Olympia Update No. 8 ● April 13,
2009
WSU state budget negotiations
From: Larry Ganders, Assistant to the President
Click Here for Print-Ready Adobe PDF Version
Click Here for House and Senate budget bills
How will
legislators resolve the budget?
WSU
awaits answers
to the $50 million question
The Legislature is now
moving into a critical phase as budget writers are
negotiating the differences between House and Senate budget versions with just
13 days of session remaining.
Never have the stakes been
higher than in the budget discussions. Legislative
leaders are talking now to resolve a $50 million difference between the House
and Senate budgets for just Washington State University. The House budget
(Substitute House Bill 1244) cuts 29 percent of state funding from WSU or $151.4
million. The Senate budget (Senate Bill 5600) reduces the WSU state budget by 20
percent or about $104 million.
Washington State University
announced today that it is not accepting any more applications for incoming
freshmen at its Pullman campus because of the budget outlook.
WSU has been working on the assumption that legislative budgets may reduce the
university’s enrollment by 1,500 students. Admissions
officials in Pullman will continue to review transfer students’ applications,
but will make no more enrollment offers to transfers at this time. Once WSU has
more complete budget information, expected by May 1, the university will likely
re-open admissions only to transfer students who have already earned their
associates’ degree. WSU Tri-Cities, Vancouver, and Spokane are still
accepting students.
WSU
continues to urge legislators to address two very key points:
1)
Adopt at
least the Senate’s funding level for WSU
2)
Grant
authority to increase tuition up to 14 percent per year for resident
undergraduate students and continue authority to set tuition for non-residents
and graduate students.
Successful outcomes for WSU
on these issues could reduce the net reductions to WSU programs to near the
governor’s level. Currently the net cuts to WSU, minus stimulus dollars and
tuition increases, is triple the governor’s level in the House budget proposal.
The Senate net cuts are twice more than the governor.
Students, WSU join in
opposing building fees fund grab.
WSU students currently pay
$308 of their tuition toward “a building fee” that is generally used to preserve
and maintain buildings at the students’ institution. The House budget shifted
those revenues, including more than $15.3 million in WSU student building fees,
into the general fund where they could be spent anywhere in government.
Legislators reported Friday that the building fees shift was being hotly
discussed in budget negotiations.
“It is disheartening to
students that the House proposed tuition increases beyond the statutory limit in
order to preserve their institutions, while over $46 million are being taken
from the institutions and allocated elsewhere,” said Mike Bogatay, of the
Washington Student Lobby, in a letter to legislators today. “Please oppose the
inclusion of this provision in the final budget,” he said.
Likewise, WSU President
Elson Floyd weighed in on the issue with an April 3 letter to legislators.
“Students attending Washington State University (and other higher education
institutions) expect the tuition and fees they pay to attend school will stay
with their institution to provide the facilities needed for their education.” He
added, “That’s good public policy that must be preserved.”
Adding to the stakes in this
building fee discussion, is the fact that the Senate budget gave WSU authority
to use those and other fees for 2009 construction projects including Global
Animal Health, Phase I, and design of the Veterinary Medical Research Building.
On other issues in the
operating budget,
the university is encouraging budget writers to allocate to the university its
fair share of federal stimulus dollars. Legislators are also asked to not
mandate specific WSU programs to be cut or protected.
Lawmakers
completed most of their committee business on April 6
and are moving onto the floors of their respective houses to give final
consideration to legislation. Friday, April 17, marks the deadline for a bill to
pass both houses of the Legislature (although the bills may not be identical and
are subject to negotiation between the houses.)
Non-resident tuition (Senate
Bill 5734) If the
Legislature does not adopt new tuition rates for non-resident and graduate
students, those rates will revert back to the rates from this academic year.
This bill continues the usual authority of WSU Board of Regents to set
non-resident and graduate tuition rates without limit. The legislation passed
the state Senate 44-0 on March 7. It is scheduled for a vote before the House
Ways and Means Committee Tuesday. The bill is sponsored by Senate Higher
Education Chair Derek Kilmer at the request of the Higher Education Coordinating
Board. The bill is supported by WSU. Dave Iseminger, representing UW
professional students, has led opposition to the bill.
Resident Undergraduate
Tuition (House Bill 2344)
Legislation specifying that
the operating budget may increase tuition above the 7 percent statutory “cap”
was introduced today by Rep. Kathy Haigh, D-Shelton.
A hearing on the bill has been scheduled
for tomorrow in the House Ways and Means Committee.
UW-WSU Public Works (Senate
Bill 5760) This
bill could help expedite projects built by WSU with non-appropriated funds. The
original bill, which passed the state Senate, grants UW and WSU the authority to
use a small work roster for projects up to $1 million (instead of $200,000) for
non-appropriated funds. It also allows WSU and UW general
contractor-construction manager authority for projects of more than $1 million
(typically it’s used for projects of more than $10 million on complex
buildings.) Amendments were added in the House Capital Budget Committee that
that may prevent WSU from benefitting from the bill. For instance, the fund
source is sharply narrowed to federal stimulus funding (through the American
Recovery and Reinvestment Act.) Authority
to limit the number of contractors is also removed and an expiration date of
June 30, 2013 was added by the House. WSU continues to support the Senate
version of the bill.
Small Business Development
Centers (Senate Bill 5723)
The Small Business
Development Center Bill has been pulled from the House Rules Committee and is
headed for the House floor. This bill is moving on schedule with the amendments
WSU supports including a critical clause protecting the regulations of the U.S.
Small Business Administration. It is uncertain whether the bill will be coupled
with a business license fee increase to finance expansion of such programs, an
approach favored by Sen. Jim Kastama, D-Puyallup.
Student Lobbying (Senate
Bill 5776) This
Legislation, now headed to the governor for final approval into law, is
supported by the Washington Student Lobby. It
contains language that was actually proposed by WSU in the Senate. It clarifies
that students can continue to use student services and activities fees or
voluntary fees to finance their lobbying teams in Olympia. The legislation was
prompted by recent legal opinions that cast doubt about continuing to use their
usual funding sources. WSU and the state Attorney General’s Office support the
bill. The bill passed the House 60-38 last week, with the Republicans concerned
about the manner in which voluntary fees are sometimes collected at other
institutions. Last month, the Senate passed the same bill 42-6.
Faculty Retention (House
Bill 2328) This
bill provides additional exceptions to Engrossed Substitute Senate Bill 5460, a
hiring freeze bill that was signed into law by the governor earlier this
session. It passed the state House of Representatives this afternoon 98-0. In
Section 6, it states that institutions of higher education may grant wage or
salary increases for retention purposes of critical personnel or for additional
academic responsibilities during the summer term. The bill has passed out of
committee.
Aerospace (Proposed
Substitute House Bill 2308)
The bill
creates the Washington Council on Aerospace, composed of 13 members, including
the President of WSU. The Council shall provide advice to the governor and
legislature on public policies that will strengthen the aerospace industry and
support its job growth in Washington; and take joint action to integrate
training and education with research and development. The President of WSU is to
coordinate with the President of the University of Washington regarding all
aerospace-related research and development activities, and ensure that these
activities are responsive to the industry's needs. The bill was heard in a House
committee today for the first time.
Online Learning (Second
Substitute House Bill 1946)
This legislation encourages institutions to use common
online learning technologies like “Angel” and integrated administrative tools
has passed the House. Senate language requires the efforts to be funded by the
budget or the bill is “null and void.” The bill has passed the House and is
awaiting assignment to the Senate floor.
Health Care Authority
(Senate Bill 5869)
is awaiting a vote on the Senate floor. This bill deals with employee health
care eligibility. Among its provisions, it
continues an “80-hour rule” for half-time employee eligibility,
A similar bill (Engrossed Substitute House Bill 2245) passed the House 97-0.
Both bills contain amendments supported by WSU regarding changes to health care
employee eligibility. WSU opposed early versions of the legislation that had a
“70-hour rule” and a large fiscal impact.
Higher Ed Economically
Responsible Solutions (Senate Bill 6156)
Supported by most Republican members of the Ways and Means Committee in the
Senate, this bill by Ranking Chair Joe Zarelli, R-Vancouver, does not yet have
support among majority Democrats.
The bill raises serious
concerns from many in higher education. It assesses a tuition surcharge for WSU
students equivalent to the full cost of instruction for students who take more
than 125 percent of the courses necessary to graduate. Also, it reduces WSU
tuition waiver authority from 20 percent to 14 percent, a move that undoubtedly
will impact the university’s ability to recruit and retain graduate teaching and
research assistants. It also provides that the state may contract with private
colleges and universities to provide courses or degrees in the fields of
engineering, technology, biotechnology, sciences, computer sciences, and
mathematics,
Energy Building Efficiency
(Engrossed Second Substitute Senate Bill 5649)
The current draft of this much-rewritten bill designates Washington State
University as the federal “Energy Efficiency Assistance Program” for Washington
State. That means WSU’s Energy Extension Program would literally receive $15
million to $30 million in federal stimulus dollars for home weatherization. With
the money, WSU would secure contractors to do a home weatherization program for
middle-class families. Middle-class is defined in the legislation as 80 to 120
percent of median income. However, the bill is expected to undergo a major
rewrite again as differences are compromised between the state Senate, the
governor’s office and the House. It is unknown what the role, if any, there will
be for WSU in the final legislation. The governor’s office has suggested that
there may be a new focus on long-term energy research on building efficiency
that could involve WSU researchers.
State Transportation Budget
(Engrossed Substitute Senate Bill 5352)
Washington State University
supports the state funding of the Salmon Creek Interchange Project that was
provided in the Senate version of the state Transportation Budget. This
interchange needs to be improved to serve the WSU Vancouver campus, now and in
the future. House Higher Education Chair Deb Wallace, D-Vancouver, said today
she is working to try to get the House to agree to the Senate position.
For the status of bills
affecting WSU -
http://www.olympia.wsu.edu/Status/2009_Shortlist_April6.aspx
Olympia Update is produced for
persons interested in state government developments affecting Washington State
University. For more information, go to
www.olympia.wsu.edu. Contact: Larry
Ganders, Assistant to the President, 360-956-2165. From WSU campuses, dial
8-2165. If you wish to subscribe to Olympia Update directly by email go to
www.olympia.wsu.edu/Update.aspx
