February 17, 2011

Closing in on a Final Compromise for the FY 2011 WA State Budget

Leadership in both fiscal committees of the House of Representatives and Senate signed a compromise budget to closing the remaining FY 2011 budget deficit. Both new cuts and fund transfers are included in the compromise.

While the budget is not final and both chambers must take a floor vote, the conference budget is in near final form. Higher education institutions would not receive direct state funding cuts, but would be asked to backfill a new cut to the State Need Grant (SNG) with institution resources. The UW would be directed to use $5,658,000 of internal funds to cover the general fund reduction to the SNG.

Also note that higher education institutions were exempt from a salary reduction (furlough) requirement.

Lastly, the compromise budget did not close the Basic Health Plan but it did make significant cuts to K12 and other social services.