From: Larry Ganders, Assistant to the President
Washington State University
925 Plum St. SE - Building 4, P.O. Box 43165
Olympia, WA 98504-3165
For developments on the governor's bill actions and the third special session, visit:
www.olympia.wsu.edu
June 26, 2001, Olympia Update No.
13
GOVERNOR SIGNS WSU CAPITAL CONSTRUCTION
& OPERATING BUDGETS WITH JUST 4 DAYS TO GO
With a stroke of a pen, Gov. Gary Locke ended one of the most protracted budget-building processes in state history.
He signed the capital and operating budgets into laws...laws providing funding that generally take effect when the current budget runs out on July 1...just a four-day cushion.
If the Legislature or governor had consumed more time, state government could have ground to a halt. But that didn't happen, so Washington State University and the rest of state government will continue into the next biennium with additional funding. The Legislature completed actions on the budgets June 21.
Locke made no changes to the capital or operating budget that directly affected Washington State University or four-year universities. The operating budget (Engrossed Senate Bill 6153) provides $411 million to WSU over the next two years beginning July 1. That's up slightly from WSU's current budget for this biennium at about $380 million. Locke vetoes dealt with issues like state park fees, performance audits, safety and health grants, culvert removal, conservations districts, etc. The governor made no changes that would affect the $103 million capital construction budget for WSU (Senate Bill 6155.) Capital budget vetoes dealt with outdoor recreation and deaf education.
FACULTY RETIREMENT BENEFITS WERE UNCHANGED BY THE SESSION,
BUT IT APPEARS THE ISSUE CONTINUES...
A compromise bill to clarify that the faculty TIAA-CREF retirement program is a "defined contribution" program rather than a "defined benefits" program was unexpectedly killed by the state Senate in the final days of the 2nd Special Legislative Session. The good news is that this leaves faculty with the same retirement benefits they had when they went into the session. But there are fears that the controversy over TIAA-CREF benefits, which bill supporters hoped to hush with the legislation, will now continue through the legislative interim. Senate Higher Education Chair Jeanne Kohl-Welles, D-Seattle, said today that many senators became concerned about the House-passed bill when calls began coming in from community college and regional university faculty. She predicted the issue will now likely be considered by the Legislature's Joint Pension Policy Committee. The committee meets between legislative sessions.
Some lawmakers complained early in this year that the state was providing more funding for TIAA-CREF then other state pension programs such as PERS (Public Employee Retirement System.) Supporters argued that it was an "apples and oranges" comparison, contrasting defined benefit programs like PERS with defined contribution programs like TIAA-CREF. The bill would have eased concerned pension staff members by eliminating caps on pension benefits and removing minimum benefits or "supplementation."
NEW BIENNIAL BUDGET MAY MARK A TURN-AROUND
ON CRITICAL QUALITY, DESTINY ISSUES FOR WSU
The state operating budget signed by the governor today may mark the beginning of two significant changes in state policy.
First, while the budget was not increased enough to make up for inflation, energy and non-funded programs mandated by the Legislature, it was rewritten through the difficult budget process to place more emphasis on the quality of programs offered by universities.
Flexibility
Secondly, it did offer increased flexibility for WSU to deal with many of the budget issues, giving it more control over its own destiny, including broad discretion on how to take its 1 percent mandated program cuts and flexibility to set its own tuition rates. WSU will attempt to take most of the 1 percent budget cut centrally, minimizing reductions to academic units from the Legislature's action. WSU protected graduate students from the maximum tuition rates allowed by the Legislature (limiting graduate increases to 3.5 percent this year) and won student government support for setting its rates for undergraduate students at 6.7 percent.
Quality
The legislative movement on quality issues came on salary enhcancements and funded research buildings such as construction for Shock Physics, a primarily research facility that might not have won the approval of previous Legislatures concerned only with classroom capacity.
The Legislature appeared to partially heed WSU's warnings to decrease its emphasis on student numbers and worry about, "Access To What?" In a difficult budget year, the Legislature set the July 1 salary increase unpredictably high at 3.7 percent, compared to 2.2 percent recommended by the governor. Another example is that The Legislature shifted $951,000 from WSU enrollments for the university to address priority student needs. WSU will apply it toward maintenance and operations for the new Student Recreation Center in Pullman.
A New Way of Doing Business
The Legislature honored a total re-prioritization of WSU's capital budget, as key part of WSU's "New Way of Doing Business" theme for this legislative session. The WSU energy plant was moved to the top of the list, paving the way for a public-private partnership. The final capital budget funded projects in order of the university's priorities and construction work can now begin on the energy plant, Shock Physics, Murrow Communication Addition, and Vancouver's Multi-medial Classroom Facility.
WSU's capital construction budget was $103 million, among the three best state general fund construction budgets in university history.
Spokane
It was also a huge year for WSU's future on Spokane's Riverpoint campus. The supplemental operating budget (HB 1314) provided $16 million as final payment of an agricultural college trust land settlement that provides the balance of the funding for the recently-completed Spokane Health Sciences Building at Riverpoint (House Bill 1314). Another $2 million in design funds was provided for the Spokane Academic Center and enrollments will increase by 42.
This update is shared by broadcast fax and electronic mail to friends of Washington State University as government developments occur. Contact Michelle Delaney, WSU Government Relations, 509/335-6292 to be added to the list. Call Larry Ganders at 360/956-2165; From WSU Campuses, Dial 8-2165. e-mail: Ganders@energy.wsu.edu. Contact Jane Yung Dennie in Olympia at 360/956/2164. For federal issues, contact Kristi Growdon at 206/219/2424. For state bill status and other government info, visit our improved web page at www.olympia.wsu.edu.
