would decrease tuition for resident undergraduate students by 3% for the 2013-15 fiscal biennium and limit future growth of tuition for this category of students to inflation.

Governor Speaks to WASAC

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Late this week, Governor Inslee addressed the Washington Student Achievement Council. The Governor shared with the Council his vision for education – early learning through graduate school.

Inslee opened with the recognition that pockets of excellence and innovation exist throughout the state and that it is his intention to spread these pockets to the entire state. To do this Governor Inslee put forth two primary goals for the Council.

The first is focused on alignment. The Governor asked the Council to work towards greater alignment within the education system to allow for the opportunity to take advantage of the new economy. In particular, to educate students so that they are equipped throughout their education with the skills necessary to take advantage of the new economy.

The second is centered on lifetime education. The Governor spoke to the need to shift away from focusing on one sector of the education system (i.e. K-12) and build a high quality lifetime education system at all levels. The intention is to create a system that allows Washingtonians to tap into education throughout their lifetimes and to recognize that education is changing every few years in fundamental ways.

The Governor also spoke about the opportunities that exist to partner with business to achieve the goals he identified.

Inslee followed his opening comments with the introduction of the newly appointed citizen board members to the board and shared with them and the other members of the Council that he believes there are challenges in education that are facing Washington, but that the culture of innovation in this state offers the chance to meet these challenges head on.

In closing the Governor highlighted his commitment to completion, closing the opportunity gap, and working to provide an education system that allows students to envision beyond high school their goals and dreams.  He closed by saying “no excuses, no exceptions, and excellence for all”.

Governor Names New Board Members to WASAC

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This week Governor Inslee announced a new slate of appointments to the Washington Student Achievement Council.

Earlier this year, the Governor surprised many people by removing four board members, all of the non-student gubernatorial appointed members, appointed by Governor Gregorie to the board.

The new appointees include:

  • Jeff Charbonneau, a math and science teacher who was recently named National Teacher of the Year and who currently teaches at Yakima Valley’s Zillah High School.
  • Maud Dodson, a former Seattle deputy mayor and chief of staff from 1998-2011 who is the current President and CEO of the Seattle Metropolitan Chamber of Commerce.
  • Karen Lee who served for five years as the head of the Washington State Employment Security Department and now heads Pioneer Human Services.
  • Dr. Susana Reyes, currently the assistant superintendent of the Pullman School District but who will join the Mead School District in July

The new appointees will begin work immediately, joining other board members which include a student plus representatives from K-12, the public baccalaureates, the community and technical colleges, and private institutions, for the Council’s May meeting.

 

Last Major Deadline Passes, Now Its Budget Time

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On Wednesday the Legislature passed the last major deadline prior to Sine Die. As of 5:00 p.m. on April 17 all bills must have passed the opposite chamber in which they were introduced. The exception are those bills that are deemed NTIB.

Both the Senate and the House worked steadily this week towards this deadline moving hundreds of bills through the process. Some of these bills will now go back to their chamber of origin for concurrence if the bills were amended in the opposite chamber. Other bills, those that were not amended, will now be delivered to the Governor for his consideration.

This includes a handful of higher education related bills.

Bills for Concurrence

HB 1645 – Adds one public member to the Higher Education Facilities Authority.

HB 1736 –Directs the Office of Financial Management to work with institutions of higher education, the Department of Enterprise Services, the Department of Commerce, and the Department of Transportation to review the reporting requirements of institutions of higher education with the purpose of enhancing the efficiency and effectiveness of their operations, and report recommendations by December 1, 2013. Permits institutions of higher education and state higher education agencies to use or accept electronic signatures, as defined, for any human resource, benefits, or payroll processes that require a signature. Permits the Washington Student Achievement Council to negotiate and enter into interstate reciprocity agreements with other state or multistate entities regarding the operations of degree-granting institutions in the state. Permits the Washington Student Achievement Council to enter into certain agreements for the purposes of ensuring consistent.

Bills Delivered to the Governor

SB 5180 –Creates a 29-member legislative task force charged with improving access to higher education for students with disabilities. Requires the task force to make recommendations to the Legislature each December from 2013 to 2015.

SB 5195 -Allows a nonprofit institution recognized by Washington to be eligible to participate in the State Need Grant program, effective August 1, 2013.

SB 5343 -Requires institutions of higher education to provide make-up classes, exams, or other make-up events to National Guard members or other military reservists called to active duty or training for 30 days or less without prejudice to the final course grade or evaluation.

SB 5559 -Authorizes Central Washington University, The Evergreen State College, and Western Washington University to offer Educational Specialist degree.

HB 1109 – Requires institutions of higher education that offer an early course registration period for any segment of the student population to offer early registration to students who are eligible veterans or National Guard members.

Next Steps
The 2013 regular legislative session is scheduled to end at midnight on April 28. Between now and then both chambers will be working to move bills through to the Governors desk. In addition, the focus will increase around budget negotiations as the Senate, House and Governor work towards a final biennial operating and capital budget.

Day 90 of 105 Day Regular Session

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With only 15 days to go in the 2013 regular legislative session all attention is directed towards two primary objectives. First pass legislation that is still active in the process before cut-off on Wednesday. Second, finalize an agreed upon conference budget between the Washington Senate and House.

Legislation

For the majority of bills still “alive” this session this Wednesday, April 17  at 5:00 p.m. marks the final day of consideration for bills that started in the opposite chamber. In other words, House bills must pass the full Senate, and vice versa. The exceptions are NTIB (Necessary to Implement the Budget) bills and policy bills that have been labeled as “go-home” bills.

Budget

Late last week, the Washington House passed a proposed 2013-15 biennial operating budget, primarily along party lines.  One week prior, the Washington Senate passed its proposed biennial operating budget with a vote of 31-18 that included members from both parties.

The Senate’s proposed budget makes some enhancements, primarily in education. The enhancements as well as the other parts of the budget are funded through a combination of savings, transfers, and the redirection of funds. In addition, the proposal balances the budget and leaves a reserve. Finally the budget assumes $61 million in new revenues. This increase includes a combination of $11 million in legislation reducing revenue and $72 million in legislation/budget actions increasing revenue.

The House’s proposal  addresses the state’s $3.4 billion budget problem through policy enhancements, fund transfers, reduced spending, and increased resources. The House proposal makes $2 billion in additional policy enhancements, the majority of which are in K-12 ($1.4 billion). These enhancements as well as the other parts of the budget are funded through a combination of savings, reduced spending, and increased resources. Finally, the House proposal leaves $337 million in projected total reserves.

The budgets also differ in what they fund for higher education, though both budgets provide roughly the same level of investment – $100 million (this includes funding for the two- and four-year sectors and financial aid).

The Senate proposal assumes no increases in resident undergraduate tuition rates for the 2013-15 biennium. The budget provides $77.8 million in funding to support the core academic functions of the institutions of higher education and an additional $50 million in recognition of the institutions performance in support of statewide goals relating to student retention and degree completion. Finally the budget makes an investment in financial aid including the College Bound Scholarship program and the State Need Grant. The investments in the Senate proposal are funded in part ($59 million) with dollars that would be generated from a 20% surcharge on international students who attend the two- and four-year public institutions.

The House proposal  provides $11 million in targeted funding for state instructional support and $12 million to support biofuels and clean energy programs. The proposed budget assumes a  3% tuition increase for The Evergreen State College, Eastern Washington University, Central Washington University and the Community and Technical Colleges; and a 5% tuition increase for Western Washington University, Washington State University, and the University of Washington. Finally the budget makes an investment in financial aid including the College Bound Scholarship program and the State Need Grant.

Next Steps

The primary focus over the next two days will be to move bills prior to the Wednesday cut-off. Once this deadline passes all attention will be focused on the development of a biennial conference budget. And within this discussion whether or not the Washington Legislature will go into special session to complete their work.

Obama Releases FY14 Budget

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This week President Obama released a proposed annual budget for FY2014.

The budget requests $71.2 billion from Congress in discretionary funding for the U.S. Department of Education. This is an increase of 4.5% ($3.1 billion) from the FY13 pre-sequester level.

The primary investment in the President’s budget focuses on expanding high-quality early learning opportuntiies to all four year-olds from low- and moderate-income familes. Also known as the Preschool for All proposal, this program would invest $75 billion over 10 years in seperate, fully offset mandatory funding to create new partnerships with states and provide high-quality preschool to more communities. The proposal also provides $750 milion in discretionary funding to helpe states strengthen their early learning systems and prepare to expand access to high-quality preschool.

This program is part of an overall proposal targeted to strengthen the education pipeline from cradle to career. Other componenents of the President’s proposal include:

  • Furthering the K-12 reform agenda by investing in school turnaround efforts, STEM programs, and teachers and leaders.
  • Redesigning the high school experience and increasing the career readiness of high school students and adult learners.
  • Making college more affordable and improving quality by incentivizing states and institutions to do their part in controlling costs and providing value.
  • Keeping schools and communities safe through an Administration-wide plan to protect children and neighborhoods from gun violence.
  • Providing ladders of opportunity to the middle-class through a robust Promise Neighborhoods program and investments in low-income communities.

Washington House Releases Biennial Budget, Holds Line on Higher Education

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Today the Washington State House released a proposed biennial operating budget for the 2013-15 biennium.

In a press conference Representative Ross Hunter, Chair of the House Appropriations Committee highlighted the investments in education and critical services to Washington citizens proposed in the House budget.

Overall the proposed budget addresses the state’s $3.4 billion budget problem through policy enhancements, fund transfers, reduced spending, and increased resources.

The House proposal makes $2 billion in additional policy enhancements, the majority of which are in K-12 ($1.4 billion). Among the investments made include:

  • $986 million to K-12 to fund increased materials, supplies, and operating costs; reduce early elementary class size (K-3); fund pupil transportation and instructional hours.
  • $87 million for postsecondary education financial aid
  • $41 million for Early Childhood Education Assistance Program enhancements
  • $146 million for home care worker compensation
  • $25 million for debt service on anticipated new capital projects

These enhancements as well as the other parts of the budget are funded through a combination of savings, reduced spending, and increased resources.

  • $757 million in fund transfers including $575 million from the Budget Stabilization Account
  • $1.3 billion in reduced spending
  • $1.3 billion in increased resources

The House proposal leaves $337 million in projected total reserves.

Higher Education

The House proposal makes an investment in higher education that moves in the right direction. The budget provides $11 million in targeted funding for state instructional support and $12 million to support biofuels and clean energy programs.

The proposed budget assumes a  3% tuition increase for The Evergreen State College, Eastern Washington University, Central Washington University and the Community and Technical Colleges; and a 5% tuition increase for Western Washington University, Washington State University, and the University of Washington.

Finally the budget makes an investment in financial aid including the College Bound Scholarship program and the State Need Grant.

The House proposal continues the suspension of some small state financial aid programs from 2011-13 including suspension of Washington Scholars, WAVE, Health Professional Scholarships, and Future Teacher Scholarships.

Evergreen

For Evergreen the House’s proposed budget would allow tuition for undergraduate residents to increase by 3% per year of the biennium. The College may increase tuition beyond this level but would be required to invest in institutional financial aid.

In addition the budget appropriates $1.157 million for the purpose of instructional support. These funds include $752,000 from the proposed maintenance level appropriated to the College and $405,000 in additional funds to support this effort. Evergreen is required to provide a report by September 1, 2014 that provides the specific details on how these amoutnes were spent in the preceding fiscal year and any process changes or best-practices implemented in the College.

Finally, the Washington State Institute for Public Policy, a public service center of Evergreen, is funded to support a comprehensive study of the financial incentives promoting distributed generation in Washington.

Next Steps

The House is scheduled to hold an executive session on the proposed biennial operating budget on Thursday afternoon followed by a vote on the floor on either Friday or Saturday.