Tag Archives: state legislature

House Expected to Vote on Biennial Operating Budget Today

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Yesterday the House Ways & Means Committee debated amendments to the proposed biennial operating budget on the House floor. The House is expected to pass the bill some time today (Saturday April 9).
The House  adopted several amendments of which a handful impact higher education.

Among the changes made to the bill is language to eliminate a proviso dedicated to the Latino/a Educational Achievement Project (LEAP) bilingual teacher mentoring program in the amount of $75,000 in each year ($150,000 total) in the Office of the Superintendent of Instruction and redirect these funds to the  to the Professional Educator Standards Board (PESB) for alternate route and teacher recruitment programs, including pipeline for paraeducators, retooling to teach math and science, and the recruiting Washington teachers program.

In addition, lanuage was added to provide $50,000 each fiscal year out of the existing appropriation for the Office of Financial Management to contract with the Washington State Quality Award for training, outreach and assessments for public agencies and their vendors. 

The language also instructs all state agencies, except the community and technical colleges,  to track and report employees trained in performance management; provide to the Government Management and Accountability Program (GMAP), State Auditor’s Office and the Joint Legislative Audit and Review Committee copies of their Washington State Quality Award (WSQA)  assessment, and to post the results to the GMAP’s website; to integrate performance management, including the Washington State Quality Award assessment, into agencies strategic plans. The community and technical colleges were amended out of the  requirement for community colleges to conduct a full Washington State Quality Award assessment by June 30, 2013.

Finally, language was included that directs the Office of Financial Management to estimate on an annual basis the percentage of Washington households with incomes in the middle-income bracket or higher, and provide a report to the Governor and appropriate committees of the legislature and directs the Work Force Training and Education Board to include in its comprehensive plan specific strategies to increase the percentage of middle-income bracket or higher households, as calculation by the Office of Financial Management and developed by the agency or educational institution that will lead each strategy.

House Operating Budget Moves to the Floor

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Yesterday the House Ways & Means Committee moved the proposed biennial operating budget out of committee and to the House floor. The bill was approved on a vote of 16-11 in committee.

The committee adopted several amendments of which a handful impacted higher education. Among the changes was the elimination of the reserve hold back for progress on academic metrics in FY13 for all institutions.  Though the hold back remains for FY12 language was added which requires the Governor in making the determination to release these funds to make all best efforts to recognize the unique role, missions, types of communities and student populations of each institution of higher education.

In addition language was added to clarify that biennial funding for STEM enrollments for all institutions are for increased enrollments and each institution must report to the Legislature at the end of each academic year on how these funds affected STEM graduation rates.
Finally, $4.7 million was restored to the Higher Education Coordinating Board.
The budget was brought to the floor late this afternoon. It is expected that  tomorrow (Friday) the House will begin debate on amendments. Final passage of the budget proposal is planned for Saturday.  As for the Senate it is expected that they will release their budget early next week.

House Republicans Unveil Alternative State Budget

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Yesterday the House Republicans introduced an alternative biennial budget. The Republicans used thirteen principles to guide their budget decisions.

The House Republican’s proposed biennial operating budget reduces state funding for higher education by $482 million (House Democrats -$482 million).

The Higher Education Sector
The majority of the total reduction to higher education came in the form of straight-up cuts to the four-year and two-year sector- $353.8 million (House Democrates -$353.8 million). In addition, the across-the-board reductions taken during the December supplemental budget by all public higher education institiutions were biennalized and included in the 2011-13 budget – $102.2 million (House Democrats -$102.2 million). The baccalaureate institutions and the community and technical colleges were also reduced one-time to reflect the fact that enrollment levels may be temporary – $26.3 million (House Democrats -$26.3 million). Finally, waiver authority for higher education institutions was capped at actual fiscal year 2010 levels and funding was reduced to reflect the difference between previous waiver authority and actual usage of the waiver – $71.6 million (House Democrats $0). 

Finally, state funding levels were  reduced to reflect a funding cap on higher education retirement plans (HERPs) of 6% – $49.6 million (House Democrats -$57.1 million). This is recognized as savings in the proposed budget.

The reductions in the House Republican proposal were offset in part by tuition increases at all public higher education institutions. The proposed budget authorizes tuition increases of 13 percent per year for the University of Washington, Washington State University, and Western Washington University; 11.5% per year for Central Washington University, The Evergreen Staate College, and Eastern Washington University; and 11% per year for the community and technical colleges – $379 million (House Democrats $379 million).

Despite the dramatic reductions in state funding and the tuition increases, the four-year public higher education institutions received additional funding of $1.5 million for Eastern Washington University, Central Washington University, and The Evergreen State College to provide, wrap-around services for low-income students (House Democrats $1.5 million). The Republicans did not include additional funding for STEM that was part of the House Democrat’s proposal.

The Republican proposal also includes $5 million for the Baccalaureate Incentive Program. Dollars would be distributed to the four-year, public higher education institutions based on demonstrated improvement in reducing the number of credits earned by students in excess of the number needed for graduation. This was not included in the House Democrat proposal. In addition, the House Republicans did not include the required hold back of funds for demonstrated improvement in metrics which measure academic progress and completion rates that was part of the House Democratic proposal.   

The Evergreen State College
Under this proposed budget state funding for Evergreen is reduced by $15.8  million over the biennium (House Democrats -$16.3 million).   This includes a combination of reductions in state funds and policy additions:

  • -$10.31 million in reduced state funding (House Democrats -$10.38 million)
  • -$1.92 million to reflect a proposed 3% salary reduction (House Democrats -$1.92 million
  • -$1.55 million for biennialized across-the-board reductions in December supplemental (House Democrats  $1.55 million)
  • -$1.024 million as a result of the 6% funding cap on HERPs (House Democrats – $1.024 million)
  • -$940,000 in one-time reduction (House Democrats -$940,000)
  • -$698,000 to reflect increase tuition revenue from tuition waivers (House Democrats – $0)
  • $500,000 to provide for wrap-around services for low-income students (House Democrats $500,000)
  • $150,000 in various studies for the Washington State Institute for Public Policy. (House Democrats $225,000)

The reductions to Evergreen’s state funding were offset in part by tuition increases for the 2011-13 biennium as stated in the budget. As a result, the net cut state funding for Evergreen is $8.45 million (-8.1%) compared to a reduction of $9.02 million, which is a net cut of 8.6% in the Democrat’s proposal.

Financial Aid
The House Republicans maintained funding for the State Need Grant at the same level as the House Democrats ($103.1 million).

The Republican’s proposal does not make the same policy changes to the State Need Grant that the House Democrats did in their proposal. In other words the Republicans maintained awards and award sizes for students attending private non-profit and for-profit higher education institutions.

Despite the increased financial support for the State Need Grant, several state financial aid programs are suspended for the 2011-13 biennium. The one exception is State Work Study. The Republicans reduced funding for work study but do not suspend it .  Those programs suspended include:

  • Health Professionals program
  • Washington Scholars
  • Washington Award for Vocational Excellence
  • College Assistance Migrant Program
  • Community Scholarship Matching Grant Program
  • Leadership 1000
  • Western Interstate Commission for Higher Education student exchange
  • Foster Care Endowed Scholarship
  • Child Care matching grant

A Deeper Dive into the House’s Proposed Budget for Higher Education

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The proposed budget, released by the House, is expected to move out of committee tomorrow (April 6 ).

The proposed biennial operating budget reduces state funding for higher education by $482 million. In addition to these reductions the budget also makes several changes to higher education in Washington with regard to funding for high demand fields, underrepresented students, and financial aid.

The Higher Education Sector
The majority of the total reduction to higher education  came in the form of straight-up cuts to the four-year and two-year sector- $353.8 million. In addition, the across-the-board reductions taken during the December supplemental budget by all public higher education institiutions were biennalized and included in the 2011-13 budget – $102.2 million. Finally, the baccalaureate institutions and the community and technical colleges were reduced one-time to reflect the fact that enrollment levels may be temporary – $26.3 million.

Though not represented as a cut in the budget, all public higher education institutions are required to put a specified amount of state fund dollars into reserve for each year of the biennium. The Office of Financial Management may release these funds to the institution only after each institution has demonstrated improvement in metrics which measure academic progress and completion rates as determined by the Governor. The metrics will be chosen by the Governor from the National Governor’s Association’s Complete to Compete initiative.   

Finally, state funding levels were  reduced to reflect a funding cap on higher education retirement plans (HERPs) of 6% – $57.1 million. This is recognized as savings in the proposed budget.

These reductions were offset in part by tuition increases at all public higher education institutions. The proposed budget authorizes tuition increases of 13 percent per year for the University of Washington, Washington State University, and Western Washington University; 11.5% per year for Central Washington University, The Evergreen Staate College, and Eastern Washington University; and 11% per year for the community and technical colleges – $379 million.

Despite the dramatic reductions in state funding and the tuition increases, the four-year public higher education institutions received some additional funding. This funding came in two forms:

  • $1.5 million was allocated to Eastern Washington University, Central Washington University, and The Evergreen State College to provide, wrap-around services for low-income students.
  • $1.4 million was allocated to each four-year, public institutiono to support 25 full-time enrollments in the STEM fields.

The Evergreen State College

Under this proposed budget state funding for Evergreen is reduced by $16.3 million over the biennium.   This includes a combination of reductions in state funds and policy additions:

  • -$10.38 million in reduced state funding
  • -$1.97 million to reflect a proposed 3% salary reduction
  • -$1.55 million for biennialized across-the-board reductions in December supplemental
  • -$1.49 million to hold-back in reserves based upon future performance on academic progress
  • -$1.024 million as a result of the 6% funding cap on HERPs
  • -$940,000 in one-time reductions
  • $500,000 to provide for wrap-around services for low-income students
  • $250,000 to provide for 25 full-time enrollments in the STEM fields (10 enrollments in FY12 and 15 additional enrollments in FY13).
  • $225,000 in various studies for the Washington State Institute for Public Policy

The reductions to Evergreen’s state funding were offset in part by tuition increases for the 2011-13 biennium as stated in the budget. As a result, the net cut state funding for Evergreen is $9.02 million (-8.6%) (total state funding reduction minus tuition revenue).

Financial Aid
The primary victory for higher education was increased funding for the State Need Grant ($103.1 million). The increase in funding from the $91 million proposed in the Governor’s budget will accomodate the proposed budgeted tuition increases at  two-year and four-year higher education institutions. It is unclear at this time how this will impact the 22,000 current students who are eligible for the grant but do not receive it due to a lack of funds.

In addition the budget proposes two major policy changes to the State Need Grant. First, award amounts are reduced for students at private institutions. The award amount is no longer linked to tuition and fees at the UW but rather to tuition and fees at the comprehensive institutions. Second, awards are eliminated to future students who attend for-profit institutions. 

Despite the increased financial support for the State Need Grant, financial aid took a large hit in the House’s proposed budget. Several state financial aid programs are suspended for the 2011-13 biennium.  These programs include:

  • Washington’s Work Study program
  • Health Professionals program
  • Washington Scholars
  • Washington Award for Vocational Excellence
  • College Assistance Migrant Program
  • Community Scholarship Matching Grant Program
  • Leadership 1000
  • Western Interstate Commission for Higher Education student exchange
  • Foster Care Endowed Scholarship
  • Child Care matching grant
  • Educational Opportunity Grants

House Releases Budgets…Nearly A Half Billion Reduction to Higher Education

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Yesterday the Washington House released its proposed biennial operating and capital budgets along with a supplemental budget for the current fiscal year.

2011-13 Operating Budget
The proposed budget (HB 1087) makes approximately $4.4 billion in total reductions. The budget reduces funding for higher education by $482 million.  The Evergreen State College is reduced by an additional $13.9 million and authorized to increase tuition by 11.5% per year for the biennium.

Reductions greater than $50 million include:

  • $1.2 billion for I-728 and I-732
  • $482 million in a general reduction to higher education institutions (in part, offset with tuition)
  • $362 million from making changes to how certain future pension benefits are calculated for Plan 1 retirees
  • $216 million from elimination of the K-4 class size enhancement
  • $176 million from a 3 percent reduction in state employee salaries
  • $141 million from hospital rates and related changes
  • $108 million from changes to the Basic Health Plan
  • $104 million from biennializing the ESHB 1086 across-the-board reduction for higher education institutions
  • $100 million in reduced Disability Lifeline cash grants
  • $97 million for reduced personal care hours for long-term care and developmentally disabled clients
  • $89 million from a change in the Federally Qualified and Rural Health Centers payment methodology
  • $61 million from changes to the K-12 National Board Bonus program
  • $57 million from limiting state contributions to certain higher education pension costs to 6 percent
  • $56 million from freezing K-12 steps
  • $53 million from a K-12 alternative learning program funding adjustment
  • $53 million in reduced nursing home rates and quality incentive payments

The budget bill also adds approximately $500 million in policy additions, some of which are expected to achieve additional savings. Policy additions include the following items:

  • $240 million (net) repayment of the K-12 apportionment delay in the 2011 supplemental budget.
  • $103 million for the higher education State Need Grant to accommodate authorization to increase tuition.
  • $72 million in K-12 related items (mostly related to converting to a new funding formula).
  • $30 million for increased debt service.
  • $23 million related to the Special Commitment Center trials/hearings.
  • $11 million for repayment to the State Efficiency and Reorganization Account.

In addition the budget also makes the following changes, transfers, and consolidations.

  • Assumes a net receipt of $300 million to the General Fund-State from the privatization (lease) of the state liquor distribution center.
  • Assumes that higher education institutions are authorized to implement tuition increases totaling $379 million for the biennium 
  • Assumes net fund transfers into the General Fund-State of $214 million, and another $124 million by permanently consolidating certain revenue sources into the state general fund.
  • Medical Purchasing Administration: The DSHS Medical Assistance Administration becomes part of the Health Care Authority.
  • Consolidates the following into the Department of Enterprise Services: The Department of General Administration, the State Printer, and parts of the Department of Information Services, the Department of Personnel, and the Office of Financial Management are merged into the new Department of Enterprise Services. Remaining portions of the Department of Personnel and the Department of Information Services are consolidated into other agencies, including the newly created Consolidated Technology Services Agency.
  • Consolidates the Department of Heritage, Arts, and Culture: The Arts Commission, the Washington State Historical Society, the Eastern Washington Historical Society, and the Department of Archaeology and Historical Preservation are merged into the new Department of Heritage, Arts, and Culture.
  • Consolidates the Indeterminate Sentence Review Board and the Sentencing Guidelines Commission are merged into the Department of Corrections.

2009-2011 Supplemental Budget

This proposal addresses the remainder of the shortfall and leaves a projected near general fund ending balance of approximately $36 million. There are two main elements to this proposal: 

  • Incorporating the latest projection of federal rates used to match Medicaid expenditure costs, $128 million; and
  • Delaying a portion of the apportionment payments that would otherwise be made to school districts in June 2011 until July 2011.  This saves a net of $240 million in the 2009-11 biennium and increases net 2011-13 costs by an equal amount.

2011-13 Capital Budget
The proposed capital budget (HB 1497) provides for approximately $1.43 billion in bond-supported capital budget capacity for the state. Of this $801 million in bond capacity is available in FY 2012 with the balance available in FY 2013.

Approximately a quarter of the capital budget is appropriated for projects that preserve the state’s public assets through renovation, preservation, and minor works projects. Higher education received $453.2 million for major renovations, preservation, and preventative facility maintenance.

In addition the capital budget creates a $10.5 million pool of emergency funds under the Office of Financial Management to address unforseen emergency repairs at state-owned facilities statewide.

The capital buget proposes $626.7 million in total funds for higher education, including $407.6 million in state bonds.  The four-year public baccalaureate institutions receive $167.3 million in state-bonds.  This includes funding for Evergreen’s Communications Building, science lab renovation, and a predesign for the Lecture Hall.

Next Steps
The House Ways & Means Committee and the House Capital Budget Committee have scheduled actions to move both budgets from committee tomorrow. The House Ways & Means Committee will convene at 3:30 tomorrow (April 6) and the House Capital Budget Committee will convene at 1:30.

2011 Legislative Session: Week 13

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Budgets, budgets, budgets…this is the focus of the upcoming week.

On Monday the House will release a proposed 2011-13 biennial budget around noon. This will be followed by a public hearing at 3:30 pm before the House Ways & Means Committee.

As predicted the House capital budget will follow with a public hearing on Tuesday at 8:00 am before the House Capital Budget Committee.  The Senate will likely release their budget either late next week or early the following week.

In addition to action on the budgets, legislators will have a long week on the floor of each chamber. 

On Friday (April 1), the Legislature passed another major deadline requiring all fiscal related bills to move from an appropriation committee to the floor.

With that in mind, this week’s schedule includes limited committee meetings – primarily focused on the budgets or interim planning – with most of the time spent on the House and Senate floor as another major deadline looms.

Both the House and the Senate have until April 12 to consider bills from the opposite chamber.

Coming Soon…Proposed Operating Budget

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The Washington House will release a proposed 2011-13 operating budget on Monday, April 4.

Representative Ross Hunter, Chair of Ways & Means and the lead House budget-writer, will hold a press conference at 12:15. It is expected that the budget will be available soon after the press conference.

The press conference will be followed at 3:30 by a public hearing on the proposal in the Ways & Means Committee.

Budget Committees Busy as Deadline Looms but No Budget

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This week the budget committees in the Washington Senate and House are busy.  On Friday (April 1) lawmakers must have moved bills from fiscal committees to the floor to keep the bills alive. The exception is any legislation that is necessary to implement the budget.

Both the Senate and House have held public hearings and executive sessions on bills that would impact higher education. Among these bills is legislation that would provide the option to four-year institutions of higher education to develop accelerated baccalaureate programs, a bill that expands academic flexibility to men and women in the National Guard, and legislation to include the Washington College Bound Program in the caseload forecast.

The Legislature will quickly turn to floor action in preparation for the next deadline on April 12. This marks the last day to take floor action on a bill that started in the opposite chamber. Most bills, with the exception of those necessary to implement the budget, will require some floor action prior to April 12.

As bills move forward, some of the most important bills – the budget bills – remain absent from the conversation. It has been nearly two weeks since the March revenue forecast which was nearly $700 million lower for the 2011-13 biennium and approximately $85 million lower in this current fiscal year.

New rumors on The Hill suggest that the House may release their operating budget on Monday (April 4) . While the Democrats and Republicans are trying to identify areas of agreement,  there is talk that the House Republicans may roll out an alternative to the House Democrat’s budget when it is released.

In the Senate the Democrats and Republicans are working together to write a budget. Both have indicated that the Senate will wait for the House to release its proposal before they release the Senate budgets.

On the capital budget funds will be tight. There is great competition for fewer dollars.  To boost capacity in the capital budget legislators are considering moving dedicated account funds into the general fund and there is some discussion of including property taxes in the base for capacity-counting purposes with other trade-offs to maintain the state’s bond rating.

A big issue with regard to the capital budget will be the fate of the bond bill. Democrats will need Republican votes to pass a bond bill which is required to authorize legislation to finance most of the capital budget through bond sales. A 60% vote is needed to pass the bill.

The capital budget is expected to follow the release of the operating budget in both chambers.