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News & Updates

State revenue projected to increase by more than $1.4 billion in the 2021-23 biennium

Washington state revenue projections for the current 2021-23 budget cycle have increased by more than $1.4 billion since November, according to the Washington State Economic Revenue Forecast Council’s February revenue report. The state’s Near General Fund revenues are now projected at $61.7 billion for the biennium ending June 30, 2023.

High inflation rates, along with growth in retail and real estate, are cited as the main drivers for the increase in revenues. Seattle-area inflation rose by 7.6% and inflation is expected to be higher in 2022 and 2023 compared to November projections. However, forecasters expect inflation to decrease after this year.

The state’s unemployment rate continued its steep decline from the start of the pandemic and now sits at 4.5%. Unemployment insurance claims are at the lowest levels ever and personal income has slightly increased since November. Like the rest of the country, Washington is seeing high levels of job openings and resignations.

The February economic and revenue forecast is the first since the start of the new year. The House and Senate are expected to release their draft budget proposals later this week or early next and will consider the forecast when negotiating the final compromise budgets.

The 2022 legislative session is two-thirds of the way through. Bills that did not move from their house of origin yesterday are now considered dead unless necessary to implement the budget. Session is scheduled to end March 10.

For an in-depth review of the state’s revenue forecast, visit the Office of Planning & Budgeting’s website here.

Session news: Floor action begins; Regents & trustees champion higher education

Tomorrow marks the halfway point of the 60-day legislative session. House and Senate fiscal committees met over the weekend to hear bills and move them out of committee prior to fiscal cutoff today. Bills that did not pass out of fiscal committee are now “dead” unless considered necessary to implement the budget. The House and Senate will now convene for floor action to consider and vote on the bills that remain alive, including several that impact the higher education community:

  • Financial aid:
    • HB 1659, expands the Washington College Grant by modifying the income eligibility threshold and award levels.
    • HB 1736, establishes a state student loan program.
    • HB 1835, creates outreach and student financial aid completion initiatives to increase postsecondary enrollment.
    • SB 5789, creates a career and college pathway innovation challenge program to help the state meet higher education attainment goals.
  • HB 1751, prohibits hazing on and off campus and requires hazing prevention education.
  • SB 5597, creates a statewide voter demographic database at the UW.
  • SB 5764, studies apprenticeship opportunities and requires policies granting credit at higher education institutions for apprenticeships where possible and appropriate.
  • SB 5854, concerns ethical performance of faculty duties.
  • SB 5874, expands residency to students affiliated with the military.
  • SB 5942, allows college athletes to receive compensation for their name, image, or likeness.

For a complete list of the bills being considered by the legislature or to look up a bill not listed above, click here.

House and Senate budget writers are currently drafting the supplemental operating and capital budgets. Budget leaders have completed their first review of the budgets and are now digging into the details. The drafts will be released later in session for consideration by the entirety of the House and Senate.

UW Regents join panel discussion with higher education and budget leaders

Last week, regents and trustees from the state’s public two- and four-year higher education institutions gathered for an annual day of advocacy to champion the Council of Presidents and State Board for Community and Technical Colleges’ joint legislative agenda. In a virtual legislative session, that meant participating in Zoom panel discussions with democratic and republican higher education and budget leaders in the House and Senate. Legislators in attendance included Senators Andy Billig, Chris Gildon, and Emily Randall, and Representatives Laurie Jinkins, J.T. Wilcox, Kelly Chambers, Debra Entenman, Mari Leavitt, Timm Ormsby, and Vandana Slatter.

Regent David Zeeck served as the University of Washington’s spokesperson, but most of the Board of Regents was in attendance. Regents and trustees spoke to legislators about the importance of improving compensation for faculty and staff, increasing high demand degree enrollment, and addressing student challenges resulting from the pandemic.

Thank you to all our Regents for participating in this important advocacy day.

Regents Forsman and Berisha testify at Senate confirmation hearing

The Senate Higher Education & Workforce Development Committee held confirmation hearings for Regents Leonard Forsman and Djelli Berisha on Feb. 1. UW Regents are appointed to their positions by the Governor and confirmed by the Senate. Confirmation hearings are the first step the Senate takes before bringing the appointments to the floor for a final vote.

Regent Forsman is the chairman of the Suquamish tribe and first native regent at the UW. In his testimony, he emphasized his decades-long involvement in early learning, K-12, and higher education advocacy and leadership, which was spurred by his family and tribe. He also highlighted his past and ongoing work with the Burke Museum, including collaborating to create the Suquamish tribal archives and museum. Regent Forsman outlined his goal of continuing to improve recruitment and retention for native students and faculty in higher education, as well as his work to elevate the role of tribal liaisons at all three UW campuses. He recognized the diversity of education at the UW and underscored the importance of providing a well-rounded education that prepares students for today’s challenges.

Regent Berisha is the first UW Bothell student to serve on the Board of Regents as shared in his testimony. He is grateful for the opportunity to represent and advocate for students and as the first-generation son of Albanian immigrant parents, aims to use his platform to help all students navigate higher education. He highlighted his work on the Diversity Action Plan and degree mapping initiative, and his efforts to secure resources for students during the pandemic to help with the transition to remote learning. He is currently examining narratives around admissions, higher education pathways, and the role of a public serving institution as he builds meaningful, collaborative relationships to encourage bolder visions for the University’s tri-campus system.

Regents Forsman and Berisha were unanimously confirmed by the committee. Their appointments will now go to the Senate floor for consideration and a final vote by the body. The UW is very fortunate to have their leadership.

Session news: UW leadership meets with legislators as policy cutoff approaches

It’s day 19 of the 2022 legislative session. The last day for bills to pass out of the policy committee in their house of origin is Feb. 3, with fiscal committee cutoff shortly thereafter on Feb. 7. If bills do not move out of their house of origin committees by the Feb. 7 deadline, they are considered dead and will not become law unless they are necessary to implement the budget (NTIB). Legislation that passes out of committee prior to cutoff moves to the Rules Committee, where members select which bills move to the floor for consideration by the full body of the House or Senate.

Yesterday, President Ana Mari Cauce met with House and Senate higher education and budget leaders to advocate for the UW’s legislative agenda. She stressed the importance of including funding for faculty and staff wage increases in the final operating budget with the state supporting at least 50% of the costs. She also provided campus updates and responded to questions from legislators on a variety of bills moving through the legislature ranging from financial aid to dual credit.

UW Tacoma Chancellor Sheila Edwards Lange met with Pierce County legislators to request maintenance & operations funding for Milgard Hall, which will house the Milgard School of Business and civil and mechanical engineering programs. Construction of the 55,000 square foot building is ahead of schedule with occupancy now expected in Jan. 2023 instead of mid-2023. She also championed the UW’s faculty and staff compensation request and took the opportunity to provide an update on UW Tacoma and share her vision for the future. Chancellor Lange will continue to meet with Pierce County legislators in the upcoming weeks.

The State Relations team will continue monitoring legislation that impacts the University as the legislature moves past cutoff dates. If you have questions about the legislative process or specific bills, please contact staterel@uw.edu.

Session news: 2022 legislative session begins virtually, again

The 2022 legislative session took off at a breakneck speed on Monday, Jan. 10, once again in a virtual format. This short 60-day session is focused on the supplemental budgets, which usually make modest adjustments to the biennial budgets passed last session. However, due to improved revenue forecasts since the start of the COVID-19 pandemic and considerable one-time federal funding available to the state, the legislature will consider a larger supplemental operating budget this year compared to normal.

This week, the House and Senate fiscal committees heard the Governor’s operating and capital budget proposals, which fully fund all the University of Washington’s legislative requests. Director of State Relations, Joe Dacca, testified in support of the Governor’s operating budget and Associate Director, Morgan Hickel, testified in support of the capital budget. In his remarks, Joe emphasized the importance of including a salary adjustment in the final operating budget for the UW’s vital faculty and staff with state support covering at least 50% of the costs. On the capital budget, Morgan highlighted the immediate need to reduce significant deferred-maintenance backlogs for facilities on the Seattle campus, including upgrades to improve seismic preparedness and for mission critical repairs made to the UW’s Power Plant.

Joe also testified in support of House Bill 1659, which expands financial aid availability through the Washington College Grant to Washington students. Several higher education stakeholders, including students and faculty, testified in support of this legislation. Two additional financial aid bills – HB 1835 and HB 1736 – were also introduced and supported by the higher education community.

Other bills the UW is supporting and monitoring include:

  • HB 1751 – Preventing hazing on and off campus
  • SB 5597 – Creating a statewide voter demographic database at UW
  • HB 1051 – Adding a faculty member to the Board of Regents at UW and WSU
  • SB 5614 – Concerning the Washington national guard postsecondary education grant

The last day for bills to pass out of the policy committee in their house of origin is Feb. 3. If bills do not move out of policy committee by that date, they are considered dead and will not become law unless they are necessary to implement the budget (NTIB). Visit leg.wa.gov to learn more about specific pieces of legislation and track the legislature’s progress.

If you have any questions about the UW’s legislative agenda or bills being introduced, please contact the Office of State Relations at staterel@uw.edu.

Governor releases 2022 supplemental budget proposal with UW investments

The 2022 legislative session begins Jan. 10 and will focus on the supplemental budget, which modifies the biennial budget passed last session. Gov. Jay Inslee unveiled his 2022 operating and capital budget proposals today, as a first step in the state budget process.

The Governor’s proposed operating budget emphasizes climate action and poverty reduction. His climate package devotes $626 million to decarbonization, successful implementation of the Climate Commitment Act, and building Washington’s clean energy future. An additional $187 million is allocated for salmon protection and recovery. Inslee also dedicates $800 million to help find solutions to the state’s homelessness and housing emergency. The funding will provide permanent affordable housing, resources to help people retain their housing, and support services for individuals with behavioral health needs.

The Governor’s proposals funded all the University of Washington’s legislative priorities and a few additional items including:

  • $11.1M for salary adjustments for faculty and staff, who are currently not scheduled to receive wage increases in the biennial budget and are critical to the continued success of students and the UW.
  • $2M to expand computer science and engineering enrollment for underrepresented students by an additional 100 per year to meet high student and employer demand.
  • $505K to create two behavioral health pharmacy residencies housed at the new Behavioral Health Teaching Facility to address the state’s critical behavioral health patient and workforce needs. This request is in partnership with Washington State University, who is requesting additional funds for two pharmacy residents in Eastern Washington.
  • $800K for a three-year research program led by the Institute of Health Metrics and Evaluation in Spokane focused on community health metrics to help proactively address health disparities in rural and tribal communities in Eastern Washington.
  • $621K for maintenance and operation (M&O) for Milgard Hall at UW Tacoma, which expects occupancy in Winter 2022 instead of mid-2023.
  • $500K for the UW School of Medicine to collaborate with the Office of Superintendent of Public Instruction to provide mentoring, preparation, and career awareness for students of color in grades 6+.
  • $3.5M in operating funding for the Clean Energy Institute testbeds.
  • $10M in capital funds for UW Seattle facilities to improve seismic preparedness, reduce safety risks, and extend the life cycle of the facilities.
  • $7.5M in capital funds for the Clean Energy Institute for a modular dry room, electrical upgrades, and equipment for an open-access battery fabrication testbed facility to enhance material, imaging, and analysis capabilities.

The Office of State Relations is thrilled to see the investments the Governor proposed for the University and students. The House of Representatives and Senate will introduce their budget proposals during the upcoming 60-day legislative session.

The proposal also puts $600 million back into the state’s “Rainy Day” fund, which was utilized to bolster services and the state’s economy during the pandemic. Washington’s economy is rebounding with the most recent revenue forecast showing strong 2021-23 Near General Fund budget collections. The state’s reserves are expected to return to pre-pandemic levels over the next four years.

For additional details, see the Washington State Office of Financial Management’s budget and policy highlights and the brief prepared by the UW Office of Planning & Budgeting on their Briefs page.

House College & Workforce Dev. Chair meets with UW students and President Cauce

Yesterday, the House College & Workforce Development Chair Vandana Slatter visited the UW Seattle campus to hear from students, faculty, and leadership and to learn more about the UW’s 2022 legislative requests.

First, she participated in a roundtable with students in the Paul G. Allen School of Computer Science & Engineering (CSE) to learn more about their UW experiences and future aspirations. During their conversations, students shared about the challenges of studying during the pandemic, potential and exciting career paths, and interests of study outside of computer science. Rep. Slatter also toured the new CSE building to see how the state legislature’s recent investments are helping students and the state’s economy. The legislature has invested substantially in STEM degree programs, including CSE, over the past few years to meet the growing student and employer demand.

Rep. Slatter then met with President Ana Mari Cauce to review the UW’s supplemental budget priorities for the upcoming legislative session. The UW’s priorities include salary adjustments for faculty and staff who are critical to the success of the UW and funding to expand computer science and engineering degrees for underrepresented students. Additionally, they discussed the UW’s return to campus amid the ongoing pandemic and the state’s critical workforce shortages and how the UW can help.

Thank you, Rep. Slatter, for your continued support of the UW.

WA Supreme Court approves new state political boundaries

The Washington Supreme Court approved the congressional and legislative district maps created by the state’s bipartisan redistricting commission, declining to exercise its authority to draw new political boundaries.

Using the 2020 census data, the Washington State Redistricting Commission was charged with drawing and approving the state’s district maps by midnight Nov. 15. The commission published and unanimously agreed to new maps but narrowly missed the deadline to adopt them, which gave the court the jurisdiction to craft the new districting plan by April 30.

In a unanimous five-page ruling, the court found the commission “substantially complied with the statutory deadline” by voting to approve the redistricting plans by the Nov. 15 deadline, even though the plans were not transmitted to the state legislature on time. The order also directs the redistricting commission to complete any remaining work necessary to transmit the final report to the state legislature. Once the legislature receives the final report, it will have the opportunity to make small tweaks to the maps with two-thirds vote of both chambers.

The court ruling emphasizes the state’s redistricting process is best addressed by the bipartisan commission, who is appointed by the state legislature and considers public testimony. The court also stated “the primary purpose of achieving a timely redistricting plan would be impeded by rejecting the Commission’s completed work.”

However, the order only weighed the commission’s compliance with the midnight Nov. 15 deadline required by state law and not the entirety of the redistricting statute, which leaves the maps open to lawsuits. At least one lawsuit has been filed to date.

Regardless, the court’s decision provides clarity on the state’s new political boundaries, which will be in place for the next decade.

View the bipartisan redistricting commission’s final district maps here.

State revenue sees growth prior to legislative session

Washington state’s 2021-23 budget collections are projected to increase by nearly $898 million according to the Washington State Economic and Revenue Forecast Council’s November quarterly report. The state’s Near General Fund revenues are now projected at $60.2 billion for the 2021-23 budget cycle, which began July 1.

Washington’s budget is benefitting from strong growth in the state’s biggest revenue drivers – sales tax, property tax, and business & occupation tax – as well as the Real Estate Excise Tax. Employment is also seeing strong growth, although it hasn’t yet surpassed pre-pandemic levels, and is expected to remain robust through 2025. Washington’s unemployment rate has declined to 5% from the all-time high of 16.3% recorded in April 2020.

New to this forecast, consumer prices have jumped 6.2% marking the largest inflation seen in the state and nation since 1990. However, inflation is expected to gradually decrease starting in 2022 as supply chain and logistics issues are resolved.

The November quarterly economic and revenue forecast is the last prior to the release of Gov. Jay Inslee’s supplemental budget proposal in early to mid-December and the start of legislative session on Jan. 10. Both the governor and legislature will use the forecast to guide their budget proposals.

UW’s 2022 budget priorities shared during Committee Assembly Days

State legislators virtually convened this week for Committee Assembly Days to hold work sessions and plan for the 2022 legislative session beginning Jan. 10. Throughout the week, UW faculty and staff participated in a variety of hearings to share their expertise on topics including admissions, cannabis research, and the COVID-19 pandemic.

State revenue updates were given in the House and Senate fiscal committees with revenue collections exceeding expectations due to strong growth in the state’s biggest revenue drivers – sales tax, property tax, and business & occupation tax – as well as the Real Estate Excise Tax. The state also sees positive growth in employment, which is not yet back to pre-pandemic levels but is expected to remain robust through 2025. Increasing inflation is the top concern highlighted by revenue forecasters in Washington and across the nation. Inflation is expected to gradually decline after 2021 as supply chain and logistics issues are resolved but will remain top-of-mind in the coming months.

In the higher education committees, legislators received campus and COVID-19 updates from the state’s public four-year baccalaureate institutions, the community and technical colleges, and the Independent Colleges of Washington. They also heard from the Washington Student Achievement Council on financial aid expansion and completion and held work sessions on workforce and career navigators, credentialing, and innovative degree pathways.

During the week, the Office of State Relations had the opportunity to share the UW’s 2022 legislative priorities with elected officials and staff. Recognizing the state continues to face uncertainty due to the pandemic and the 2022 supplemental budget primarily applies fixes to the biennial budget, UW’s operating budget requests are limited, including:

  • $18.45M for salary adjustments for faculty and staff, who are not scheduled to receive wage increases in the current biennial budget and are critical to the continued success of students and the UW.
  • $2M to expand computer science and engineering degrees for underrepresented students by an additional 100 per year to meet high student and employer demand.
  • $505K to create two behavioral health pharmacy residencies housed at the new Behavioral Health Teaching Facility to address the state’s critical behavioral health patient and workforce needs. This request is in partnership with Washington State University, who is requesting additional funds for two pharmacy residents in Eastern Washington.
  • $800K for a three-year research program led by the Institute of Health Metrics and Evaluation in Spokane focused on community health metrics to help proactively address health disparities in rural and tribal communities in Eastern Washington.
  • Maintenance and operation (M&O) funds for Milgard Hall at UW Tacoma, which expects occupancy in Winter 2022-23 instead of mid-2023.

These priorities were determined through an extensive process led by the Office of the President and Office of the Provost. The UW’s 2022 legislative agenda two-pager will be available shortly.

Gov. Jay Inslee kicks off the budget process and is expected to release his supplemental budget proposal in early to mid-December. The House and Senate will form their proposals and adopt a final budget during legislative session.

Washington state’s redistricting process

Every ten years, the U.S. Census Bureau counts the entire U.S. population to understand how the nation’s populace and economy have changed and shifted. The data collected helps determine how the federal government distributes funds to states and local communities. It also determines the number of seats allocated to each state in the U.S. House of Representatives and is used by states to draw new legislative districts.

The most recent census occurred in 2020 with the data released earlier this year. In Washington state, the census data shows population has grown by 14.6% since 2010 and the diversity index has increased to 61.1% from 54.9%.

To maintain fair and equal districts as communities change, the state’s legislative and congressional districts are redrawn after each census. The bipartisan Washington State Redistricting Commission, consisting of two Democrat and two Republican voting members, was charged with this task under strict rules designed to create districts of relatively equal population that do not provide a partisan advantage or discriminate against any demographic group. To the best of their ability, the commission also has to avoid splitting up cities or other political subdivisions and follow natural boundaries.

In September, all four redistricting commissioners released proposed legislative and congressional district maps providing the starting point for negotiation and public feedback. Throughout the process, the public provided information on their local communities, drew community maps, and shared testimony.

By law, the commission had until midnight Nov. 15 to finalize and vote on the new political boundaries with at least three of four voting members agreeing to the maps. The commission approved and published new maps but was unable to adopt them prior to the deadline. The Washington Supreme Court now has the jurisdiction to adopt a districting plan by April 30, 2022. At this time, it is unclear how the Court will proceed but more information is expected soon.

To learn more about the state’s redistricting process, visit the Washington State Redistricting Commission website.