Tag Archives: Operating Budget

Legislature Advances Conference Budget

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This afternoon the Washington Legislature released a final conference supplemental operating budget.

The final supplemental operating budget would boost the state’s $33.6 billion dollar budget by approximately $155.1 million. Of the $155.1 million over half  ($89.2 million) is associated with changes to maintenance level caseloads and adjustments based on current law requirements. This includes $12 million for higher than anticipated College Bound enrollments. The remainder ($65.9 million) is focused on net policy enhancements and increases including $5 million for the State Need Grant due to the passage of the Real Hope Act and approximately $25 million for the Washington State Opportunity Scholarship Program.

Higher Education

The supplemental budget proposed by the Legislature supports the investment made in higher education in the 2013-15 biennial budget.

The budget makes a handful of investments in higher education including $5 million for the State Need Grant which was expanded under the Real Hope Act, $25 million to expand Opportunity Scholarships available and match the additional private contributions received, restores State Need Grants for students attending for-profit institutions and indicates intent in the next biennium to reconsider grant awards for students at private four-year institutions.

In addition the budget includes language for  the Washington State Auditor to conduct an audit of the use of dedicated local and operating fee accounts by Washington’s public higher education institutions and the Education Research and Data Center to collect and publish short-term and long-term earnings and employment data for completers of higher education degrees.

The budget also reduces funds for higher education institutions as part of the savings attained through LEAN management strategies. The biennial budget passed last summer required all state agencies, including higher education institutions, to attain LEAN management savings of $30 million. Higher education’s portion of this reduction was approximately $2.1 million. Evergreen’s portion of this reduction was $72,000 in FY15. The conference budget advanced today increases this savings required of agencies to $40 million.

The budget also extends the tuition freeze for the first half of the biennium to the second year of the biennium.

Finally the budget provides for a series of investments to institutions including $2 million to expand enrollments in computer science and engineering for Central Washington and Eastern Washington Universities, $1 million for the University of Washington’s Institute of Protein Design, $410,000 for the MESA community college program, $350,000 for a pilot project to embed the year up model within community college campuses, and $750,000 for Washington State University to pursue Jet Fuels research.

Senate Ways & Means Holds Hearing on Proposed Senate Operating and Capital Budgets

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On Tuesday afternoon the Senate Ways & Means Committee held a public hearing on the Senate’s proposed 2014 supplemental operating and capital budgets. Evergreen, along with other higher education stakeholders, testified to the impact of the supplemental budgets on institutions and students.

The Committee is expected to hold an executive session on the budgets later today.

Operating Budget

Evergreen thanked the Senate for the investment in higher education in the biennial budget and shared with the Committee Evergreen’s commitment to not increase tuition in either academic year of the biennium.  In addition, the College shared its support for the investment in the College Bound program, the State Need Grant with the passage of the Real Hope Act, and the Opportunity Scholarship.

Evergreen shared concerns with the committee about the inclusion of policy language to collect and distribute information with regard to student earnings post-graduation.  Citing the importance of accurate and clear post-graduation success data, Evergreen testified with specific concerns about the validity and integrity of the data to be collected as proposed. Evergreen shared its support for a proposed amendment that was offered by the University of Washington when similar language was considered in the House Higher Education Committee.

Finally Evergreen shared the impact of budget reductions to the College in the biennial budget including reductions related to the absorption of IT savings and Lean Management efficiencies.

With regard to higher education, the supplemental budget proposed by the Senate supports the investment made in higher education in the 2013-15 biennial budget. The budget does extend the current tuition freeze to the second year of the biennium.

The budget makes a handful of investments in higher education including $5 million for the State Need Grant which was expanded under the Real Hope Act and $25 million to expand Opportunity Scholarships available and match the additional private contributions received. In addition the budget includes language for the Washington Student Achievement Council to conduct an assessment of the higher education needs of the city of Covington, the Washington State Auditor to conduct an audit of the use of dedicated local and operating fee accounts by Washington’s public higher education institutions and the Education Research and Data Center to collect and publish short-term and long-term earnings and employment data for completers of higher education degrees.

Capital Budget

Evergreen thanked the Senate for providing Evergreen with the authority to enter into a certificate of participation, through the Office of the State Treasurer, to purchase the building the College currently leases for the College’s Tacoma program.

Evergreen shared concerns with regard to a budget shift which moves $855,000 from General Obligation Bonds to Evergreen’s Capital Projects Account Fund.

With regard to higher education the Senate provided funding for a small number of projects across higher education. This includes authority for Evergreen to enter into a certificate of participation to purchase the existing facility in Tacoma for the College’s Tacoma program; $2 million to remove, clean and dispose of two underground diesel oil tanks at Central Washington University; and $50,000 to conduct a budget evaluation study  of the Carver academic building renovation with OFM and Western Washington University.

Funding Model Task Force To Meet Next Week

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The Technical Incentive Funding Model Task Force established by the Legislature in the 2013-15 biennial operating budget will begin its work next week in Seattle.

Focused on the four-year, public higher education sector the Task Force will focus on developing an incentive funding model to provide new incentives for Washington’s public baccalaureate sector that demonstrate improvement in existing performance measures and control resident undergraduate tuition growth.

The focus of the first of five meetings will be to set the context for this discussion. Among the key questions that will drive the conversation are:

  • What’s the role for public four-year institutions in Washington?
  • What are the changes facing these institutions?
  • What is the role of performance funding within this context?

Governor Signs Operating Budget

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On Sunday Governor Inslee signed into law the 2013-15 biennial operating budget with a modest list of vetoes.

Among the items the Governor vetoed were three studies directed to the Washington State Institute for Public Policy, an Evergreen public service center.  These include:

  • Extraordinary Foster Care Cost Study based on the reasoning that a study is not necessary at this time.
  • Safety Assessment Tool Study based on the reasoning that a study at this time would be premature when the Department of Social and Health Services has not yet determined whether the assessment tool will continue to be used, modified, or maintained.
  • K-12 Funding Task Force based on the reasoning that another task force is duplicative of proposals from recent work groups.

The legislatively passed operating budget makes the strongest investment in higher education in years. The proposed budget assumes no increases in resident undergraduate tuition rates for the 2013-15 biennium. For 2013-14 the public, four-year institutions are prohibited from using tuition-setting authority to exceed the appropriated tuition level.

The total budget provides $3.1 billion in state funds to support higher education. The budget provides $119.3 million in funding to support the core academic functions of the institutions of higher education. Finally the budget makes an investment in financial aid including the College Bound Scholarship program and the State Need Grant.

Final Budget Deal Reached and Delivered to Governor

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Late Thursday night the Washington Legislature released details on a final budget compromise for the 2013-15 biennium. And by late this evening the Washington Legislature forwarded the final budget to Governor Inslee’s desk for signature.

Overall the proposed budget makes several policy enhancements, primarily in education.  These include: (1) over $1 billion in K-12 education increases for basic education; (2) over $180 million in policy level enhancements in state funding for higher education; and (3) $25 million for expanded preschool through the Department of Early Learning.

In addition the budget leaves approximately $630 million in reserves.

These enhancements as well as the other parts of the budget are funded through a combination of savings, transfers, and the redirection of funds.

  • $1.6 billion in spending controls and savings: (1) $320 million by re-purposing Initiative 732, (2) $351 million through federal Medicaid expansion, (3) $272 million by temporarily extending the hospital safety net, (4) $40 million in LEAN, information technology and centralized service efficiencies, (5) $34 million in savings by aligning health benefit eligibility for state, higher education and K-12 employees with the federal Affordable Care Act, (6) $20 million in changes to the Housing & Essential Needs (HEN) program and support for the Aged, Blind and Disabled (ABD), (7) $162 million in caseload and policy changes affect TANF and Working Connections Child Care, (8) $31 million by delaying nursing home re-basing, and (9) $300 million in savings in all areas of government
  • $500 million in transfers: The largest fund transfers include $34 million from the Life Science Discovery Fund, $22 million from the State Treasurer’s Service,  $277 million from the Public Works Assistance Account, and $387 million in redirection of capital budget and other revenue funds

Finally the budget assumes $267 million in other resources. This increase includes a combination of $11 million in legislation reducing revenue and $279 million in legislation/budget actions increasing revenue. The source of the increased revenue is: (1) $159 million from enactment of the estate taxes, (2) $110 million from telecommunications services reform, and (3) $9.5 million from enhanced liquor revenue collected by the Department of Revenue.

Higher Education

The legislatively passed operating budget makes the strongest investment in higher education in years. The proposed budget assumes no increases in resident undergraduate tuition rates for the 2013-15 biennium. For 2013-14 the public, four-year institutions are prohibited from using tuition-setting authority to exceed the appropriated tuition level.

The total budget provides $3.1 billion in state funds to support higher education. The budget provides $119.3 million in funding to support the core academic functions of the institutions of higher education. Finally the budget makes an investment in financial aid including the College Bound Scholarship program and the State Need Grant.

In addition $17.6 million is provided to the University of Washington (UW), Washington State University (WSU) and Western Washington University to expand enrollments in computer science and engineering. Additional dollars are provided to WSU to expand their medical programs in Spokane and to establish the Clean Energy Institute and the Center on Ocean Acidification at the UW.

Evergreen

For Evergreen the budget passed by the Legislature would require that tuition remain at zero for the 2013-15 biennium for undergraduate resident students. The College is prohibited from increasing tuition in 2013-14 but may increase tuition beyond this level with a prescribed investment in institutional financial aid in the following year.

In addition the budget invests $2.899 million above maintenance level funding  for Evergreen. This represents a 5.6% increase from 2011-13 levels and provides funds for Evergreen to maintain affordable tuition, invest in student success programming, and support needs in basic technology infrastructure.

Finally, the Washington State Institute for Public Policy, a public service center of Evergreen, is funded to support seven study/research projects for the Legislature.

Next Steps

The Governor is expected to sign into law the operating budget on Sunday. It is reported that no further action will be taken to try to move forward a transportation revenue. Finally, it is expected that a biennial capital budget will be released later this evening or tomorrow with hopes that the final capital budget will be sent to the Governor for his signature on Sunday.

Budget Deal Near, We Think

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Yesterday Governor Inslee held a press conference to provide an update on the special session. Inslee stated that a major breakthrough in the negotiations had taken place in the morning and that a budget deal was imminent.

As of this morning no announcement regarding a final deal or what that deal will look like. Word on the street is that budget negotiators are focused on the smaller details of the budget, closing in on a final deal.

On the heels of a positive revenue forecast last week, momentum has picked up to bring a close to this second special session prior to July 1 and well before the full thirty days run out. The House and Senate convened for floor action on Sunday afternoon and again Monday afternoon, passing non-controversial legislation deemed necessary to implement the budget.

Today both chambers are convening earlier in the day with the House arriving this morning and the Senate at Noon.

House and Senate Democrats Release Proposed Operating Budget

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Today the Washington State House, in partnership with the Senate Democrats, released a proposed biennial operating budget for the 2013-15 biennium.

Overall the proposed budget addresses the state’s $2.6 billion budget problem through policy enhancements, fund transfers, reduced spending, and increased resources.

The House proposal makes $1.5 billion in additional policy enhancements, the majority of which are in K-12 ($955 million). Among the investments made include:

  • $839 million to K-12 to fund increased materials, supplies, and operating costs; reduce early elementary class size (K-3); fund pupil transportation and expand all-day kindergarten
  • $146 million for home care worker compensation
  • $68 million for postsecondary education financial aid
  • $30 million for Early Childhood Education Assistance Program enhancements
  • $25 million for debt service on anticipated new capital projects
  • $24 million for state parks

These enhancements as well as the other parts of the budget are funded through a combination of savings, reduced spending, and increased resources.

  • $509 million in fund transfers
  • $1.6 billion in reduced spending
  • $339 billion in increased revenue

The House proposal leaves $606 million in projected total reserves.

Higher Education

The House proposal makes an investment in higher education that moves in the right direction. The budget provides $11 million in targeted funding for state instructional support.

The proposed budget assumes a  3% tuition increase for all of the four-year public institutions and the community and technical colleges.

The budget includes language requiring the Office of Financial Management to convent a joint committee to propose an incentive funding model for the public baccalaureate institutions.

Finally the budget makes an investment in financial aid including the College Bound Scholarship program and the State Need Grant.

The House proposal continues the suspension of some small state financial aid programs from 2011-13 including suspension of Washington Scholars, WAVE, Health Professional Scholarships, and Future Teacher Scholarships.

Evergreen

For Evergreen the House’s proposed budget would allow tuition for undergraduate residents to increase by 3% per year of the biennium. The College may increase tuition beyond this level but would be required to invest in institutional financial aid.

In addition the budget appropriates $1.157 million for the purpose of instructional support. These funds include $405,000 in additional funds to support this effort and $752,000 that would come to the College if the proposed revenue budget (HB 2034) is passed.  If the revenue package is not passed by the Legislature, then the $752,000 would be met within existing college funds. Evergreen is required to provide a report by September 1, 2014 that provides the specific details on how these amounts were spent in the preceding fiscal year and any process changes or best-practices implemented in the College.

Finally, the Washington State Institute for Public Policy, a public service center of Evergreen, is funded to support a comprehensive study of the financial incentives promoting distributed generation in Washington and to provide primary staff support for a K-12 funding task force.

Next Steps

The House is expected to move the  proposed biennial operating budget out of committee this afternoon followed by a vote on the floor on either Thursday or Friday.

Action Picks Up on The Hill

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Today the Washington Legislature went from zero to sixty in terms of action.

After nearly three weeks of little action- though budget negotiations continued – the House Democrats and Senate Democrats released a proposed operating budget and a smaller revenue package.

The release of a proposed budget comes on the heels of action earlier this week and late last week  regarding the estate tax. Late last week the House Finance Committee moved legislation to fix a loophole in the state’s estate tax that was caused by a Supreme Court decision earlier this year. The Senate Ways & Means committee voted on its response to the court decision earlier this week.

Yesterday Governor Inslee held a press conference urging movement towards a final budget. With one week left the Governor expressed his increasing concern, especially given the differences between the Senate and the House to address the estate tax, about the lack of progress.  He stated again and again that seven days remain to get the job done.

Today the House and Senate Democrats released a proposed operating budget and revenue package at noon followed by a public hearing on the revenue package and an executive session on the proposed budget.

It is expected that the House will convene on the floor tomorrow and Friday to pass the proposed budget and revenue package as well as some additional policy bills. The Senate is also expected to convene to consider its proposed estate tax legislation and a bill to increase penalties for DUIs.

Washington Senate Committee Moves Higher Education Legislation

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Today the Washington Senate Ways & Means Committee took action on two higher education bills.

Senate Bill 5941 would reduce tuition by 3% for undergraduate resident students for the 2013-15 biennium at the public baccalaureate institutions and community and technical colleges. Beginning in 2015-16 through 2018-19 the public baccalaureates and the community and technical colleges could not raise resident, undergraduate tuition cannot exceed inflation.

The bill also allows for the following exception if SB 5942 passes. If the Legislature does not provide sufficient funding to meet baseline funding levels then the institutions can increase resident undergraduate tuition for the following academic year necessary to achieve the baseline funding levels.

Senate Bill 5942 would create a baseline level of funding beginning in 2014 that is equal to the maintenance level appropriations in the 2013-15 budget expressed as a per-resident student rate based on a three-year average of the number of actual FTE enrolled resident students. The per-resident student is also required to increase each fiscal year by the rate of inflation.

Also in 2014 any funds available after meeting the baseline levels or increases to higher education would be required to be distributed based on performance to institutions. The funds would be distributed on a proportional basis and for the public four-years based on a three-year average performance on five metrics.

  1. Average time to degree for undergraduate students
  2. Number of undergraduate high-demand degrees produced
  3. Freshman retention
  4. Low-income populations
  5. Space utilization

Finally the bill would establish a work group to review the per-resident student rates utilized to establish baseline funding and make recommendations for achieving equal funding for similar institutions by the 2017-19 biennium.

Three amendments were offered to SB 5942, though none of the amendments were passed.

  • Would strike the entire bill and replace it with language to direct the Office of Financial Management to convene a technical incentive funding model task force to design an incentive funding model to provide new incentive funding to four-year institutions of higher education that demonstrate improvement on existing performance measures and to control resident undergraduate tuition growth.
  • Would make students who are enrolled or accepted for enrollment for at least three-quarter credits or the equivalent semester hours, in a qualifying higher education program, eligible for the State Need Grant program.
  • Would require the State Auditor to conduct a comprehensive financial audit of UW and WSU.

Both bills were moved out of committee and to the Senate floor for further consideration.