Olympia
Update No. 2 • February 16,
2009
Budget Reduction Scenarios
From: Larry Ganders, Assistant to the President
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Legislators hear
WSU cut scenarios
Pres. Elson
Floyd will present an outline of possible Washington State University state
budget cut impacts to the Senate Ways and Means Committee Monday afternoon and
to the House Appropriations-Education Subcommittee Tuesday morning during
“Higher Education Day” at the state capitol.
Unanticipated
reductions in the workforce at Microsoft and Boeing are among many factors that
have prompted Senate and House fiscal committees to query WSU this week on what
the impact would be if the university must reduce state spending by 12-18
percent. Pres. Floyd’s outline will
·
Disproportionately protect student enrollments
·
In these
initial scenarios, assume tuition rate increases at no more than the 7 percent.
House Bill 1235, which continues the current practice of a 7 percent tuition
increase limit for resident undergraduates passed out of the House Higher
Education Committee Friday.
·
Protect most
state-funded research such as in agriculture and alternative energy
·
Minimize
impact on existing employees through early retirement incentives and other
strategies
These are
broad scenarios that cut deeper to administration, student services and public
service programs. But these outlines could change as the university works
through actual budget reduction options and the Legislature begins focusing on
more solid budget numbers. Currently, no House or Senate budget proposal has
been made public.
University
faculty legislative representatives will be presenting their perspective on the
budget situation to the Senate Higher Education Committee Tuesday at 10 a.m. in
Olympia.
State Revenue Forecast Council Delivers Preview Thursday.
There is speculation in Olympia that the state’s $5.1 billion budget shortfall
for 2009-2011 has grown to more than $8 billion when
the state’s revenue forecast is released next month. But the new working state
deficit number for legislative leaders may emerge Thursday with an unusual
“pre-forecast.” It was under the assumption that the shortfall was $5.1 billion
that Gov. Christine Gregoire proposed in December that the WSU budget would be
reduced 12 percent. Now, as the economy worsens and pressure builds to reduce
the governor’s cuts to social services and other parts of state government, the
Senate and House are requesting reduction scenarios of up to 18 percent.
The
governor’s biennial reductions are more serious than the economic turndown
generated 28 years ago, maybe among the largest annual cuts in history for our
institution. But scenarios that suggest an 18 percent reduction are even more
sobering.
For WSU, the
governor’s 12 percent cut is $31 million.
For example, this is a budget equivalent to the entire WSU Vancouver campus
or the entire College of Agriculture, Human and Natural resource Science,
the Murrow College of Communication, and the Health Sciences program.
No such scenarios are being contemplated but for comparison purposes, an 18
percent reduction is equivalent to the state budget at all the regional
campuses: Vancouver, Tri-Cities, and Spokane.
Even with protection, enrollments will decrease. Provost Warwick
Bayly previewed a broad outline of a possible 18 percent scenario to the state
Senate Higher Education policy committee last week. In the 18 percent scenario,
WSU would try to hold reductions in instruction and research to 11-13 percent.
WSU currently projects that the governor’s 12 percent budget cut would reduce
WSU enrollments by 1,000 students. An 18 percent cut would hit other programs
very hard and reduce enrollments by 1,500 students.
Supplemental (2009) Budget:
Senate Bill 5460 has passed both
houses in the Legislature, a measure that will freeze positions, salaries, and
travel for more than a year. WSU has frozen most of these items but sought
flexibility for retention of critical faculty members. WSU’s cut in the
supplemental (the current budget through July 1) is $10.5 million. The
Supplemental Budget (House Bill 1694) passed the House 83-13 on Feb. 2 and the
Senate 30-18 Friday.
Federal Economic Stimulus Could
Offset Some WSU Cuts, Provide New Construction
State leaders were hopeful that approximately $2 billion in
federal stimulus funds could be used to reduce cuts to current programs,
including K-12 and higher education. The federal stimulus legislation
approved by Congress Friday could present this state with an opportunity to
quickly create thousands of construction and related jobs with shovel-ready
projects that could be a tremendous boost to a recessionary state economy. By
“shovel ready,” the government means projects ready to break ground this spring.
WSU has projects that fit into that category.
A $10 million federal
stimulus allocation could enable a $35 million in Pullman Construction project.
As its highest priority, WSU supports $10 million in federal stimulus money,
which Congress allocated to the Legislature and governor, for construction of
the Global Animal Health Building, Phase One. Global Animal Health, Phase One,
was not proposed as a state building but has been part of a WSU Foundation
fundraising effort. The Bill and Melinda Gates Foundation has already provided
$25 million for the $35 million building. Therefore, a $10 million appropriation
from the Legislature could provide $35 million worth of construction that would
begin next month and benefit all of Eastern Washington. The Global Animal Health
Phase I Building is the centerpiece of the University's new School for Global
Animal Health. Research at the school will focus on discovering new vaccines,
diagnostics, and other strategies to control global infectious diseases that
affect both animals and humans. Some House members are also supporting a $2.77
million operating budget package that would add three new scientific research
clusters to launch the School For Global Animal Health.
Vancouver Building Could Get Boost from “State Stimulus” Request.
The Legislature may also propose its own state-funded list of “shovel-ready”
projects.
The Vancouver
Applied Technology Classroom Building has been proposed by Gov. Chris Gregoire
for accelerated construction this spring as part of a state stimulus package.
Gregoire provided $38.67 million for construction of the Vancouver building and
is urging that the Legislature approve her stimulus package quickly. A related
$15.8 million building proposed by the Washington Technology Center was not
forwarded by the governor but may be considered by the Legislature. It would
also be located on the Vancouver campus.
Faculty
Regent Bill Passes Committee.
Substitute House Bill 1841, a measure adding a
faculty member as the 11th
person on the WSU Board of Regents next fall passed the House Higher education
Committee Thursday on a 9-1 vote. WSU had no position on the legislation
although it was actively supported by the WSU Faculty Senate.
The faculty member will be appointed by the governor from a list of five
nominees submitted by the Faculty Senate. Amendments added in committee,
shortened the faculty regent’s term from six to three years, and forbid the
faculty regent from being involved in issues regarding faculty compensation,
tenure and promotion.
Former
President Rawlins honored.
The state Senate Friday honored Former WSU President Lane Rawlins for his
service to the state. A resolution was passed in his honor.
Special Event: Higher
Education Day Tuesday
State
workers, staffers, students, alumni and the general public are invited to sample
ice cream from Washington State University’s Creamery as part of “Higher
Education Day” at the state capitol next Tuesday, Feb. 17. The ice cream is
provided courtesy of the WSU Foundation and the WSU Alumni Association.
This year’s higher education day events, presented by alumni associations of the
state’s four-year institutions statewide, are scaled down for budget savings.
But they are also more fun and inclusive
for any employees or visitors to the capitol on Feb. 17. Dozens of ASWSU
students will also be attending the events as part of their visits to the
capitol this week.
Beginning at Noon:
Butch The Cougar and the other public university mascots will be on hand as
“Ferdinand’s” ice cream “grabbers” will be handed out at the tent near the east
door of the Legislative Building.
Noon to 1:30 p.m. The traditional
formal luncheon for state dignitaries has been replaced by student entertainment
in the rotunda. Light snacks are available in the tent to any friends of the
public four-year universities. Student entertainers from across the state,
including a WSU pep band, have agreed to perform.
1:30 p.m. Pep bands from WSU and the University of Washington will continue
performances on the front steps of the capitol.
4 p.m. Gov. Christine Gregoire,
introduced by WSU President Elson Floyd, will be in the state reception room to
present the “Waldo Award” for service to higher education.
5-7 p.m. Washington Center Reception. Join the alumni
associations for an evening reception featuring the Stretta Quartet from Central
Washington University at the Washington Center for the Performing Arts, 512
Washington Street, Olympia. House Higher Education Chair Deb Wallace and Senate
Higher Education Chair Derek Kilmer will be among the guests.
For a complete list of bills tracked by WSU and any
action by the governor, go to:
http://www.olympia.wsu.edu/Status.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
