Office of Planning and Budgeting

2015-17 Final State Operating and Capital Budgets

Posted under UW Budget by Suganya Sundram 

Leadership in both House and Senate passed a compromise operating budget in the form of  Engrossed Substitute Senate Bill 6052.

All of higher education including financial aid would receive $3.5 billion of Near General Fund (NGF) for the biennium which is 9.2 percent of the overall NGF appropriation of $38.2 billion.

The compromise budget adopts the provisions in Second Engrossed Substitute Senate Bill 5954, which reduces the operating fee portion of resident undergrad tuition at all public higher education institutions. In 2015-16, resident undergraduate operating fees at all public institutions are to be 5 percent below the 2014-15 rates. In 2016-17, resident undergraduate operating fees at the state universities (the UW and WSU) are to be 15 percent below the 2014-15 rates; at the regional universities, they are to be 20 percent below the 2014-15 rates; and at the community and technical colleges, they are to be held at 5 percent of the 2014-15 rates.

This budget provides $27 million to partially fund compensation increases of 3% in FY16 and 1.8% in FY17. This budget also partially funds collective bargaining agreements with WFSE and SEIU.

Listed below are some of the Key funding’s provided by this budget:

Computer Science – $6 million over the biennium to increase bachelor’s degrees awarded in Computer Science.

WWAMI – $9 million over the biennium to continue operations in Spokane.

Family Practice Medicine Residency Network – $8 million over the biennium to fund additional medical residencies.

O&M Funding – $1.76 million over the biennium to cover maintenance costs for UW Bothell’s Discovery Hall.

The legislature also passed the final capital budget. For more details on the operating and capital budgets, please refer our OPB Brief.

Third House Committee Operating Budget Released Today

Posted under UW Budget by Suganya Sundram 

Leadership in the House Appropriations Committee released a third operating budget proposal today in the form of 2P2SHB 1106 and PSHB 2269. This proposal still differs from the Senate budget proposal SB 6050 and varies from the previous House operating budget P2SHB 1106.

All of higher education (including financial aid) would receive nearly $3.348 billion (8.8 percent of near general fund appropriations). Under this proposal, the UW receives a total appropriation of $650.5 million, of which $598.19 million is from Near General Fund account.

Here are some of the key points from the House Budget (2P2SHB 1106) released today :

  • Tuition – This budget assumes tuition rates remain at the levels charged in 2012-2013. Funding is provided to freeze resident undergrad tuition in the first year; however, funding in the second year is provided in HB 2269 (see below).
  • Compensation Increase – This budget proposal is similar to prior proposals, authorizing a 3% and 1.8% for FY16 and 17 respectively; in addition, this budget provides limited funds for the UW’s contracts with SEIU and WFSE.
  • WWAMI – This budget contains a proviso to transfer $4.68 million a year from WSU to the UW to maintain WWAMI and support expansion of this program to 60 students.
  • O&M Funding – $1.762 million over the biennium to cover the Operating and maintenance cost of UW Bothell Discovery Hall which is the same as the House budget, but slightly higher than the Governors funding.

HB 2269 was introduced alongside the primary appropriations bill and would fund the following activities:

  • Medical Residencies – HB 2269 appropriates $8 million over the biennium for medical residencies.
  • Computer Science – This budget provides $8 million over the biennium to increase bachelor’s degrees awarded in computer science.
  • Computer Science Building – This budget appropriates $32 million over the biennium from State building construction account.

We anticipate significant activity this week and will post additional updates to the blog.

Special Session 2015-17 House “Offer” Operating Budget Proposal

Posted under UW Budget by Suganya Sundram 

Leadership in the House Committee released a new Operating budget proposal in the form of P2SHB 1106 as a counter offer to the Senate budget released last week. This proposal still differs from the Senate budget and varies slightly from the engrossed House operating budget, ESHB 1106.

All of higher education (including financial aid) would receive nearly $3.49 billion or 9 percent. UW receives a total appropriation of $612.3 million of which $591.39 million is from Near General Fund account.

Here are some of the key points from the House “Offer “Budget proposal:

  • Tuition – This budget freezes tuition to all higher education institutions at the levels charged in 2012-2013. Funding is provided to freeze resident undergrad tuition.
  • Compensation Increase – This budget proposal is similar to prior proposals in authorizing a 3% and 1.8% for FY16 and 17, however this budget would only partially fund the cost of increase. This budget provides limited funds for the UW’s contracts with SEIU and WFSE.
  • WWAMI – This budget contains a proviso to transfer $4.68 million a year from WSU to the UW to maintain WWAMI and also a contains a requirement to support 60 first year medical students and 60 second medical students through WWAMI program in Spokane.
  • O&M Funding – $1.762 million over the biennium to cover the Operating and maintenance cost of UW Bothell Discovery Hall which is the same as the House budget, but slightly higher than the Governors funding.
  • Computer Science – This budget provides $4.25 million over the biennium to increase bachelor’s degrees awarded in computer science.

Please refer to our OPB Brief for more information about the special session House “Offer” budget.

Special Session 2015-17 Senate Chair Operating Budget

Posted under UW Budget by Suganya Sundram 

Leadership in the Senate Ways and Means Committee released a new Operating budget proposal on May 28th 2015 in the form of Senate Bill 6050. This proposal makes significant changes to the engrossed Senate operating budget, ESSB 5077 and continues to differ from the engrossed House operating budget, ESHB 1106.

Though the 2015 legislature is scheduled to adjourn today, no compromise operating or capital budget exists. Thus a second special session will be required.

All of higher education (including financial aid) would receive nearly $3.6 billion or 9.2 percent increase from the Governor and House budgets. UW receives a total appropriation of $685.7 million of which $666.36 million is from Near General Fund account.

Here are some of the key points from the Senate “Offer “Ways & Means Budget proposal:

  • Tuition affordability program- This budget reduces the operating fee portion of resident undergrad tuition to 14 percent of the State’s average annual wage in FY16 and FY17. It provides $107 million to offset the reduction in operating fees and an additional funding to backfill the foregone tuition revenue. In spite of the above funding, UW anticipates a shortfall of $3.7 million over the biennium.
  • WWAMI – Senate budget provides $9 million over the biennium for continued operations of the WWAMI medical school program, and the bill requires that the state cost per student per year not exceed $45,000 in Spokane.
  • O&M Funding – $1.762 million over the biennium to cover the Operating and maintenance cost of UW Bothell Discovery Hall which is the same as the House budget, but slightly higher than the Governors funding.
  • Compensation Increase – “Like the House proposal, this budget authorizes 3% and 1.8 % increases for FY16 and FY17, respectively. However, this budget would only partially fund the cost of those increases”.

Please refer to our OPB Brief for more information about the special session senate chair budget. Special session house budget is expected to be released Monday.

June State Revenue Forecast – Early Release:

Posted under Planning, Revenue Forecast by Suganya Sundram 

Today’s Economic and Revenue forecast was released a month ahead of schedule to help lawmakers reach agreement on the 2015–17 operating, capital and transportation budgets.

General Fund-State (GF-S) revenue forecast has been increased by $106 million for the 2013-2015 biennium and by $309 million for 2015-2017.

  • GF-S revenue for the 2013-2015 biennium is now $33.653 billion (9.8% higher than collections in the 2011-13 biennium), and
  • The forecasted GF-S revenue for the 2015-2017 biennium is now $36.758 billion (9.2% higher than collections in the 2013-15 biennium).

Revenue collections through May 10th were $61 M (1.8%) higher than forecasted. The surplus was entirely due to a $69 M surplus in real estate excise tax collections (large sale of commercial property). The surplus was offset by a $21 M shortfall in property tax collections.

A few additional highlights from the update:

  • Oil Prices are higher, and 2015 and 2016 GDP growth are weaker than in the February forecast.
  • Receipts from Revenue Act sources are $12 M (0.4%) higher than forecasted.
  • 17,200 new jobs have been added in the three months since the February forecast.

The OPB website has been reorganized!

Posted under OPB News and Announcements by Becka Johnson Poppe 

Thanks for your patience!  We’ve completed our reorganization of the OPB website.  A sitemap of the new layout is available in the Quicklinks menu on the left-hand side of our website.

We hope that the new website structure is more user-friendly and intuitive.  However, if you have questions or if you notice that any bookmarks or hyperlinks no longer work, please let me (Becka Johnson Poppe) know.

Please note, due to space restrictions, we did not end up creating a separate “Compensation” tab.  Instead, a “Compensation” drop-down menu item is available under the “UW Budget” tab.

OPB Website Undergoing Reorganization 5/6-5/8

Posted under OPB News and Announcements by Becka Johnson Poppe 

From Wednesday, May 6, through Friday, May 8, the OPB website will be undergoing reorganization. Changes will include:

  • Reconfiguring the “UW Budget” tab;
  • Adding a new “Compensation” tab;
  • Disaggregating the “Policy Analysis” tab into new tabs for “State Operations,” OPB briefs and the OPBlog; and
  • Deleting the “Campus & Capital Planning” tab (information previously accessed through this tab will continue to be available via the OUA website).

The “Tuition & Fees” and “UW Data” tabs will remain relatively unchanged for the time being.

After the reorganization is complete, we will post a sitemap to the OPB home page and we will post a notice to OPBlog.  If you have saved bookmarks or hyperlinks that no longer work after May 8, please contact Becka Johnson Poppe.

We apologize for any inconvenience this may cause. Thank you for your patience!

Report Affirms State Divestment, Not Administrative Bloat, Largely Responsible Tuition Increases

Posted under Higher Ed Research by Becka Johnson Poppe 

report released today by Demos, a New York public policy think tank, attempts to identify the reasons why tuition prices at public four-year institutions have increased over the last decade. The findings reinforce the understanding that declining state support, rather than “administrative bloat,” is the primary cause of tuition increases. Although administrative spending did increase marginally, the authors attribute the slight change to rising health care costs[1]  and to new support services required over the past decade – such as those to support growing technology needs.

The report analyzed data from the Delta Cost Project and examined research institutions separately from institutions that primarily award bachelor’s and master’s degrees.

Between 2001 and 2011, state funding per student fell by $3,081 at research universities and, simultaneously, tuition per student increased “in near lockstep,” by $3,628. Consequently, the majority of funding formerly provided by the state is now borne by students and their families.

The Causes of Rising Tuition at Public Research Universities

(taken from Figure 6 in the report)

Causes of rising tuition - research universities

As seen in the figure above, of the tuition hikes at public research universities:

  • 79 percent is attributable to declining state appropriations,
  • 9 percent is due to higher instruction costs (largely the result of rising health insurance premiums)
  • 6 percent is due to more construction costs, and
  • 6 percent is due to increased administrative spending.

With regards to “administrative bloat” – which some still view as a key driver of tuition increases – the report finds that “the number of executives and administrators has actually slightly decreased relative to the size of the student body” and the average number of total employees per 1,000 students has remained relatively constant over the last decade.

Instead, public institutions are employing more part-time faculty and professional staff (e.g. employees who work in admissions, human resources, information technology, etc.). “All of these things are necessary to support the growing university,” said Robbie Hiltonsmith, the report’s author.  Hiltonsmith also noted that when state funding for higher education declines, colleges can either raise tuition to make up for the forgone revenue or look for ways to trim expenses.  “If there isn’t a lot of fat to cut, then their only option is to raise tuition or lose quality of education.”

[1] On average, the amount spent by public universities to provide health insurance to staff and faculty rose by nearly $2,700 per employee between 2001 and 2011, a 40 percent increase.

New OPB Brief on Time to Degree by Major

Posted under Institutional Research by Kyle Schoenfeld 

The University of Washington commonly reports undergraduate time to degree, which measures the amount of time that elapses between a student’s first quarter enrolled at the UW and the quarter when she or he earns a UW bachelor’s degree. Undergraduate time to degree at the campus level is available through Public Profiles. A new OPB brief provides a more detailed look at time to degree at the level of student major. This brief allows a comparison of how long students take to graduate, their average degree GPA, and the average number of credits they take, broken out by major, student origin (first-time freshman or transfer student), and number of majors.

Report confirms continuing economic recovery and restoration of state funding for higher education

Posted under Higher Ed News, Uncategorized by Suganya Sundram 

State Higher education Executive Officer (SHEEO) announced its annual release of State Higher Education Finance (SHEF) report for FY14, which provides a comprehensive review of state and local funding, tuition revenue, and enrollment trends for public higher education.

National trends and Current status of state funding for higher education

On average, state and local support per full time equivalent (FTE) student was $6,552, a slight increase from $6,215 in 2013. Net tuition collections per FTE student is at $5,777, a 2.7 percent increase from 2013. Two rather interesting findings were highlighted in the report:

  • State and local support was 57.3 percent in 2014 as a share of per-student total educational revenue available to public institutions of higher education.
  • The explosive enrollment growth at public institutions from 2008 through 2011 tapered off in 2012 and is continuing in the downward trend. In 2014 enrollment fell another 1.3 percent from 2013.

Washington State compared to U.S Average

As a reminder, the SHEEO SHEF report combines community and technical college and college/university enrollment, state appropriations and tuition revenue for purposes of this report. In it, they found that enrollment (FTE) increased by 3.5 percent from 2009 to 2014, which is close to U.S. average (3.9 percent). They also found that public higher education in Washington improved in a number of other dimensions; including:

  • 15.3 percent increase in educational appropriations per FTE since 2013, higher than the U.S. average of 5.4 percent;
  • 3.7 percent increase in net tuition revenue per FTE from total educational revenue, higher than the U.S. average of 2.7 percent; and,
  • Total educational revenue per FTE increased by 9.4 percent, which was higher than the U.S. average of 4.1 percent.

However, two years of per-student funding increases might have meant that national average was on the path to exceeding pre-recession funding levels, which was not the case. Educational appropriations per student in FY14 remained 18.9 percent below 2008 pre-recession levels.

Read the full report for more data, analysis and methodological details.

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