A new brief from the Office of Planning & Budgeting provides an overview of Activity Based Budgeting (ABB) distribution principles and trends at the UW in Seattle. This brief updates last year’s overview of ABB trends, adding the most recent year’s data. It compares the ABB budgets of Seattle academic units to those of Seattle administrative units over the last six years (FY12-FY17).
OPB’s Institutional Analysis team and UW-IT’s Enterprise Information, Integration & Analytics unit announce seven new peer finance dashboards, available now in UW Profiles. These new dashboards join four existing peer dashboards. Peer dashboards use data publicly available through the Integrated Postsecondary Education Data System (IPEDS) to allow users to compare the UW to peer institutions around the country on a range of student- and finance-focused measures.
With the new finance dashboards, users can compare revenues, expenses, and endowment values at the UW and peer institutions. They can also explore the relative importance of different revenue sources and expense categories across institutions. The expenses story dashboard provides a step-by-step look at the expenses that directly or indirectly support universities’ research and instruction missions.
More information about each of the new peer finance dashboards is available through the online documentation. Please feel free to send any questions or comments to firstname.lastname@example.org.
Last week, the Economic and Revenue Forecast Council (ERFC) released its June revenue forecast, which increased projected General Fund-State (GF-S) collections by $294 million for the current 2015-17 biennium and by $126 million for the upcoming 2017-19 biennium. This is an improvement over the February forecast, which had predicted slower revenue growth in both biennia (see our blog post here). As a reminder, there will be at least three more revenue forecasts between now and when the legislature sets the 2017-19 budget.
Here is a quick summary of the total projected GF-S revenue for each biennia:
- $37.431 billion for the 2015-17 biennium, 11.2 percent more than 2013-15.
- $40.252 billion for the 2017-19 biennium, 7.5 percent more than 2015-17.
- $43.575 billion for the 2019-21 biennium, 8.3 percent more than 2017-19.
Behind the numbers:
- The forecast attributed the increase to strong sales of large commercial properties and rising home prices.
- Other positives included growth in housing permits and increases in inflation, which typically result in greater retail sales, business taxes, and property taxes.
- Slight decreases in U.S. and Washington state personal income forecasts continue to have a negative effect on the revenue forecast.
According to a press release from the Governor’s Office of Financial Management, “With the latest forecast, the state is now projected to have nearly $1.5 billion in total reserves at the end of the current biennium and more than $1.4 billion at the end of the 2017–19 biennium. Those reserve figures, however, do not take into account the multibillion obligation the state faces in the next biennium to meet its constitutional obligation to fully fund basic education.”
As a result, state agencies, including the UW, have received instructions to severely limit requests for new programs or policy initiatives in their requests for state funding in the 2017-19 biennium.
Stay tuned to the OPBlog for updates on revenue forecasts.
On April 18, Governor Inslee signed the final compromise operating budget after vetoing several sections. One of the Governor’s vetoes reversed a plan to convert activities conducted by the Office of Financial Management (OFM) into a “central service.” As a result of the veto, the UW will no longer be billed approximately $2.03 million from tuition operating fee revenue to cover those services.
Our updated brief is here. Please contact Jed Bradley or Becka Johnson Poppe if you have any questions.
The 2016 Legislature concluded its business having passed supplemental operating and capital budgets before the scheduled close of the 30-day special session. Please see the OPB brief for a detailed overview of the final compromise budgets.
While the compromise operating budget includes $3.513 million in additional biennial funding to “true up” the tuition backfill associated with 2ESB 5954, the increase is partially offset by more than $2 million in new, ongoing, biennial charges for services provided by the Office of Financial Management.
The compromise capital budget does not include any changes for the UW.
Please contact Jed Bradley or Becka Johnson Poppe if you have any questions.
The House and Senate did not come to an agreement on a 2016 supplemental budget by the end of the 60-day regular session, which was slated to end March 10. Several news outlets reported the tense ending, which featured Governor Inslee vetoing 27 bills (see examples here, here, and here). The Governor convened a 30-day special session, which began immediately.
On Friday, leadership in the Senate Ways & Means Committee released a new proposal for a 2016 supplemental operating budget (PSSB 6667). Last month, OPB released a brief comparing the Governor’s proposal, House proposal, and the Senate’s original proposal. That brief outlines the major components of each budget.
Like the Senate’s original proposal, this offer proposes $3.513 million in additional biennial funding to “true up” the tuition backfill associated with 2ESB 5954. However, both Senate proposals would almost entirely negate this additional backfill funding by converting activities conducted by the Office of Financial Management (OFM) into a central service charged to state agencies. Over the biennium, the UW would be charged $1.252 million from its state general fund appropriation and $2.042 million from tuition operating fee revenue for these OFM central services, a total of $3.294 million.
This proposal differs from the original Senate proposal in that it:
- Does not cut WWAMI: The original proposal included a cut of $1.2 million
- Does not fund a proviso for youth suicide prevention at UW’s Forefront: The original proposal allocated $97,000 in FY17 to fund 2SSB 6243, but that bill did not pass the House.
- Shifts $18 million in cost savings from College Bound (CB) program to State Need Grant (SNG): The original proposal shifted only $14 million, effectively cutting SNG by $4.5 million.
During a press conference responding to this release, leadership in the House emphasized continuing negotiations toward a compromised budget and gave no indication that they would release a public budget offer.
Stay tuned to the OPBlog for updates on proposed budgets.
This week, leadership in the House and Senate released their respective supplemental operating and capital budget proposals for the current biennium (FY16 & FY17), which follow the December release of Governor Jay Inslee’s proposals. As a reminder, the House and Senate proposals will be amended before they pass their respective chambers.
Please see the OPB brief for a detailed comparison of the House, Senate and Governor’s supplemental operating and capital budget proposals.
- The budget released by the leadership in the Senate Ways & Means Committee would provide the most funding overall, largely because it includes additional funding for the resident undergraduate tuition reduction backfill associated with 2ESB 5954.
- None of the three capital budgets provide additional funding for the UW beyond the original 2015-17 capital budget.
Legislators will have until March 10, the last day of session, to complete and pass a compromise budget.
See the table below for a quick comparison of the budget proposals:
Earlier today, the leadership in the House Appropriations Committee released their 2016 supplemental operating budget proposal. Toward the end of this week, the leadership in the Senate Ways & Means Committee will release their budget. Following that release, we will post a brief here outlining the differences between Governor Inslee’s proposed budget and the House and Senate proposals.
As a reminder, supplemental budgets include technical corrections and minor appropriation changes to the current 2015-17 biennial budget (fiscal years 2016 and 2017). Budget proposals in the House and the Senate will be amended in their respective committees, and possibly on each chamber floor, before negotiations begin towards a compromise budget.
Overview of the House budget:
Compared to the Governor’s proposal, the UW would receive an additional $50,000 to fully fund the implementation of HB 1138. In addition, the House budget would not reduce the UW’s allocation for legal services (the Governor proposed a reduction of $151,000).
Under the House proposal, the UW’s share of the settlement in the Moore v. HCA lawsuit would increase to nearly $16.3 million, compared to $15.6 million in the Governor’s budget.
The House Capital Budget Committee will release its 2016 supplemental capital budget proposal on Wednesday. Stay tuned to the OPBlog for updates on proposed budgets as they move through the process.
On Wednesday, the Economic and Revenue Forecast Council (ERFC) released its February revenue forecast, which reduced projected General Fund-State (GF-S) collections compared to the November revenue forecast (see our blog post here). The GF-S revenue forecast decreased by $67 million for the current 2015-17 biennium and by $442 million for the 2017-19 biennium. While the revision to the 2017-19 outlook is not inconsequential, there will be at least four more revenue forecasts between now and when the legislature will set a 2017-19 biennial budget – plenty of time for the outlook to change.
- Total projected GF-S revenue for the 2015-17 biennium is now $37.137 billion, 10.3 percent more than the 2013-15 biennium.
- Total projected GF-S revenue for the 2017-19 biennium is now $40.125 billion, 8 percent more than the 2015-17 biennium.
- The forecast included an initial forecast of GF-S revenue for the 2019-21 biennium of $43.441 billion, 8.3 percent more than the 2017-19 biennium.
Behind the numbers:
- The forecast attributes decreases in projected revenues to slower than expected growth in the U.S. and Washington state economies.
- Washington exports declined for the first time since 2009.
- Other negative factors cited in the forecast include lower forecasted personal income growth, reductions in housing permits and property tax growth, and lower tax receipts due to low oil and gas prices.
- Some positives include slightly higher than expected tax receipts since the November forecast, increases in hourly wages, and the fact that lower oil and gasoline prices are a positive for consumers.
The Governor’s Council of Economic Advisors, which advises the Governor on the state of financial matters, offered a slightly more pessimistic revenue prediction based on the ERFC February Forecast, predicting additional decreases in forecasted GF-S revenue of $55 million in 2015-17 and $202 million in 2017-19.
Budget writers in the House of Representatives and the Senate will use the February Revenue Forecast to set expenditure levels for their 2016 supplemental budget proposals. House and Senate budget proposals are expected to be released the week of February 22. The last day of the regular session is March 10.
Stay tuned to the OPBlog for updates on budget proposals from the House and Senate when those are released.
Governor Jay Inslee released his supplemental operating and capital budget proposals on Thursday, both of which include technical corrections and minor appropriation changes to the current 2015-17 biennial budgets (fiscal years 2016 and 2017). This budget release marks the first step of the 2016 legislative session – set to begin on Monday, January 11, 2016. As a reminder, the House and the Senate will propose their own supplemental budgets throughout this short 60-day session as they work toward a compromise budget.
As predicted, Governor Inslee’s proposal offers very few changes to ongoing appropriations. In response to the UW’s request, the proposal provides increased expenditure authority for ongoing shellfish biotoxin monitoring work by the UW’s Olympia Regional Harmful Algal Bloom Program, beginning in FY17. If this budget prevailed, the University would also receive $250,000 in additional ongoing funding for the Mathematics, Engineering, and Science Achievement program beginning in FY17. The proposal does not make changes to the compensation and benefits assumptions of the 2015-17 operating budget.
For more information, please see our brief on Governor Inslee’s 2016 Supplemental Operating and Capital Budgets.
Next Page →