December 13, 2001
While economy lags, UW sticks to mission
You are all aware that the state of Washington is facing severe financial challenges. The State Forecast Council’s November revenue estimate, on which the Governor is legally required to base his budget proposal, lowered state general fund revenue projections by $813 million. This is the largest single quarterly decrease since 1982, and reflects the general economic decline, the effects of citizen initiatives that cut taxes, the further reductions in state revenues since Sept. 11 and the projected impact of Boeing layoffs.
The 2001-03 general fund budget shortfall is now $1.239 billion, including the $813 million decrease in the revenue forecast, $180 million in caseload increases in prison and human services populations, and $125 million in unfunded transportation costs.
While many economists are predicting that the current national recession will shift to recovery starting in the middle of next year, Dr. Chang Mook Sohn, executive director of the Forecast Council, predicts a slower recovery in Washington as a result of the Boeing downsizing.
The Governor will release his proposed Supplemental Budget for the rest of the biennium in the week of Dec. 17, which will indicate his approach to the fiscal problems. The Legislature will convene on Jan. 14 for its regular 60-day session, and there will be new caseload and revenue forecasts in the middle of February. We will provide updates to you as these processes advance.
Much of the state budget – most of the K-12 budget in particular – is unavailable for budget cuts. The Governor has indicated that, because public colleges and universities are vital to economic recovery and to our future, he will try, in his words, “to protect but not exempt” higher education. It is in this context that the leadership of the University of Washington – Regents, administration, deans, the Faculty Senate, student leaders – have been participating in the development of strategic approaches to the coming financial challenges.
Beyond the broad parameters of the budget shortfall and the timing of the legislative process, much is uncertain. What is certain is that the leadership of this institution is committed to a process that will develop strategies and make choices guided by our responsibilities: to the students of today and the students of the future, to the faculty and staff who have chosen to make their careers here at the University, and to the citizens of the state and the nation who have invested in our mission.
Despite the financial challenges, the University of Washington has prepared itself to expand its contributions to our community, our region and our world. As we learn more about the state budget in the coming months we will work with faculty, staff and student leadership to develop the University’s funding plan. From time to time I will provide updated information to the University community in messages such as this.
