Tag Archives: Operating Budget

Legislature Week 7: What’s Happening

Posted on by

The seventh week of the 2010 supplemental session will be focused on the release of the House and Senate proposed 2010 supplemental budgets for operating and capital.

The House is expected to release their capital and operating budgets on Monday. Though it is unclear, the Senate is likely to release their budgets on Monday as well.  Public hearings and executive sessions on the budgets will follow on Tuesday and Wednesday.

The beginning of the week continues the Legislature’s focus on moving bills from the opposite chamber through the policy committees in preparation for the policy committee cut-off (House cut-off February 23 and Senate cut-off February 26).

Overlapping slightly will be a resurgence of fiscal committee meetings as policymakers take action on the budgets and prepare for the next legislative deadline .  All fiscal committees must move policy bills to either the floor or an appropriation committee by March 1. 

The focus of the higher education policy committees (i.e. House Higher Education and Senate Higher Education & Workforce Development) will be to move several bills impacting Washington’s institutions of higher education out of committee and either to the floor for consideration or to an appropriation committee. 

In addition, the appropriations committees (i.e. Senate Ways & Means and House Ways & Means) will meet to continue their work on budget related matters.

Revenue Forecast Released – State Deficit Ticks Up to $2.8 billion

Posted on by

Today the Washington Economic & Revenue Forecast Council released the February economic and revenue forecast.

The forecast for state funds for the 2009-11 biennium is $118.2 milion less than expected in the last forecast in November.  The reduction in state revenue is down because of a $149.7 milllion reduction associated with the DOT Foods Supreme Court decision. The increase in caseloads, the DOT Court decision, and other factors resulted in the net loss of $118 million.

If only economic factors were considered the forecast would be up by $31.5 million.

The forecast shows that economic events and revenue collections continue to unfold as was anticipated in November. However, Washington’s economy is still in the early stages of recovery so risks reported in the preview released February 5 remain serious.

Details

  • Continued tight credit for small businesses poses a significant challenge for recovery and will slow down the recovery in jobs.
  • Though consumer confidence is improving, this is tentative. Confidence is expected to continue to improve as the job situation improves.
  • House marketing indicators are signaling a potential turnaround. Single family housing starts, sales and prices have begun to firm-up, despite the overhang of excess housing which has yet to be absorbed.
  • The state’s economy continues to lose jobs but the rate has slowed to a trickle in recent months and growth in some sectors has already turned positive.
  • Construction employment continues to decline. It is estimated there is a one-year lag between turning points in permits and turning points in housing related construction employment.
  • Washington’s manufacturing sector is poised for a rebound
  • Washington’s personal income is now growing moderately.

Though things seem to be improving it is important to note that downside risks remain significant.

House and Senate Floor – The New Hot Spot on The Hill

Posted on by

Since yesterday the House and Senate have  for all intense purposes been sequestered to their respective floor chambers.

As the deadline to move bills from their chamber of origin looms (February 16) both the House and Senate are focused on moving bills forward to the opposite chamber for further consideration.

The long hours spent by policymakers, often requiring 10 or more hours on the floor, has resulted in the movement of several large pieces of legislation. Here are some highlights.

Senate Bill 6696 moved from the Senate floor to the House for consideration today. The Senate passed the bill with a vote of 41-5.

Senate Bill 6696 comprises several policy changes to K-12 to make Washington more competitive for Race to the Top dollars.  Senate Bill 6696 seeks policy and structural changes in the areas of school and teacher evaluation, assessment, and preparation. 

In a close vote (26-22), the Senate passed Senate Bill 6843. Senate Bill 6843  temporarily suspends tax-limiting Initiative 960 in its entirety. The passage of the bill publicly indicates the Senate’s intent to raise revenue in the 2009-2011 fiscal biennium.  From the effective date through July 1, 2011, any action or combination of actions by the Legislature that raises taxes may be taken with the approval of a majority of members elected to each house of the Legislature.

Senate Bill 6843 is scheduled for a public hearing on Saturday February 13 before the House Finance Committee along with other revenue related bills.

House Bill 2858, intitiated by the four-year, public institutions, passed the House 97-0.  HB 2858 provides institutions of higher education the authority to participate in group purchasing agreements.

House Bill 2973 passed this the House this evening (97-0). HB 2973 includes, in the definition of “resident student,” a student who resides in Washington and is on active military duty stationed in one of nine Oregon border counties. In addition, the bill adds a student who resides in Washington and is the spouse or dependent of a person who resides in Washington and is on active military duty stationed in an Oregon border county to the definition of “resident student.”

Finally, three bills that are intended to provide costs savings passed both the House and Senate and are headed to the Governor’s desk. 

House Bill 2998, House Bill 2921, and Senate Bill 6382 all passed the Legislature by end of day Wednesday. The bills, part of an agreed upon package by both the House and Senate, seek additional state savings by suspending state employee monetary performance-based awards through June 30, 2011; modifying appropriations for 2009-11 (does not impact Evergreen) by reducing approprations by $45.4 million; and continuing the freeze on salary and wage increases for exempt and Washington Management Service (WMS) employees of state agencies and institutions of higher learning is extended through June 30, 2011.

Caseload Forecast Up; Results in Increase in State Budget Deficit

Posted on by

Today the Washington State Caseload Forecast Council released the latest report on public program and service caseloads.  It is not surprising the demand on public services (i.e. health and human services, public education, and corrections) continues to rise.

According to the Council, the rise in caseloads has resulted in an additional $96 million reduction to the state budget. The change pushes the state’s budget deficit to about $2.7 billion.

Though the state budget hole seems to have increased today the true size of the budget deficit will not be known until this Friday (February 12). On Friday, the Washington Economic Forecast Council will release the February economic and revenue forecast for Washington.

A preview of what might be expected was provided earlier this month. According to the preview of the forecast state revenues have increased slighlty by $45-50 million.

If the preview proves to be on the money, then the hit to the state budget ($96 million) would be reduced by nearly half .

$96 million decline – $45-50 million in revenue= $51-46 million additional budget reduction

So stay tuned…

Senate Ways and Means Marathon – Tuition Policy and Teacher Preparation

Posted on by

This afternoon the Senate Ways & Means Committee held public hearings on twenty-seven different bills with plans to move out of committee nearly nineteen bills.

The stars of this afternoon’s hearing were two education related bills. 

Senate Bill 6562 a.k.a. the tuition policy bill. SB 6562 authorizes the University of Washington, Washington State University, and the Western Washington University governing boards to set tuition rates. The average annual compounded rate of change of undergraduate tuition fees may not exceed 9 percent based on the previous 15 years, or 14 percent in any one year.

The Committee on Higher Education Performance is created and authorized to approve performance agreements. The performance agreement must be six years in duration. Annual adequate performance as determined by the committee is required to maintain tuition setting authority. The committee is composed of the chairs and ranking members of the Senate Higher Education and Workforce Development Committee, Senate Ways and Means Committee, House Higher Education Committee, and House Education Appropriations.

The UW, WSU, and WWU must waive full-time tuition fees for resident undergraduate students based on family and state median family incomes. Waivers of full time tuition fees for resident undergraduate students are provided on a graduated scale in 4.5 percent increments based on state median family income and the institution’s tuition fee rate. The waivers must be reduced by the amount of any state need grant, federal, state, and institutional scholarships, grants, and waivers. Such waivers are exempt from tuition waiver limitations.

Tuition fee setting authority remains the same as current law for Central Washington University, Eastern Washington University, the Evergreen State College, and the community and technical colleges.

The State Actuary presented to the committee the potential impact on the Guaranteed Education Tuition (GET) Program.  The State Actuary, given the assumptions in the bill, concluded there is virtually no risk of the GET Program running out of assets over the next 50 years if the program remains open and all other current policies and provisions remain unchanged. The one cautionary note shared by the State Actuary was that the impact may differ if purchaser behavior changes.

President Emmert (UW), President Floyd (WSU), and Trustee Phil Sharpe (WWU) testified in support of the bill. Each one stated that the bill provided the balance needed between a quality education and an accessible education for Washingtonians. 

Members of the Senate Ways & Means Committee asked several questions, including the current percentage of state funds that make up the budget of those institutions in the bill and how under these policy changes policymakers can be assured that  student-debt load would not rise and economic and ethnic diversity would not decline. In addition members asked whether or not the tuition setting authority in the bill allows the state to back away from future state support.  Additional questions posed included the impact on retention and the middle-income student population.

Charlie Earl, Executive Director, Washington State Board for Community and Technical Colleges and the League of Education Voters also testified in support of the bill.  The Washington Student Association and students from WSU, UW, and WWU testified in opposition to the bill. Students raised concerns regarding the increases in tuition identified in the bill and the fiscal pressure that will be placed on funding for state financial aid.

Senate Bill 6696 comprises several policy changes to K-12 to make Washington more competitive for Race to the Top dollars. The House proposed similar legislation, but disaggregated the policy changes among three bills – HB 3059, 3068, 3035.

Senate Bill 6696 seeks policy and structural changes in the areas of school and teacher evaluation, assessment, and preparation.  Of importance to Evergreen are the policy changes to teacher preparation programs. In particular the bill would require Evergreen’s teacher preparation programs to offer an alternate route program, which may negatively impact the College.  If grants and Race to the Top dollars are not received, Evergreen would be left to shoulder the costs of developing and implementing this program with no additional funds. Evergreen proposed a change to the language that would make offering alternate route programs permissive. The change in language was not included in the final bill approved by the committee and passed to the floor.

Evergreen also kept an eye on several other bills.

  • SSB 6702 makes available educational programs for juveniles confined in adult jails. Each school district, within which there exists an adult jail, must provide a program of education for juveniles confined therein. Districts may contract with educational service districts, community and technical colleges, four-year institutions or other qualified entities to provide all or part of these services.
  • SSB 6761 implements the recommendations put forward by the Quality Education Council during the interim.
  • SSB 6362 requires the Legislature to identify ten government priorities to verify that state agencies and activities are performing at their highest efficiency. The ten priorities include improving: student achievement in K-12; quality and respect for the public workforce; value of state college or university education; health of state citizens; security of the state’s vulnerable children and adults; the economic vitality of businesses and individuals; statewide mobility of people, goods, information, and energy; safety of people and property; quality of the state’s natural resources; and cultural and recreational opportunities throughout the state. The State Auditor is required to select the highest priorities to audit and the lowest priorities to assess. In addition, the State Auditor is required to present its work plan at an open public meeting for evaluation and recommendations prior to commencing audits.
  • SB 6374 requires the Office of Financial Management (OFM) to include economic modeling or other procedures that take into account increased economic activity which may result from economic development contemplated in legislation  in fiscal note instructions.
  • SSB 5543 requires producers of mercury-containing lights (lamps, bulbs, tubes, or other devices containing mercury and providing illumination) sold in or into Washington to participate in product stewardship programs that are fully implemented by 2013.
  • SB 6843  temporarily suspends the two-thirds vote requirement for tax increases and permanently modifying provisions of Initiative Measure No. 960 for improved efficiency and consistency with state budgeting.
  • SB 6833 allows the Office of the State Treasurer to enter agreements with state agencies for investment by the Treasurer of funds not currently deposited with the Treasurer.  At this time higher education is exempt from the bill. Evergreen supports the bill in its current form.
  •  SB 6845 requires the collection and use of additional information regarding information technology projects, including  the requirement that OFM obtain specific information about IT projects, including current and future costs by category, estimated operating savings and other benefits, and estimated start and end dates.

February State Economic Review: Recovery in Economic Activity Continues

Posted on by

On Friday, the Washington Economic & Revenue Forecast Council released a preview of the upcoming revenue forecast.

Overall, things may be looking up.

The report states that recovery in economic activity continues in the fourth quarter of 2009, but recovery in jobs continues to lag.

Though concerns remain regarding credit to small business, the recovery of the construction sector, and the tentative nature of consumer confidence, there are reasons for positive thinking. Washington’s economy will outperform the nation, benefitting from higher overall exports and relative stability in aerospace and softwar publishing. In addition, cumulative revenue collections are on track to come in at $45-50 million above the November forecast.

Details

  • Continued tight credit for small businesses poses a significant challenge for recovery and will slow down the recovery in jobs.
  • Though consumer confidence is improving, this is tentative. Holiday shopping figures showed some evidence of a modest release of pent-up demand, but were mostly positive in growth because of the very poor results a year ago.
  • House marketing indicators are signaling a potential turnaround. Single family housing starts, sales and prices have begun to firm-up, despite the overhang of excess housing which has yet to be absorbed.
  • The state’s economy continues to lose jobs but the rate has slowed to a trickle in recent months and growth in some sectors has already turned positive. In addition, initial state unemployment claims seem to be indicating an imminent turnaround in the state’s labor market.
  • New housing construction in the state continues to improve according to housing permit data.
  • Construction employment continues to decline. It is estimated there is a one-year lag between turning points in permits and turning points in housing related construction employment.
  • Washington’s manufacturing sector is poised for a rebound
  • Washington’s personal income is now growing moderately.

Though things seem to be improving it is important to note that downside risks remain significant and at the same level as in November. There is a risk of a double-dip  or “W-shaped” recovery where economic activity lags in the fourth quarter of 2010. This is likely to happen if by the middle of next year consumer spending and confidence fails to recover as is expected.

The official February revenue forecast is scheduled for February 12.

Senate Policy Committees Continue to Take Action on Bills

Posted on by

Today Senate Policy Committees were busy moving bills forward before the cut-off deadline on Friday.

Senate Higher Education & Workforce Development

The Senate Higher Education & Workforce Development Committee passed a tuition policy bill for the University of Washington, Washington State University, and Western Washington Univerrsity.

Substitute Senate Bill 6562 allows the board’s of UW, WSU, and WWU to set tuition rates within limits. Tuition (the average annual compounded rate of change of undergraduate tuition fees)at these institutions is not allowed to exceed 9% based on the previous 15 years or 14% in any one year. In addition, the Committee on Higher Education Performance is created and authorized to approve performance agreements for UW, WSU, and WWU. Finally, these institutions must waive full-time tuition/fees for resident undergraduate students based on family and state median family income levels. The waivers are based on a graduated scale based on state median family income and institutional tuition fee rates.

For Evergreen as well as Central Washington University, Eastern Washington University, and the community and technical colleges tuition fee setting authority remains the same as current law.

The substitute bill was further amended in committee. The amendments establish a sunset for tuition setting authority for the three institutions in the bill at the end of the 2017-18 academic year; change the title from Relating to higher education finance to Relating to higher education accountability and access; and modifies the Committee on Higher Education Performance to include members from the minority party.

Substitute Senate Bill 6562 passed unanimously out of committee. The bill is now headed to Senate Ways & Means for their consideration.

Senate Early Learning & K-12 Education

The Senate Early Learning & K-12 Education committee took action on an omnibus teacher preparation and K-12 bill. Substitute Senate Bill 6696 includes the following changes related to teacher preparation.

Section 402: Clarifies that community colleges and non-higher education providers can be considered for new providers of the alternative routes. Moves the option for residency teacher preparation programs to provide a summary of procedures providing flexible completion opportunities to section 403 and makes it part of what alternative route providers must include in their application.

Section 403: Removes “higher education” since such institutions will not be the only providers of alternative routes.

Section 409: Clarifies that the service regions for institutions of higher education is for those institutios of higher education as defined in RCW 28B.10.016 (all the 4-year universities and college & the community and technical colleges).

In addition, Substitute Senate Bill 6696 was amended as follows related to teacher preparation: (1) Amends the four-level evaluation system for teachers to use student growth data if available and relevant to the teacher and subject matter. Requires the school districts participating in the pilot of the teacher and principal evaluations to submit all student data to OSP; (2) Amends section 202 by adding a parent representative to the group that will create models for implementing the new teacher and principal evaluation system, student growth tools, professional development programs, and evaluator training for classroom teachers and principals. The parent representative must have certain specified qualities and will be chosen by the PTA using a lottery system; (3) Moves the phrase addressing professional development so that it applies to both closing the achievement gap and STEM; and (4) Amends the evaluation criteria for classroom teachers in section 202 to include collaborating, not just communicating with parents and school community.

House Moves Furlough Bill Forward to the Floor

Posted on by

Monday evening the House Ways & Means Committee passed Senate Bill 6503 (a.k.a. the furlough bill) out of committee and to the House floor. After four scheduled executive sessions on the bill the committee finally moved the bill forward by a 12-10 vote along party lines.

The bill headed to the House floor for a vote looks different than the bill received from the Senate.

scan0005

The subsitute bill includes, but is not limited to, the following:

– An intent section is added stating the Legislature intends that state agencies and institutions of higher education reduce government operating costs through the methods described in the act by $50 million from the General Fund-State and the Education Legacy Account, as well as additional proportionate amounts from other funds.

– The Office of Financial Management (OFM) shall certify to each state agency the compensation reduction amount to be achieved by the executive branch agency or institution.

– Executive branch general government state agencies and higher education institutions may submit plans that achieve compensation cost savings equal to closing the agency for 11 days to the OFM by May 15, 2010.

– Compensation reduction plans submitted by higher education institutions may include leave without pay, temporary layoffs, reductions in force, reduced work hours, and voluntary retirement, separation, and other incentive programs authorized by law. By June 1, 2010, the OFM shall review, approve, and submit the higher education institution plans that achieve the required cost reductions to the legislative fiscal committees. Those institutions that do not have approved plans will close on the 11 dates specified in the amendment.

Senate Bill 6503 now goes to the House floor for a vote. If it passes the House, the bill will return to the Senate for consideration of the amended legislation.

House Ways & Means Committee Amendments Provide Exemption for Higher Education Employees From Statewide Salary Freeze

Posted on by
Reply

Two amendments proposed to Substitute Senate Bill 6382, which would extend a salary freeze on exempt and Washington Management Service Employees statewide, will allow an exception of certain Higher Education employees.

Including those already excepted, those employees spared from the salary freeze are, according to the amendment language, “exempt higher education personnel for critical retention purposes or additional summer quarter responsibilities,” and other exempt personnel covered under collective bargaining agreements.

SSB 6382, the first Senate bill to be considered by the House Ways & Means Committee during this session, was passed out of committee. A procedural point was made by staff that the two amendments will be considered as one when the bill is referred to Rules Committee.

Bills Galore in Higher Education Committees

Posted on by

Evergreen ran the gauntlet this morning in an attempt to be in multiple places at once. On Tuesdays, the House and Senate higher education committees meet at the same time. As a result, Tuesdays are always a high exercise day as higher education folks strategically move from one committee to the other and back again.

Amid this structured chaos, Evergreen was able to weigh in on multiple bills heard in both committees that impact higher education in various ways.

In the House Higher Education Committee, The Evergreen State College spoke to the College’s support for HB 2858 and HB 2854. House Bill 2858, a.k.a. the purchasing bill, would allow four-year, public institutions to participate in group purchasing. The use of group purchasing would provide Evergreen with additional cost savings.

House Bill 2854 moves forward policy implemented during the 2009 legislative session. HB 2854 would build on the establishment of the Higher Education Loan Program (HELP) by creating the HELP account, establish criteria for student participation and establish annual limits on loans to be granted under this program. The Evergreen State College testified in support, along with students, the HECB, and career colleges. Taking the lead from the sponsor of the bill, Rep. Kenney, Evergreen’s testimony: (1) emphasized the importance of first funding grants and work study opportunities for students before considering loans and (2) recognized the important of low-interest, public loan options for students pursuing a college education.

In addition, Evergreen expressed concerns regarding House Bill 2655 and House Bill 2822. House Bill 2655 implements the Higher Education Coordinating Board’s System Design Study completed in 2009. Evergreen is concerned that the bill, as drafted, does not reflect the recommendations of the HECB’s study. Evergreen is working, through the Council of Presidents, with the HECB to ensure that the final draft does reflect the hard work of the System Design Work Group. Evergreen also expressed similar concerns regarding Senate Bill 6355 the companion bill to HB 2655.

Finally, House Bill 2822 would require higher education institutions to include proposed tuition and fee rates for the next two-year period as a component of the institution’s proposed operating budget outlines submitted to the HECB. The Evergreen State College, along with the University of Washington, and community colleges acknowledged the work of the HECB on tuition policy over the past year, but expressed concerns regarding the limits that HB 2822 would place on an institution’s ability to consider tuition as the last dollar in once the state established appropriation and financial aid funding levels.

On the Senate side, Evergreen supported Senate Bill 6357 which would create consistency with regard to academic recognition of prior experience.

Finally, Evergreen expressed opposition to Senate Bill 6358 which would fiscally penalize students if they accumulate more than 125 percent of credits, drop more than 25 percent of credits, or remain on academic probation for more than one quarter or semester. Evergreen is concerned the proposed policies outlined in the bill would negatively impact retention and the pursuit of a college education for students.