Office of Planning and Budgeting

On Monday, leadership in the House Appropriations Committee released their initial operating budget proposal. This proposal follows last week’s release of the Senate operating proposal and December’s release of the Governor’s operating and capital proposals.

See the new OPB brief here for information regarding the House proposal, as well as a full comparison between current budget proposals.

Some noteworthy items in the House Appropriations operating budget proposal include:

  • Compensation: Partially funds a 2 percent increase in FY18 and two 2 percent increases in FY19 for non-represented employees, and partially funds collective bargaining agreements for represented employees.
  • Tuition Policy: Like the Governor’s proposal, the House would freeze resident undergraduate tuition across all public higher education institutions for two years, and would provide funding to cover the difference between the tuition freeze and incremental revenue expected under current policy.
  • Undergraduate Enrollment: Adds $6 million to the UW over the biennium to increase degree production in the Department of Computer Science and Engineering.
  • Financial Aid: Appropriates $49.2 million to the State Need Grant to reduce the number of unserved, eligible students, by 25 percent (around 6000 students).
  • Provisos: Adds new funding for several targeted efforts, including funding for the Regional Initiatives in Dental Education (RIDE Program)

In addition, the Senate Ways & Means committee released its proposed capital budget on Tuesday, and the OPB brief on the Senate’s proposals has been updated. Some highlights include:

  • Funding to complete the Burke Museum ($24.2 million)
  • Minor Works and Preventative Maintenance ($70.8 million from the UW Building Account)
  • Major Infrastructure – Seismic Upgrades ($10 million)
  • Population Health Sciences Building ($15 million)
  • Health Sciences Education – T-wing Renovation ($10 million)
  • Center for Advanced Materials and Clean Energy ($10 million)
  • Evans School – Parrington Hall Renovation ($10 million)

The House has not released a capital budget as of the time of this posting, but that brief will be updated once that information is available.

 

Stay tuned to the OPBlog for updates on proposed budgets.

On Tuesday, leadership in the Senate Ways & Means Committee released their initial 2017-19 operating budget proposal. This proposal is the first from a legislative body following the release of Governor Inslee’s operating and capital budget proposals from December. See OPB’s brief here for a full comparison. Unlike the Governor’s budget proposal, the Senate does not propose significant new revenue, and therefore would provide far fewer new investments in new and existing programs.

Some noteworthy items in the Senate budget proposal include:

  • Tuition Policy: Maintains current tuition policy allowing a 2.2 percent increase in resident undergraduate tuition in FY18 and a 2.0 percent increase in FY19. The Governor proposed freezing tuition for two years, and provided funds to backfill that freeze.
  • Undergraduate Enrollment: Adds $10.5 million to the UW over the biennium to increase resident undergraduate enrollments in STEM and other fields.
  • Financial Aid: Reduces the UW’s state appropriation by $5.2 million over the biennium and assume that the University would offset the reduction by reducing tuition waivers provided to students.
  • Compensation: Partially funds $500 wage increases per year for faculty, staff, and represented employees. The budget would also reject tentative collective bargaining agreements between the UW and represented employees.
  • New “Central Service”: Reinstates a charge for central services provided by the Governor’s Office of Financial Management, which would divert $7.5 million in tuition revenue over the biennium.

The Senate did not release a capital budget as of the time of this posting, but the brief will be updated once that information is available. We expect to review proposals from the House Appropriations Committee early next week, and will post additional information at that time.

Stay tuned to the OPBlog for updates on proposed budgets.

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.

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

 

 

On Tuesday, Leadership in the Senate Ways & Means Committee released its operating budget proposal, Proposed Substitute Senate Bill 5077 which makes significant changes to the Governor’s proposal and differs significantly from the House proposal.  Under the Senate proposal, the UW would receive $674.39 million of Near General Fund State across the biennium.

Here are some of the key points from the Senate Budget proposal:

  • Tuition affordability program – The Senate budget reduces the operating fee portion of resident undergraduate tuition to 18 percent of the state’s average wage in FY16 and 14 percent of the state’s average wage in FY17 onwards. It provides $96 million over the biennium to offset the reduction in operating fees, which we believe falls short by $1.2 million in FY16 and $2.8 million in FY17.
  • WWAMI – The Senate budget provides $1.25 million per year for continued operations of the WWAMI program.
  • O&M Funding – Like the House budget, the Senate provides $1.762 million over the biennium to cover the operation and maintenance costs of UW Bothell Discovery Hall.
  • STEM Investments – The Senate proposal  provides $2 million per year to increase bachelor’s degrees in Science, Technology, engineering and Math fields.
  • Compensation Increase – The Senate bill rejects state-funded contracts with classified staff. Instead, the Senate Chair budget would fund wage increases at $1,000 per employee and require that the University either renegotiate contracts to match this funding level or locally fund the difference in perpetuity. The Senate budget provides funds for faculty and staff wage increases at $1,000 per employee and allows the UW to deviate from this assumption with local funds.

The Senate capital budget is expected to be released next week .  For more information, please see the OPB Brief.

 

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.

Leadership in both the House and Senate fiscal committees released supplemental operating and capital budgets this week, proposing technical corrections and appropriation changes to the current 2013-15 biennial budgets (primarily applicable to FY15). Please see the full OPB brief for information on each proposal.

As a reminder, both budgets will be amended in respective committees, and possibly on each chamber floor, before negotiations begin towards a compromise budget.

 

On Saturday, the Senate released a revised budget proposal, which closely resembles the budget they passed in April. For the UW, the two budgets differ in just a few ways:

  • Unlike the original Senate budget, the revised budget does not include a $12.5M transfer away from the UW Hospital Account;
  • The revised budget does not cut the UW by $3.2M for “administrative efficiencies” that were assumed in the original budget; but
  • Compared to the original proposal, the revised budget provides the UW with $3.2M less in new funding.

The latter two changes essentially nullify each other. A few additional changes occurred with regards to state employee health benefits; we are working to interpret the effects and will provide more information as soon as possible.

As mentioned, the revised Senate budget doesn’t stray far from the original. Just like the Senate’s original proposal, its revised budget:

  • Provides the UW with $479.6M (General Fund and Education Legacy Trust funds) for the 2013-15 biennium—$10.2M of which is one-time performance-based funding;
  • Assumes 0% tuition increases for resident undergraduates;
  • Preserves tuition setting authority, but nullifies that authority if either SB 5883 or SB 5941 pass (the bills would require the UW to decrease resident undergraduate tuition rates by 3 percent for the 2013-15 biennium and limit future resident undergrad tuition growth to the rate of inflation); and
  • Generates “new” funding for higher education by imposing a 20 percent tuition surcharge on international students at the state’s public colleges and universities.

For more information about the original Senate proposal, please see the full OPB brief.

Senate Ways & Means Chair Andy Hill released the Senate budget proposal today. Please see the OPB Brief for a complete analysis.

Tuition: The Senate Chair budget contains language allowing the Regents to set tuition and fees for all student categories other than resident undergraduates. The budget bill assumes no tuition increases for resident undergraduates; however, UW Regents retain the authority to set tuition rates under HB 1795. It is crucial to note that the budget states that these tuition provisions will be nullified if SB 5883 passes. SB 5883 would require a 3 percent decrease in resident undergraduate tuition for 2013-14.

Compensation: The budget deems the UW’s collective bargaining agreements (CBA) to be financially feasible and restores the 3 percent salary cut imposed on state agencies in the last biennium. We assume the budget lifts the current salary freeze for state employees as it makes no mention of extending it. In addition, the budget assumes savings by changing the definition of “full time” employee to align state employee healthcare eligibility with the federal standard set out in the Affordable Care Act. This is a significant change in policy, and we expect it to become a serious topic of public debate in the weeks to come.

Other policy changes affecting the UW include:

  1. Funding for the Joint Aerospace Initiative with WSU;
  2. Appropriations for a new Center on Ocean pH Balance;
  3. One-time, performance-based funding;
  4. Operation and maintenance funding for MolE and Dempsey Hall;
  5. Funding reductions related to administrative efficiencies;
  6. An international student surcharge; and
  7. A fund transfer from the UW Hospital Account.

The Senate chair budget proposal is one of a series of budgets released as part of the biennial budget process; the House is expected to release its budget proposal next week. It is likely that the UW will not have a clear sense of its actual anticipated state funding level until later this month.

The first new budget proposal of special session was released today by the same bipartisan Senate coalition that quickly passed an engrossed supplemental budget two weeks ago. Last week, the House further revised the Senate engrossed budget before session ended without agreement on a compromise budget. Although complex and at times confusing, this year’s budget process appears to now be moving forward as today’s Senate budget release moves closer to the House engrossed budget.

The new Senate coalition budget proposal would make the following changes to the UW’s 2011-13 biennial budget:

  • Reduces state general funds for the College of the Environment and replaces these funds with State Toxics Control revenue ($5 million);
  • Requires that the UW devote a portion of its state funding base to convert existing student FTE to College of Engineering FTE ($3.8 million); and,
  • Provides new funds for a Center for Aerospace Technology Innovation ($1.5 million).

All told, the redirect of state funding for engineering enrollment funding  and College of the Environment fund swap would affect our FY13 budget base. Please review our Planning & Budgeting brief for more information about the new Senate proposal and how it compares to the current House engrossed budget.

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