Tag Archives: state legislature

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.

Gregoire Calls Special Session; Agencies Submit Where Reductions Would Come From

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Late last week Governor Gregoire announced that she would call the Washington Legislature back to Olympia on November 28 for a special session that could last up to thirty days by law.

The Legislature is charged with finding $2 billion in state funding reductions to fill the $1.4 billion gap expected between state revenues and projected state expenses, expected further erosion in revenues in the November 17 forecast, and calls for the state to have some money left in the general fund on July 1, 2013, when it starts the next fiscal biennium.

Legislative leaders and the top budget writers will go over plans with the governor’s staff in the next two months to prepare for the session. Word on the street is that the Governor will release her proposed budget reductions the week of October 24.

Some of the ideas that are likely to emerge in the Governor’s work may be found in state agency submissions to reduce public services and programs in response to the Governor’s request for proposals to reduce budgets by first 5% and then 10%.

State Revenue Forecast This Week; Next Steps

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On Thursday the September Economic and Revenue Forecast for Washington will be released. No one is expecting good news, in fact the talk on The Hill is how bad is the bad news going to be.

The Context

Word on the street predicts the shortfall could be as deep as $2 billion, with a likely drop in revenue to fall somewhere between $1-$2 billion. The state currently only has $163 million in reserves to last through June 2013 with the rainy day fund taken into account.

In August declining revenues led Governor Gregoire to ask state agencies – including higher education – to identify how to cut up to 10% of their budgets. A 10% reduction of all state agency budgets is estimated to yield $1.7 billion.

Revenue

The potential negative impact of a large decline in state revenues has led some Democrats to again raise the need to raise taxes and other new revenues in addition to cuts. Among the topics up for discussion includes a spring ballot measure to raise taxes.

Those historically opposed to increasing revenue have not ruled tax options out. However consideration of additional revenue for many cautious of increasing taxes must come after exhausting other options such as elimination of state programs and reform of agency operations to maximize efficiencies.  

It is unlikely the Legislature would be able to pass the threshold to raise revenues which requires a supermajority in both the House and Senate. So any increase in revenue will likely have to go to voters.

Going Forward

So what happens after Thursday. Over the last month talk of a special session in late October or early November has dominated discussions. Last week Gregoire stated that she would be unable to make the necessary reductions to balance the budget.

In order for the Governor to make the cuts on her own (i.e. without the Legislature) she would have to make across-the-board cuts. In comments last week Gregoire indicated that across-the-board cuts are no longer a viable option, information she has shared with legislative leaders. This is in part because certain state agencies cannot take further reductions, such as the Department of Corrections, without immediate and dire impacts to the citizens of Washington.

Though an across-the-board approach seems to be off the table, the Governor did not go as far as to say for certain that she would call a special session prior to the 2012 supplemental session in January. This is in part because she and others are waiting to find out if the drop in revenue is primarily in this fiscal year or next. If it is in the 2012-13 year lawmakers may be able to wait until the scheduled legislative session to solve the budget shortfall.

The idea of a special session has been met with mixed reaction. Budget writers in Olympia have shared the idea that if a special session is called they would prefer a one-day special session that would require a plan be developed and have the votes to pass prior to the special session. 

Last week Senator Zarelli, the Ranking Minority Leader on the Senate Ways & Means Committee, outlined an entirely different approach to that of a special session. He proposed the creation of a bipartisan panel to find solutions to the state’s ongoing budget problems.

In a blueprint calling for early action to balancing the state budget, Zarelli proposes the Legislature convene a bipartisan group to undertake a close examination of the workings of state government and make comprehensive detailed recommendations to the Legislature by January 1. 

The group would be charged with looking at both short- and long-term solutions to help solve the immediate budget crisis and to propose forward-thinking recommendations to bring long-term budget solutions.

The group would consist of two legislators appointed by each caucus member. One legislator would be from the caucus member’s own caucus and one from the other caucus within that particular chamber.  In addition the group would include a ninth member to serve as a non-voting chair.

Stay tuned…

Washington Lottery Announces First Contributions to Higher Education Financial Aid

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This week the Washington Lottery announced that it contributed more than $150 million to the state and its beneficiaries. This includes more than $112 million for Washington Opportunity Pathways programs and early childhood education programs.

In 2010 the Washington State Legislature created a new Washington Opportunity Pathways account to recieve lottery dollars to help fund the State Need Grant program and other state financial aid programs.

Boeing and Microsoft Make Endowment Real

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Yesterday two of Washington’s major private employers – Microsoft and Boeing – each gave $25 million to start the Washinton Opportunity Scholarship program.

The program was established under legislation signed by Governor Gregoire on Monday.

House Bill 2088 creates an endowment for students pursuing a baccalaureate degree in a high demand field.

The Opportunity Scholarship Program and the Opportunity Expansion Program to mitigate the impact of tuition increases, increase the number of baccalaureate degrees in high employer demand and other programs, and invest in programs and students to meet market demand fields of study while filling middle-income jobs with a sufficient supply of skilled workers.

The Opportunity Scholarship Board is established to identify eligible education and training programs for purposes of the opportunity scholarship, select institutions of higher education to receive opportunity expansion awards, set fundraising goals, and solicit funds. 

The Opportunity Scholarship Program will be funded by a combination of private and state moneys. The state match, which must be appropriated by the Legislature, is earned for private contributions made after the effective date and must be paid beginning the later of January 1, 2014, or the first year with state revenues 10 percent higher than those received in fiscal year 2008. The state match payments are capped at $50 million annually.

The Opportunity Expansion Program will be funded with voluntary contributions of high technology research and development tax credits.

 

Governor Signs Multiple Higher Education Bills

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Yesterday the Governor signed a suite of higher education related bills that will alter higher education in Washington over the next biennium.

The most dramatic changes to higher education come from House Bill 1795 signed into law by the Governor.  In broad strokes the bill: (1) Provides tuition setting authority to the public, baccalaureate institutions in Washington for eight years and provides increased institutional financial aid to offset tuition increases; (2) Creates a consistent, uniform, and transparent performance measurement system; and (3) Tightens existing transfer policies and expands prior learning opportunities.

The bill, as passed by the Legislature, also provided regulatory relief for the institutions ranging from changes to procurement thresholds to the elimination of restrictions on equipment, travel, and meeting spaces. However, the Governor vetoed most of this section.

Another major change will come from the passage and signing into law of Senate Bill 5182.  This bill eliminates the Higher Education Coordinating Board and creates the Council for Higher Education and the Office of Student Financial Assistance as of July 1, 2012.

To guide this restructuring effort a steering committee on higher education is created to establish the purpose, functions, and membership of the Council. The Steering Committee is chaired by the Governor or the Governor’s designee and includes four legislators and equal representation from higher education sectors in the state.

The Governor did veto a portion of Senate Bill 5182 that reflected a technical error. As the bill was drafted the effective date of the transfer of powers would occur prior to the creation of the new office of student financial assistance on July 1, 2012. The Governor vetoed this section of the bill with the acknowledgement that the new higher education steering committee will make recommendations concerning higher education governance prior to the 2012 legislative session and the expectation is that the transfers of authority will be considered as part of these recommendations.

Over the next year the Higher Education Coordinating Board will remain in place and focus on a narrower portfolio of work to reflect the reduction in funding for the agency.

The Governor also signed legislation that will alter the Committee which oversees Washington’s Guaranteed Education Tuition (GET) program. Senate Bill 5749 makes the following changes:

  • The existing two members of the Committee on Advanced Tuition Payment are appointed by the Governor for four-year terms instead of an unspecified period of time.
  • Two additional representatives from private business are added and will be appointed by the Governor for four-year terms.
  • The Committee must use the State Actuary in reviewing the GET program rather than a nationally recognized actuary, though the Committee may consult with a nationally recognized actuary.
  • A legislative advisory committee to the Committee on Advanced Tuition Payment is established to provide advice regarding the administration of the program including but not limited to pricing guidelines, the tuition unit price, and the unit payout value.

Finally the Governor signed into law legislation that will create an endowment for students pursuing a baccalaureate degree in a high demand field.

House Bill 2088 creates the Opportunity Scholarship Program and the Opportunity Expansion Program to mitigate the impact of tuition increases, increase the number of baccalaureate degrees in high employer demand and other programs, and invest in programs and students to meet market demand fields of study while filling middle-income jobs with a sufficient supply of skilled workers.

The Opportunity Scholarship Board is established to identify eligible education and training programs for purposes of the opportunity scholarship, select institutions of higher education to receive opportunity expansion awards, set fundraising goals, and solicit funds. 

Sine Die

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After a 105-day regular session and a 30-day special session the Washington State Legislature adjourned the 2011 legislative session this evening.

The 2012 supplemental session will convene on January 9, 2012.  To keep up on all the happenings between now and then stay tuned…

Senate Passes Operating and Capital Budgets; Budgets Now Head to Governor

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This evening the Washington Senate passed the conference operating and capital budgets for the 2011-13 biennium. 

2011-2103 Operating Budget
The Senate passed the operating buget with a vote of 34-13. The conference biennial budget addresses a $4.9  billion shortfall, making approximately $4.5 billion in policy level reductions. The budget reduces funding for higher education institutions by $535 million.  The Evergreen State College is reduced by $12.152 million and authorized to increase tuition by 14% per year for the biennium.

In addition the budget maintains the state need grant to offset budgeted tuition increases to students and reduces, but does not eliminate , state work study.

Bond Bill

With a vote of 46-1, the Senate passed legislation (HB 2020)  to provide $1.4 billion in new state general obligation bonds to support the 2011 Supplemental and 2011-13 Capital Budget. In addition the bill reduces 2011 Supplemental bond appropriations by $32 million.

Capital Budget

With a vote of 47-0, the Senate passed the 2011-13 capital budget (HB 1497). The  2011-13 Capital Budget authorizes $3.1 billion in new capital projects, of which $1.4 billion are financed with new state general obligation bonds.

It is the combination of HB 1497 and HB 2020 that will provide the funds to support Evergreen’s capital projects

Senate Passes Endowment Bill; Heads to Governor

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Late this afternoon the Washington Senate passed legislation that would establish an endowment for students studying in high-demand fields.

HB 2088 creates the Opportunity Scholarship Program and the Opportunity Expansion Program to mitigate the impact of tuition increases, increase the number of baccalaureate degrees in high employer demand and other programs, and invest in programs and students to meet market demand fields of study while filling middleincome jobs with a sufficient supply of skilled workers. 

 House Bill 2088 now goes to the Governor.