Governor Signs Supplemental Budget with Some Vetoes

On Friday the Governor signed legislation that would reduce state funding and decrease the current shortfall in this fiscal year.  

Though the majority of the funding reductions sent to the Governor by the Legislature were approved, the Governor did veto a handful of items, worth about $6 million in cuts. 

In her veto letter, Governor Gregoire stated:

  • Percent Pay Reductions: The legisatively passed budget would reduce the pay of many non-represented state employees by 3 percent beginning April 1 for a savings of $3.4million in the state General Fund.  While the Governor’s 11-13 budget proposal includes an employee pay reduction for all state employees, the early implementation date in this bill is not achievable and would have unintended consequences.
  • Depart of Information Services, Prohibition on Expenditures to Equip the State Data Center: Budget language prohibits DIS from spending any funds for the purchase or installation of equipment for the new State Data Center. This prohibition will not save any money and will significantly delay Data Center operation and budget savings made possible by the consolidaiton of existing data centers.
  • Communications Staff Savings: The budget requires agencies to achieve $10 million of savings through reduction in communications functions in the executive branch. Given the importance of the work performed by these employees, ranging from providing information on real-time traffic to public health concerns to unemployment insuranced and licensed child care facilities and the budget, it is difficult to see how the public would be served through the sudden and dramatic elimination of these staff.
  • Management Efficiencies in the Department of Social and Health Services: The budget requires DSHS to achieve state General Fund savings of $1.7 million by reducting management staff and administration in addition to achieving other efficiencies. The proposed reductions would jeopardize the department’s ability to implement the program changes required in the budget.

Despite the passage of the supplemental budget the state remains in the red. In total, the budget slashes the estimated deficit by about $370 million, with about $242 million in cuts and $125 million in transfers.

The Office of Financial Management estimates that the remaining projected deficit for this current fiscal year is $226 million, adding in the money not saved from the vetoes. The fiscal year ends in June.

“The March forecast will provide remaining information to complete the final supplemental,” Gregoire said in a statement. “The Legislature now must turn its attention to the immediate challenge of addressing the 2011-13 budget. This will not get easier with time.”

Among some of the ideas to finish patching up the deficit to the current fiscal year is delaying state payments to school districts by one day, essentially kick up the payment to the next two-year budget.

Lawmakers have spent more than a month of the 105-day legislative session trying to come up with this agreement, and now, Gregoire and legislators will have to tackle an estimated $5 billion deficit in the next two-year budget, which is roughly $37 billion.

The Senate voted 37-10 and the House voted 55-41 to approve the package.

Washington Legislature Passes Supplemental

The Washington Legislature passed the supplemental budget that would make reductions to the current fiscal budget this morning. The Governor is expected to sign the legislation this afternoon.

The supplemental budget reduces funds to the State Need Grant by $25.4 million and requires the public two-year and four-year institutions to use locally held funds to provide a commensurate amount of aid to eligible students who would have received state need grant payments. The reduction to Evergreen is an additional $368,000.

In addition,  funding reductions were made to Workforce Employment and Training (ESD) ($318,000) and the following HECB programs and services ($632,000): (1) College Readiness Program, (2) Health Sciences and Services Authority (HSSA), (3) student financial aid administration, and (4) the Technology Transformation Task Force.

Senate Higher Education Committee Hears Legislation

This morning the Senate Higher Education & Workforce Development Committee considered several bills. 

The Committee held a public hearing on five bills ranging from the establishment of the University Center of North Puget Sound to the development of common course numbering for two- and four-year institutions.

Senate Bill 5654 would require the Higher Education Coordinating Board and the State Board for Community and Technical Colleges convene representatives from each of the institutions of higher education, to establish a single set of common course numbers and common course descriptions for all common lower division courses at all institutions of higher education.

Evergreen testified with concerns on SB 5654 because Evergreen does not offer courses and does not have course numbers. Instead, the College offers single, comprehensive programs rather than a series of separate courses.  In addition, we expressed concern that if directed to adopt courses and a numbering system, Evergreen would greatly restrict the transfer policy that is currently in place.

Senate Bill 5608  would require Western Washington University to coordinate and participate with Olympic College, Everett Community College, Skagit Valley College, Whatcom Community College, Bellingham Technical College, Northwest Indian College to provide a program that leverages the leadership of returning veterans. The Evergreen State College signed-in, in support of the bill.

Senate Bill 5719 would fix tuition for students who identify as individuals with disabilities under the federal Americans with Disabilities Act (ADA). The Council of Presidents testified in opposition to SB 5719 with the primary concern being fiscal. The bill would reduce tuition revenues for institutions that would negatively impact the education and service  provided to all students.  The Evergreen State College signed-in opposed.

Finally the Committee held public hearings on two additional bills that Evergreen took no position on. Senate Bill 5674 would create the aerospace training student loan program.

Senate Bill 5636 would create the University Center of North Puget Sound. The bill assigns management and leadership of the University Center at Everett Community College to WSU to meet demands for baccalaureate and graduate degrees in Everrett, north Snohomish Island, and Skagit counties and Washington, particularly in high employer demand programs of study.

Regulatory Relief Legislation Heard in Senate Higher Education

This afternoon the Senate Higher Education & Workforce Development Committee held public hearings on a handful of bills that institutions of higher education argued would increase efficiencies and provide regulatory relief.

The institutions of higher education – including two-year and four-year public institutions – testified in support of Senate Bills SB 5516, SB 5517, and SB 5519

Senate Bill 5516 allows advance payments for equipment maintenance services for institutions of higher education. Specifically higher education institutions may make payments in advance for equipment maintenance services to be performed up to 60 months (5 years) after such payment.

Senate Bill 5517 exempts institutions of higher education that do not use archives and records management services from payment for those services.

Senate Bill 5519 changes public contracting authority. Specifically the bill removes the 2 percent target for higher education institution’s total goods and services be purchased each year from inmate programs. However, institutions must endeavor to purchase goods and services from correctional industries based on quality, service, delivery, and value. In addition the bill modifies various public contracting limits and procedures.

The Evergreen State College signed-in to support all three pieces of legislation. No further action is scheduled for these bills at this time.

House Higher Education Hears Key Policy Bill

The House Higher Education Committee held a public hearing today on a key policy bill – House Bill 1795 sponsored by Rep. Carlyle- that would impact how higher education is funded, financial aid, and accountability for higher education institutions.

The bill as drafted – both the sponsor and the higher education community continue to work on the bill – would authorize public baccalaureate institutions to set tuition rates for all students for academic years 2011 through 2014 and direct public baccalaureate institutions to retain half of all tuition raised above 7 percent to support financial aid that mitigates tuition increases for middle class students with incomes up to 125 percent of the median family income.

In addition, the bill retains tuition setting authority for community and technical colleges with the state Legislature though individual colleges may raise tuition up to the state cap if the State Board for Community and Technical Colleges does not raise up to the cap for the whole state.

The bill would also require a study to recommend a possible phase two of Washington’s GET program and establish data reporting requirements for public baccalaureate institutions in statute and repeals performance agreements.  

 

  The  Committee heard testimony from several members of the higher education community, including institutions, students, faculty, the Higher Education Coordinating Board, and the Council of Presidents.  The testimony was clearly in favor of the bill with the only concern being the lack of knowledge at this time with regard to state funding levels for higher education. The testimony strongly supported the move to a single accountability system – Compete to Complete, additional tuition flexibility at the local level, and acknowledgement to work to mitigate the impacts on students.

Further action is expected on the bill next week.

The Committee also held a public hearing on substitute legislation to House Bill 1654. House Bill 1654 requires four-year public institutions of higher education and community and technical colleges that offer applied baccalaureate degrees to charge those resident students who exceed 125 percent of credits needed to obtain their degree at a nonresident or graduate tuition rate for credits that exceed 125 percent.

The proposed substitute language grandfathers current students in under current policy, removes the reporting requirement, and adds some specific waiver language  in addition to broader waiver language for institutions.

The Council of Presidents testified that the bill provided the latitude necessary to implement the intent of the legislation. The Washington Student Association testified in opposition to the bill.

The bill is scheduled for further action next week.

Finally the Committee took further action on a handful of bills, including:

  •  HB 1394 – Enacting the college efficiency and savings act.
  • HB 1477 – Authorizing the board of trustees at Eastern Washington University to offer educational specialist degrees.
  • HB 1568 – Regarding appointing members to the boards of trustees for community colleges and the state board for community and technical colleges.
  • HB 1586 – Regarding the provision of doctorate programs at the research university branch campuses in Washington.
  • HB 1650 – Changing state need grant eligibility provisions.

Higher Education Related Issues in Other Committees

This morning the House Technology, Energy & Communications Committee and the House Labor & Workforce Development Committee  held public hearings on two bills that may impact higher education institutions in Washington.

The House Technology, Energy & Communications Committee considered legislation that would propose changes to the current organization of information technology in Washington

House Bill 1841 would create the Office of the Chief Information Officer (Office of the CIO) within the Office of Financial Management and create an Information Technology (IT) Advisory Board to advise the Office of the CIO on IT issues.

In addition the bill would eliminate the Information Services Board, replace the Department of Information Services with the newly created Consolidated Technology Services Agency (CTS Agency), and create a Consolidated Technology Services Agency Board that, among other things, approves the catalog of services offered by the CTS Agency and the rates for such services.

The House Labor & Workforce Development Committee heard legislation that would propose changes to current arbitration practices for campus police officers at institutions of higher education.

House Bill 1736 would provide binding interest arbitration for uniformed personnel under the Personnel System Reform Act and define uniformed personnel as campus police officers at institutions of highereducation.

The University of Washington testified with concerns on behalf of all of the four-year, public baccalaureate institutions.

 

Senate Higher Education Committee Holds Public Hearing

This morning the Senate Higher Education & Workforce Committee heard several proposed bills, ranging from regulatory relief to three-year degrees.

The following bills were heard:

  • SB 5268 – Enacting the college efficiency and savings act.
  • SB 5442 – Requiring the development of accelerated baccalaureate programs at state colleges and universities.
  • SB 5483 – Regarding administrative consistency in student financial aid programs.
  • SB 5484 – Concerning the higher education coordinating board’s responsibilities with regard to health sciences and services authorities.
  • SB 5443 – Requiring the higher education coordinating board to develop a grant program to encourage training for students studying in the medical field to work with individuals with developmental disabilities

The Council of Presidents testified on behalf of the four-year, public institutions in support of the value of providing pathways for students who wish to accelerate their degree attainment as proposed in SB 5442 and shared what institutions are currently doing to serve theses student . However, concerns were expressed about the requirement in the bill to create a three-year degree without attending summer classes or enrolling in more than a full-time class load during the regular academic year.

Education Appropriations Committee Holds Work Session on Four-Year Institutions

This morning the House Education Appropriations & Oversight Committee held a work session on Washington’s four-year, public baccalaureate institutions.

The focus of the work session centered on the four-year sector through a funding lens. Mike Reilly, Executive Director for the Council of Presidents, engaged the Committee in an overview of the public baccalaureate institutions regarding the recent history of higher education funding in Washington and the impact of the Governor’s proposed 2011-13 biennial budget.  In addition, Reilly highlighted the high productivity of the sector and concerns with regard to participation.

Representatives of each of the four-year, public baccalaureate institutions were in attendance for questions and answers, including The Evergreen State College.

Note: All committee presentations can be found on the House Education Appropriation and Oversight Committee’s website by clicking on Committee Meeting Documents, select the date and work session, and then select the presentation.

2011 Legislative Session: Week 5

The next week will be filled with public hearings and then executive sessions as legislators turn their attention to acting on bills by a February 18th self-imposed deadline.

Next week’s schedule includes conversations on the link between performance and funding; postretirement issues (HB 1083 & HB 1262); a work session on four-year institutions; and several efficiency and regulatory relief bills (SB 5268, SB 5516).  Please see the links below for a list of all the hearings that might be of interest.