Olympia Update No. 3 for the 2002 Legislative Session
December 18, 2001
From: Larry Ganders, Assistant to the President
Washington State University
925 Plum St. SE - Building 4
Olympia, Washington 98504-3165
Governor Locke proposes 5 percent, $10.5 million cut
to Washington State University Programs
Existing programs at Washington State University must be cut 5 percent July 1 under a budget released today by Gov. Gary Locke that will delay scheduled 2.6 percent salary increases two months and give institutions tuition-setting authority. The governor released the Supplemental Operating Appropriations bill just one day after he warned a Pullman audience that the budget had to make up a $1.2 billion deficit and that virtually every part of government would be affected.
Indeed virtually every part of government was affected though at differing rates. The community colleges' existing programs were reduced by 3 percent, an indication from the governor's staff that those institutions would not be able to raise tuition by as much as the four-year universities. The governor's office reported that the average cut in state government was 9.5 percent. The state library, three fish hatcheries the Washington State International Trade Fair, and a youth camp were among programs completely eliminated by the governor.
The $10.5 million cut for WSU was implemented on a single line on page 164 of the 205-page budget document, reducing the university's overall appropriation for upcoming fiscal year to $196.95 million. No special language was added to accompany the cut, apparently granting the institution authority to implement the cuts through its own internal process. However, there is no expressed authority that would allow decreased enrollments.
Governor delegates tuition-setting authority, final defense for quality programs
In an unprecedented move, the governor gave complete tuition-setting authority to all of the state's colleges and universities and pledged an appropriate amount of state need grant funding if the increase at WSU does not exceed 18 percent. At WSU, the Board of Regents will have the authority to set tuition for the 2002-2003 academic year. This authority is granted only in the budget and will expire in one year when the budget expires. However, the governor is working on a tuition bill that may extend that authority in future years, provided the institutions give assurances that low-income students will be admitted and that students will be able to graduate in a timely fashion.
The state will increase funding of the State Need Grant program for low-income students to cover the cost of tuition increases.
Locke Budgets for 2.6 percent university salary increases but delays pay
hike for two months
There was some doubt that the 2.6 percent salary increase for most state employees would hold up under a 1.2 billion budget reduction. The governor chose to delay the increase until August. The scheduled 2.6% salary increase is implemented by the governor, but delays it by two months. The delay saves about $664,000 in salaries to WSU employees. The increase that had been scheduled for July 1 would instead be effective September 1, 2002. K-12 teachers and community college faculty will receive a 3.6 percent increase under the terms of Initiative 732. Only 88% of the cost of the increase is funded, as was the case in the original appropriation. Employee's share of health benefit costs would increase. Each employee would pay at least 10% of the premium rate for the plan of his or her choice. Doctor visit co-pays would increase from $10 to $20. Employer and employee contributions to PERS plan 2 are no longer required. The plan is considered fully funded. Retirement benefits remain unchanged. Maintenance and utilities WSU's request for $1.2 million to cover the additional costs of maintenance and utilities on new state authorized construction is not addressed in the Governor's budget.
WSU's Branch Campuses: Effective Education That Is Also Cost-Effective
New funding provided in the original appropriation for expanded enrollment at WSU's branch campuses in Vancouver and Spokane remain unchanged. Some persons have been inquiring about the cost of providing upper-division and graduate programs through the branch campus system now moving into the second decade of service. Some have suggested that it is too expensive to use research universities like WSU or UW to deliver the programs. Others have suggested that there should be more investment in community colleges and less into branch campuses. WSU presented figures to the House and Senate Higher Education Committees last week that demonstrate that the taxpayer's costs of delivering programs at the research university branch campuses is comparable to other campuses in the state. For instance, the HEC Board cost study indicates that Western Washington University educates upper-division (junior and senior) students for $6,514 per FTE in state general fund monies. WSU Tri-Cities is provided $6,626 per FTE. Other cost numbers are UW Bothell, $6,626; UW Tacoma, $6,948; WSU Vancouver, $7,811, EWU $6,030, and Central Washington University, $6,273. Those are very comparable numbers.
Budget Now Moves into the Washington Legislature.
The governor's budget, announced today, is just the opening salvo in what could be some contentious partisan debate over the state budget. The state House of Representatives and the state Senate, which both convene Jan. 14, will now begin working on their versions of the governor's budget.
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 specialist, 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 at 425-373-9090. For federal issues, contact Kristi Growdon at 206-219-2424. For state bill status, budget updates, and other government info, visit our improving web page at www.olympia.wsu.edu.
