Tag Archives: higher education

Senate Coalition Introduces New Budget

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Last Friday Washington Senate Republicans and three Senate Democrats released a new budget proposal (SB 6612). The proposed budget is a move closer to the latest budget passed by the Washington House.

The Senate coalition announced the new proposal at a press conference after the end of the first week of special session during which negotiations were essentially non-existent.

The last proposal from the Senate coalition does include the proposal to skip a pension payment that was part of the Senate-passed budget during the regular session.  However the proposal does give some on the ending fund balance dropping the balance from $600 million to $440 million.

The new proposal restores approximately $140 million in services/programs that were reduced in the prior Senate-passed budget. The savings in large part go to buy back reductions in the original version of the proposal for higher education and K-12. As a result no cuts are made to K-12 or higher education nor does the proposal shift the school-district payment to the next biennium.

Although there was not any restoration of prior cuts enacted by the Legislature to higher education, the Senate coalition budget would make no further reductions to institutional budgets this biennium. In addition, the budget propsoal would:

  • Establish a joint legislative task force on the higher education funding formula,
  • Restore funds to student attending for-profit institutions to 100% of award levels (in the 2011-13 biennial budget the awards were reduced to 50%),
  • Allow Bellevue College and the Seattle Community College District to offer baccalaurate degrees (this proposal is also included in the House passed budget), and
  • Change state payments for public employee health benefits from $850 to $800 per month (this is included in the House passed budget).

Beyond higher education the proposal also included several reforms. The reforms include a four-year balanced budget, a constitutional amendment to lower the state’s debt limit, changes to the state’s pension system for state and education employees and retirees, consolidating the K-12 health benefits system, and repealing the voeter-approved initiatives to reduce class size and COLAs.

No further action has been scheduled to date on the new proposal.

Obama Addresses National Governors Association and Talks Higher Education

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At the end of February President Obama addressed the National Governors Association (NGA) with an eye to education.

President Obama challenged the nation’s governors to ensure all students in their schools get the education they need to compete for the jobs of tomorrow.  “Nothing more clearly signals what you value as a state as the decisions you make about where to invest,” he asserted.  “Budgets are about choices.  So, today, I’m calling on you to choose to invest more in teachers; invest more in education; invest more in our children and their future.  That doesn’t mean you’ve got to invest in things that aren’t working.  That doesn’t mean it doesn’t make sense to break some china and move aggressively on reform.  But, the fact of the matter is we don’t have to choose between resources and reform.  We need resources and reform.” 

President Obama focused on the blueprint he has laid out, to work with Congress, to  establish a set of policies focused on increasing post-secondary education opportunities in the U.S.

The proposal put forth by the President would include several components.

  • Reform student aid to promote affordability and value: To keep tuition from spiraling too high and drive greater value, the President will propose reforms to federal campus-based air programs to shift aid away from colleges that fail to keep net tuition down, and toward those colleges and universities that do their fair share to keep tuition affordable, provide good value, and serve needy students well. These changes in federal aid to campuses will leverage $10 billion annually to keep tuition down. The President’s plan calls for shared responsibility between the federal government, states, and institutions of higher education to tackle rising college costs by  improving the distribution of federal financial aid and increase campus-based aid. This reform will reward colleges that are succeeding in meeting the following principles:
      • Setting responsible tuition policy, offering relatively lower net tuition prices and/or restraining tuition growth.
      • Providing good value to students and families, offering quality education and training that prepares graduates to obtain employment and repay their loans.
      • Serving low-income students, enrolling and graduating relatively higher numbers of Pell-eligible students.

In his proposal the President is proposing to change how funds for the Supplemental Educational Opportunity Grants (SEOGs), Perkins Loans, and Work Study are distributed by implementing an improved formula that shifts aid from schools with rising tuition to those acting responsibly, focused on setting responsible tuition policy, providing good value in education, and ensuring that higher numbers of low-income students complete their education. He is also proposing to increase the amount of campus-based aid to $10 billion annually. The increase is primarily driven by an expansion of loans in the federal Perkins program – which comes at no additional taxpayer cost.

Under his plan colleges that can show that they are providing students with good long-term value will be rewarded with additional dollars to help students attend. Those that show poor value, or who don’t act responsibly in setting tuition, will receive less federal campus-based aid.  Students will receive the greatest government grant and loan support at colleges where they are likely to be best served, and little or no campus aid will flow to colleges that fail to meet affordability and value standards.

 

  • Create a Race to the Top for college affordability and completion: The president will create incentives for states and colleges to keep costs under control through a $1billion investment in a new challenge to states to spur higher education reform focused on affordability and improved outcomes across state colleges and universities. The Race to the Top: College Affordability and Completion will reward states who are willing to drive systemic change in their higher education policies and practices, while doing more to contain their tuition and make it easier for students to earn a college degree.The President is proposing a program that would spur systemic state reforms to reduce costs for students and promote success in our higher education system at public colleges. This $1 billion investment would incentivize states to: (1) Revamp the structure of state financing for higher education; (2) Align entry and exit standards with K-12 education and colleges to facilitate on-time completion; and (3) Maintain adequate levels of funding for higher education in order to address important long-term causes of cost growth at the public institutions that serve two-thirds of four-year college students. The intention is that the Race to the Top for College Affordability and Completion would incentivize governors and state legislatures around the nation to act on spurring this innovative reform. Through cost-saving measures like redesigning courses and making better use of education technology, institutions can keep costs down to provide greater affordability for students.

 

  • A first in the World competition to model innovation and quality on college campuses: The president will invest $55 million in a new First in the World competition, to support the public and private colleges and non-profit organizations as they work to develop and test the next breakthrough strategy that will boost higher education attainment and student outcomes. The new program will also help scale-up those innovative and effective practices that have been proven to boost productivity and enhance teaching and learning on college campuses.  This initiative would provide modest start-up funding for individual colleges, including private colleges, for projects that could lead to longer-term and larger productivity improvements among colleges and universities – such as course redesign through the improved use of technology, early college preparation activities to lessen the need for remediation, competency-based approaches to gaining college credit, and other ideas aimed at spurring changes in the culture of higher education.

 

  • Better data for families choose the right college for them: The president will call for a College Scorecard for all degree-granting institutions, designed to provide the essential information about college costs, graduation rates, and potential earnings, all in an easy-to-read format that will help students and families choose a college that is well suited to their needs, priced affordably and consistent with their career and educational goals. The Administration will create a College Scorecard for all degree-granting institutions making it easier for students and families to choose a college that is best suited to their needs, priced affordably, and consistent with their career and educational goals.  The administration will also make an updated version of the ‘Financial Aid Shopping Sheet,’ announced in October, a required template for all colleges, rather than a voluntary tool, to make it easier for families to compare college financial aid packages. Finally, the President is also proposing to begin collecting earnings and employment information for colleges, so that students can have an even better sense of the post post-graduation outcomes they can expect.

 

  • Federal Support to Tackle College Costs In his State of the Union, President Obama called on Congress to: (1) Keep student loan interest rates low. This summer, the interest rates on subsidized Stafford student loans are set to double from 3.4% to 6.8% – a significant burden at a time when the economy is still fragile and students are taking on increasing amounts of debt to earn a degree. The President is asking Congress to prevent that hike from taking place for a year to keep student debt down, a proposal that will keep interest rates low for 7.4 million student loan borrowers and save the average student over a thousand dollars; (2) Double the number of work-study jobs available:  The President also proposes to double the number of career-related work-study opportunities so that students are able to gain valuable work-related experience while in school; and (3) Maintain our commitment to college affordability: Over 9 million students and families per year take advantage of the Obama Administration’s American Opportunity Tax Credit – supporting up to $10,000 over four years of college.  In his State of the Union address, the President called on Congress to make this tax credit permanent and prevent it from expiring in 2012.

Sine Die Followed By Special Session

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At midnight last night the Washington Legislature ended the 2012 supplemental legislative session. The  session ended without the passage of an operating or a capital budget or several policy bills that would be necessary to implement any of the budgets proposed this session.

As a result, soon after the supplemental session was called Governor Gregoire announced the beginning of a special session. The Legislature will return to Olympia on Monday at noon to work on a budget compromise.

House Passes Senate Budget with Striking Amendment

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Early this evening the Washington House took action on the Senate-passed operating budget. 

In a vote of 53-45 the House passed a striking amendment to the budget. The striker replaces the Senate Republican language adopted late last week when Republicans took control of the budget on the Senate floor.

This new budget looks much the same as the Senate Democratic budget introduced early last week in that there are no additional cuts to higher education. However, there is language in the bill that requires Evergreen to use $639,000 of its own appropriations solely for the expansion in enrollments in science, technology, engineering and math (STEM). There are no cuts to financial aid.

The House-passed bill now moves back to the Senate for further consideration.

Budget Changes Direction Overnight

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On Friday Senate Republicans took control of the Senate floor early in the evening. The Senate Republicans along with three Democrats voted together to bring an alternative budget proposal to the floor.

Though Senate Democrats made a series of procedural motions, these efforts failed to keep the Governor’s supplemental operating budget from being moved to the Senate floor for consideration.  The Senate Republicans and three Democrats then moved to amend the Governor’s budget bill with the Senate Republican budget proposal and passed the budget proposal to the House for further consideration on a 25-24 vote.

The Senate Republican budget proposal reduces funding for higher education by $30.4 million compared to the Senate Democrat budget proposal which makes no cuts to higher education.

The reductions to higher education in the Senate Republican budget are focused on institutions. The proposed budget makes no reductions to the State Need Grant program or Work Study programs. The proposal does restore awards to students who attend for-profit institutions from the 50% award reduction passed as part of the 2011-13 biennial budget.

Under the Senate Republican proposal the the maximum level of authority to waive tuition is reduced for the public baccalaureate institutions and community and technical colleges. The impact to Evergreen is a reduction of $332,000 in the second year of the biennium.

Some of the public baccalaureate institutions are further reduced to reflect update revenue projections as a result of non-resident undergraduate tuition increases implemented by an institution. Evergreen did not see a reduction for changes in revenue for non-resident undergraduate tuition increases.

House Committee Moves 2012 Supplemental Operating Budget

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On Saturday members of the House Ways & Means Committee took action on the Washington House’s proposed 2012 Supplemental Operating Budget.

The budget, as passed by the Committee, made several changes to multiple parts of the budget. Overall the budget passed by the Committee provides for an additional $54.9 million above the budget originally proposed by the House Democrats.

With regard to higher education, the budget as passed by the Committee makes the following changes:

  • Eliminates funding for the STEM Degree Incentive Program in the Student Achievement Council (the new HECB entity) and redirects the funds by appropriating them directly to Eastern Washington University, Western Washington University, Central Washinton University, and The Evergreen State College. The amendment requires that the funds appropriated to the universities and college are to be used only for direct costs of instruction associated with this enrollment expansion
  • Requires the student achievement council (new HECB entity) to convene the Higher Education Loan Program Work Group. Requires the Work Group to develop methods for funding the loan program in the future as well as recommendations regarding the best loan program structure for providing financial aid to underserved populations. Sets out certain factors that the Work Group must take into account in making their recommendations. Provides a due date for the resulting report of December 1, 2012 and appropriates $50,000 for this purpose.

The House’s proposed 2012 Supplemental Operating Budget will now move to the House Floor for consideration.

2012 Supplemental Session: Week 8

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The eighth week of the 2012 supplemental session comes on the heels of a long week of policy committee meetings.

February 24 marked the final deadline for policy bills to move forward in the budget. Bills, unless necessary to implement the budget, must have moved from the policy committees to the floor or a fiscal committee. 

Following this deadline, the fiscal committees in both the House and Senate kicked-off their work. The House and Senate Ways & Means Committees held long hearings and executive sessions on Friday and worked through the weekend to meet the next deadline in the process.

The House and Senate have until end of day on Monday, February 27, the first day of Week 8, to move bills from a fiscal committee to the Senate or House floor. Both chambers will then have until Friday, March 2 to pass bills not necessary to implement the budget.

So the committees to watch this week are the fiscal committees in the House and Senate. The appropriations committees (i.e. Senate Ways & Means ,  House Ways & Means, House Education Appropriations) will take up the policy bills referred to committee in order to determine what bills will move forward to the floor by the next deadline as well as take action on the supplemental operating and capital budgets.

Washington House Republicans Release 2012 Supplemental Operating Budget

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On Friday, the Washington House Republicans released its proposed supplemental operating  budget for the remainder of the biennium.

2012 Supplemental Operating Budget Proposal
The proposed supplemental budget makes approximately $840 million in state funding reductions. The budget leaves $651 million in reserves and does not put forth a revenue package.

The budget reduces funding for higher education by $105.3 million. Of this amount, state funding for community and technical colleges is reduced by $14.5 million and state funding for the four-year, public institutions is $15 million lower. The Evergreen State College is reduced by $541,000.

The majority of the reductions to higher education come through policy changes to state funded financial aid programs. The State Need Grant program is reduced by $75.8 million. This reduction is achieved by altering eligibilty guidelines in two ways. First awards for students attending baccalaureate institutions are limited to 12 quarters (4 years) and for students attending two-year institutions their awards are limited to 6 quarters (2 years). In addition only those students who file their Federal Application for Federal Financial Aid (FAFSA) by the March 15th deadline would be eligible to receive a State Need Grant.

In addition the proposed budget would restore funding to private, for-profit institutions, previously reduced in the 2011 biennial budget. Finally the proposed budget maintains current funding for the state work study program and eliminates funding for remedial education for those under 20 at community colleges.

The proposed budget would also reduce state employee monthly health benefit funding rates form $850 to $800 ($33.1 million) and institute 24 days of furlough for all state employees, including those at higher education institutions, beginning July 1, 2012 ($91 million). The exception to the furloughs would be any state employees working for critical services such as corrections and hospitals.

In addition to the reductions to higher education the proposed budget makes the following reductions to achieve a total savings of $840 million.

  • Reduces funding to the Department of Ecology by 14%
  • Eliminates all general fund spending for the Puget Sound Partnership
  • Makes $33 million in administrative efficiencies in information technology, goods and services, personal service contracts, travel, equipment and cell phones.
  • Reduces most general government agencies by 5-10%

The House Republican’s budget proposal will be followed by a proposal put forth by the House Democrats on February 21. The Senate’s proposed operating budget is expected to follow next week.

 

2012 Supplemental Session: Week 6 & 7

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The sixth and seventh weeks of the 2012 supplemental session are when everything trades places in Olympia.

Valentine’s Day marked a deadline for both the House and Senate. All bills orignating in the House or Senate must have passed their respective chamber and moved to the opposite chamber. The House had until the end of today to move bills from their respective policy committees to the floor or a fiscal committee. The Senate has until Friday, February 24 to move policy bills out of committee.

This will be followed by marathon fiscal committee meetings beginning February 24 and going through February 27.

This week the focus of the higher education related committees (i.e. House Higher Education and  Senate Higher Education & Workforce Development) will be to move bills forward to the floor or to an appropriation committee.

In the meantime, the appropriations committees (i.e. Senate Ways & Means ,  House Ways & Means, House Education Appropriations) will begin to take up the policy bills referred to committee in order to determine what bills will move forward to the floor by the next deadline – February 27 which marks the date by which bills must move from their respective appropriation committee and to either the Senate or House floor.

Trustees Visit Capitol; Attention Moves to the Floor

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As the week progresses members of both chambers have moved their work to their respective floors. The Senate and House have until February 14 to move bills to the opposite chamber. As a result, both floors are full of activity as legislators move bills forward in the process.

While the Legislature changed focus from committee to the floor, higher education introduced some new faces to policymakers this week to advocate for higher education.

Earlier this week trustees and regents from the public two- and four-year sectors traveled to Olympia to meet with legislators.

The trustees and regents met with several senators and representatives throughout much of the day to advocate on behalf of higher education in Washington. In addition the dialogue with legislators provided insight into the context and next steps around both policy and budgets.