SPECIAL TASK FORCE ON HIGHER EDUCATION RECOMMENDS
NEW FUNDING METHOD FOR ACCESS
A new state "dedicated fund" designed to
assist higher education as it prepares to take tens of thousands
of new students that are the sons and daughters of baby boomers
was proposed this week by the "Governor's Task Force on Higher
Education." Members of the committee, which this spring
appeared hopelessly divided on solutions to accommodate thousands
of prospective college students now moving through the state's
K-12 system, considered amendments right up through the final
meeting this week. Led by former House Speaker Joe King, D-Vancouver,
the committee voted 16-4 to forward specific recommendations to
the Legislature for consideration in January. Washington State
University supports many of the recommendations of the task force
and university officials hope the report will lead to thorough
discussions during the upcoming campaigns for public office about
how Washington can educate an estimated 94,510 more college-bound
students by 2010. Highlights of the proposal include:
- More than $1 billion in current state higher
education funding will be transferred from the state general fund
into a dedicated fund, a fund that will be sustained and allowed
to grow through specific state taxes. It is similar to the
methods currently used by the state to earmark gas tax, for instance,
to pay for transportation needs. Governor Mike Lowry, who personally
attended many hours of the task force deliberations, indicated
that the state will have adequate funds coming into the general
fund to pay for the growth of higher education. But he said unless
some of the new additional funds are "earmarked" for
higher education, it would be untouchable under the limits of
Initiative 601 and the demands of other programs. The dedicated
fund has been strongly opposed by House Appropriations Chairman
Tom Huff, R-Gig Harbor, who argues such funds limit legislative
authority. But most task force members argued that a dedicated
higher education fund, like current transportation funds, would
still be subject to action each year by the Washington Legislature,
falling well short of the legal "entitlements" and constitutional
protections given many other areas of state spending. Task Force
members said Initiative 601 was not intended to hurt higher education
and expressly provided for growth in targeted state programs if
it is done through a dedicated fund. They said it would be a
"safety net" for higher education, clearly making it
state policy to prepare for the onslaught of students seeking
community college and university education. On a motion by Seattle
businessman Chuck Collins, the committee voted 11-6 on the final
day to use inflation calculations and the increases in the state's
student-age population as criteria for spending from the dedicated
fund.
- New B&O Tax Credit for Donor Businesses.
The committee proposed a new business and occupation tax credit
program for businesses that contribute to a state higher education
"Innovation Fund." The committee estimated that $50
million to $70 million could be raised by this tax credit. Money
from this fund would be awarded to institutions by the state Higher
Education Coordinating Board for programs such as improving technology
for teaching, distance learning, relief for course bottlenecks,
faculty training, etc. Previous drafts of the proposal that called
for tax credits to fund financial aid and work study programs
were deleted.
- Committee Rejects "High Tuition"
Models. Despite some members of the committee
like Rep. Ken Jacobsen, D-Seattle, pushing for far higher tuition
rates to fund additional financial aid, the committee settled
on a more modest policy that would allow tuition to grow at about
3 percent annually. Sen. Gene Prince, R-Thornton, was among strong
critics of the Jacobsen plan, arguing that it should not be the
responsibility of just students to pay for financial aid. Prince
successfully argued financial aid must be the responsibility of
a broad sector of state citizens. An amendment by Jacobsen to
boost tuition to 8 percent per year was rejected on a voice vote.
The committee retained language calling for a penalty for students
to enroll for credits significantly over a prescribed number necessary
to complete their degree.
- Institutional Tuition Rate-Setting Authority.
On a motion by former state Sen. Barney Goltz, the task force
also voted 10-9 to allow institutions of higher education to increase
or decrease tuition rates. The Goltz amendment, however, maintained
the Legislature's exclusive authority to increase resident undergraduate
tuition rates. Efforts by some committee members to delete recommendations
for institutionally-set tuition rates were defeated on a 12-6
vote.
|
