Tag Archives: House Ways & Means

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.

House Appropriations Committee Moves Early Action Budget Proposal

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Early this morning the House Ways & Means Committee passed legislation that will reduce the current budget shortfall by $479.9 million.

The Committee considered a handful of amendments and passed three that were technical in nature. The bill now goes to the House floor for consideration as early as this afternoon.

On the Senate side, the Senate Ways & Means Committee will hold an executive session on the Senate’s early action budget proposal this afternoon.

House Committee Takes Action on Key Higher Education Bills

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The House Ways & Means Committee held a marathon executive session. Among the bills moved out of committee this evening were two major pieces of legislation that will impact higher education – House Bill 1795 and House Bill 1981.

Both bills now move to the House floor for consideration.

House Bill 1795
The bill allows  four-year colleges and universities to set tuition for all students for four years, through the 2014-15 academic year. After 2015, tuition for resident undergraduates will be set by the governing boards of the four-year institutions within certain parameters tied to the global challenge states and state funding. For example if state funding for an institution falls below state funding levels for FY 2011, an institution’s governing board may increase tuition so as not to exceed the 60th percentile of the tuition at GCS institutions.

In addition, the bill requires public baccalaureate institutions to increase current funds held for financial aid from 3% of tuition and fees to 5%, freezes the building fee to 2010-11 levels, and requires institutions to mitigate tuition increases for students at 125% or below of the median family income if they exceed tuition levels established in the budget.

Finally the bill contains provisions related to federal tax credits, transfer language, performance and accountability, and regulatory relief for higher education institutions.

House Bill 1981
The bill makes several changes to retirement related policies for higher education employees.  Among the changes is a narrower definition of eligible employees for Higher Education Retirement Plans. Under this bill only faculty and senior academic administrators are eligible for the plan. Senior academic employees are defined as institutional presidents, vice presidents, vice  presidents, deans, directors, chairs, and executive heads of major administrative or academic divsions who hold concurrent faculty appointment with rank.

In addition the bill caps benefits at 6%, alters postretirement employment criteria for employees, and eliminates the supplemental benefit.

Finally the bill was amended in committee to require employers contribute one-half of one percent of salaries into a non-appropriated Higher Education Retirement Plan (HERP) Supplemental Benefit fund beginning January 1, 2012. The dollars deposited into the fund will be managed by the State Investment Board.

House Budget Committee Holds Work Session on Higher Education

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This afternoon the House Ways & Means Committee held a work session on higher education funding.

Committee members received several presentations focused on the funding trends and impacts of the Governor’s proposed budget for the two-year and four-year public higher education sectors and state financial aid programs.

Mike Reilly, Council of Presidents, shared with legislators the impact of state funding trends and the Governor’s most recent budget proposal on the six, public baccalaureate institutions. 

Since the 2007-09 biennium state funding for Washington’s public baccalaureate institutions has been cut by nearly $500 million or 28%. Current state funding is at the same level as it was in the 1999-01 biennium.

The Governor’s proposed 2011-13 budget would cut an additional $380 million in state funds (a reduction of nearly 50% in state support since 2007-09) leaving state support of approximately $1 billion as part of a proposed $32.1 billion state budget.

The Committe also heard from the State Board of Community and Technical Colleges, the Higher Education Coordinating Board and higher education legislative fiscal and policy staff.

Legislators asked a variety of questions ranging from what is the elasticity of tuition at the institutions to how does a change in focus from enrollment (inputs) to degrees (outputs) impact quality and access.

Despite the Snow Appropriation Committees Plow Ahead

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While much of Olympia was quiet and covered in snow, the Capitol was busy hearing and moving bills through the process. Both the Senate and House Ways & Means Committees held marathon public hearings and executive sessions as Friday’s deadline looms.

Senate Ways & Means

The Senate Ways & Means Committee held a public hearing on two bills of particular interest to higher education – Senate Bill 5136 and Senate Bill 5182.

Senate Bill 5136 provides provisions of the state’s intent to partner with the Washington Governors University (WGU)  to establish Western Governors University-Washington and provide enhanced access to postsecondary education for all Washington students.  The Evergreen State College testified, on behalf of the Council of Presidents, with concerns with regard to the potential impact to state financial aid programs but took no position on the bill.

Senate Bill 5182 eliminates the Higher Education Coordinating Board and creates the Council forPerformance and Accountability in Higher Education. The purpose of the Council is to develop performance-based measures and goals for each state university, regional university, and the state college, linked to the role, mission, and strategic plan of the institution of higher education including (a) indicators and goals that measure outcomes concerning cost, quality, and timeliness of student progress toward degrees and certifications; (b) benchmarks and goals for long-term degree production, including discrete benchmarks and goals in particular fields of study; (c) the level of resources necessary to meet the performance outcomes, benchmarks, and goals, subject to legislative appropriation; (d) indicators and goals that measure outcomes concerning recruitment, retention, and success of students from diverse, underrepresented communities; and (e) a system of consequences for exceeding or for failing to achieve the goals or benchmarks.

The Evergreen State College testified in support of the bill and on behalf of the Council of Presidents. Evergreen stated that state government reform, including reform of higher education, is an important issue this session and SB 5182 offers an effective and efficient structure for higher education that is worth further consideration. 

House Ways & Means

The House Ways & Means Committee held a public hearing on three bills of interest to higher education.

House Bill 1666 would implement the recommendations from the Governor’s Higher Education Task Force. The legislation heard by the Committee this afternoon introduced substitute language to change the bill passed out of House Higher Education last week.

The second substitute would make the following changes and remove all other sections:

  • Add intent language that recognized the work of the Governor’s HigherEducation Task Force, the need to build on those recommendations, andthe need for the state’s citizens to achieve much higher levels of educational attainment
  • Require the Higher Education Coordinating Board in collaboration with a broad range of higher education stakeholders to review state achievement goals and capacity to meet those goals, including a consideration of socioeconomic status, and provide a preliminary assessment to the Legislature by August 15, 2011.
  • Make technical changes to the existing language regarding the Washington pledge endowment fund to accrue its own interest
  • Retain  degree targets and higher education institution action plans to achieve those targets

House Bill 1795 would establish the Higher Education Opportunity Act. The legislation heard by the Committee this afternoon introduced substitute language to change the bill passed out of House Higher Education last week.

The second substitute would make the following changes and remove all other sections:

  • Adds a requirement that beginning in the 2015-16 academic year, reductions or  
  • Clarifies that tuition setting authority is for four years, beginning in the 2011 academic year through the end of the 2014 academic year
  • Adds a requirement that beginning in the 2015-16 academic year, reductions or increases in tuition must be provided in the appropriations act when responsibility for setting tuition setting reverts to the Legislature.
  • Adds transfer provisions in addition to requiring higher education institutions to publish transferrable courses on their websites: 1) requiring that students who have earned direct transfer agreements associate degrees have junior standing at the receiving four-year higher education institution; and 2) requiring that institutions of higher education develop a one year certificate of general education requirements that is transferrable to any other public higher education institution.  

House Bill 1981 would alter existing retire/rehire policies for higher education institutions. In particular the bill would eliminate Public Employees’ Retirement System (PERS) and Teachers’ Retirement System (TRS) Plan 1 provisions permitting retirees to receive benefits while employed in retirement system-covered positions for up to 1,500 hours per year.

In addition the bill would add positions covered by a Higher Education Retirement Plan (HERP) to those included in the postretirement employment pension restrictions for PERS, TRS, the School Employees’ Retirement System, and the Public Safety Employees’ Retirement System.

Finally the bill would imit the employees to which state institutions of higher education may offer the HERP, instead of PERS Plans 2 or 3, to faculty and senior academic administrator employees; eliminate the HERP Supplemental Benefit for employees that enter the plan July 1, 2011, and provides the new employees the option of joining the TRS Plan 3 or PERS Plan 3;  require higher education institutions responsible for payment of HERP Supplemental Benefits to contract with and provide data to the Office of the State Actuary for periodic actuarial valuations and experience studies of the HERP plans; and limit state funding for the HERP plans to 6 percent of salary.

Appropriation Committees Continue to Hear Legislation that Would Impact Higher Education

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The appropriation committees in the Washington House and Senate were alive with activity this afternoon.  Both the House and Senate Ways & Means Committees heard numerous bills in preparation for the looming fiscal deadline this Friday.

House Ways & Means

The House Ways & Means Committee took up three bills that would impact higher education – House Bill 1663, 1792, and 1841.

  • House Bill 1663 removes higher education institutions from the requirement to seek an exemption from the Office of Financial Management with regards to purchasing from the Department of Corrections.
  • House Bill 1792 directs Washington State University to complete a strategic plan to establish a branch campus at Everett with the collaboration of the University Center at Everett Community College and the baccalaureate institutions that provide programs at the University Center at Everett Community College.
  • House Bill 1841 creates the Office of the Chief Information Officer (Office of the CIO) within the Office of Financial Management and an Information Technology Advisory Board to advise the Office of the CIO on information technology issues. Eliminates the Information Services Board.

Senate Ways & Means

The Senate Ways & Means Committee considered Senate Bill 5795. Senate Bill 5795 would use $250,000 of unclaimed prize money for FY11-12 and FY12-13 for the four-year Student Child Care in Higher Education Account.

Fiscal Committees Move Legislation

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This Friday marks the second major deadline of the session. All bills referred to fiscal committees in both chambers must have moved to the floor by end of day on February 25.

In preparation for this looming deadline all of the appropriation committees in the Senate and the House were busy today hearing and moving bills forward in the process.

House Higher Education Appropriations

The House Higher Education Appropriations Committee took action on two bills that would impact higher education.

House Bill 1849 creates the Washington State Education Council (Council). The overall mission of th Council is to: provide strategic oversight and advocacy of public education, including early learning, K-12 education in the common schools, and postsecondary education; and recommend policies and strategies to make the public education system student-focused and able to provide seamless service delivery across all sectors.

The substitute bill passed by the Committee revises the mission of the Council to focus on recommending policies, strategies and a governance structure for the public education system and makes the Council temporary, expiring the provision on  June 30, 2013. 

 In addition, the substitute revises the Legislative intent that guides the Council’s Transition Plan: to establish a primary strategic oversight and advocacy board for the public education system and consolidate supervision over matters pertaining to the public education system within a primary state agency.

House Bill 1808 requires all public high schools in the state to work toward the goal of offering a sufficient number of high school courses to give students the opportunity to earn the equivalent of one year’s worth of postsecondary credit and must inform students and their families about these opportunities. In addition, the bill requires institutions of higher education to develop a master list of postsecondary courses that can be fulfilled, for lower division general education requirements, by achieving an agreed-upon score on Advanced Placement, International Baccalaureate, or other recognized college-level proficiency exams or by meeting demonstrated competencies.

The substitute bill passed by the Committee clarifies language to include career and technical education and provides language to ensure institutions of higher education who provide an alternative approach to teaching and learning are encompassed.

Senate Ways & Means

The Senate Ways & Means Committee took action on two bills that would provide for regulatory relief for institutions of higher education.

Senate Bill 5268 would remove the exisiting requirement for approval by the Director of the Office of Financial Management with regard to meetings of members in any of the five classification groups associated with part-time boards and commissions affiliated with institutions of higher education. In addition, the bill would exempt institutions of higher education from the restrictions on personal service contracts, equipment acquisition, travel, and employment.

Senate Bill 5519 modifies public contracting limits and procedures.

Both Senate Bill 5519 and 5268 now move to Senate Rules.

House Ways & Means Hears Higher Education Pension Related Legislation

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This afternoon the House Ways & Means Committee heard two pieces of legislation that would propose changes to the current pension policies for higher education institutions.

House Bill 1083 eliminates Public Employees’ Retirement System (PERS) and Teachers’ Retirement System (TRS) Plan 1 provisions permitting retirees to receive benefits while employed in retirement system-covered positions for up to 1,500 hours per year. In addition, the bill would add positions covered by the Higher Education Retirement Plan to those included in the postretirement employment pension restrictions for PERS, TRS, the School Employees’ Retirement System, and the Public Safety Employees’ Retirement System.

House Bill 1262 limits the employees to which state institutions of higher education may offer the Higher Education Retirement Plan (HERP), instead of the Public Employees’ Retirement System(PERS) Plans 2 or 3, to faculty and senior academic administrator employees.

In addition, the bill eliminates the HERP Supplemental Benefit to employees that enter the plan after the effective date of the act; replaces the defunct Public Pension Commission with the Select Committee on Pension Policy on the committees responsible for overseeing the HERPs; creates a presumption that retirees that return to work for their previous employers fewer than three months after his or her accrual date did not separate from service; and applies the PERS post-retirement employment rules to positions covered by the HERPs.

Representatives from the University of Washington, Washington State University, and community and technical colleges testified in support of the bills with concerns.

Budget Committees Focus on Issues that Impact Higher Education

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On Thursday the Budget Committees took up a range of issues that impact higher education.

Capital Budget
The House Capital Budget Committee held a public hearing on the Governor’s proposed capital budget for 2011-13. 

 The Governor’s proposed budget woud provide $17.2 million in new state funding for the Communications Laboratory Building Renovation, the Science Center Lab I Second Floor Renovation and Life Safety Code Compliance. Additionally, the Governor appropriates $8.2 million of Evergreen’s building account funds in the capital budget for a variety preventative maintence and building repairs.

John Hurley, Vice President for Finance and Administration testified for The Evergreen State College.

House Ways & Means
The House Ways & Means Committee held a work session on the Governor’s proposed biennial budget for higher education.

The Governor’s proposed biennial budget reduces state funding for Evergreen by 26.3% for the 2011-13 biennium. In addition, the proposed tuition revenue generated leaves Evergreen’s General Operating Fund budget in deficit. The Governor’s budget does not take into account costs associated with over-enrollments and assumes greater  tuition revenue raising capacity. Under this proposal tuition revenue represents 63% Evergreen’s budget compared to 57% last biennium.

Senate Ways & Means
The Senate Ways & Means Committee held a public hearing on Senate Bill 5162 which would alter the current retire/rehire practices at higher education institutions in Washington.

House’s Proposed Supplemental Budget Moves to the Floor

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Last night Chair Ross Hunter moved the House’s proposed supplemental budget (HB 1086)  from the committee to the House floor.

Members of the House Ways & Means Committee spent several hours discussing various amendments to the bill that impact key parts of the state budget, including K-12, health and human services, and higher education.

The Committee adopted a single amendment that altered the reductions to higher education proposed in the supplemental budget. The proposed supplemental budget reduces funding by $4 million to research for the University of Washington and Washington State University.  The amendment to the bill passed last night requires UW and WSU to limit the impact of this reduction to research functions only.

Reductions to the Higher Education Coordinating Board (HECB)  and the Spokane Intercollegiate Research & Technology Institute (SIRTI) were retained.

The House’s proposed supplemental budget now goes to the House floor for further consideration.