News & Updates

Not sure how many of you many have noticed this story in yesterday’s Everett Herald, but supporters of a new UW branch campus in Snohomish County are shopping a bill during the waning days of the 2008 session which would statutorily establish the new UW campus in Snohomish County but not specify the exact location at this time.

According to Herald reporter Jerry Cornfield, Sen. Mary Margaret Haugen (D-Camano Island) has agreed to this new compromise being pushed by Rep. Hans Dunshee (D-Snohomish) and Rep. Mike Sells (D-Everett).  In addition to not specifying a site, the bill also does not establish a timetable for construction or ask the University to begin delivering any classes this fall.  In essence, the measure would establish the fact that there will be a UW branch campus in Snohomish, with the details to be worked out in a future legislative session.

Last evening, the House Appropriations committee passed a new version of HB 3381 that does include the amendment that was being pushed by higher education institutions to re-authorize tuition and fees for the remainder of the current biennium.  For the time being at least, the UW and other universities and colleges are breathing a huge sigh of relief.  The bill now goes to the House floor and then to the Senate where it is likely to be resolved as part of the final budget negotiations over the next several days.

Well, this has been a very interesting 24 hours.

One of the odd outcomes that resulted from the passage last fall of Initiative 960 (I-960) is the opinion from the state’s Solicitor General that agencies, like the University of Washington, need to ask the legislature this session to essentially “re-authorize” tuition and fee increase authority previously granted in the underlying 2007-09 biennial budget or in existing statutory law.  For all of state government, I have been told there are more than 400 individual fees that need re-authorization this session.

Obviously for the UW, this involves not just undergraduate and graduate tuition amounts, but literally dozens and dozens of individual fees ranging from fee-based programs in Educational Outreach to student activity fees, laboratory fees, health fees, technology fees, etc.  The reason for the uncertainty is that our Regents adopt tuition and fees on an “annual” basis and since I-960 passed last November (before tuition and fees will be adopted by the Regents for the 2008-09 academic year), we need to ask the state legislature for permission all over again in this legislative session.

So, is there a problem?  Well, it’s unknown at this point. Tonight at 6:00 p.m., the House Appropriations committee will hold a public hearing on a brand new bill, HB 3381, that is intended to be an omnibus vehicle for re-authorizing these various fee increases.  The uncertainty at this point is that the bill is what is called a “title only” measure and as of 5:00 p.m. today, does not contain any fee re-authrorization provisions.

The UW, along with other higher education institutions will be testifying this evening in support of an amendment that would provide the necessary statutory re-authorization for all of our tuition and fee increases scheduled to go into effect in the 2008-09 academic year.  Not to worry you to much, but without this amendment, up to $45 million of tuition and fee revenue will be cut from the 2008-09 academic year budget.  That would be a really big problem.

As you can imagine, we have been working pretty hard down here since we got word of the problems with this bill yesterday afternoon.  Keep an eye on the blog for updates on this and other issues as we head towards adjournment next Thursday.

It seems unlikely that on day 53 of this 60-day session that our request legislation to provide $150 million in public financing to renovate Husky Stadium is going to leap to the forefront of “go home” issues (although I am still permitted to dream if I want).  But that doesn’t mean the UW is coming back from Olympia empty-handed.

At the annual TVW banquet on Monday evening at Olympia’s Red Lion Inn, Governor Dan Evans and Ways and Means committee chairwoman Sen. Margarita Prentice (D-Renton) were co-winners of a coveted “Cammy” award.  The Cammy’s are handed out each year at the TVW dinner to recognize some of the most unusual, humorous or embarassing moments from committee hearings or floor action covered by Washington’s public affairs station.  By audience vote, Governor Evans and Sen. Prentice won their Cammy for an exchange that occured in the Ways and Means committee on February 5th during the public hearing on the Husky Stadium bill.

In testimony about the deterioration of the stadium, Governor Evans described the precarious condition of the press box and lamented that it would be a terrible situation to have something happen to the box while it was filled with reporters and other media types.  Recognizing the “high esteem” that some legislators, staffers and lobbyists hold for members of the fourth estate, Evans quickly corrected himself and admitted that many of the committee members might not think that would have been such a horrible outcome.

Here’s a link to actual committee hearing on the TVW website.  The Cammy-winning exchange is between 20:30 and 20:50 of the clip.  Hopefully, we can use this Cammy awad as a springboard to stadium success in 2009.

Much has been happening today as we begin to countdown towards adjournment on March 13.  Here’s a brief summary of what’s making news in the state capitol today of interest to the UW.

Senate Democrats Challenge Initiative 960

Last Friday, Lt. Governor Brad Owen ruled that a legislative measure to apply a surcharge to the state liquor tax would require a two thirds majority of the Senate to pass the chamber.  SB 6931 would have imposed a 42 cent per liter surcharge on state liquor taxes.  It failed to gain the 33 votes needed for passage.

Today. Senate Majority Leader Lisa Brown filed a lawsuit asking the state Supreme Court to overturn Initiative 960’s two thirds vote requirement for tax increases.  Brown argues that I-960 — a state statute — cannot amend the state constitution which says the Legislature passes bills with a simple majority vote.

Highway 520 Bill Continues to Move

HB 3096, which would establish an implementation committee to evaluate tolling options for the state route 520 bridge replacement project cleared the House of Representatives 63-30 last Friday and was heared today in the Senate Transportation Committee where it is expected to pass and be referred to the Senate Rules Committee.

The measure also requires the bridge to be designed to accomodate effective connections for transit, including high capacity transit, to the light rail station at the University of Washington.

The Seattle Post-Intelligencer reports this afternoon on their website that Governor Gregoire announced today that the bridge replacement project can be completed as early as 2014 and for $500 to $700 million less based on work completed by the state Department of Transportation.

New Twist on Stadium Taxes

The House Finance Committee today passed a new measure (HB 3380) that would use some of the revenues currently pledged for Safeco Field bonds for low income housing, once those bonds are retired in 2012.  The measure, sponsored by Rep. Ross Hunter (D-Medina) also includes provisions of another bill (SB 6638) sponsored by Sen. Ed Murray (D-Seattle) which would dedicate future hotel/motel tax revenues currently pledged for Qwest Field to King County arts organizations beginning in 2021.

In related developments, representatives from the city of Seattle and other organizations have been meeting with the Governor, Senate and House leaders and other senior officials to discuss funding for the potential renovation of Key Arena.  As has been reported in the Seattle papers, much of the impetus for these new discussions are based on a new group of potential local buyers for the Supersonics or another NBA team which has recently been organized.

Chang Mook Sohn Announces Bid for State Treasurer

Dr. Chang Mook Sohn, the state’s longtime chief revenue forecaster, announced his candidacy today for State Treasurer.  Sohn recently retired from his position as director of the state’s economic and revenue forecast council.  He will challenge Rep. Jim McIntire (D-Seattle) in the Democratic primary this August.

Democratic incumbant Mike Murphy is retiring this year and backing his deputy Allan Martin who is running in the Republican primary.  Sohn is being endorsed by former Governor Gary Locke and former state treasurer Dan Grimm as well as many other state leaders.  This is his first bid for elective office.

Washington State Chosen One of Top Three Best State Governments

The Pew Center on the States have decided that Utah, Virginia and Washington (yes, our Washington) has one of the most effective state governments in the nation.  The center ranked states based on how well the manage budgets, staff, infrastructure and information.  Washington was lauded for Governor Gregoire’s “GMAP” efforts that bring agency leaders together with the Governor’s senior management team in a public setting to monitor how state programs are working.

The next (and likely final) campus legislative briefing will be held next Tuesday, March 4 from 11:00 a.m. to noon in the Regents Room in Gerberding Hall.

House and Senate budget proposals have passed their respective chambers so negotiations begin in earnest next week.  Today is the last day for policy committees to consider bills from the opposite house and fiscal committees must complete their work by Monday.  The end of session is near and by Tuesday, most legislators, staffers and lobbyists will be counting backwards from the scheduled adjournment date of March 13.

See all of you Tuesday morning.

During their executive session on the 2008 supplemental operating budget this afternoon, the Senate Ways and Means committee added $1 million to the University’s budget for the eScience Institute proposal that was part of the UW’s original supplemental budget request.  The amendment was co-sponsored by Senators Jeanne Kohl-Welles (D-Seattle) and Senator Brian Hatfield (D-Raymond).  Senator Ed Murray (D-Seattle) who is not on the committee also played an important role in advocating for the amendment.

The committee also added funding for a Ruckelshaus Center study related to patient safety (which was included in the House budget) and funding related to bills dealing with improving medical care for persons with developmental disabilities.

The funding for the eScience Institute comes from the state general fund, but a corresponding transfer from a state convention and trade center account was made in order to maintain the Senate’s existing general fund reserve.

The full Senate should take action on the supplemental budget tomorrow or Friday.  Negotiations on differences between the two chambers will begin next week.

The Senate released their versions of the operating and capital budgets today at a noon press conference in Olympia.  For the UW, the news was much improved from what was unveiled last week in the House of Representatives.

OPERATING BUDGET

Of most importance, the Senate not only maintained funding in the underlying budget for the Star Researchers program, they also enhanced the program with an increase of $253,000.  Having this funding retained will insure that both the UW and WSU are able to finalize their respective researcher recruitments which are currently in progress.  If you haven’t seen it already, the Seattle Times wrote a nice editorial this morning in support of maintaining these funds.

The Senate budget also provides $500,000 for additional childcare institutional grants for students at the six public baccalaureate institutions as provided for in SB 6730.

As for the rest of the Senate operating budget, there’s not a lot to crow about.  None of the University’s supplemental operating budget request items were funded, with the exception of $88,000 for one additional mental health counselor position, a component of our larger campus safety budget request.  The rest of the operating enhancements are related to specific bills passed by the Senate including:

• $125,000 for the Ruckelshaus Center to conduct a land use and property rights tudy.
• $408,000 to implement the WA Trade Corps Fellowship program (SSB 5367)
• $340,000 to cover the difference between in-state and out-of-state tuition for certain foreign nationals and their children who will now qualify for in-state tuition (SB 6849).
• $65,000 for the State Climatologist at the UW who is assigned additional responsibilities (SB 6308).

CAPITAL BUDGET

The Senate capital budget is essentially a carbon copy of the capital budget issued by the House last week.  One UW request item was partially funded, that being the land acquisition and soils remediation request for the UW Tacoma campus.  A total of $3 million is provided of the $7.4 million original request, $2 million for land acquisition and $1 million for soils remediation.

In addition, the Senate budget provides $300,000 pre-design funding for a proposed expansion of the Burke Museum.

One item that is of concern to the UW is the reduction in the capital budget cost allocation pool that was established just last year but reduced by about 50% in both the House and Senate capital budgets.  The UW has a pending request before OFM of about $670,000 due to projected cost overruns on the Playhouse Theater project funded in the 2007-09 capital budget.  If the cost allocation pool reduction is not changed, there would not be sufficient funds remaining for OFM to fund this pending request.

The Senate Ways and Means committee took public testimony on these budget proposals this afternoon and will consider amendments to both the operating and capital budgets at their afternoon hearing tomorrow.

The House of Representatives is debating the 2008 supplemental operating budget as I post this entry.  Unfortunately for the UW and WSU Star Researchers program, an amendment sponsored by Rep. Larry Haler (R-Richland) which would have restored the $1.5 million cut out in the House budget proposal failed on a voice vote less than a half hour ago.  It appears the cut will remain and our efforts will shift to retaining the funding in the Senate budget so that the program has a chance to be fully restored in conference negotiations.

Speaking of the Senate, they are delaying the release of their 2008 operating and capital budget proposals by a day since the House budgets are being acted on this afternoon.  The Senate did release its supplemental transportation budget at noon today and we expect the Senate to unveil it’s remaining spending plans tomorrow at noon.

Governor Gregoire’s statement last week on the House budget did mention an interest in seeing the House doing more on campus safety (their budget removed virtually all of her operating and capital campus safety items) and to maintain a larger budget reserve.

My bad.  I testified yesterday in House Appropriations and praised committee members for at least protecting the base level of funding for the UW and other four year institutions.  Well, turns out I was wrong, at least for the state’s research universities.

Staff from the Higher Education Coordinating Board brought to our attention this morning a proposed reduction in budget for the Department of Community, Trade and Economic Development (CTED) that will have a direct impact on funding for both the UW and WSU.  It’s a $1.5 million cut to the STAR Researcher program that was implemented in the underlying 2007-09 budget based upon legislation pushed by Sen. Jim Kastama (D-Puyallup).

A total of $2.4 million was provided in the budget last year for the state Economic Development Commission to work with the UW, WSU and the HECB on a plan to recruit entrepreneurial researchers to the state lead innovation research teams and help promote commercialization within the states’ research universities.  The UW and WSU worked on this plan during the fall and are actively recruiting the first STAR researchers for each campus.

What makes this budget cut so devastating is that the UW and WSU star researcher recruitments are actively underway.  The UW is targeting Dr. Michael Hochberg from the California Institute of Technology who is an international expert in the field of Nanophotonics.  WSU is recruiting Birgitte Kiaer Ahring, a microbiologist from the Technical University of Denmark and a renowned expert in clean technology solutions.  I am told Ms. Ahring recently was in Olympia for a meeting with Governor Gregoire.

The UW and WSU are working hard to get these funds restored to the budget, for without them, a tremendous opportunity to bring two internationally respected researchers to Washington State will be missed.