Tag Archives: higher education

House Holds Public Hearing on Governor’s Supplemental Budget

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Yesterday the House Ways & Means Committee held a public hearing on the Governor’s supplemental budget.

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.

Special Session Begins Today

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Today at Noon lawmakers will return to Olympia to begin a thirty-day special session focused on closing a $2 billion budget shortfall. The first week of the special session is packed full of work sessions and public hearings on the state budget.

November 28
The House Ways & Means Committee will hold a public hearing on the Governor’s proposed supplemental budget.

November 29
The House will convene for a floor session to take action on some early bills. On the Senate side the Ways & Means Committee will hold a work session on the Governor’s proposed supplemental budget. In addition a handful of Senate policy committees will convene.

November 30
Both the House and Senate will convene for a floor session. In addition policy committees in both chambers will meet. Finally the Senate Ways & Means Committee will hold a public hearing on the K-12 and higher education portions of the Governor’s supplemental budget.

December 1
Several appropriation and policy committees will convene. Of particular interest to higher education will be:

  •  A work session of the Senate Higher Education & Workforce Development Committee on the Governor’s proposed supplemental budget for higher education, a report on the GET program, and a report from the Higher Education Steering Committee tasked with developing a new state-level higher education entity.  
  • The House Capital Budget Committee will convene a work session that will focus in part on the ten-year capital needs of higher education institutions. 
  • The House Ways & Means Committee will hold a work session on the November economic and revenue forecast, the budget outlook for 2012 and the impact of recently passed initiatives on the operating budget.

December 2
The House Higher Education Committee will convene for a work session on the legislative priorities of the Higher Education Coordinating Board (HECB), State Board for Community and Technical Colleges, Workforce Training and Education Coordinating Board, and the Public Baccaluareate Institutions. In addition the Committee will receive reports regarding the Higher Education Steering Committee’s work on a new state-level entity for higher education, the HECB’s work on the higher education master plan, and the community and technical colleges’ efficiencies efforts.

Finally the House Ways & Means Committee will convene to hold a public hearing on any bills referred to committee.

 

 

 

Lack of Agreement of Debt Committee Triggers Cuts to Education

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Yesterday the deadline to reach an agreement on deficit reduction passed. The Congressional Deficit Committee announced that they were unable to reach an agreement. As a result, this set into motion $1.2 trillion in automatic spending cuts over the next decade if Congress does not act by 2013 on the deficit.  

The impact to education is likely to be hard. The U.S. Department of Education’s budget would be reduced by $3.54 billion in 2013. In addition $134 million for non-Pell Grant financial aid programs will likely be lost.

While the Pell Grant is exempt from cuts in the current fiscal year they remain at risk. The overall spending caps that will be enacted by Congress will place constraints on the federal budget and make it difficult to maintain support for current funding levels.

The 12-member Joint Select Committee on Deficit Reduction, formed in the July compromise that increased the nation’s debt limit, was charged with cutting $1.2 trillion from the deficit before Thanksgiving.

Congress still has a year to decide how to apply the $1.2 trillion in cuts – to be split evenly between defense and nondefense spending.  In the meantime it is possible that Congress could reach a long-term agreement on deficit reduction or change how the mandated cuts are enacted. Though President Obama has vowed to veto any legislation that would eliminate the automatic cuts.

The budget conversation will now shift back to the congressional appropriation committees to decide on several budget bills and enact 2013 spending caps.

Governor Releases Supplemental Budget and Proposes Revenue Package

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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

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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

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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 Releases Budget Alternatives

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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.

House Higher Education Committee Hearings

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This past week the House Higher Education convened the fourth of five committee hearings focused on educational attainment and regional industries.

The House Higher Education Committee met most recently at Skagit Valley Community College in Mt. Vernon. The focus of the meeting was innovation and its role in educational attainment in Washington. In addition higher education institutions, including Western Washington University, hosted regional industry panels that focused on the connections between higher education, workforce, and industry.

The day before the Committee met in Seattle to learn more about completion and its role in educational attainment as well as here from regional industry representatives. The Evergreen State College and the University of Washington, along with the Council of Presidents, participated from the public, bacclauareate sector.  Evergreen was represented on two panels. Paul Pryzbylowicz presented on higher education institutional initiatives to increase student completion and Libby Dunkin, an Evergreen alum and VP for Operations for Flux Drive, participated in the higher education and regional industry needs panel on manufacturing.

Prior to the meetings last week the Committee traveled to Spokane and Ellensburg in September to discuss two issues as they related to educational attainment: (1) outcomes for underserved populations and (2) transitions to college.  Each meeting the Committee heard from  regional higher education institutions and industry.

The next meeting of the House Higher Education Committee is scheduled for November 2 at South Puget Sound Community College.

Governor Convenes Second Meeting of Higher Education Steering Committee

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

The Committee focused on the structure and goals of education in Washington. The Committee took time to discuss the various goals that have been charged each sector of education ranging from early learning to higher education.

The Committee then spent a considerable amount of time hearing about and discussing potential roles 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 the roles of higher education state-level entities in other states. The Committee combined there discussion of potential roles with a final conversation about potential functions of a new state level entity. 

The next meeting of the Steering Committee is scheduled for October 27.

Pell Grant: U.S. House and Senate Proposals

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The U.S. Congress is still working to finalize funding for fiscal year 2012, despite the fact that the fiscal year began on October 1.  In the meantime Congress has passed a continuing resolution to keep agencies and programs operating at fiscal year 2011 levels until a FY12 budget is passed, which is expected later this year.

Since 2009 Congress has provided new rounds of ad-hoc funding to maintain the increased maximum grant level established in the American Recovery and Reinvestment Act of 2009.  The new grant level continues to be a challenge for Congress. Since 2009 Congress has supported the increase in the grant through various efforts including:

  • Elimination of the guaranteed student loan program (2010)
  • Elimination of the “year-round” Pell Grant (2011)
  • Elimination of the interest-free benefit on subsidized federal loans for graduate students (2011)

In order for Congress to maintain the current maximum Pell Grant ($5,550 per year) it must appropriate $24.3 billion for FY12. This is an increase of $1.3 billion from FY11.

An examination of the House and Senate proposals (i.e. the release of the Labor-HHS-Education appropriation bills) shows the multiple ways each chamber is attempting to reach the fiscal target to maintain the Pell Grant. The different approaches leave room for a compromise in a final omnibus appropriations bill.

U.S. Senate

The U.S. Senate’s proposed appropration bill (S. 1599) would appropriate the full $24.3 billion to maintain the maximum grant in the 2012-13 academic year. The funding is offset by eliminating the interest-free benefit on Subsidized Stafford loans during an undergraduate borrower’s six-month grace period after leaving school. This would create savings of $1 billion which is allocated to support the 2013 Pell Grant and another $3.5 billion for the program between 2017-2021.

U.S. House

The U.S. House’s appropration bill does not add funding to the Pell grant and actually cuts funding when compared to FY11. The caveat being that the bill would still maintain the maximum grant of $5,550 in the 2012-13 academic year. The bill maintains the maximum grant by making significant changes to Pell Grant eligibility rules. These changes include:

  • Reducing he maximum number of semesters a student can receive a Pell Grant from 18 to 12
  • Eliminating eligibility for students that are attending school less than half-time
  • Reducing the amount of a student’s personal earnings that can be excluded from a Pell Grant award calculation
  • Reducing the maximum family income that would automatically qualify a student for the maximum grant from $30,000 to $15,000.
  • Eliminate eligibility for students who quality for less than 10% of the maximum grant.

These changes would lower the appropraiton needed to fund a maximum grant of $5,550 by $3.6 billion in 2012 and about $4 billion each year thereafter because fewer students would be eligible for grants and some students would receive smaller grants.