A new House-Senate compromise operating budget reduces WSU state
funding by 22 percent. It uses federal stimulus dollars and a 14
percent undergraduate tuition increase to partially offset those
cuts.
The compromise operating budget bill (Substitute House Bill
1244) narrowly passed the state House of Representatives 54-42
Friday night and cleared the Senate Ways and Means Committee this
morning. In other business, a new capital construction bill that
includes $36.7 million for the Vancouver Applied Technology
Building, has passed the House by the bare minimum required for
passage. The Legislature appears to be on track for adjournment
tomorrow as it races through dozens of remaining bills.
The Biennial Operating Budget
The new operating budget bill
provides that half of the cut will be offset by $15.7 million in
federal stimulus dollars and the assumed tuition increases, leaving
WSU with a net 10.4 percent “net” budget reduction of $54.2 million
next biennium. Ten percent was the target that Gov. Christine
Gregoire supported in negotiations with the House and the Senate.
Legislative staff use a different formula that is sometimes quoted
in public reports. It represents the same 10 percent WSU cut as a “7
percent reduction.”
No matter how you calculate the percentage, the $54.2 million net
cut is the largest dollar reduction to the university in history.
But the Legislature seriously considered much worse scenarios for
WSU. The state Senate budget proposed a $60 million net reduction
and most worrisome for WSU educators and students the House budget
proposed a $91.2 million net reduction.
“We are fully aware of the economic difficulties facing our state
and nation. Under those fiscal conditions, the Legislature did the
best it possibly could do to protect higher education,” said WSU
President Elson S. Floyd.
Gov. Gregoire led efforts to encourage legislators to improve their
higher education budgets. Senate Majority Leader Lisa Brown and
Senate Higher Education Chair Derek Kilmer are among senators who
frequently weighed in for higher education. And there were a number
of key legislators in the House who worked to improve that position
including Senate Majority Leader Lynn Kessler, House Ways and Means
Chair Kelli Linville and House Appropriations-Education Chair Kathy
Haigh. Here are some of the provisions of the compromise biennial
operating budget:
There are few mandates in the budget but some
advice from the Legislature in the form of
provisos:
- The budget provides $75,000 for each year of the biennium in new
money for honeybee colony collapse disease. It is the only new
appropriation for WSU in an otherwise “all cuts” budget.
- Section 912 of the budget might allow WSU to extend its voluntary
retirement incentive program to classified employees and
administrative professionals on the state plan. However, it was not
the language WSU and the House proposed and will require approval
from the state Office of Financial Management.
- There is language that urges the university to maximize reductions
in administration and non-instructional areas. However, it urges
moderation to some non-instructional areas such as agricultural
extension.
- It urges that enrollment should be maintained in employer
high-demand instructional areas such as math, engineering, and
science.
- There was a 40 percent reduction in potential university research
funding scheduled to be allocated through the “Life Sciences
Discovery Fund.” These are tobacco settlement dollars to the state
that are estimated to be $65 million next biennium. The budget
redirects $26 million to the general fund.
- The House budget (the original House Bill 1244) cut 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. The compromise budget cuts WSU state funding 22 percent or
$112 million.
“Now that we have budget numbers in hand, we will be able to
continue the process of determining a budget plan that will, to the
best of our ability, minimize any negative impact on the academic
mission and strategic priorities of our university,” said Provost
and Executive Vice President Warwick Bayly.
$109 million WSU Capital Construction Budget
Students and institutions like WSU were successful in preventing the
House from transferring student-paid building fees into the general
fund.
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 fiercely
debated in budget negotiations.
Sen. Karen Fraser, D-Olympia is being praised by fellow senators for
fighting for higher education construction funds.
Vancouver Applied Technology Classroom Building.
Building fee revenues will be part of the solution to fund a
$36.7 million building at WSU Vancouver. Building fees are among the
funds that will be bonded to pay for up to $10 million of the
Vancouver building’s costs. Construction will likely begin this
year. The building is WSU’s highest legislative priority. The
compromise budget funding level is about $2 million below the
original request.
Riverpoint Biomedical & Health Sciences.
$4.34 million is provided for pre-design/design for the building on
the Spokane campus.
Veterinary Medical Research Building.
$7.4 million in design funding was requested this biennium. The
budget authorizes that amount as well as construction of up to
$95.78 million. The building is WSU’s second highest priority. The
alternate funding method used for this building might accelerate
completion of the project. Construction was scheduled to begin in
two years.
Global Animal Health, Phase I.
$6.2 million is provided to WSU toward the $10 million match
required by a $25 million Gates Foundation gift.
Minor Capital Preservation and Programs.
$45.16 million
Other Bills
Non-resident tuition (Senate Bill 5734) has passed the Legislature.
The bill allows universities to continue setting tuition rates for
non-resident and graduate students. The new budget assumes that WSU
will set non-resident undergraduate tuition at 5.3 percent per year,
most graduate students at 5 percent per year, and many professional
programs at 10 percent per year. Veterinary Medicine is assumed at 7
percent per year.
Resident Undergraduate Tuition (House Bill 2344).
Legislation specifying that the operating budget may increase
tuition above the 7 percent statutory “cap” has narrowly passed the
House and passed the state Senate today 29-20. The compromise budget
assumes that undergraduate tuition will increase
14 percent per year
next biennium. The student lobby, including ASWSU, worked for
an amendment to the bill to make it a temporary surcharge. “That
will mean there will be less access,” said Sen. Fred Jarrett. He
said universities would not be able to maintain permanent faculty
positions if the tuition funding is rolled back in two years. The
bill drew debate from senators on both side of the issue with sons
or daughters at Washington State University. Sen. Jim Hargrove said
it would cost about $500 in increased tuition for his son, but he
said it would cost an additional $6,500 if his son had to pay all
college expenses for an additional semester. Sen. Cheryl Phlug said
rather than high tuition, the state should have given a priority to
higher education. Why are we cutting 21 percent.
Sen. Mark Schoesler told the Senate it was breaking its
commitment to a 7 percent cap. “We have only one thing as senators,”
said Schoesler. “Our word.”
UW-WSU Public Works (Senate Bill 5760). A compromise version of this bill could help expedite
projects built by WSU with non-appropriated funds. But it faces a
critical vote tonight or tomorrow on the House floor. The compromise
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.) The House-passed version prevents WSU from benefitting
from the bill.
Student Lobbying (Senate Bill 5776).
This Legislation has been signed into law by the governor.
An ASWSU request bill, it
clarifies that students can continue to use student services and
activities fees or voluntary fees to finance their lobbying teams in
Olympia.
Faculty Retention (House Bill 2328).
This bill has passed the Legislature and 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.
