Amidst historic general state reductions to university funding by
the Legislature this year, some federal economic stimulus money
allocations have already been signed into law by the governor and
will provide some actual growth to selected Washington State
University research and extension programs.
Not yet signed are 2009 state bills on the capital construction
budget, operating budget, and tuition. That will happen in the
coming days.
But
it is legislation out of Washington D.C. awarding federal stimulus
funds, some directly to state Legislatures and governors, that
played a huge role in the shaping of major budget and tuition bills
on Gov. Gregoire’s desk.
Unlike many states, Washington chose not to use federal funds for
higher education construction projects. State legislators are
counting on federal funds to hold students and families harmless for
major state tuition increases and limit WSU net state operating
budget reduction to 10 percent in the coming biennium. Without
tuition increases and federal stimulus dollars, the state
Legislature’s budget would cut WSU’s operating budget 22 percent.
Most federal stimulus funding (American Reinvestment & Recovery Act)
for the university will be awarded directly by federal agencies
through new competitive research grants.
WSU researchers have already submitted more than 90 research
proposals directly to federal agencies totaling requests for nearly
$60 million. And many more applications are being prepared by WSU.
But tens of millions of dollars in federal stimulus money flows
through the state government rather than federal agencies.
It was allocated by the bills passed by the Legislature last month.
Many of those bills have already been recently signed by the
governor this month and will be fully implemented with the upcoming
signing of the state budgets.
Whether delivered from the federal or state government, these
economic stimulus funds all come with strings attached to Washington
D.C.
The U.S. government’s reporting requirements on these federal
stimulus dollars are going to be detailed and will place great
responsibility on the state and agencies like WSU.
Gov. Gregoire is required to report on the outcomes of all federal
stimulus money that ends up in the state, regardless of whether it
passed through state government or not. The first comprehensive
quarterly report by the governor is due Oct. 10, addressing
cumulative activity back to last February.
WSU has already been put on notice by the governor’s staff that it
should begin efforts to assist in the preparation of quarterly
reports. In addition, the federal government will require an annual
report.
The state’s reporting requirements cover everything from increased
federal student financial aid grants, to successful federal research
grants, to $15.7 million in one-time education “stabilization” funds
that the Legislature allocated to WSU’s base budget, to more than
$15 million in WSU energy extension programs. State officials say
the reporting requirements will be unprecedented. Details will
especially be required on the contribution the programs will make to
the economy and the number of jobs that will be preserved or
created. Unlike typical state funding that becomes part of the
university’s base for many years to come, these stimulus funds that
WSU receives will be one-time appropriations. That means this
funding will end after one year, two years, or three years. That
makes it difficult to commit to permanent employee positions.
State Energy Legislation
One early recipient is the WSU Extension Energy Programs
headquartered in Olympia, which increased its full-time employees on
non-state funding from the equivalent of 50 to more than 60 in
recent months. Part of that growth was because the U.S. Department
of Energy designated WSU as the major information source for federal
energy stimulus funding inquiries from across the country. The WSU
extension program will play a role in some of the following state
energy legislation signed into law by the governor that relies on
federal funding sources:
Energy Efficiency in Buildings, Engrossed Substitute Senate Bill
5649.
Sen. Phil Rockefeller D-Bainbridge Island, sponsored the bill,
signed into law
by the governor, that deals with spending federal stimulus funds
available for building energy efficiency. Rockefeller pushed
throughout the session for clear WSU extension involvement in the
bill. The bulk of the effort is on weatherization of an estimated
20,000 homes and businesses in the next five years. Among the
provisions, WSU is authorized and funded to establish grant programs
that provide community-wide residential and commercial energy
efficiency upgrades in three or more urban areas of the state.
Roughly 5,000 middle-income families with incomes over 200 percent
of poverty (about $44,000 per year for a family of four) could
receive free or reduced-cost weatherization upgrades with the
program.
The program may also address issues such as lighting and hot water
efficiency. WSU must coordinate and collaborate with the Department
of Commerce in the design, administration, and implementation
elements of the pilot programs. The
agency name “Department of Commerce” will be made official Friday
when the governor signs House Bill 2242, reorganizing the former
state Department of Community, Trade and Economic Development.
Other provisions of ESSB 5649 managed exclusively by the new state
Commerce department will provide similar assistance to families
under the 200 percent poverty threshold. Sponsors such as alliances
of businesses, organizations and/or cities would provide matching
funds for the pilots and directly hire contractors to do the work
for homeowners.
Section 128 5 (c) of the operating budget bill (ESHB 1244) provides
$14.5 million in federal stimulus funds to WSU for the grants for
pilot programs contained in ESSB 5649.
The budget also provides $500,000 to WSU for farm efficiency
assessments required by the bill. WSU is directed to form an
interdisciplinary team of agricultural and energy extension agencies
to help agricultural producers assess opportunities to increase
energy efficiency in all aspects of farm energy uses. The governor
has not yet acted on the budget, but is expected to do so before
next week.
ESSB 5649 passed the House 63-34 on April 16 and the Senate 30-17 on
April 21. The bill was signed
by the governor on May 7 with a partial veto of duplicative
language. The bill gives a preference to hiring workers trained
under the provisions of the Evergreen Jobs legislation, ESHB 2227,
which is currently getting close scrutiny by the governor before she
acts on the bill.
Clean Technology Leadership Bill
- Substitute Senate Bill 5921.
This new law, supported by WSU,
directs the Governor to establish a Clean Energy Leadership
Initiative in collaboration with a public-private alliance of clean
energy leaders. The alliance would be supported by private and
public funds. The bill
establishes a Clean Energy Leadership Council through the alliance.
A related measure, Substitute House Bill 2289, also signed into law
this month, gives the Clean Energy Council authority to designate
projects eligible for federal funding as part of the “Energy Freedom
Program.” The biennial operating budget appropriates $38.5 million
in federal funds to Energy Freedom Program. The funds will target
programs in energy that quickly create a maximum number of jobs in
the state and reduce energy consumption. The clean energy leadership
initiative "is to be supported by public and private resources
including, to the extent available, the resources of the state's
energy office and Washington State University's Energy Program"
according to the bill. The bill passed the Senate 32-13 and the
House 64-33. It was signed into law by the governor May 4.
Broadband
The
federal stimulus bill provided $4.7 billion in broadband funding
nationally through the Broadband Technology Opportunities Program
(program). The program specifically provides: $3.9 billion for
infrastructure; $250 million for competitive grants to encourage
sustainable adoption of broadband service; $200 million for
expanding public computer center capacity; and $350 million for the
BDIA grant program and development of a national broadband inventory
map. In addition, the ARRA provides $2.5 billion for distance
learning, telemedicine, and a broadband grant program.
Engrossed Second
Substitute House Bill 1701
is scheduled to signed by the governor Friday. It directs her to
take all appropriate steps to secure federal stimulus funding for
the state and to maximize investment in broadband deployment and
adoption in the state. Such steps may include designating a
broadband coordinator, reviewing and prioritizing grant
applications, disbursing block grant funding, and providing
direction to state agencies to carry out broadband programs. The
state budget allocates some funds to the Department of Information
Services for these purposes.
Tuition &
Financial Aid
The Legislature-passed budget and
related tuition bills presumed a 14 percent per year tuition
increase for resident undergraduate students. That amounts to about
$870 per year or a total WSU annual tuition rate beginning next fall
of $7,088. While federal stimulus dollars reduced the Legislature’s
cut from 22 percent to about 18.5 percent, it is the presumed
tuition increases that get WSU to a 10 percent net cut that is the
basis of the institution’s budget deliberations. Legislators made
the tuition decision based on information that federal stimulus
dollars will offset the cuts to most families earning $160,000 per
year or less.
Low income students will not be hurt
by the increase. WSU’s “Cougar Commitment” assures that tuition will
be covered for students that meet 70 percent of median family income
(about $52,500 per year for a family of four.) There are also
potential tax credits for students in this category of $700 to
$1,000 per year.
There
is also expected to be no initial net impact on students from
families earning 52,500 to $96,000 per year. Students in this group
were previously able to receive the HOPE tax credit up to $1,800 for
two years. New federal policy increases their potential tax credit
by $700 and extends the benefit to four years.
Students from families in the
$96,000 to $160,000 income bracket also have no net impact. Students
or families in this group were not previously able to receive the
federal “HOPE” income tax credit. They or their families are now
eligible to receive up to $2,500 per year in federal tax credits
