In news from Olympia, Gov. Chris Gregoire appointed Suzan DelBene to be the state’s next revenue director. Here’s the news release from the governor’s office. (Opens in a new window.)
News & Updates
Another gloomy state revenue forecast
Officials are now saying the state is expected to take in $1.2 billion less in tax revenue than projected between now and June 2013, according to The Seattle Times. (Read the article.)
Gov. Chris Gregoire said that would mean a loss of $385 million for the current biennium. She added in a prepared statement that “the Legislature will need to act quickly” to address the situation.
According to The Times, Gregoire’s office said she wants to hear from legislative leaders to see if there’s any chance for quick agreement on a solution before deciding on a possible special session.
UW enrollment at all-time high
At its October meeting, the UW Board of Regents heard a student enrollment presentation that provided a sense of the size and scope of the UW’s instructional enterprise. The UW Office of Planning and Budgeting posted highlights of the presentation on its blog.
Presidential Transition
President Mark A. Emmert left the UW on Oct. 1, 2010, to become president of the NCAA. Provost Phyllis Wise is serving as interim president. See our Presidential Search page for more information.
UW budget office launches blog
The UW Office of Planning and Budgeting has launched a new blog called OPBlog: Higher Ed Junction. It will be a source for up-to-date information, including updates, analysis and links to the many things we work on such topics as the state budget and higher education policy news and trends. We invite you to check it out.
UW leadership addresses budget issues
In a joint memo, outgoing President Mark Emmert and incoming Interim President Phyllis Wise briefed students, faculty and staff about the worsening condition of the state’s budget. Read their memo, which was posted to the president’s blog.
Economic and Societal Impact of the UW
The economic, employment and government revenue impact of operations and research at the University of Washington is measured in a new report prepared by Tripp Umbach, a nationally recognized consulting firm.
Among the key findings: $9.1 billion in total economic impact is generated by the UW in the state of Washington, and every $1 that the state invests in the UW generates $22.56 in the total state economy.
Our economic impact on Washington state
In the June edition of Columns magazine, President Mark Emmert wrote:
“The UW is a vitally important economic engine for the state of Washington and plays a crucial role in keeping our region competitive in the global economy. Yet many Washingtonians don’t realize the full extent of the impact our University has on their own financial well-being and quality of life.”
Facebook “friends” Seattle, likes UW talent
Good “jobs” news out of Seattle today. Facebook officially announced plans to open an engineering office in Seattle.
Why Seattle? Primarily talent, reports Mike Schroepfer, vice president of engineering at Facebook. In particular, UW computer science graduates.
Read the full story here, and, while you’re at it, check out our stellar computer science program here.
Sine Die (redux!) 2010
The legislature finally adjourned just after 1:00AM this morning, exactly thirty days into its one week special session (HA!). Reaching an agreement on the components of an $800 Million revenue package took significantly longer than originally planned. You can find a good overview of all of the different tax proposals that have been discussed here.
The final revenue package raises almost $800 Million through a mixture of business taxes and “sin” taxes on beer, soda and cigarettes. Part of the revenue package will “buy back” the Governor’s proposed cuts to student financial aid, including the State Need Grant. This is fantastic news for UW students. The state need grant is an essential component to Husky Promise and helps make college more affordable for thousands of Washington State residents.
On the other side of the ledger, the 2010 state supplemental operating budget includes a 6.3% cut to higher education institutions. This cut is in addition to the cuts we received in last year’s budget. For the University of Washington, the 2010 cut totals $20.5 Million. The impact of this cut will be significant, and UW departments are already preparing plans on how each will manage budget reductions.
A positive outcome is that a proposal to transfer student building fees to the operating budget didn’t survive. Building fees are paid as a portion of student tuition. The transfer would have meant an additional $18 Million cut to the UW. The University also received flexibility to implement SB 6503, a bill requiring employee furloughs. In lieu of furloughs, the University may submit a compensation and operation reduction plan to the Office of Financial Management. This will allow the the UW the flexibility to implement a savings plan with strategies that work within our unique budget structure.
I will be back with a full legislative update in the next day or two. In the meantime, all this talk of taxes reminds me it’s almost April 15th! Did you remember to claim your opportunity credit?