News & Updates

The House of Representatives enacted their versions of both the 2007-09 operating and capital budgets during their Monday morning floor session.  The biennial capital budget passed by a vote of 93-4 and there were no amendments to the bill that affected funding for the University.

The operating budget was a more partisan affair, passing by a margin of 62-35, with only Rep. Tom Campbell (R-Roy) crossing over to vote for the budget with most of the majority Democrats.  Rep, Geoff Simpson (D-Covington) voted against his parties’ budget because he felt it lacked sufficient funding for programs related to the elderly and other vulnerable populations.  Again, there were no changes to the budget which would affect funding for the UW.

The Senate is expected to release their budget proposals on Wednesday March 28.

This morning, the House of Represenatives passed the 2007-09 biennial transportation budget.  A floor amendment to the budget offered by Rep. Judy Clibborn (D-Mercer Island) will provide some financial assurance for the UW Bothell SR 522 interchange project.  Ranking minority member Rep. Fred Jarrett (R-Mercer Island) also spoke in favor of the amendment which passed unanimously.

Recent cost estimates indicate that the project could be approximately $6 million short of what it will take to complete the new campus access point off of SR 522.  The adopted amendment states that if the 2007-09 state capital budget does not provide any new funding for the project, then related cost increases would be eligible for a transfer from the transportation management reserve.

Action on all three major budgets (operating, capital and transporation) is expected when the House of Representatives convenes this morning at 10:00 a.m.  Members are expected to go to caucus to discuss proposed amendments to the biennial spending plans and then return to the chamber to enact each budget.  Because the House has delayed action on their budget proposals until this morning, the Senate is expected to delay release of their budget until Wednesday this week.

A number of bills important to the University will also be heard this week as policy committees have until Friday to act on bills from the opposite chamber.   HB 1506 which extends authority to use alternative public works mechanisms for another six years is scheduled for a public hearing this morning in the Senate Government Operations and Elections Committee.  HB 1882 which is the Governor’s Washington Learns bill that establishes the Global Challenge State per student funding goals for higher education is scheduled for executive session in the House Appropriations Committee this afternoon.

The UW is also watching SB 6099 which establishes a mediator to resolve potential disputes which may arise during the process to plan the design of a new State Highway 520 floating bridge.  The measure, sponsored by Sen. Ed Murray (D-Seattle) receives a public hearing this afternoon in the House Transportation Committee.

At about 1:00 a.m. this morning, weary members of the House Appropriations Committee passed SHB 1128 — the House Democrats version of the 2007-09 biennial operating budget.  Numerous amendments were considered, debated and passed in the more than nine hours that elapsed from the time committee members convened at 3:30 p.m. the prior afternoon.

There were a few changes affecting the budget for the UW which should be mentioned.  First, Rep. Jeannie Darnielle (D-Tacoma) succeeded in adding $1 million to the University’s general fund appropriation for a law school loan repayment program for students who choose careers in the public service.  This increase was partially offset by a switch in funding sources for the costs to the UW Sea Grant program to implement 2SHB 2280 related to geoduck aquaculture.  Funding was moved from the state general fund to the Geoduck Aquaculture Research Account.  These two changes result in a net increase in the state funds budget for the UW of $200,000.

One other change of note involves a proposed study of higher education long term capital needs.  The committee adopted an amendment to move responsibility for conducting the study from the Joint Legislative Audit and Review Committee to the Higher Education Coordinating Board.

Instead of considering the operating budget on the floor tomorrow (Friday) as was originally planned, House leaders have indicated that budget will be considered in the full House on Monday March 26.  Senate officials have also indicated that they intend to delay the release of their budget proposals until Wednesday March 28.

The House Capital Budget Committee this morning gave unanimous approval to their version of the 2007-09 biennial capital budget.  On a voice vote, both Democrat and Republican members praised the $4.2 billion total funds spending plan which includes $145 million in state funds for University capital projects.  No substantive amendments were made to the bill, meaning the UW Bothell Phase 3 project is still only funded with pre-design monies.  House floor action on the capital budget is expected early next week.

As of 7:00 p.m. tonight, House Appropriations Committee members are still behind closed door caucus meetings trying to decide which amendments to offer on the House Democrat’s operating budget proposal which was released yesterday.  Even after that decision is made, committee members must caucus again to insure they know how members will vote on each amendment.

This means we are in for a late evening as the Appropriations Committee works to pass the 2007-09 biennial budget so that it can be considered this Friday on the floor of the House.

The UW is keenly interested in at least two changes to the budget released yesterday.  First, we are hoping the committee will restore $1 million in funding to the WWAMI/RIDE budget request to bring the total allocation back to the $4.5 million originally requested by the University and which was included in the Governor’s budget.

Second, all higher education institutions are seeking a technical change to the compensation section of the budget bill which would insure the ability of higher education entities to have maximum flexibility in using salary funding for faculty and other non-representated employees.  This language has been included in the last several biennial budgets but appears to have been inadvertently left out of the House Appropriations Committee proposed budget bill.

Almost three months to the day Governor Gregoire released her budget recommendations for the 2007-09 biennium, House Democrats in Olympia unveiled their operating budget blueprint for the next two years.  As was the case with the Governor’s proposal, the House budget places a high priority on funding for higher education and overall, represents a very strong budget for the University of Washington.

New general fund appropriations of $77.6 million combined with $42.9 million from the Education Legacy Trust Account and an estimated $80.5 million in total net tuition revenue (assumes 5% for resident undergraduates and 7% for all other) provides a total of $200.9 million in new operating budget resources for the UW in the 2007-09 biennium.

With this level of funding, we estimate the House Democrats 2007-09 budget (like the Governor’s budget) is “on-track” to close the UW’s per student funding gap to the 50th percentile of Global Challenge State institutions within 7 years and to the 60th percentile within 8 years.

Compensation:  $53.8 million is provided for compensation funding.  This amount includes funds to implement all negotiated collective bargaining agreements.  In addition, funds are provided to insure at least a 3.2% and 2.0% cost of living adjustment over the new two years for faculty and other non-represented professional staff, effective September 1 of each fiscal year.  Funds are also included for employee health insurance benefit changes.

Enrollments:  $23.6 million is provided for 1,630 new enrollments during the next two academic years.  This includes 500 new undergraduate enrollments (250 per year) for math, science, engineering and other high demand fields; 210 new graduate enrollments (105 per year); 920 new general undergraduate enrollments (460 per year).  The UW may allocate the enrollments at either the Seattle, Bothell or Tacoma campuses.

Research: $10.1 million is provided in new funding for research initiatives.  This includes $6.3 million for the Department of Global Health; $3.3 million to support operations and maintenance of the new Benjamin Hall Interdisciplinary Research Building; and $500,000 to enhance the University technology transfer “gap fund” used to help commercialize research discoveries.

WWAMI/RIDE: $3.5 million is provided in the UW operating budget for the medical and dental school expansion in Spokane.  This is $1 million less than requested by the University and included in the Governor’s Budget.

2% UG Resident Tuition Backfill:  The House budget limits tuition increases for resident undergraduate students to 5% per year in the next biennium.  However, additional general fund appropriations are provided to insure the UW receives the total amount of funding which would have been generated by a 7% per year tuition increase for resident undergraduates.

Burke Museum:  $1.5 million is provided to the Burke Museum to create new travelling kits, exhibits, and programs for schools, local museums, tribes and community centers.

SOM Family Practice Residency Program: $1 million is provided to establish a family practice residency program in SE Washington to be associated with the UW medicine residency network.

Partners for Our Children:  The House 2007 Supplemental Budget includes $1 million one-time funding to the DSHS Division of Children and Family Services to assist with the establishment of a “best practices” center at the UW School of Social Work to research factors affecting the well being of foster children.

William Ruckelshaus Center:  $225,000 is included in the UW budget (and an additional $225,000 in the WSU budget) to provide permanent funding for the Ruckelshaus Center(policy consensus center).  In addition, $500,000 is included in the budget for the Office of Financial Management to contract with the Ruckelshaus center for an Agricultural Pilot Project and $50,000 is provided in the 2007 supplemental budget proposal ($25,000 in UW and $25,000 in WSU) for a project related to land use and property rights.

Other Budget Items:  Other items included in the House proposal for the UW include $500,000 to improve retention rates for low income and first generation students; $340,000 to support the Washington Academy of Sciences; $497,000 to partially backfill reductions resulting from the state’s “Smart Buy” purchasing intiative; $168,000 for support of the UW State Climatologist; and $300,000 for the Institute for Learning and Brain Sciences.

Items Related to Legislation: Funding is included in the University’s budget related to several legislative measures passed by the House of Representatives. This includes $800,000 to implement 2SHB 2220 which directs the UW Sea Grant Program to review existing research on the potential effects of geoduck aquaculture on the environment; $108,000 to implement 2SHB 1242 which authorizes adult family homes to participate in a voluntary certification program through the UW Geriatric Education Center; and $15,000 to implement SHB 1394 which provides grants to School of Medicine faculty or students for research or training projects that focus on improving services to individuals with developmental disabilities.

Higher Education Studies:  The House budget provides funding to conduct three major higher education studies.  Specifically, $200,000 is provided to the Joint Legislative Audit and Review Committee (JLARC) for a higher education cost study to determine the options, strategies, and elements to JLARC for a capital facility technology study which would compare 10-year enrollment projections with capital facility requirements and technology application and hardware capacity.  In addition, the Washington Institute for Public Policy is provided $200,000 to conduct a study to determine state policy options regarding the role of higher education institutions in developing and marketing intellectual property and potential state revenue opportunities.

The 2007-09 capital budget spending plan released by the House of Representatives today in Olympia generally follows Governor Gregoire’s proposed capital budget recommendations for the University of Washington.  With this level of state capital funding, the House budget dramatically reverses a multi-year trend of reduced state support for the University’s building program.

The proposed capital spending plan crafted by committee chairman Rep. Bill Fromhold (D-Vancouver) includes $145 million in new state funding for UW construction projects. This is almost twice the total amount of state capital support the University received in the current biennial capital budget and represents the highest level of support for UW capital in ten years.

Restore the Core: The UW’s “Restore the Core” package of requests to renovate historic capital buildings on the Seattle campus is funded with $94 million in new state capital appropriations. This includes full funding of construction for Savery Hall, Clark Hall, Playhouse Theater and Magnuson H-Wing (also received $3.0 million from local funds). In addition, full funding for planning and design is provided for the next phase of restoration projects including Balmer Hall, Lewis Hall and Denny Hall.

Data Center: The budget provides $25.0 million to construct a new primary Data Center in the UW Tower and to provide ongoing campus computing and communications infrastructure and connectivity. Interdisciplinary Academic Building: $5.0 million is provided for pre-design and design for a new facility that will enable significant advances in the UW’s molecular engineering program.

UW Tacoma Phase 3: $6.2 million is provided for pre-design and design for major renovation of the Joy Building, including the addition of a fourth floor. This will provide nearly 70,000 square feet of additional classroom and faculty office space.

UW Bothell Phase 3: One disappointment in the House Democrats capital budget proposal was the decsion to fund only pre-design for the UW Bothell Phase 3 expansion for a multi-purpose academic building to accommodate a capacity increase of at least 600 student FTE’s.  Design funding of $4.85 million was eliminated and would instead be funded in the 2009-11 biennium.

Intermediate Student Service and Classroom Improvements: The House capital budget provides full funding of the University’s $15 million request to continue renovation of general assignment classrooms on the Seattle campus, consolidate and modernize space for Student Services programs and provide classroom space for the WWAMI/RIDE medical and dental expansion.

Minor Works Threshhold:  The House Capital Budget increases the threshhold for higher education minor works projects from $1 million to $2 million.  Higher education institutions had sought an increase in the threshhold to $3 million but the proposed language in the House budget is an improvement over the current limit. Space Utilization Study:  The House capital budget calls for a new study of higher education space utilization that should provide a more balanced way of measuring the efficiency of space use across the many different kinds of higher education institutions in the state.

Cost Allocation Pools:  A total of $5 million is provided to the Office of Financial Management to assist colleges and universities with unanticipated cost escalation on construction projects during the 2007-09 biennium.  Funds must be matched from non-state resources up to $750,000.

Members of the Economic Revenue Forecast Council met in Olympia this morning and adopted a new forecast of general fund revenue projections that will give budget writers an additional $126.5 million to write the 2007-09 biennial operating budget.  Dr. Chang Mook Sohn, the state’s chief revenue forecaster, said that revenue is up due to the overall strength of Washington’s economy, despite a gradual and expected slowdown in real estate activity.

Earlier this week, legislative budget officials received an unexpected windfall of about $200 million due to a drop in caseloads for several state programs such as low income medical care.  Combined with today’s revenue forecast adjustment, the legislature has more than $300 million additional resources to use in crafting their budget proposals.

Rep. Helen Sommers (D-Seattle), chair of the House Appropriations Committee will release her 2007-09 biennial budget proposal next Tuesday March 20.  Sen. Margarita Prentice (D-Renton), chair of the Senate Ways and Means Committee intends to unveil her spending plan the following week.

With House and Senate members virtually locked in their respective chambers passing measures with the urgency of a Wednesday March 14 5:00 p.m. deadline looming in their future, much higher education sideline speculation is focused on operating and capital budget proposals which are due to be unveiled within the next couple of weeks.

While transportation officials are understandably fixated on the outcome of Tuesday’s viaduct advisory election in Seattle, other seasoned Olympia observers are more curious about next Thursday morning’s meeting of the Economic and Revenue Forecast Council which will adopt the next quarterly forecast of state general fund revenues.  Fiscal insiders expect only a minor upturn in state revenue collections in the 2007-09 biennium which would seem of little consequence on a base of $30 billion in revenues.  But in Olympia where all budgets are won or lost on the margin, even a minor forecast change can spell gloom or doom for budget writers depending on which way the revenue needle is pointing.

Since the Governor’s budget was released in December, many legislators have expressed mild frustration that “the Governor spent all the money” and left little room in the budget for legislative priorities.  Since that time, however, state entitlement program forecasts have continued to trend downward, creating more than $100 million of additional room for legislative budget writers to address the spending priorities of their own members.  An additional $100 million or so of additional revenue in the March 15 forecast update could provide just enough budget breathing space to insure smooth negotiations between the House, Senate and Governor’s office.

The House is tentatively scheduled to release their operating and capital spending proposals the week of March 19.  The Senate should follow with their budget blueprints the week after leaving what should be ample time to negotiate a final budget in time for the April 22 adjournment deadline.