Budget leaders in the House and Senate released supplemental operating and capital budget proposals this week following last week’s positive state revenue forecast. 

Both operating proposals include funding for WWU’s top priority, employee compensation increases.  The Senate proposal would also increase the state’s share of compensation funding from 49% state/51% tuition to 66% state/ 34% tuition.  The Senate budget also provides $1.8 million per year for WWU’s Student Retention and Success request, while the House budget provides $720K per year.

The House and Senate operating budget proposals both fully fund Western’s request to align tuition rates in the BSN nursing program with other state-supported undergraduate programs and to establish a new Master’s in Nursing program.  Additionally, both budgets fund upgrades to the WWU Cyber Range in Poulsbo, and the Senate budget also provides funding to expand the current cybersecurity certificate program as a standalone certificate at the Bellingham and Poulsbo campuses and online.

The House and Senate capital budgets include approximately half a million dollars for Minor Works – Programmatic construction projects on campus, as well as authority to use $1.5 million in local funds for existing state-approved projects that are impacted by inflation and supply chain challenges.  The Senate capital budget also includes $1.5 million in bond funding for classroom and lab upgrades.

Budget leaders will spend the remaining weeks of the 2022 Legislative Session negotiating the final supplemental operating and capital budgets.  Session is scheduled to end on Thursday, March 10^th. 

Today the Washington State Economic and Revenue Forecast Council released the official state quarterly revenue forecast, projecting an increase of $1.45 billion in state revenues for the current 2021-23 biennium and an increase of more than $1.32 billion for the 2023-25 biennium. 

Total state revenues for the 21-23 biennium are now projected at $61.7 billion and $65.4 billion for the 23-25 biennium.  The House and Senate 2022 supplemental operating and capital budget proposals are expected to be released in the coming days following today’s updated revenue projections. 

Click here to read more about today’s revenue forecast.

On Friday, three bills aimed at expanding access to postsecondary education and increasing financial aid opportunities for Washington residents passed out of the House Appropriations Committee. 

• House Bill 1659, sponsored by Representative Vandana Slatter, expands the Washington College Grant program by modifying income eligibility thresholds and award levels and provides “bridge grants” to WCG recipients to help cover expenses beyond tuition and fees.
• House Bill 1736, sponsored by Representative Pat Sullivan, establishes the Washington Student Loan Program to issue student loans with 1 percent interest rates to resident students with financial need pursuing undergraduate or high-demand graduate programs.
• House Bill 1835, sponsored by Representative Drew Hansen, creates a statewide marketing campaign to promote the Washington College Grant, establishes a FAFSA/ WASFA outreach initiative, and makes changes to the Washington College Grant program to determine a student’s financial need eligibility based on whether they are receiving benefits through a public assistance program.

Western’s administration, faculty and students have advocated for the passage of all three bills during the course of the 2022 Legislative Session.  The bills are currently before the House Rules Committee and will likely come up for a vote on the Floor of the House of Representatives within the next week.  If approved by a majority in the House, the bills would then advance to the State Senate for further consideration.

The 2022 legislative session began this week with public hearings on several bills, including Governor Inslee’s proposed supplemental budgets.  WWU testified in support of the proposed supplemental operating budget (SB 5693  /HB 1816) in the Senate Ways and Means and House Appropriations Committees and in support of the proposed supplemental capital budget (SB 5651 /HB 1781) in the Senate Ways and Means and House Capital Budget Committees, highlighting the proposed investments that will directly support Western students and employees.

Western’s priorities for the 2022 legislative session include:

• Compensation increases for WWU employees
• Investments in student retention & success initiatives
• State support for nursing degree programs
• Capital construction support for campus infrastructure projects

The 60-day session began on January 10^th and is scheduled to end on March 10^th. 

Today Governor Inslee released his proposals for the state’s 2022 supplemental operating and capital budgets.  The governor’s supplemental budget proposals include the following investments for WWU:

The governor’s operating proposal includes the state’s share of a 3.25% compensation increase for all Western employees in Fiscal Year 23.  The operating budget proposal also includes:

• $1.8 million per year for student success and retention efforts at WWU;
• $694k per year + $100k in one-time funding to expand access in Western’s nursing degree programs; and
• $639k per year + $569k in one-time funding to expand cybersecurity training programs and facilities.

In the 2022 Supplemental Capital Budget, the governor is proposing to provide Western $1.5 million in bonds for Classroom and Lab Upgrades, $1 million in bonds for Minor Works – Program, and authority to use $1.5 million in local funds for existing state-approved projects that are impacted by inflation and supply chain challenges.

The release of the governor’s budget proposals marks the beginning of the State’s supplemental budgeting process.  The Legislature will convene for the 2022 Session on January 10th, when state lawmakers will consider the governor’s budget proposals and begin negotiating the final supplemental budgets that are scheduled to be finalized in mid-March. 

The 2021 Legislative Session concluded yesterday after a historic 105-day session that was mostly conducted virtually due to the pandemic.  Despite economic forecasts over the last year projecting decreases in state revenues, federal stimulus funding coupled with better than projected state revenue collections resulted in a robust state operating budget that included important investments across state government, including in the state’s higher education system.

Western’s base budget was maintained without requiring faculty and staff to take mandated furlough days. The state’s operating budget also carries forward funding originally intended for salary increases in fiscal year 2021 for WWU faculty and staff that is supported by a combination of state funding and tuition revenue.

Key operating budget investments for Western include:

• $1.016 million per biennia for an ethnic studies program
• $1.06 million per biennia for bilingual educator programs in the South King County region
• $1.04 million per biennia for student support services
• $300,000 per biennia for graduate assistant stipends
• $506,000 for implementation of SB 5227 – requiring Diversity, Equity and Inclusion training for faculty, students and staff
• $96,000 per biennia for a veterans mental health counselor
• $90,000 in one-time funding for WWU’s Center for Economic and Business Research to assess the feasibility and benefits of expanding outdoor residential school programs to equitably serve all fifth and sixth grade students statewide

Key capital budget investments for Western include:

• $51 million for construction of the Electrical Engineering and Computer Science building
• $4.5 million for construction of a Coast Salish-style Longhouse on Western’s campus
• $225,000 for pre-design of a new Student Development and Success Center
• $4.8 million for minor works preservation projects
• $2.5 million for classroom and lab upgrades
• $2.15 million for critical safety and access control upgrades
• $1 million for minor works programmatic projects
• $450,000 for a feasibility study to convert WWU’s heating system to a more energy efficient system

The House and Senate have released each chamber’s proposal for the state’s 2021-2023 operating budget.  Both proposals would maintain current baseline funding for WWU and for higher education.  Most notably, both proposals would eliminate the proposed mandatory furloughs for state employees included in the governor’s budget proposal, and both proposals would pull back funding originally provided for compensation increases for non-classified employees in FY21, but return that funding in FY22.

The Senate budget proposal also includes the following investments for Western:

• $1.016 million per biennia for the development of an Ethnic Studies Program
• $300,000 per biennia to increase graduate assistant stipends
• $1 million per biennia for student support services, including admissions, counseling center, disability access center, prevention and wellness, multicultural student services, and veterans’ services.
• Funding for the implementation of Senate Bill 5227 for diversity, equity, inclusion (DEI) and anti-racism professional development for faculty, staff, and students and DEI campus climate assessments

The House budget proposal also includes the following investments for Western:

• $1.042 million per biennia for student support services to ensure underrepresented students receive the same opportunities for academic success as their peers
• $300,000 per biennia for graduate assistant stipends
• $1.06 million per biennia for the establishment of bilingual educator programs in the South King County region
• $90,000 for WWU’s Center for Business Center for Economic and Business Research to assess the feasibility and benefits of expanding outdoor residential school programs to all 5th and 6th grade students statewide

House and Senate leadership will spend the next few weeks negotiating the final 21-23 operating budget.  The compromise budget is expected to be released no later than April 25^th when the Legislature is scheduled to adjourn.

This week the House and Senate published each chamber’s respective proposals for the state’s 2021-23 biennial capital budget.  Each proposal included funding for some of Western’s top capital budget priorities.

Both House and Senate proposals would fully fund WWU’s top capital construction request—$51 million for the construction of the Electrical Engineering and Computer Science building, also known on campus as the Kaiser Borsari Hall.  Both proposals would also include funding for a Coast Salish-style Longhouse on Western’s campus, with the House proposal fully funding the project at $4.95 million and the Senate proposal providing $3.5 million for the project.  The House and Senate budget proposals also both provide pre-design funding for the future construction of a new Student Development and Success Center, as well as funding for minor works preservation and programmatic projects on campus. 

The Senate proposal includes funding for critical infrastructure projects on campus, including partial funding for classroom and lab upgrades, critical safety, access control and fiber optic network upgrades, and elevator safety. 

The House proposal includes funding for a study to explore the feasibility of converting WWU’s steam heating system to a more energy efficient system. 

Click here for a detailed comparison of the proposals. 

Today the Washington State Economic and Revenue Forecast Council adopted a revised revenue forecast showing a total increase of nearly $3.3B over the next four years of funds subject to the state budget outlook.  The forecast for the current 2019-21 biennium increased by $1.3 billion and the forecast for state revenues in the 2021-23 biennium increased by $1.9 billion.

Today’s revenue forecast is a significant improvement from quarterly forecasts released in 2020, which projected a steep decrease in state revenues due to impacts from the COVID-19 pandemic.  The projections released today indicate the state budget outlook is essentially back to pre-pandemic levels.

The House and Senate are expected to release proposals for the state’s 2021-23 operating and capital budgets in the coming weeks.

Yesterday President Biden signed into law the $1.9 trillion COVID relief package that passed Congress earlier this week.  The American Rescue Plan Act of 2021 includes $40 billion in federal aid for colleges and universities across the country that will be disbursed through the Department of Education’s Higher Education Emergency Relief Fund.  Funds will be distributed in a manner similar to the previous federal stimulus packages using a formula based on the percentage of Pell Grant eligible students attending institutions.  Institutions will be required to provide at least half of funding received for emergency financial aid grants to students.

The pandemic relief package also includes funding for vaccine distribution, direct economic payments, extension of federal unemployment benefits, childcare, K-12 education, and more.  The plan includes $350 billion in aid for state and local governments, of which the State of Washington is expected to receive $4.253 billion.