February 5, 2004
Sales tax exemption, performance contracts move forward in Legislature
Several matters important to the UW are receiving favorable reactions thus far in the legislative session.
A bill that would exempt private high-technology research and development construction from sales tax has passed the state House overwhelmingly. The bill, which has a slightly different version in the Senate, specifically exempts such construction by the UW or WSU.
A bill on performance contracts in higher education was heard in the House Higher Education Committee Jan. 30. It is supported by the governor and major sectors of the business community, according to UW Director of State Relations Randy Hodgins.
A performance contract, Hodgins explained, is an opportunity to be explicit about what
the state expects from higher education. A contract can have benchmarks that describe what the state wants from the University, in terms of bachelor’s degree production, diversity, contributions to regional business, job creation, and other things. Once goals are agreed upon there is negotiation on the resources necessary to achieve those goals, the chief resources being the general fund appropriation and tuition.
It is likely that both houses will act soon on their own versions of this legislation. The chief difference in the two versions of the bill is the number of institutions that will be involved in the pilot phase: The House bill has two four-year institutions and two community colleges, while the Senate appears likely to allow for greater participation.
Concerns about performance contracts have come from teachers’ unions, as well as students. Some of these concerns have been allayed when people realize that any provisions of the contracts that affect state statutes or resource allocation decisions must go through the usual legislative process next session, Hodgins said.
The issue of amending Initiative 200, which banned affirmative action, received a great deal of media attention, with opponents of any revisions showing up in force for legislative hearings.
While some opponents thought the revisions would bring back quotas to higher education admissions, Hodgins pointed out that the amendment would only bring state admissions practices in line with the decision by the U.S. Supreme Court on admissions to the University of Michigan law school, in which race could be considered as one factor in the admissions process. Regardless, Hodgins thinks action on this legislation in the current session is unlikely.
A proposal to merge Cascadia Community College and UW Bothell has been revised by its sponsor, Rep. Helen Sommers. In the new version, UW Bothell would become a four-year comprehensive institution managed by the UW, effective July 1, 2005.
“The legislation in a way is an expression by legislators who are concerned about the future direction of higher education,” Hodgins said. “They are tired of studying the problem and frustrated by the lack of activity, the lack of resources and the lack of clarity on where the system is going. People have been talking about developing more four-year capacity, but these legislators see an absence of direction, which is partly why the issue is being raised.”
Rep. Ed Murray, whose district includes the UW, has proposed that the student conduct code be enforced beyond the campus boundaries. The measure is opposed by the UW and by the ACLU, but is supported by the city as part of a solution to behavior problems in neighborhoods near college campuses.
“The UW’s position is to ask those who are concerned to look at what has been done voluntarily to deal with off-campus problems,” Hodgins said, “particularly by students, and to look at the positive outcomes that have resulted from these steps.”
While policy bills are moving forward, those requiring revenue face an uncertain future, as costs for K-12, health care and prisons appear to be rising and could consume a significant portion of new revenue coming to the state. A revenue forecast later this month should clarify the state’s financial situation.
