Olympia Update No. 12 ● May 15,
2009
Feds Stimulate State Legislature
From: Larry Ganders, Assistant to the President
Click Here for Print-Ready Adobe PDF Version
Click Here for the final capital budget bill
Gregoire
signs $196.8 million
WSU construction budget
A biennial state capital budget authorizing $196.8 million in WSU
construction was signed this afternoon by Gov. Christine Gregoire --
accelerating four new science building projects at three campuses.
“The capital budget I am signing today will support more than 13,000
jobs at its peak,” Gregoire said of the entire state construction
plan. “These jobs are critical in helping our state recover from the
economic downturn. At the same time, the investments build the
infrastructure needed to keep Washington at the forefront of the
21st century economy.”
The only major change Gregoire made to the Legislature-passed budget
was a veto of requirements that the Washington State Arts Commission
purchase artwork displayed in state agencies, schools and
universities only from artists living in Washington state. Gregoire
said the requirement could have a negative impact on Washington
artists who sell to out-of-state customers.
Applied Technology Classroom Building
Today’s action on Engrossed Substitute House Bill 1216 means
construction will begin late this year on the Applied Technology
Classroom Building at WSU Vancouver. The building is the top
building priority for the university across all campuses. The budget
provided $36.7 million of the $38.7 million requested by WSU for the
four-story building. Legislators believe that recessionary bidding
conditions will make up the $2 million difference.
Securing this funding was controversial in
the Legislature as the House budget provided no funding. It was
recommended by both the governor and the Senate and received support
from Vancouver-area business and civic leaders. The building
includes specialized laboratories, engineering classrooms, and other
space to serve computer science and engineering students.
Veterinary Medical Research Building
The bill also authorizes WSU to sell bonds to both design and
construct the $96 million Veterinary Medical Research Building on
the Pullman campus. That
means construction on this building could begin as early as 2011.
WSU requested $7.4 million in design funds, which would have made it
eligible for construction in 2012.
It became an “all or nothing”
showdown at the Legislature as the House proposed no funding for the
building, effectively delaying construction until 2015. But Senate
leaders made higher education more of a priority and successfully
pushed for an alternate financing package that was ultimately
adopted. The building is designed to get neuroscience, cardiac
muscle and bioengineering research and education out of crowded and
antiquated space.
Global Animal Health Building, Phase I
The budget also provides $6.2 million of the $10 million match
required to construct the $35
million Global Animal Health Building, Phase I, on the Pullman
campus. The Bill and Melinda Gates Foundation made the project
possible with a $25 million grant. WSU needs only $3.8 million to
complete the final package. The state participation may leverage
additional private and federal funding to make the project ready for
construction.
The Riverpoint Biomedical & Health Sciences Building
The Riverpoint Biomedical Research Building received $4.34 million,
more than the pre-design funds that the governor recommended. This
additional funding means the project could be ready to receive a
final construction go-ahead from the state Legislature in the 2011
session instead of the 2013 session. The project will benefit more
than one university as programs connected to Eastern Washington
University will also be housed in the building. The building
includes space to consolidate WSU health science programs, support
Spokane medical education through a partnership with the University
of Washington, and to expand biomedical research. A key advocate of
this and the other major WSU projects was Senate Majority Leader
Lisa Brown, D-Spokane.
Minor Works
Minor works projects were funded at $43.6 million in the capital
budget. Funds earmarked for preservation alone were $26.1 million
(33% less than this current biennium.) Funds earmarked for program
improvements and equipment are funded at $17.5 million, about the
same level as the current biennium.
The Best of Capital Budgets?
What allowed the $196 million level of spending for WSU was
authorizing the university to issue bonds that would be repaid from
the institution’s local building account instead of the state
general fund. This alternate financing scheme, proposed by Senate
Capital Chair Karen Fraser, D-Olympia, provided funding for three of
the four WSU projects. It authorized the issuance of bonds to be
repaid from WSU’s local building fund for $10 million of the
Vancouver Applied Technology building construction, $95.78 million
for the Veterinary Medical Research Building, and the $6.2 million
of the funds by the state for Global Animal Health
The House proponent of the
alternate funding concept was Rep. Scott White, D-Seattle. Both
White and Fraser were on hand today for bill signings with the
governor in Olympia today
Just looking strictly at the number of projects authorized, this
capital construction budget could be considered the best ever for
WSU, just topping the $190 million for the current biennium.
However, a look at just the traditional source of building funds
paints a different picture for the future.
The general fund bonded
spending for WSU is among the lowest of capital budgets of the last
decade.
The
state capital budget transferred more than $700 million into the
operating budget to deal with the recession. It also put millions
more into K-12 construction and other areas of government that once
consumed much less of the budget. With the pressures of a state debt
limit, WSU general fund construction allocation was just $54.2
million of the $196 million in projects.
Overall, state general fund capital spending was down 30 percent,
said House Capital Chair Hans Dunshee, D-Snohomish. He said state
capital spending was reduced to assure that more K-12 teachers could
be funded in the operating budget. The
revenue source that will repay these university bonds will be a
portion of student tuition (the building fee) and endowment income
from WSU’s trust land timber sales.
For Friday's
status of bills
(passed and failed) affecting WSU -
http://www.olympia.wsu.edu/Status/2009_Shortlist_May5.aspx
For governor’s actions
through Friday
on bills
successful in the 2009 Legislature, go to:
http://www.olympia.wsu.edu/Status/2009_Maylist_May12.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, 360-534-2330.
From WSU campuses, dial 4-2330.
If you wish to subscribe to Olympia Update directly by email go to
www.olympia.wsu.edu/Update.aspx
