News & Updates

The Senate and House released their proposed 2021-23 operating and capital budgets this week, which include solid investments in the higher education sector and alleviate fears of across-the-board cuts due to poor 2020 revenue forecasts. Federal COVID-19 relief funding and improved revenue collections ultimately eliminated the need for sizable cuts.

For the University of Washington, the Senate and House operating budgets maintain the University’s base budget without requiring faculty and staff to take mandated furlough days as proposed by the Governor in December (Senate Bill 5323). The operating budgets also carry forward approximately $4.3 million of funding originally intended to partially fund salary increases in fiscal year 2021 for UW faculty and staff paid by state funding and tuition revenue, which were not instituted last year due to the fiscal emergency caused by COVID-19.

The Senate and House operating budgets look nearly identical for the University with major investments including:

• $40M for UW Medical Center and Harborview Medical Center over the biennium to support their role as the leading health care provider to Medicaid, Medicare, and uninsured patients across the state (Senate proposed ongoing funding, and House proposed one-time funding in the 2021-23 biennium);
• $1M annually for the UW School of Dentistry in ongoing support to sustain their role as the state’s oral health safety-net care provider;
• $2.29M annually, beginning FY23, for the UW School of Medicine program in Spokane for rent and operations of a new, state-of-the-art teaching facility critical for continued accreditation;
• $1.44M annually in maintenance and operations, beginning in FY23, for the Health Sciences Education Building in Seattle, which allow for interdisciplinary team-based learning for the UW’s six health science schools;
• $2.44M to continue planned funding ramp-ups for two psychiatry workforce investments over the biennium, including two child and adolescent psychiatry fellowships and four psychiatry residencies; and
• A revised One Washington central services funding formula for the University, which significantly reduces assumed payments from the University to fund the state’s new financial system.

Additionally, the House included $35 million in one-time funding for UW Medicine from federal relief funds to address lost revenue resulting from the pandemic and given their central role in COVID-19 response efforts. They also included $6 million over the biennium via proviso for new enrollment slots in the Paul G. Allen School of Computer Science & Engineering focused on traditionally underrepresented students. Both budget proposals included several provisos or funding for pending legislation, such as Senate Bill 5227.

The capital budget proposals also invest in the University:

• $45.4M to construct an interdisciplinary teaching and research facility for the College of Engineering in Seattle (Senate & House);
• $36M to construct a new business and engineering building at UW Tacoma using cross-laminated timber (Senate & House);
• $5M in design funding for phase 2 of the Magnuson Health Sciences Center renovation and replacement (Senate only);
• $10 million for critical repairs to the UW Power Plant (Senate & House); and
• $191.25M to build a new state-of-the-art Behavioral Health Teaching Facility on the campus of UW Medical Center-Northwest (Senate & House).

Unfortunately, the House and Senate budget proposals did not include design funding to plan renovation needs for Anderson Hall in Seattle, which was included in the Governor’s proposal. The House proposal excluded almost all the higher education sector’s design requests.

Overall, the State Relations team is thrilled with these proposals and greatly appreciates the bipartisan collaboration that went into them, as well as the strong support for the UW.

The House and Senate will now begin negotiating toward compromise budgets. The budgets must be finalized and sent to the Governor by April 25, which is the last scheduled day of the 2021 legislative session.

For an in-depth overview of the Senate and House operating and capital budget proposals, the UW Office of Planning and Budgeting prepared a brief summarizing the proposals here.

The Office of State Relations will hold a brief update on the legislative session on Apr. 2 from 1–1:30 p.m. State Relations Director Joe Dacca will share the latest news from Olympia, including a review of the budget proposals. To register for this meeting, click here (UW NetID is required). Due to the number of attendees already registered, questions are encouraged to be submitted in advance of the meeting to extrnaff@uw.edu.

The March economic and revenue forecast published by the Washington State Economic and Revenue Council today shows that general fund state revenue collections will increase by $1.34 billion for the 2019-21 biennium and $1.949 billion for the 2021-23 biennium. These amounts essentially constitute a full recovery to the February 2020, pre-COVID forecast, which was used as a basis for the current state budget. 

The state’s unemployment rate declined to 5.6 percent in February, a significant reduction from the historic high of 16.3 percent in April 2020. However, the job market continues to struggle in sectors hit hardest by the pandemic such as hospitality.

Revenue forecasting remains challenging due to the unpredictable nature of the COVID-19 pandemic, but today’s projections reflect a significantly improved economy, especially compared to the $9 billion budget deficit predicted at the height of the pandemic. While today’s forecast reflects federal relief funds provided to the state in December, additional federal aid provided this month are expected to help higher education institutions and overall economic growth this year and next.

The revenue forecast provides positive news as the House and Senate draft their biennial operating budget proposals for the 2021-23 biennium. This improved outlook indicates that significant statewide budget cuts are no longer likely. Budget writers will now use the March forecast to fine-tune their budgets before their release anticipated next week.

Once initial proposals are released, the House and Senate will work toward a compromise budget. Final operating and capital budgets must be voted on and sent to the Governor’s desk before legislative session ends on April 25 to avoid a special session.

To view the Washington State Economic and Revenue Forecast Council’s complete March report, click here. The UW Office of Planning and Budgeting has posted additional details.

The 105-day legislative session is more than halfway over. Yesterday marked the house of origin cutoff, meaning bills that did not pass out of the chamber they originated in are now considered dead unless they are necessary to implement the budget (NTIB). Any proposed legislation that passed off the floor in their house of origin will now move to the appropriate policy committee in the opposite chamber for consideration. Opposite house policy cutoff is coming up on Mar. 26, and legislative session is scheduled to conclude on Apr. 25.

Today, President Cauce met with legislative leaders to keep the UW’s priorities top-of-mind as the House and Senate draft their budget proposals. She also had the opportunity to share how the University continues to provide support to local communities and the state through the ongoing pandemic.

On Mar. 17, the Washington State Economic and Revenue Forecast Council will release their quarterly state revenue report showing the state’s current economic health and future revenue projections. The state’s economy has seen improvements in recent months, but still shows sizeable impacts from economic disruptions due to COVID-19. The revenue forecast will guide budget decisions in the legislature. The House and Senate budget proposals are likely to be released the week of Mar. 22 following the revenue forecast. After the proposals are released, negotiations toward compromise budgets will begin.

The Office of State Relations will hold a brief update on the legislative session on Apr. 2* from 1–1:30 p.m. State Relations Director Joe Dacca will share the latest news from Olympia, review the budget proposals, and provide an update on several bills, including SB 5323. Attendees will also have the opportunity to ask questions. To register for this meeting, click here (UW NetID is required). Questions are encouraged to be submitted in advance of the meeting to extrnaff@uw.edu.

*UPDATE: The Senate and House plan to release their budget proposals on Mar. 25 and 26 so the legislative update was rescheduled to Apr. 2.

It’s week seven of session and proposed legislation is now being considered on the floor by all legislators in the chamber they originated in. Bills that did not advance out of the fiscal committee in their house of origin by Feb. 22 are now considered dead unless they are necessary to implement the budget (NTIB). In order to continue through the process, bills must pass on the floor in their house of origin by 5 p.m. on Mar. 9.

Senate Bill 5323, which freezes wages and salaries and requires 24 furlough days for all state employees during the 2021-23 biennium, did not move out of the Senate fiscal committee (Ways & Means). The bill’s lack of movement is a good sign, but the UW Office of State Relations and broader higher education community will continue to monitor it in case it is determined NTIB or remains part of budget discussions.

The House and Senate budget proposals are expected to be released in mid-March after the quarterly economic and revenue forecasts are published. The recent revenue collections report provided by the Washington State Economic and Revenue Forecast Council shows cumulative state revenue collections are nine percent higher than forecasted in November. Washington state, along with the nation and world, saw catastrophic revenue losses in 2020 resulting from the COVID-19 pandemic. While the state still faces challenges ahead, recent revenue projections are moving in the right direction and make the need for significant state budget cuts less likely.

Legislative session is scheduled to end on April 25. All remaining bills must move out of their house of origin and into the opposite chamber for consideration by 5 p.m. on Mar. 9. Shortly thereafter, the House and Senate budget proposals will be released and negotiations toward a final compromise budget will begin.

To view the legislative session cutoff calendar, click here.

It’s week five of session and the legislature is quickly approaching policy and fiscal cutoffs. Feb. 22 is the last day for bills to pass out of the fiscal committees in their house of origin. If bills do not move out of fiscal committee by that date, they are considered dead and will not become law this year unless they are considered necessary to implement the budget (NTIB).

The UW Office of State Relations continues to monitor Senate Bill 5323, which suspends merit increases during the 2021-23 biennium and requires all state employees to take 24 furlough days. The bill was heard in the Senate Ways & Means committee on Jan. 28 but has not yet been scheduled for executive session and moved to the Senate floor for a vote. Leaders across the higher education community have expressed strong disapproval of this proposal and the UW’s Office of State Relations continues to emphasize the detrimental impacts this proposal when speaking with legislators. It remains to be seen if the bill will be voted out of fiscal committee.

Here are some highlights from the past two weeks:

UW Regents participate in a panel discussion with higher education colleagues and legislative leadership

The annual higher education regents and trustees lobby day was reimagined this year due to the virtual format of session. Instead of individual meetings with legislators, regents and trustees participated in panel discussions with House and Senate Democratic and Republican members, including Reps. Vandana Slatter, Steve Bergquist and J.T. Wilcox and Sens. Emily Randall, David Frockt, Andy Billig, and Jeff Holy.

Regents and trustees had the opportunity to speak with legislators about priority policy and budgetary requests for higher education, including the request to not cut higher education budgets as was done during the Great Recession. They were also able to discuss the continued importance of keeping higher education affordable and accessible to students, especially during these hard economic times.

Thank you to the UW Regents who participated in the conversation!

Regent Pogosian provides testimony at Senate confirmation hearing

The confirmation hearing for Regent Kristina Pogosian was held in the Senate Higher Education & Workforce Development Committee on Feb. 10. All members of the UW Board of Regents are appointed by the Governor and confirmed by the Senate. The confirmation hearing is the first step the Senate takes before bringing appointments to the floor for a final vote.

In her testimony, Regent Pogosian expressed her pride in being the daughter of Armenian immigrants and shared how higher education contributed to her sense of belonging by helping her learn about the value of diversity. She emphasized the importance of ensuring “college is accessible and attainable for all who want to pursue it” and shared the work she has done to support that goal, including helping to pass legislation to expand higher education support. She outlined her commitment to the higher education and UW communities and stressed that all of her work is and will continue to be deeply rooted in relationships.

Regent Pogosian was unanimously confirmed by the committee. Her appointment must now go to the Senate floor for consideration and a final vote. Due to the ongoing pandemic, the Senate may not bring forward floor votes on gubernatorial appointments until next legislative session.

The UW is extremely fortunate to have the leadership of Regent Pogosian.

UW Deans and UW Tacoma’s Chancellor meet with budget writers on legislative agenda priorities

College of Engineering Dean Nancy Allbritton met with capital budget leaders to request $45.4 million for a new Interdisciplinary Engineering Education Building in Seattle. This 75,000 square foot building is shovel ready pending state funding and will support more than 7,000 engineering students and accommodate future program growth.

UW Tacoma Chancellor Mark Pagano also met with capital budget leaders and legislators representing the South Puget Sound to champion $36 million to construct a new business and engineering building in Tacoma. The 50,000 square foot building is ready to break ground and will house the fast growing Milgard School of Business and high demand new programs in civil and mechanical engineering.

School of Dentistry Dean Gary Chiodo met with legislators on the health care and fiscal committees to request $1 million per year in ongoing funding to support the School of Dentistry’s (SoD) role as critical safety-net oral health care providers in the state. State funding is vital to help SoD reduce the state’s backlog of Medicaid and uninsured patients with urgent oral health care needs. The funds will also increase comprehensive care, teach and train the state’s future and current oral health care providers, and improve outreach to underserved populations throughout the state to further reduce health care disparities.

UW leaders ask legislators to support environment education and preservation efforts

The Governor’s proposed 2021-23 budget included $600,000 for the UW’s College of Education to collaborate with stakeholders to develop K-12 climate science curricula for teacher preparation programs. Last week, Dr. Philip Bell and Dr. Deb Morrison met with key education and climate legislators to encourage the preservation of these funds in the legislature’s final biennial budget. Legislators were happy to hear about the great efforts underway to educate the next generation of science teachers.

On February 10^th, Washington Sea Grant (WSG) spent the day meeting with legislators to educate them on the importance of limiting the spread of the invasive European Green Crab on Washington’s coast and in the Puget Sound. WSG is working with its Tribal and nonprofit partners to secure $1.2 million in this year’s budget to protect the shellfish industry and coastal communities from this invasive species. The meetings were met with support from legislators who recognized the threat to their communities.

The 2021 legislative session began on Jan. 11 in a virtual format. Legislators convened at the Capitol building on the first day under strict safety standards to take the in-person vote required to allow for a virtual session and then returned to their legislative districts to conduct business for the remainder of session.

This long legislative session is scheduled to last 105 consecutive days and will determine the 2021-23 state operating, capital, and transportation budgets. Legislators must also apply fixes to the 2019-21 operating budget due to the disruptions caused by the COVID-19 pandemic.

Here are some highlights from the first few weeks of this unique session:

The UW weighs in on the Governor’s budget proposals

Director of State Relations, Joe Dacca, testified in support of the Governor’s operating budget proposal – which provides significant investments to the UW and UW Medicine – in the House  and Senate fiscal committees. He applauded the $60 million in one-time funding directed to UW Medicine for COVID-19 response efforts and the additional, ongoing funding specified for Harborview Medical Center, UW Medical Center, and the UW Dentistry clinics to support their role as critical safety-net health care providers in the state.

However, Joe did oppose a component of the Governor’s proposal that requires 24 furlough days and suspends merit increases for University faculty and staff through the 2021-23 biennium. He also testified in opposition to the corresponding legislation, Senate Bill 5323, alongside a number of higher education colleagues. The higher education community has worked hard to communicate why this proposal is harmful and the Office of State Relations will continue to prioritize and convey this message with legislators. At this time, it remains to be seen whether the bill will advance through the legislative process.

Associate Director of State Relations, Morgan Hickel, submitted written testimony supporting the Governor’s proposed capital budget because the University’s capital priorities were all fully funded. Due to the virtual format, written testimony has been provided as a new option to engage in committee hearings this legislative session.

The Governor’s proposed budgets represent the first step in the budget process. The House and Senate will introduce their separate proposals later in session so stay tuned for updates.

President Cauce meets with leadership

On Jan. 19, President Ana Mari Cauce had her first virtual meetings with leaders in both the Senate and House. She highlighted how the unprecedented events of 2020 shine a spotlight on the essential role of the UW and UW Medicine in our state. Her comments focused on the UW’s collective efforts in responding to the pandemic, the remaining and evolving challenges, and her hopes for the future.

She also championed the UW’s legislative agenda, which encourages legislators to preserve the University’s current state funding levels to avoid significant harm to the UW community and increase critical funding support for UW Medicine, and expressed significant concerns regarding the Governor’s state employee furlough proposal.

State revenues have improved since the November forecast, but the historic investments made in public higher education and UW Medicine during the 2019-21 biennium remain at risk while the pandemic continues. The UW’s legislative agenda prioritizes what the University and our health systems need most to continue to operate and serve our students, patients, faculty and staff, and the state.

UW Alliance for Pandemic Preparedness participates in Senate work session

Drs. Judith Wasserheit and Peter Rabinowitz, co-chairs of the UW Alliance for Pandemic Preparedness, participated in a work session on pandemics in the Senate Health & Long Term Care Committee. Legislators hold work sessions to educate themselves on relevant and important topics and to inform future decision making.

Joined by Dr. Peter Ehrenkranz with The Gates Foundation, Drs. Wasserheit and Rabinowitz presented comprehensive information about past pandemics, the likelihood of future pandemics, and what Washington state, the nation, and the world can do to prepare and respond. Thank you Dr. Wasserheit and Dr. Rabinowitz for providing your expertise to inform policymaking!