News & Updates

There’s a new blog in town — Publicola — and it features an interview with President Emmert conducted by editor Josh Feit (who formerly covered politics for The Stranger).  You can check out the interview here.

Periodically we’ve been checking in with other western states on how their respective budget shortfalls are affecting public universities.  In California, the recently approved budget agreement includes major cuts for the University of California and the California State University systems.  A story in the University of California San Diego student paper summarizes the cuts:

The $130 billion budget plan slashes UC funding by an additional $115 million, stretching the university’s total projected budget deficit to $450 million. The cuts are designed to save the state a sum of $264.4 million in the 2009-10 fiscal year.

UC President Mark G. Yudof said the new round of cuts will have both immediate and long-term implications for the university and the state economy as a whole.

“It is important to state clearly that the reductions contained in this budget will be felt by students, by faculty, by staff and ultimately by people across California who benefit in their daily lives from the university’s work,” Yudof said in a statement. “Lower spending for higher education ultimately erodes student opportunity, innovation, health care and medical research and economic growth for California.”

Because the California budget accord relies on voters approving a series of ballot measures in May (and early polling suggests they may not), this story is far from over.

Look at the legislative schedule and you will see fewer hearings than usual, and more agendas that say “possible action on bills previously heard in committee.”  That’s because Wednesday the 25th is the cutoff for bills to clear their initial policy committee.  Fiscal committees have a longer cutoff — Monday, March 2.

While legislative veterans know that no bill is completely dead until lawmakers adjourn, we will have a much better idea after the cutoffs of the proposals that have a serious chance to become law.  Our request bills on protecting private investment information submitted to the endowment, simplifying public works contracting processes, and making permanent the tuition policy for graduate school are all moving forward.

Also, we welcome new Rep. Laura Grant-Herriott to Olympia.  She will represent the 16th District (Walla Walla) and is replacing her late father, Rep. Bill Grant, who passed away earlier this year.  After being selected by county commissioners Friday, she was sworn in and plans to arrive in Olympia Monday.

During today’s Economic and Revenue Forecast Council meeting, chief forecaster Dr. Arun Raha twice referred to the good news of Ken Griffey, Jr. coming back to the Mariners.

That was all the good news Dr. Raha provided, as he updated state revenue numbers.  For the remainder of the current biennium (which ends June 30) lawmakers must find another 700 million dollars in savings.  For the next biennium, the budget shortfall has ballooned to over 8 billion dollars.  Some help will come from the federal stimulus plan, and lawmakers may tap the state rainy day fund sooner than expected, but it is clear that additional cuts are on the way.

Lawmakers will still receive a full, updated forecast in March, but the economic trends (lower consumer spending, reduced sales tax revenues) make a happy surprise unlikely.

Did we mention that Ken Griffey, Jr. is returning to the Mariners?

UPDATE:  You can see a PDF copy of the presentation made by Dr. Raha here.

Lawmakers today gave final approval to two measures designed to address budget shortfalls in the current biennium.  Shortly after passage, Governor Gregoire signed both measures into law.  One of the bills (SB 5460) would freeze most state hiring, salaries, travel, contracts, and purchasing for the remainder of the biennium.  Amendments adopted in the Senate and agreed to by the House improved the bill by exempting federal and patient revenues from the freeze.  The bill still raises substantial concerns, however, in areas where flexibility is needed, such as faculty retention.  We will be working with lawmakers on alternatives that could provide such flexibility as work on the overall state budget continues.

Also, a reminder that tomorrow at 4:30 the Economic and Revenue Forecast Council will convene for a special “preview” meeting that will provide the latest numbers for budgeteers.

With the first legislative cutoff approaching on February 25, all of the UW’s request legislation either have cleared policy committees, or are scheduled for votes before the end of the week.

Legislation making permanent tuition setting authority for graduate programs (SB 5734, HB 1235) has cleared both policy committees.  Bills simplifying public works contracting processes (SB 5760, HB 1916) and allowing protection for private investment information submitted to our endowment (SB 5526, HB 1640) have been heard in committee and are scheduled for executive action before the end of the week.  We appreciate the support of lawmakers for these improvments.  Following the policy committee cutoff, the focus will shift to floor action.  We will update the progress of the legislation as it moves through the process.

When it comes to issues affecting the UW this blog isn’t the only game in town — our Office of Federal Relations has an excellent blog covering events affecting higher education in the nation’s capitol.  Recent posts highlight how the economic stimulus package will affect the economy generally and higher education in particular.  We appreciate the hard work of our Federal Relations staff staying on top of an incredibly fluid situation.

Perhaps it is fitting that on Higher Education Day in Olympia the Seattle Times had a featured story on challenges facing the Guaranteed Education Tuition program (GET).

Unlike many states, Washington’s plan guarantees a payout tied to the tuition levels at the UW and WSU.  As a result the onus is on the state to achieve adequate investment returns (in many states college savings plans are more like IRAs, where the individual investor is responsible for returns). The economic downturn has taken a whack out of the GET reserves.  Higher prices for GET units is a certainty; other changes will surely be discussed.

How to ensure the financial health of the GET program will be a key part of the mix as lawmakers work to close the budget gap.  This story gives a good picture of the numbers they are facing.

Tomorrow is Higher Education Day in Olympia.  Faculty, administrators, students, regents, alumni, and other supporters of higher education — from all of the state’s universities — will come to Olympia to meet with lawmakers and discuss issues of concern.  Also on the schedule is a little entertainment with University bands and mascots slated to perform in the Capitol Rotunda at noon.

Even with school spirit on display at noon, the primary focus of the day will be serious conversations about the state of higher education and how the effects of proposed budget cuts can be reduced.  Higher education is critical to the state’s long-term economic health, as well as the individual futures of thousands of students (and their families).  Higher Education Day provides a unique annual opportunity to show the broad support public universities have across the state.

A highlight of the day will be the presentation of the Robert G. Waldo Award for “outstanding service to public higher education in Washington state”  to former State Rep. Helen Sommers.  Rep. Sommers retired last year after a long and distinguished career as a legislator, including many years as the Chair of the House Appropriations Committee.  Congratulations to Rep. Sommers on this much deserved honor.

You’ll be able to hear a pin drop at 4:30 Thursday when the State Economic and Revenue Forecast Council meets for a special revenue forecast preview.  Recent data showing weak sales tax collections support the widely held belief that the forecast will be lower — meaning lawmakers will have a larger budget gap to fill than earlier projected.  At the same time, the state’s share of the economic stimulus package should be clearer.  By the end of the week, we should have a much better idea of the overall budget number that lawmakers will need to meet.

There also will be a full slate of hearings. In the House on Tuesday, the Capital Budget Committee will look at the possible use of federal funds for K-12 and Higher Ed construction projects.  Also on Tuesday the Education Appropriations Committee will hear from all of the state’s four-year schools and community colleges on the potential effect of budget reductions.  On Thursday the Capital Budget Committee will take up a bill dealing with higher education project priorities.

In the Senate on Monday, the Ways and Means Committee will be briefed on higher education budget reductions.  On Tuesday, the same committee will hear our request legislation on public works contracting.  Wednesday, the Higher Education and Workforce Development Committee will hear faculty perspectives on higher education budget reductions.  On Thursday the Health and Long Term Care Committee will take up issues surrounding access to UW Medical databases.

We will also be working to ensure that all of our request legislation advances before  the February 25 cutoff.  We also will continue to work with lawmakers urging that proposed spending freeze legislation allows enough flexibility for the University to deal with faculty retention and other issues critical to our core mission.

Add to that list the inevitable five or six surprises that crop up and it shapes up to another very full week.