Day 90 of 105 Day Regular Session

With only 15 days to go in the 2013 regular legislative session all attention is directed towards two primary objectives. First pass legislation that is still active in the process before cut-off on Wednesday. Second, finalize an agreed upon conference budget between the Washington Senate and House.

Legislation

For the majority of bills still “alive” this session this Wednesday, April 17  at 5:00 p.m. marks the final day of consideration for bills that started in the opposite chamber. In other words, House bills must pass the full Senate, and vice versa. The exceptions are NTIB (Necessary to Implement the Budget) bills and policy bills that have been labeled as “go-home” bills.

Budget

Late last week, the Washington House passed a proposed 2013-15 biennial operating budget, primarily along party lines.  One week prior, the Washington Senate passed its proposed biennial operating budget with a vote of 31-18 that included members from both parties.

The Senate’s proposed budget makes some enhancements, primarily in education. The enhancements as well as the other parts of the budget are funded through a combination of savings, transfers, and the redirection of funds. In addition, the proposal balances the budget and leaves a reserve. Finally the budget assumes $61 million in new revenues. This increase includes a combination of $11 million in legislation reducing revenue and $72 million in legislation/budget actions increasing revenue.

The House’s proposal  addresses the state’s $3.4 billion budget problem through policy enhancements, fund transfers, reduced spending, and increased resources. The House proposal makes $2 billion in additional policy enhancements, the majority of which are in K-12 ($1.4 billion). These enhancements as well as the other parts of the budget are funded through a combination of savings, reduced spending, and increased resources. Finally, the House proposal leaves $337 million in projected total reserves.

The budgets also differ in what they fund for higher education, though both budgets provide roughly the same level of investment – $100 million (this includes funding for the two- and four-year sectors and financial aid).

The Senate proposal assumes no increases in resident undergraduate tuition rates for the 2013-15 biennium. The budget provides $77.8 million in funding to support the core academic functions of the institutions of higher education and an additional $50 million in recognition of the institutions performance in support of statewide goals relating to student retention and degree completion. Finally the budget makes an investment in financial aid including the College Bound Scholarship program and the State Need Grant. The investments in the Senate proposal are funded in part ($59 million) with dollars that would be generated from a 20% surcharge on international students who attend the two- and four-year public institutions.

The House proposal  provides $11 million in targeted funding for state instructional support and $12 million to support biofuels and clean energy programs. The proposed budget assumes a  3% tuition increase for The Evergreen State College, Eastern Washington University, Central Washington University and the Community and Technical Colleges; and a 5% tuition increase for Western Washington University, Washington State University, and the University of Washington. Finally the budget makes an investment in financial aid including the College Bound Scholarship program and the State Need Grant.

Next Steps

The primary focus over the next two days will be to move bills prior to the Wednesday cut-off. Once this deadline passes all attention will be focused on the development of a biennial conference budget. And within this discussion whether or not the Washington Legislature will go into special session to complete their work.

Capital Budgets Galore

Today the House released its proposed biennial 2013-15 capital budget and the Senate held a pubic hearing on its biennial proposal.

The Washington House’s proposed capital budget provides funding for a number of projects across higher education. This includes funding for two projects at Evergreen – the renovation of the Science Lab 1 Basement and the Science Lab 2 second floor.

In addition the budget includes funding for minor works preservation and preventative maintenance. Though the  House’s budget does provide some funding for minor works preservation it does not fully fund the College’s request.

The proposed budget does not fund the design phase of the Lecture Hall Renovation, the predesign for the renovation of Seminar I, and the acquisition of land and design for the Tacoma Campus.

Next Steps

The Senate Ways & Means Committee is scheduled to hold an executive session on their proposal on Thursday. The House expected to do the same on their proposal on Friday morning.

Senate Releases Biennial Capital Budget

This afternoon, with little fanfare, the Washington Senate released a proposed biennial capital budget.

The Senate’s proposal provides funding for a small number of projects across higher education. This includes funding for two projects at Evergreen – the renovation of the Science Lab 1 Basement and the Science Lab 2 second floor.

In addition the budget includes funding for minor works preservation and preventative maintenance. Though the  Senator’s budget does provide some funding for minor works preservation it does not fully fund the College’s request. The Senate’s proposal is approximately $1 million less than the budget proposed by Governor Gregoire in December.

The proposed budget does not fund the design phase of the Lecture Hall Renovation, the predesign for the renovation of Seminar I, and the acquisition of land and design for the Tacoma Campus.

The proposed capital budget is scheduled for a public hearing tomorrow in Senate Ways & Means.

Washington Senate Releases Budget, Makes Some Investment in Higher Education

This week  the Washington State Senate released and passed a proposed biennial operating budget for the 2013-15 biennium.

In a press conference Senator Andy Hill, Chair of the Senate Ways & Means Committee framed the budget using four numbers.

  • Zero: The deficit in the budget for the supplemental session
  • Four: The number of years the budget is balanced
  • Twenty-One:  The budget builds an education system for the 21st century
  • One-Hundred and Five: The plan to finish this work within the regular session of the Legislature.

Overall the proposed budget makes some enhancements, primarily in education; balances the budget; leaves a reserve; makes some savings; and redirects funds from the capital budget and other revenue.

The Senate proposal makes three primary enhancements in the area of education:

  • Provides funds for over $1 billion for K-12 education by continuing the phase-in of HB 2776 requirements and enhancing other basic education programs;
  • Makes over $100 million in policy level enhancements in state funding for higher education;
  • Expands preschool through the Department of Early Learning

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

  • $2 billion in spending controls and savings: (1) $321 million by re-purposing Initiative 732, (2) $303 million through federal Medicaid expansion, (3) $238 million by temporarily extending the hospital safety net; (4) $151 million in administrative efficiencies (including higher education); (5) $127 million in savings by aligning health benefit eligibility for state, higher education and K-12 employees with the federal Affordable Care Act; (6) $113 million in changes to the Housing & Essential Needs (HEN) program and support for the Aged, Blind and Disabled (ABD); and (7) $183 million in caseload and policy changes affect TANF and Working Connections Child Care.
  • $179 million in transfers: The largest fund transfers include $42 million from the Life Science Discovery Fund, $20 million from the State Treasurer’s Service, and $15 million from the Public Works Assistance Account.
  • $262 million in redirection of capital budget and other revenue funds

Finally the budget assumes $61 million in new revenues. This increase includes a combination of $11 million in legislation reducing revenue and $72 million in legislation/budget actions increasing revenue.

Higher Education

The Senate proposal makes an investment in higher education that moves in the right direction. The proposed budget assumes no increases in resident undergraduate tuition rates for the 2013-15 biennium. The budget provides $77.8 million in funding to support the core academic functions of the institutions of higher education and an additional $50 million in recognition of the institutions performance in support of statewide goals relating to student retention and degree completion. Finally the budget makes an investment in financial aid including the College Bound Scholarship program and the State Need Grant.

Additional dollars are provided to WSU to expand their medical programs in Spokane and to establish the Center on Ocean pH Balance within the UW.

The investments in the Senate proposal are funded in part ($59 million) with dollars that would be generated from a 20% surcharge on international students who attend the two- and four-year public institutions.

Evergreen

For Evergreen the Senate’s proposed budget would require that tuition remain at zero for the 2013-15 biennium for undergraduate resident students. The College may increase tuition beyond this level but would be required to invest in institutional financial aid.

In addition the budget provides $1.515 million above maintenance level funding to  support the core academic functions of the institutions of higher education and $953,000  in recognition of the College’s performance in support of statewide goals relating to student retention and degree completion. Evergreen, along with the other public baccalaureate institutions, is reduced by $356,000 to meet additional administrative efficiencies.

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

Next Steps

On Friday the Washington Senate passed the proposed biennial operating budget with a vote of 30-18. The vote was a mix of Democrats and Republicans. The proposal now goes to the House for consideration.

The House is expected to release their operating budget sometime this week.

Both chambers have yet to release a 2013-15 biennial capital budget.

Higher Education Committees Continue Work

Last week the House and Senate passed the halfway mark in the session. All bills must have moved from their chamber of origin to the opposite chamber. Since then the Senate and House higher education committees have been focused on several major efforts.

Both the House and Senate are holding public hearings and executive sessions to move bills from the opposite chamber forward in the process. In addition both committees are holding work sessions on a variety of areas that impact higher education including tuition, performance, and financial aid.  Finally, the Senate Committee is moving forward trustees and regents nominated by the Governor for confirmation by the full Senate.

This week in the House Higher Education committee the public four year institutions particiapted in a panel discussion with members regarding tuition and the institutional process by which factors such as student mix, programs, and missions are taken into account with stakeholders in making tuition related decisions. The largest factor of course being the level of state funding provided to institutions.

In addition the House Higher Education Committee and the Senate Higher Education Committe held a work session on performance.

Three national experts presented to each of the committees: David Longanecker  of Western Interstate Commission on Higher Education, Julie Bell of National Council of State Legislatures, and Jimmy Clarke of the Lumina Foundation-supported Productivity Strategy Labs Network.

The presentation and conversation with the committee that followed highlighted both performance funding and other trends in higher education nationwide.

March Revenue Forecast Essentially Flat

Yesterday the Washington Economic and Revenue Forecast Council released the March economic and revenue forecast.

The forecast is essentially flat. Which is good news these days. According to the report Washington is projected to take in an additional $59 million more than expected in the current fiscal year and $19 million less over the next biennium. Overall policymakers have approximately an additional $40 million to incorporate into their budget discussions.

This is good news given concerns expressed in the last few weeks about impacts on state revenue given the automatic federal budget cuts, known as sequestration, earlier this month.

Though this is a small break in what has been a stream of bad news over the last few years, it is important to note that policymakers still face a substantial budget challenge for the next two years. The Legislature must make up a shortfall of $1.3 billion and make some form of investment in basic education required by the McCleary ruling.

With the revenue forecast out, the next big step in Olympia will be the release of proposed biennial operating and capital budgets. The Senate is expected to come out with their proposed budget in the next two weeks, followed by the House. The Governor is expected to release budget priorities, not a full budget, next week sometime.

Majority Coalition Caucus Releases Higher Education Funding Proposal

Yesterday the Senate Majority Coalition Caucus released a proposal to increase funding for higher education in Washington.

Overall the proposal would increase funding for all higher education by $300 million in the 2013-15 biennium. This is a 10% increase in funding from the 2011-13 biennium.

The increase includes a 3% decrease in student tuition costs this year, $50 million in performance funding for high demand degrees and other metrics, and an expansion of the State Need Grant program by 7% to serve an additional 4,600 FTE.

In addition by taking these actions the proposal secures GET’s future by eliminating the $621 million unfunded liability and creating a $421 million surplus.

Some of the details of the proposal are identified in Senate Bill 5883. The remaining details, such as how the baseline is defined and how the funds are split over the biennium, will be shared in the Senate’s 2013-15 biennial operating budget proposal expected in the next couple of weeks. Until all the details are known it is unclear how this proposal will impact institutions and students, including Evergreen.

Senate Bill 5883 as summarized by the Caucus:

Baseline Funding

  • Declares that institutions are legally entitled to receive a baseline level of funding
  • Directs that any ivnestments made for new programs or expansions of programs will produce a step adjustment in the per-student rates
  • Directs that any state funds above the rate needed to meet the baseline will be distributed proportionately among the two-year and four-year sectors and be used for performance
  • Declares an intent of the Legislature to, no later than April 26 2015, revisit the baseline funding levels established and determine whether any step adjustments are necessary

Performance Funding

  • Builds on the performance structure established through House Bill 1795 in 2011
  • Provides funding for the four-year public baccalaureates as specified in the state budget based on a three-year average of performance specified in metrics
  • The metrics include: (1) Average time to degree for undergraduate students, (2) Number of undergraduate high-demand degrees, (3) Freshment retention, (4) Low-income populations, and (4) Space utilization
  • Funding is awarded based on a three-year average of improved performance or for those institutions that are the highest performer in the specific metric.
  • Adds space utilization to the dashboard for the public baccalaureates
  • Repeals performance plans and other obsolete statutory language

Tuition-Setting Authority

  • Tuition setting authority for resident undergraduates is maintained through academic year 2018-19 with some changes
  • In Fiscal Years 2014 and 2015 tuition is required to be 3% lower than the tuition rates for resident undergraduates in the 2012-13 academic year and;
  • Beginning with the 2015-16 academic year tuition cannot exceed inflation except when state funding to meet the baseline is not provided. In this instance institutions are given the authority to increase resident undergraduate rates by an amount not to exceed the amount necessary to reach the baseline

Washington Legislature Passes Halfway Point

This past week the Washington Legislature passed the halfway point in the 2013 legislative session. Bills, in both chambers, must have moved from their chamber of origin to the other chamber for consideration by 5:00 pm last Wednesday. The exception are any bills that are deemed by either chamber as Necessary to Implement the Budget (NTIB).

The next two and half weeks will be focused on moving bills through the opposite chamber and to the floor. The next major deadline is April 3, when all policy bills must have either been referred to the floor or to an appropriations committee for further consideration.

A number of higher education related bills are still in play. Among those pieces of legislation that will now be considered by the opposite chamber include:

Student Veterans

House Bill 1109 -Requires institutions of higher education that offer an early course registration period for any segment of the student population to offer early registration to students who are eligible veterans or National Guard members.  The bill has been referred to Senate Higher Education.

House Bill 1858 – Requires each public institution of higher education to adopt a policy to award academic credit for military training courses or programs before December 31, 2014, and submit the policy to the Prior Learning Assessment work group for evaluation. The bill has been referred to Senate Higher Education.

House Bill 5318 – Removes the one-year waiting period for veterans or active members of the military for purposes of eligibility for resident tuition. The bill is scheduled for executive session in House Higher Education.

House Bill 5343 – Requires institutions of higher education to provide make-up classes, exams, or other make-up events to National Guard members or other military reservists called to active duty or training for 30 days or less without prejudice to the final course grade or evaluation. The bill was passed out of committee by House Higher Education.

Efficiencies

House Bill 1769 – Increases the threshold for minor works projects from $2 million to $5 million for higher education institutions. Increases the threshold for predesign requirements for major construction works from $5 million to $10 million for higher education institutions. The bill was referred to Senate Ways & Means.

House Bill 1736 – Requires comprehensive review of reporting requirements related to state energy code building standards, high-performance public buildings, motor vehicle transportation services, air contaminants, and greenhouse gas emissions. Allows institutions of higher education and state higher education agencies to use or accept secure electronic signatures for any human resource, benefits, or payroll process that requires a signature. Permits the Student Achievement Council (Council) to enter into interstate reciprocity agreements with other state or multistate entities if the agreements are consistent with Washington law concerning degree-granting institutions. The bill is scheduled for a public hearing in Senate Higher Education.

Other

House Bill 1043 – Removes the authority for public baccalaureate institutions to set differential tuition rates for resident, undergraduate programs. Removes the authority for the State Board for Community and Technical Colleges to pilot or institute differential tuition models for resident,undergraduate program. The bill was referred to Senate Higher Education.

House Bill 1331 – Permits a student association at public baccalaureate to form a student advisory committee to advise the administration at that institution on issues that affect student access and success, such as tuition and fee levels. Requires administrators at higher education institutions to make information available to the student advisory committee and allow the committee to present recommendations. Requires the student advi sory committee to solicit feedback from students and keep students informed of their meetings. The bill was referred to Senate Higher Education.

House Bill 1544/Senate Bill 5559 – Authorizes educational specialist degrees at Central Washington University, Western Washington University and The Evergreen State College. The house bill is scheduled for a public hearing in Senate Higher Education. The senate bill is scheduled for executive session in House Higher Education.

House Bill 1669- When a decision is being considered to change a degree program that is supported by state funding to a self-supporting, fee-based program, a public baccalaureate institution must: publicly notify prospective students, including notification in admission offers, with an estimate of tuition and fees; provide at least six months’ notification to enrolled students and undergraduate or graduate student government associations; and allow students currently enrolled in the program that is changing to a self-supportingprogram to continue in the state-supported program structure for a consecutive amount of time no greater than four years. Each public baccalaureate institution must establish or designate a committee comprised of administrators, faculty, and students to evaluate a proposed shift from a state-funded degree program to a self-supporting, fee-based program. A public hearing was held in Senate Higher Education on the bill.

House Bill 1817 (Dream Act) – Adds eligibility for the State Need Grant for individuals granted Deferred Action for Childhood Arrival status that meet a certain criteria. Adds eligibility for the State Need Grand for students who qualify under the fifth resident student definition. The bill was referred to Senate Higher Education.

House Bill 1843 – Requires the Office of Student Financial Assistance within the Washington Student Achievement Council to monitor compliance of institutions of higher education with financial aid program rules and regulations and evaluate continued participation based on performance. The bill was referred to Senate Higher Education.

Senate Bill 5180 – Creates a 29-member legislative task force charged with improving access to higher education for students with disabilities. Requires the task force to make recommendations to the Legislature each December from 2013 to 2015. The bill is scheduled for executive session in House Higher Education.

Senate Bill 5195 – Allows nonprofit institutions recognized by the state of Washington to be eligible to participate in the state need grant program. The bill was referred to House Higher Education.

 

Major Deadline in Legislature Nears

This Friday marks the deadline for bills to pass out of their respective fiscal committees. As such committees in both chambers have held packed public hearings and executive sessions to hear and act on bills.

This week the House and Senate appropriations and finance committees held several public hearings focusing on a range of topics from veterans’ access to higher education to changes in financial aid policy. Both committees focused on moving bills from the fiscal committee to their respective chamber floors.

Next week both chambers will head to their respective floors to vote on bills and move them to the other chamber and another step forward in the process.

Policy Committees Ramp Up Work on Bills as First Deadline Nears

A week from Friday marks the deadline for policy bills to pass out of their respective policy committees.  As such committees in both chambers are holding packed public hearings and executive sessions to hear and act on bills.

Last week and this week the House and Senate higher education policy committees held several public hearings focusing on a range of topics from tuition  and financial aid policy to efficiencies at institutions of higher education and veterans’ access to higher education.

This week both committees continued their work in moving bills from the policy committee either to their respective chamber floors or to an appropriations committee.

This work will continue next week as the deadline for policy bills nears. In the House legislators will hear bills related to academic credit for military training  and financial aid policy. In the Senate policymakers will hold public hearings on legislation focused on self-supporting, fee based programs, and financial aid and tuition policy.