Olympia Updates

WSU and UW core programs would be protected from cuts next biennium, even with a projected $1.8 billion state budget shortfall, under an operating budget request released today by outgoing Gov. Gary Locke. The budget also provides salary increases for most employees and targeted enrollment increases in areas like veterinary medicine. Locke attempted to break the traditional legislative pattern of adding new programs while simultaneously cutting budgets, which has eroded quality at the universities in past years. But the result of his actions was nevertheless a lean budget for WSU and UW, without any general enrollment or core funding increases at the campuses and small increases in research.

While Locke proposed tax increases to fund a competitive enrollment pool for the universities, he did not require tax increases to protect existing programs. House Appropriations Chair Helen Sommers was supportive of the governor blocking cuts to universities but was committed to exploring other sources of revenue to bring needed improvements to higher education when the Legislature takes up business next month. Enhancements sought by WSU and UW in their joint budget request for funding existing core programs and branch campus enrollment growth were not funded by the governor.

It did not appear that the governor gave a high priority to universities in the capital construction budget. In a surprise move, the governor recommended just $45 million for construction of the $57.1 million Biotechnology/Life Sciences building at WSU Pullman. Fiscal analysts could not provide any programmatic justification for reducing the appropriations of this critical project. While giving a priority to universities in the operating budget, the capital proposal proposed by Locke provided just the Biotechnology Building. Other major construction projects sought by WSU and recommended by the Higher Education Coordinating Board were not funded including the Tri-Cities Bioproducts Building, a joint venture with Battelle’s Pacific Northwest Laboratories, and the Spokane Riverpoint Nursing Center, which also provides nursing education for Whitworth, Gonzaga, and Eastern Washington University students. Also not funded in the capital budget was design of the Biomedical Sciences Building and the Pullman wastewater treatment project. If the governor’s capital budget is adopted, those projects could face years of delay.

Only 60 percent of the joint capital request funded. The Higher Education Coordinating Board supported about $504 million in essential state capital investments for all of the state’s four-year universities including WSU and UW but the Locke budget surprisingly only funded 294 million of the $504 million “essential level.”

One positive note on the construction budget was that Locke did provide funding for small, critical “minor works” project funds that are necessary to preserve, upgrade, and equip the WSU campuses but rarely receive much attention. WSU received $30 million for preservation, $8.5 million for equipment, $7 million for WSU Net, $7 million for infrastructure, $8 million for minor capital improvements and $2 million for safety requirements. Some of these categories were underfunded this biennium and caused serious problems on the campuses.

Vote recounts still leave the outcome of the governor’s race in doubt. However Locke noted at his press conference that he relied heavily on the work of former Gov. Mike Lowry’s budget when he took office. It is anticipated that the Locke budget will be a major focus of discussion when the 2005 Legislature begins work next month and will also be considered by either Dino Rossi or Chris Gregoire.

Salary increases in the Locke budget will average 3.2 percent next year for most WSU employees, the first salary increase that would be provided by the Legislature in four years. No salary increase funding is provided for classified staff employees who are represented in collective bargaining but who did not approve a contract by Oct. 1.

Some new state-funded research monies were provided by the governor, reflecting a portion of the funding sought in the UW-WSU budget request. For instance, Locke recommended $1.5 million in research funds for WSU compared to the $7.1 million requested.

Tuition increases of up to 9 percent per year are provided in the budget. However, accompanying increases in financial aid would be available from the Legislature only up to a 5 percent increase. Between 5 percent and 9 percent, the institution would have to pay for student financial aid dollars that have historically been provided.

Enrollment growth in the Locke budget does rely on tax increases proposed on alcohol and carbonated beverages. His proposal would add five cents to a can of pop or beer, 25 cents to a bottle of win and $1.50 to a fifth of liquor. There were no general enrollment increases provided by Locke at any of the WSU campuses, including the branch campus locations. However, Locke did provide $26 million for new enrollments in “high demand” areas like engineering and nursing. WSU would compete with other institutions in the state for the funds which would add 1,600 student FTEs at a cost of about $11,000 per student.

Locke’s budget includes $2 million needed for the Doctor of Veterinary Medicine program to offset funds withdrawn by Oregon State University.  This will add more resident Washington students to the WSU program that produces veterinarians.