Office of Planning and Budgeting

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.

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.

Some highlights:

  • 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:

BudgetComparison

 

 

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.

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.

The Senate capital budget appropriates $102 million in new funding from the State Building Construction Account, which is significantly more than the House capital budget appropriation of $41 million.

Here are some of the major funding items from the Senate capital budget:

  • $32.5 million for computer science and engineering expansion.
  • $16 million for UW Tacoma Urban Solution Center.
  • $46.2 million for Burke Museum.
  • $4 million for Health Science education MHSC T-wing renovation predesign.

The Senate voted its operating budget, Engrossed Substitute Senate Bill 5077 off the floor, adopting only five floor amendments, making virtually no changes to the higher education budget presented in our prior budget brief, available here. However, one of these five adopted amendments would redirect state marijuana-related revenues to the general fund, in lieu of allocating those funds to the state’s research universities (per citizen’s Initiative 502).

We will keep you updated as the House and Senate continue to work toward a final conference budget.

Leadership in the House Appropriations Committee released their 2015-17 operating budget proposal on Friday – Proposed Substitute House Bill 1106 . The proposal provides $3.48 billion of Near General Fund State for higher education which is a slight increase over the total higher education appropriations in the Governor’s budget.

On the operating side, the UW would receive $595.6 million of Near General Fund State across the biennium – $95 million more than we received in 2013-15.

Here are some of the key points from the House operating budget proposal:

  • Tuition freeze for resident undergraduate students over the biennium.
  • $50 million in biennial funding to offset tuition freeze and fund compensation increases.
  • $8 million in FY17 to support Computer Science engineering enrollment.
  • $3 million in FY17 for additional medical residencies in Washington State.
  • $4.68 million transfer from WSU to the UW in both FY16 and FY17 to support the WWAMI program.
  • $1.7 million over the biennium to cover operation and maintenance costs for UW Bothell Discovery Hall.
  • $1 million for an ungulate predation study — $600,000 of which would pass through to another state agency.
  • No funding for Climates Impacts Group, although the Governor’s funding had provided$1 million provided for this purpose.

Overall, the UW fared well in the House operating budget compared to the Governor budget.

On the capital side, the UW would receive $41.156 million in new funding from the State Building Construction Account. This is significantly less than the Governor’s proposed budget of $86.2 million, with less funding for the CSE Expansion ($6.033 million of the $40 million requested) and no funding to support the completion of the phased renovation of Lewis Hall. It does however propose a greater amount of funding for the Burke Museum ($26 million), but is still less than the Burke’s requested $46 million.

The Senate will release its proposed operating and capital budgets in the coming weeks.  For an analysis and summary of the operating and capital budgets, please review the OPB Brief.

 

U District Urban Design

The Seattle Department of Planning & Development published its Final Environmental Impact Statement (FEIS) on the University District Urban Design Framework. This analysis sets the stage for new zoning for the area of the U District west of 15th Ave. NE  to I-5 and from Ravenna to Portage Bay. Please see the FEIS notice for more information.

The Governor released operating and capital budgets yesterday morning. Though the UW fared well in the capital budget, we believe the operating budget, as currently proposed, presents challenges. Please note that the Governor’s budgets will be taken up by the Legislature in January; we are many months away from a final legislative compromise. As usual, we will be sending out budget briefing documents throughout legislative session to keep you updated.

For an analysis and summary of the operating and capital budgets, please review the OPB brief.

On Thursday, the American Association of State Colleges and Universities (AASCU) released its most State Outlook.  According to the report, state operating support for public  four-year colleges and universities is 3.6 percent higher for FY 2015 than it was for FY 2014. Of the 49 states that have passed a budget thus far, support for higher education increased in 43 states and decreased in only 6 states. Of those 6 states that reduced funding, all were under 3 percent: Alaska, Delaware, Kentucky, Missouri, Washington (0.8 percent decrease) and West Virginia.

There was a relatively small amount of variation between states in terms of their year-to-year funding changes. For FY 2015, the spread between the state with the largest gain and that with the largest cut was only a 24 percent—this is compared to 57 percent, 25 percent and 46 percent, respectively, in FYs 2012, 2013 and 2014. The report notes that this decreased volatility likely indicates “a continued post-recession stabilization of states’ budgets.”

Charitable contributions to U.S. colleges and universities increased 9 percent in 2013, to $33.8 billion—the highest recorded in the history of the Council for Aid to Education (CAE) Voluntary Support of Education (VSE) survey. In addition, college and university endowments grew by an average of 11.7 percent in FY 2013, according to a January 2014 study released by the National Association of College and University Business Officers and the Commonfund Institute.  This represents a significant improvement over the -0.3 percent return in FY 2012.

The report also describes ten highlights/trends from states’ 2014 legislative sessions, those being:

  1. State initiatives linking student access to economic and workforce development goals.
  2. Tuition freezes or increase caps in exchange for state reinvestment—this occurred in Washington and another example is discussed in our previous post.
  3. Performance-based funding systems that attempt to align institutional outcomes with state needs and priorities.
  4. Governor emphasis on efforts to advance state educational attainment goals.
  5. Interest in policies related to vocational and technical education, including allowing community colleges to grant certain four-year degrees (as described in our previous post).
  6. Efforts to develop a common set of expectations for what K-12 students should know in mathematics and language arts.
  7. STEM-related initiatives, including additional funding for STEM scholarships in Washington.
  8. Financial support for the renovating and/or constructing of new campus facilities—unfortunately, Washington’s legislature did not pass a capital budget.
  9. Bills allowing individuals to carry guns on public college and university campuses—as of March 2014, seven states had passed such legislation.
  10. Legislation that extends in-state tuition or, as occurred in Washington, state financial aid to undocumented students.

Other noteworthy policy topics described in the report include:

  • Student financial aid programs—some states broadened their programs while others limited them;
  • Online and competency-based education reciprocity agreements;
  • “Pay It Forward” Funding Schemes; and
  • Consumer protection as it pertains to student recruitment, advertising and financial aid at for-profit colleges.

We have updated the OPB brief we posted on February 27th, to reflect additional information regarding the employee health insurance related agency reductions. Both the House and Senate budget would decrease agency contributions for employee health benefits. The House budget cuts state funding by $7.6 million and the Senate budget cuts state funding by $4.4 million. However, both of these reductions are offset by lower per employee spending “limits” on benefits. The House budget would reduce monthly employer funding to $658 per eligible employee. The Senate budget would reduce monthly employer funding to $703 per eligible employee.

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