From: Larry Ganders, Assistant to the President
Washington State University
925 Plum St. SE - Building 4, P.O. Box 43165
Olympia, WA 98504-3165

November 26, 2001, Olympia Update No. 1 for the 2002 Session

Legislative Session to Tackle Budget Issues
Predicted by Nov. 20 Revenue Forecast

WSU Urges Concentration on How Higher Education
Can Assist Economic Recovery

Washington State University is urging the governor and lawmakers to examine innovative strategies to protect government infrastructure and position higher education to best respond to economic recovery. Gov. Gary Locke and his staff are considering deep and serious cuts to state spending, reviewing 15 percent budget cut scenarios for cabinet agencies, and attempting to continue to serve as many students and caseload recipients as possible. Gov. Locke is expected to put out his budget recommendations before Christmas.

The Washington Legislature, now with a majority of Democrats in each house, will convene Jan. 14. The latest revenue forecast and other commitments indicate that $1.2 billion needs to be trimmed from the current 2001-2003 biennial budget. The Nov. 20 revenue forecast, while not good news, was within the range that the state Office of Financial Management was expecting as it was preparing for budget cuts that it anticipates will include higher education. The latest forecast showed that the state’s revenue is $813 million less than the September forecast predicted.

WSU has encouraged consideration of new options for research universities that would protect the quality of education and position higher education to assist the economy in rebounding. Examples of strategies encouraged by WSU include:

• If funds are limited for higher education, do not force increased enrollments. Good and bad budget years in the 1990s were marked by substantial enhancements to enrollments while requiring cuts to so-called “non-instructional” spending. The 2001 Legislature took similar steps, increasing spending for enrollment increases but requiring WSU to make $4.7 million in reductions. This strategy only threatens the quality of university programs and has worked very much to the disadvantage of research and support positions that often bolster quality instructional efforts. It will be easier to conduct successful fundraising, partner with the private sector, attract matching federal grants, and eventually expand enrollment during economic recovery from a base of quality research university programs.



• Allow research institutions the flexibility to take necessary reductions anywhere within the budget.  Legislative mandates to “protect instruction” lines or insist on funding specific programs in the budget are often done without appreciation for how much the so-called non-instructional areas can impact classroom instruction. These cuts have also put positions in “administration” such as building maintenance employees at a disadvantage. Reducing positions in building maintenance can lead to more expensive maintenance issues for the state later. When the building fails to support the necessary programs, instruction is impacted.



• Consider public works programs, such as releasing funds for the WSU Vancouver Multi-media Building, that stimulate the economy and enhance government infrastructure. Declining state revenues could lead to substantially less spending on public works projects. WSU encourages the state to investigate creative financing packages that would allow public works projects to move forward, utilizing low interest rates and providing projects that put people to work.

·        Provide flexibility to the institutions to raise undergraduate tuition if that is necessary to minimize the impact on the student’s educational quality.

This update is shared by broadcast fax and electronic mail to friends of Washington State University as government developments occur. Contact Kevin Ketchie, 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.