Washington House and Senate Release Early Budget Action Proposals

After a long weekend of discussions and negotiations, the Washington House and Senate each released an early budget action proposal.

Both proposals woud reduce the current budget shortfall, estimated at $1.4 billion, by $479.7 million. Nearly $51 million in both of the proposals will come from new revenue earned from quicker conversions of unclaimed property by the Department of Revenue. In addition, the proposals reduce agency and program budgets by $96.5 million with an additional $226.4 million in policy level changes. Finally the remainder of the funds come from $23.6 million in fund tranfers and an additional $82 million in unspent money from the prior biennium.

The proposals make minor changes to higher education.  Both proposals invest $1 million in the Aerospace Training Student Loan Program for students in certain aerospace training or educational programs. In addition both proposals reduce funding to higher education institutions to reflect savings in Washington’s Workers’ Compensation program due to reform legislation that passed during the 2011 legislative session.

The early action proposals by the Legislature still leave a $1.5 billion (approx. $900 million budget shortfall/ approx. $600 million in reserves) budget problem to be resolved in the 2012 supplemental session. It is expected that to reach a balanced approach the Legislature will need to enact additional reductions and administrative reforms as well as consider a revenue package(s).

In the meantime with an eye to adjournment as early as Friday, the House Ways & Means Committee and the Senate Ways & Means Committee will hold a public hearing on their respective proposals this afternoon. The House Ways & Means Committee has also scheduled an executive session on the House proposal tomorrow morning.

Senate Higher Education Committee Focuses on Impacts to Degrees and Programs

This morning the Senate Higher Education & Workforce Development Committee convened a work session focused on the ebb and flow of curriculum at Washington’s higher education institutions.

Academic leaders from the six, public baccalaureate institutions and the community and technical colleges shared with the committee the degrees and courses universities and colleges have eliminated, added, or modified over the last five years.

Evergreen shared the dynamic nature of the College’s curriculum. Specifically the College spoke to what degrees have been eliminated and the significant modifications of existing degree programs over the last five years. Evergreen has not added any degree programs.

Evergreen also spoke to the impact of state funding reductions on academics. Evergreen highlighted that though the College’s dynamic curriculum has allowed the institution to respond as best it could, access, quality, flexibility, and time to degree all have been impacted significantly.

The Senate Committee will convene again on Tuesday, December 13 for a work session focused on efficiencies in higher education.

President Obama Invites Higher Education Leaders to White House

On Monday in a private meeting President Obama and U.S. Secretary of Education Arne Duncan met with a dozen higher education presidents and representatives from the Lumina Foundation and the Delta Project to discuss affordability and productivity in higher education.

The majority of presidents in attendance were from public institutions and represented institutions that had done something about reducing spending or improving student learning. Among the institutions represented included the Western Governors University, Berea College, and Carnegie Mellon University.

The group discussed how to curb the rising cost of college and improve graduation rates. Reports suggest that the conversation focused on how to drive down tuition, how to improve affordability and graduation rates through innovation, and the right role of the federal government in meeting these goals.

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

Senate Committee Tackles Student Financial Aid

This afternoon the Senate Higher Education and Workforce Development Committee held a work session focused on student financial aid.

Committee members received an overview of Washington’s State Need Grant and State Work Study programs. In particular the Committee heard from the Higher Education Coordinating Board about who is served, how students are served, and the impact of budgetary and policy changes on students

In addition the HECB presented information to the Committee about student loan debt in Washington.

The work session concluded with dialogue between students and committee members regarding the impact of financial aid on students in Washington.

The next meeting of the Senate Committee is scheduled for Thursday, December 8. The Committee will focus on academic programs that have been eliminated, added or modified.

Updates at the Federal Level

Higher education saw action by the White House, Congress, and the U.S. Department of Education last week.

White House

The White House announced that President Obama had extended an invitation to presidents of ten colleges and unviersities to the White House to discuss affordability and productivity in higher education. Though a list of the presidents invited was not released the invitation to the meeting suggests the focus will be on increasing access and success as well as how to make higher education more affordable. Specifically presidents will be asked for their perspectives on increasing productivity, access and attainment, as well as how to create change at higher education institutions.

The meeting will take place on December 5 and will take the form of a roundtable discussion with President Obama, Education Secretary Arne Duncan, White House advisers, and “thought leaders” in higher education.

Congress

Last week the U.S. House Subcommittee on Higher Education and Workforce Training held a hearing on the cost of higher education. The focus was what colleges and universities are currently doing, and what they can do, to make college more affordable for students and families.

Several experts appeared before the Subcommittee to discuss current initiatives to hold down the cost of higehr education, including Jane Wellman, founder and executive director of the Delta Project, Ronald Manahan, President of Grace College & Seminary, Jamie Merisotis, President of the Lumina Foundation, and Tim Foster, President of Colorado Mesa University.

U.S. Department of Education

Before a Federal Student Aid conference last week, U.S. Secretary of Education Arne Duncan focused on college costs. Duncan expressed concerns about the rising prices of higher education and called on the higher education community to “think more creatively and with much greater urgency” about college costs.

In addition he identified several plans for higher education. Among the changes he proposed include replacing the expiring Perkins Loan program with campus-based loans awarded in part on Pell Grant recipient graduation rates; incentive grants rewarding states and institutions for increasing completion rates and closing achievement gaps; and a fund to support innovative programs that hold down tuition.

On a different note the U.S. Department of Education also issued a final rule that will make it easier for states to track students’ academic progress and evaluate education programs. The rule will expand the aiblity of state and local education officials to share student information more widely without violating federal privacy laws. In addition the rule also makes lenders, guarantors, and other agencies with access to student records subject to the law known as FERPA.

Dashboard for WA Public Baccalaureate Institutions is Released

This week the Washington Office of Financial Management (OFM) released a dashboard for Washington’s public baccalaureate institutions.

The dashboard is the result of passage of legislation (HB 1795)  in the 2011 regular session to provide the opportunity for Washingtonians to see outcome data for the public four-year institutions.

The dashboard shows aggregated data for the four-year sector and provides several metrics that focus on enrollment, retention, graduation, and degrees. Ultimately the dashboard will include data for each of the public baccalaureates in the new Complete to Compete accountability framework championed by Governor Gregoire.

The dashboard was developed by the OFM Forecasting and Research Division in conjunction with the six public baccalureate institutions, Council of Presidents, Higher Education Coordinating Board, and the Department of Enterprise Services.

The next version of the dashboard will be available Spring 2012.

Higher Education Presents on Multiple Budgets

This afternoon the public, baccaluareate institutions presented and testified on the future impacts of the operating budget and the capital budget.

Capital Budget

The four-year institutions were represented by the University of Washington and Evergreen before the House Capital Budget Committee.  Representing both the research and comprehensive institutions, the UW and John Hurley, VP for Finance & Administration at Evergreen, provided a joint presentation on the 10-year outlook for capital projects and funding at the six institutions.

The comprehensive institutions (EWU, WWU, CWU, and Evergreen) highlighted two major priorities over the next decade: (1) instructional needs will dominate capital projects and (2) the majority of minor works dollars from the state will focus on preservation and maintenance.

In addition the comprehensives spoke to the challenges reductions in state funds for capital and the downturn in the economy have had on institutional capital budgets. Among the challenges is the difficulty of modernizing instructional and lab space, reduced staff, and the need to move projects from the current biennium out to future biennia.

Finally the comprehensives highlighted the critical economic impact capital funding has on state and local economies, especially job creation and revenue.

Operating Budget

The four-year public higher education institutions testified with concerns regarding the Governor’s proposed supplemental budget for higher education before the House Education Appropriations and Oversight Committee.

The Governor’s proposed supplemental budget would reduce funding for Washington’s public baccalaureate institutions by double-digit percentages and suspend state work study.

Higher education representatives from the six public baccaluareate institutions in Washington, including The Evergreen State College, testified with concerns about further reductions to higher education and the impact on students.

Since 2008 state funding for Evergreen has declined by half.  To mitigate this dramatic loss of state funding over the last four years Evergreen has increased tuition by 70%, reduced institutional support (a.k.a. administration) by 32.3%, reduced the College’s workforce by over 8%, and suspended the Master of Education program and consolidate other programs among several other reductions and regorganizations.

Evergreen testified that further reductions would immediately impact students at the College. Over 80% of Evergreen’s students receive some form of financial aid, over 40% are low-income (at or below 150% of the federal poverty level), over 50% are community and technical college transfers, and nearly 30% are first-generation. 

Evergreen also expressed concerns about the impact of further reductions on the success of the College. Evergreen leads the public baccaluareate institutions in Washington in time to degree and is only behind the UW in four-year graduation rates.

Evergreen asked legislators in the coming months of budget discussions to: (1) Prioritize higher education in the budget, (2) Pursue a balanced approach to the budget, and (3) Remember that only six months ago the Legislature overhauled much of higher education, leaving little untouched with regard to policy changes and asked legislators to let these policy changes settle out and if new policy is considered to make sure it does not create new barriers to maximizing the success of students.

Senate Hears Governor’s Proposed Supplemental Budget for Education

Today the Senate Ways & Means Committee held a public hearing on the Governor’s supplemental budget for education.

The Committee heard an overview from the Office of the Governor on the proposed supplemental. The Governor’s proposed supplemental budget would reduce funding for Washington’s public baccalaureate institutions by double-digit percentages and suspend state work study.

Higher education representatives from the six public baccaluareate institutions in Washington, including The Evergreen State College, testified with concerns about further reductions to higher education and the impact on students.