News and Updates

President Emmert has sent an open letter to the UW Community regarding the just-passed state budget, its effect on the university, and how we will begin to implement the budget reductions.  As President Emmert notes in his letter, the reductions we must deal with are unprecedented and dramatic:

Over the weekend, the Legislature completed the unenviable task of writing and passing a biennial budget during the worst economic period in decades. Any budget that must bridge a biennial shortfall of $9 billion is bound to please no one and to result in serious consequences for the state.

For the University of Washington, the resulting budget decisions are dramatic. The bad news is that the Legislature decided to reduce state funding to the six public four-year college and universities more than any other sector in state government. The University of Washington received the highest percentage cut in all of higher education-26 percent. This is a stark and sobering number.

Beginning July 1, one quarter of our funding from the state will no longer exist. It is unprecedented in state history, and as far as we know, it is by far the largest reduction in state support to a flagship university by any state in the nation. It takes our state funding level back to where it was more than a decade ago and drops the portion of the state budget dedicated to four-year higher education to an all-time low.

The letter also addresses the tuition increases that were authorized, the budget process from here, and our commitment to manage the process with creativity and sensitivity.

I encourage all members of the University community, and supporters, to read the entire letter which is published on the President’s blog.

I ask myself that question because I feel like the beginning of session in mid-January was literally years ago.  Really.

Well, I managed to crawl home last night just before 2:00 a.m. and grab a couple hours of sleep. By now you have read that the legislative session ended but that there could be a special session on a few key bills that needed to pass yesterday but could not be resolved.  While all three budgets (operating, capital and transportation) were passed, a few measures that are needed to make the budgets work did not pass and it appears that the Governor will work with House and Senate leadership to choose the right time to bring legislators back to Olympia for a few days to complete this work.

None of the unfinished business impacts higher education or the UW’s operating or capital budgets so for all intents and purposes, our session business is over.  The results as you know were decidedly mixed.  Our state funds budget took a major hit which can be mitigated to some extent through tuition increases.  The capital budget was similarly lean with a limited amount of state funding and authorization to use building account revenues for our new molecular engineering building.  A major disappointment was the loss of authority to use the same funding source for Balmer Hall — a project that had been included in both chambers original capital budget proposals.

On the legislation side, our request bill to extend graduate and professional school tuition setting authority was passed (with a four year extension) and our bill to help maximize returns to our consolidated endowment fund were passed.  Legislation to require insurance for students studying abroad, to insure conformity with the Uniform Prudent Management of Institutional Funds Act, and to provide additional flexibility for higher education institutions under the so-called “belt-tightening” act were all passed and sent on to the Governor.

We were not able to pass our request bill to broaden the UW and WSU’s flexiblity for alternative public works contracting procedures.  SB 5760 passed the Senate 37-5 but was narrowed so much in the House it would have had little impact on either institution.  A compromise amendment was never offered and the bill died yesterday.

Every legislative session has its own personalilty but you have probably read enough to know the 2009 session was perhaps the most difficult any of us can remember.  The budget numbers speak for themselves and with the tuition levels authorized, we have crossed an important threshhold where it appears the state no longer provides the majority of funding for our core educational enterprise.

I want to take a moment to thank a number of important individuals who helped me immensely this session.  First, my state relations assistants Karin Yukish and Teri Blair who keep me organized, on schedule and psychologically functional and to Emily Godfrey who helped me balance legislative work with my dual duties as Interim Vice President for External Affairs.  Kudos also to my pal Steve McLellan for some much needed help shoring up the state relations blog.

Major thanks to Paul Jenny and his entire Planning and Budgeting crew who absolutely turned on a dime whenever I needed something.  You guys had my back the entire session and I am truly grateful.  To Norm Arkans and the media relations team for extraordinary work in getting our messages out to the UW community and the entire state and to Tricia Thompson and her creative marketing team who pitched in with some really attention grabbing materials.

Theresa Doherty was an invaluable help following transportation issues in Olympia this year and I also appreciate our new federal relations director Christy Gullion’s patience for letting me focus on state matters and doing such a super job of managing through her first few months in D.C. without much help from the Interim VP for External Affairs.

Thanks also go to the dozens of individuals who came down to Olympia this session to support our legislative efforts either by testifying on bills, meeting with legislators or simply participating in Higher Education Day or other events.  Too numerous to mention but you all know who you are and I am lucky to have such great professionals to call on in a pinch.

I must also recognize and thank the two individuals who soldier each day during session with me — Amy Bell and Mike Woodin — my two contract lobbyists.  This session was brutal but despite the budget troubles we managed to get a lot of important legislation passed to make it easier for the University to manage through the next few years.  Both of you are a tremendous asset to the UW and I couldn’t work alongside more solid and caring colleagues.

Thanks also to all of you who followed the blog and our many adventures in Olympia.  I will hold a final session wrap-up briefing this Wednesday morning at 9:30 a.m. in 301 Gerberding and I hope to see many of you there.

Guess what?  Only 8 and 1/2 months to the start of the 2010 legislative session.

Lawmakers have passed a bill that authorizes early tolling as part of the 520 bridge replacement project.  The timing and amount of the tolls has not been determined.  The State Transportation Commission will set tolls, like it does for the Narrows Bridge in Tacoma.

Also, the bill does not select a design option, but creates a legislative work group that will report back with a financing plan to the 2010 legislature.  The work group will be composed of elected officials, but it is required to consult with affected neighborhoods and communities during the process.

Lawmakers have released their final capital budget proposal and our Office of Planning and Budgeting has posted an analysis.  Overall, this is a small capital budget, with money transferred to shore up the operating budget.  For the UW, here are some highlights:

Restore the Core:  With the exception of funding $200,000 for the predesign of Anderson Hall, the budget does not provide any additional funds for the UW’s “Restore the Core” package of requests to renovate historic capital buildings on the Seattle campus.

Molecular Engineering Building (Interdisciplinary Academic Building):  The capital budget authorizes the UW to issue bonds financed from building fee and trust land revenues totaling $53.6 million for construction of a new facility for the molecular engineering program.

UW Tacoma Phase 3:  A total of $34 million is provided to renovate the Joy building. This work will provide facilities for additional students.

Safe Campus Project:  The budget provides $8 million from the UW building account for the Safe Campus project.

House of Knowledge Longhouse:  A total of $300,000 in state funding is provided for predesign of the House of Knowledge Longhouse.

You can find the entire analysis and project list here.

We will be posting more details over the weekend as lawmakers work to complete their business before Sunday night’s scheduled adjournment.

Our Office of Planning and Budgeting has produced an excellent analysis of the operating budget package now being considered in Olympia, including how it has evolved since the Governor’s original proposal and some of the likely effects on the UW.  Here are some key points from the document:

The Legislative Problem and Solution

The state faced a huge gap between revenues and spending just to maintain current services ($7 billion next biennium and $2 billion this biennium).

In order to solve this problem, the budget used $3 billion in federal relief.  In addition, the budget cut over $3 billion in state spending.  Fund transfers, state budget stabilization funds, and other resource and expenditure changes made up the remaining $3 billion.

How the UW was Affected in the Operating Budget

The UW was cut by over $214 million in the final legislative budget.  This compares with the $116 million cut proposed by the Governor.

The Legislature had more federal relief to use than the Governor. The Legislative budget provided $25 million of one-time federal relief funding to the UW.

The budget reduced enrollments by 1,327, on average, annually.

The budget includes tuition increases of “no more than” 14% each year for resident undergraduates and tuition-setting authority for all other types of students (e.g. graduate and professional students).

In addition, reductions in health care and social service programs will have a direct negative impact on Harborview and UWMC.

How the Rest of Higher Education was Affected

Out of all higher education, the UW had the highest percentage cut at 12% (accounting for increased tuition resources).

Community and Technical Colleges took the lowest percentage cut at 8% (accounting for increased tuition resources).

The rest of public higher education four-year institutions were cut at 10-11%, accounting for increased tuition resources.

I encourage you to read the entire document, which can be found here.