Tag Archives: higher education

Federal Budget for Education Takes Some Shape

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Last week, the U.S. House Appropriations Committee Chairman, Hal Rogers (R-KY), announced both the FY12 allocations for each of the 12 appropriations subcommittees, also known as the 302(b) allocations, and provided a tentative timeline for completing each bill. 
The allocations released would provide $139.218 billion to the Labor, HHS, and Education Subcommittee.  The allocation for the Labor, HHS, and Education Subcommittee is over $18 billion less than the recently agreed to FY11 level and more than $40 billion below the President’s FY12 budget request. 
The reductions in funding from the prior fiscal year and also from the President’s proposed FY12 budget are raising some concerns in higher education.  Advocates are concerned that the the funding level raises significant concerns regarding the ability to adequately fund NIH and the Pell Grant Program. 
Chairman Rogers stated that completion of work on the 12 fiscal year 2012 Appropriations bills should be finished by the end of the fiscal year on September 30th. This plan includes marking up and approving each bill at both the Subcommittee and Full Committee levels in the next few months before the August recess.
 

House Committee Moves Forward Bill to Restructure Higher Education at the State-Level

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This afternoon the House Ways & Means Committee passed legislation that would eliminate the Higher Education Coordinating Board (HECB) and restructure higher education at the state level.

Senate Bill 5182, as amended in committee, would eliminate the HECB and establish the Council of Higher Education and the Office of Student Financial Assistance.

The Office of Student Financial Assistance will be created as of July 1, 2011. The current fnancial aid program management under the Higher Education Coordinating Board (HECB) will be transferred to the Office.

The Higher Education Council will be established on July 1, 2012. Between now and the July 2012 date the HECB will continue and bridge the one-year delay before the new Council is in place.

The membership of the Council includes the president of the UW or her/his designee, the president of WSU or her/his designee, a president from the comprehensive institutions or Evergreen, the director of the state board for community and technical colleges, the superintendent of public instruction or her/his designee, one president from a non-profit, private institution, and five representatives of the public, of which one will be a current student.

The role and scope of the Council will be determined by a Joint Legislative Task Force on Higher Education.  The Joint Legislative Task Force will include eight legislators – four from each chamber, of which two will be Democratic legislators and two will be Republican legislators.

The Task Force is charged with reviewing coordination, planning, and communication for higher education in the state and establishing the purpose and functions of the new Council. The Task Force will report its findings and recommendaitons to the governor and the appropriate legislative committees by December 1, 2011.

Among the options to be considered include:

  • Creating an effective and efficient higher education system and coordinating key sectors including K-12
  • Improving the coordination of higher education institutions and sectors with specific attention to strategic planning, system design, and transfer and articulation
  • Improving structures and functions related to administration and regulation of the state’s higher education institutions and programs, including but not limited to financial aid, the GET program, federal grant administration, new degree program approval, authorization to offer degrees in the state, reporting performance data, and minimum admission standards.

The Task Force is required to consider input from all higher education stakeholders (i.e. institutions, Governor, HECB, K-12, Workforce Board, students, faculty, business, labor organizaitons, and the public).

The bill that passed out of the House committee is very close to the bill the Senate passed last week. The differences between SB 5182 as passed by the committee and the Senate are primarily with regard to the membership of the Council, the scope of the Council’s work, and the implementation date.

The bill now goes to the House floor for further consideration.

House Passes Key Higher Education Legislation

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This afternoon the Washington House passed legislation that would alter current policies focused on tuition, accountability, and financial aid.  House Bill 1795 passed with a vote of 79-17.

The bill is a comprehensive piece of legislation that leaves little alone with regard to higher education policy. The key provision in the bill for many is the ability for four-year public baccalaureate institutions to set tuition for all students through 2014-2015 and modifies this authority based on a state funding baseline and funding for higher education institutions in the Global Challenge States through 2018-2019.

The ability for the four-year public baccalaureate institutions to set their own tuition levels is mitigated by strengthening current institutional financial aid requirements and funding the State Need Grant at the proposed increased tuition rates in the budget.  All institutions are required to remit at least 4% of operating fees back to students in the form of financial aid. This is an increase from 3.5%.

Institutions that exceed the tuition levels appropriated in the budget are required to remit 5% of operating fees back to students in the form of financial aid and provide financial assistance to students up to 125% of the Median Family Income (MFI) via a specific formula that is based on tuition price as a percentage of MFI in various income brackets up to 125% of MFI.  Finally all instititutions are required to make every effort to encourage eligible students to take advantage of federal tax credits.

The bill also requires higehr education institutions to report by December 1 on performance data that aligns with the National Governor’s Association Complete to Compete metrics with additions that include graduate and professional degrees;Science, Technology, Engineering, and Math (STEM) participation; student debt load; and disaggregation of measures based on various student demographics, including socio-economic status and income levels. In addition institutions must develop a performance plan which must include a set of expected outcomes (i.e. time to degree, baccalureate degree production).

Finally the bills makes changes to dual enrollment policies, transfer and prior credit policies, and provides regulatory relief for institutions of higher education.

The bill now goes to the Senate for further consideration.

Legislative Committees Focus on Higher Education Bills

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This morning the House Ways & Means Committee and the Senate Ways & Means Committee each focused on legislation that would impact higher education.

House Ways & Means
The House Ways & Means Committee held a public hearing on Senate Bill 5182 which would eliminate the HECB and establish the Council of Higher Education and the Office of Student Financial Assistance. 

The  Council membership would include the six four-year institution presidents, one private nonprofit president, the Executive Director of the SBCTC, and a representative from the Office of the Superintendent of Public Instruction, or their designees. The purpose of the Council would be to develop performance-based measures and goals for each four-year institution and a strategic plan for the institutions of higher education benchmarks.

In addition the Council would perform essential state governance functions previously assigned to the HECB, including approving new programs, mission changes, new colleges, recognizing accreditation, and provides the interface to meet federal requirements.

The Office of Student Financial Assistance would administer all state and federal financial aid and the advanced college tuition payment program. The Office is created as a separate agency of the state.

Senate Ways & Means Committee
The Senate Ways & Means Committee took action on HB 1981 (Higher Education Pension Legislation) passed unanimously with amendments.

The bill would:

  • The HERP Supplemental Benefit for employees that enter the plan after July 1, 2011 is eliminated
  • Employees offered participation in HERP on or after July 1, 2011, have the option of joining the TRS Plan 3 or PERS Plan 3.
  • The PERS and TRS Plan 1 provisions permitting retirees to receive benefits while employed in retirement system-covered positions for up to 1500 hours per year are limited to members who retire before September 1, 2011. (Members of PERS and TERS Plans 1 who retire on or after September 1, 2011, may continue to work up to 867 hours per year without a reduction in pension benefits.) Positions covered by the HERP are added to those included in the postretirement employment pension restrictions for the PERS, TRS, School Employees’ Retirement System (SERS), and PSERS.
  • Higher education institutions responsible for payment of HERP Supplemental Benefits are required to contract with and provide data to the Office of the State Actuary for actuarial valuations every two years beginning June 30, 2013, and experience studies of the HERPs at least once in every six-year period, with the first being due by June 30, 2013. A 0.5 percent of pay employer contribution rate is initiated for HERP-covered employees beginning January 1, 2014, to a new supplemental benefit fund. This fund is invested by the State Investment Board. Upon completion of the first actuarial valuation by the State Actuary (no later than June 30, 2013), the Pension Funding Council (PFC) may make changes to the 0.5 percent contribution rate, including the adoption of separate rates appropriate to the liabilities of each institution. The PFC is authorized to recommend legislation, upon accumulation of sufficient funding in the Supplemental Benefit Fund, to transfer responsibility for benefit payments to the new fund and adjust contribution rates to reflect the transfer of responsibility.

The bill now goes to the Senate floor for further consideration.

Legislation to Alter Higher Education Structure at the State Level Moves Forward

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This morning the Senate passed legislation to eliminate the Higher Education Coordinating Board (HECB) and restructure higher education with a vote of 34-9.

Senate Bill 5182 would eliminate the HECB and establish the Council of Higher Education and the Office of Student Financial Assistance. 

The  Council membership would include the six four-year institution presidents, one private nonprofit president, the Executive Director of the SBCTC, and a representative from the Office of the Superintendent of Public Instruction, or their designees. The purpose of the Council would be to develop performance-based measures and goals for each four-year institution and a strategic plan for the institutions of higher education benchmarks.

In addition the Council would perform essential state governance functions previously assigned to the HECB, including approving new programs, mission changes, new colleges, recognizing accreditation, and provides the interface to meet federal requirements.

The Office of Student Financial Assistance would administer all state and federal financial aid and the advanced college tuition payment program. The Office is created as a separate agency of the state.

Senate Bill 5182 is scheduled for a public hearing by the House Ways & Means Committee on Thursday. In addition, the Committee is also scheduled to take executive action on legislation that would not eliminate the HECB but would narrow the scope of their work.

House Bill 2074 retains the administration of the state’s financial aid programs, some functions for collecting and collating data from institutions, and other functions, such as some transfer and articulation provisions and strategic planning.

House Higher Education Discusses the Interim

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Yesterday the House Higher Education committee held a work session on interm planning.

Several members of the committee shared potential ideas and discussion points for the interim. Among those mentioned by members include the need to fully understand the budgetary impacts on students and the institutions, to re-examine remedial education, and to engage in the public with regard to higher education.

In addition Chair Seaquist proposed a series of meetings across the state – at each of the four-year, public campuses – with the intention  of getting to know higher education in Washington better and to discuss issues impacting higher education in an effort to develop a 2012 legislative agenda.

Washington Senate Passes Operating Budget

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The Senate passed the biennial operating budget this afternoon.

With only one week left in the regular 2011 legislative session, the action taken by the Senate moves the state closer toward closing the budget gap.

The operating budget now goes to the House for agreement. Since the proposals are different a conference committee will be established. Budget conferees are expected to include Senators Murray, Kilmer, Zarelli and Representatives Hunter, Sullivan,  and Alexander.

House Education Appropriations Committee Discusses Interim Plans

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This morning the House Education Appropriations committee held a work session on interm planning.

Several members of the committee shared potential ideas and discussion points for the interim. Among those mentioned with regard to higher education included nonresident vs. resident enrollments, teacher preparation, the gap between those who graduate from high school and those that enroll in some form of postsecondary education, and the use of technology.

2011 Legislative Session: Week 15

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This is the last week of the regular session, though it is expected that the Legislature will return for a special session.

Operating Budget
Today (April 18) the Senate will take floor action on the operating budget. Once the Senate passes the operating budget the bill will return to the  House for agreement. Since the proposals are different a conference committee will be established. Budget conferees are expected to include Senators Murray, Kilmer, Zarelli and Representatives Hunter, Sullivan,  and Alexander.

Capital Budget
On Tuesday the Senate is expected to take action on their proposed capital budget and move it out of committe and to the floor. A Senate Ways & Mean executive session is scheduled for 2:30 p.m.

The capital budget discussion is being framed within the context of Senate Joint Resolution 8215 which would seek a constitutional amendment to phase down the debt limit from 9 to 7 percent in half-percent increments. The action would begin in Fiscal Year 2016 and continue through FY  22.  In addition the resolution would shift the state’s bond model from a three-year rolling average to a ten-year rolling average. 

The resolution is being discussed as a way to reduce debt service payments in the operating budget. For the 2011-13 biennium, the hit to the operating budget is about $2 billion on the bonds.

While there are several supporters there are also several skeptics. Skeptics argue that the shift in capacity will limit the size of the capital budget for the next few biennia and will make it tougher to fund a broad array of construction projects.

Other Legislative Work
Throughout the week, legislators will be focused on moving legislation forward in the process. This will consist of each chamber taking action on bills that are necessary to implement the budget and bills that require either chamber to concur or not concur on changes made to the bill in the opposite chamber. If either chamber does not concur with the changes then a conference committee will be established to find a compromise.

In addition, this week’s schedule includes limited committee meetings – primarily focused on interim planning – with most of the time spent on the House and Senate floor.

Special Session
The Legislature still must still pass a biennial operating and capital budget and more than sixty bills required to meet the changes and requirements in the budgets. With this heavy lift ahead a special session is certain. The question is when.

Talk on The Hill suggests that the Legislature will sine die on Thursday with a return as early as Monday, April 25 if there is a commitment to finish up quickly.  The Legislature could also opt for a rolling recess.  A rolling recess would only require essential legislators and staff to show up for work, leaving others to be called in when a deal is agreed upon. The Governor is expected to make an announcement later this week.