Higher Education Operating And Capital Budgets
Overview of the Governor’s ProposedHigher EducationOperating and Capital BudgetsStaff Presentation to theSenate Ways & Means CommitteeJanuary 18, 2011
Today’sy Agendag Overview of current higher education budgets Overview of the Governor’s operating andcapital budget proposals Panel presentations– Council of Presidents– State Board for Community and Technical Colleges– Higher Education Coordinating Board Public testimony2
Operating BudgetOverview3
During the 2009‐11 biennium, a total of 3.4 billion instate funds was appropriated for higher educationCommunity andTechnical Colleges 1.4 Billion 42%Comprehensives 368 Million11%WSU 424 Million13%HECB 511 Million15%Direct FinancialAid 499 Million10%UW 652 Million19%State Funds Near General Fund State Federal ARRA Opportunity Pathways Account Opportunity Express AccountOther 12 Million2%4
Higher education represents 10% of the 2009‐11 NearGeneral Fund State budget, but the Near General Fundmakes up 33% of the overall higher education budget.Human Services 11 0 Billion 11.035%K‐12 Education 13 4 Billion 13.4Billi43%HigherEducation 3.1 Billion10%All OtherOh(incl. debt service) 3.5 Billion11%5
State support, tuition, and financial aid areinterconnected levers that drive the highereducation budgets The three pprimaryy fundingg levers are interconnected– State Appropriations– Tuition– Financial Aid Tuition impacts Financial Aid– Practice has been to increase State Need Grant, State Work Study,Washington Award for Vocational Excellence and Washington Scholars tofully offset impact of tuition increases. State Appropriationspp p Tuition– Together make up 55% of the overall higher education budget and coverthe core academic functions which include the cost of instruction, statepresearch and publicpservice activitiessponsored6
Governor’s OperatingBudget Proposals7
Highlights of the Governor’sOOperatingi BudgetB dProposalsPl Decreased appropriations for core academic functions by 502 million 39 millionilli decreasedt financialtofii l aidid programs, includingi l di servingi 2,7002 700 fewerfstudentst d tvia State Work Study, reducing the number of students served via Washington Scholars,WAVE, and other conditional loan and scholarship programs 50 million shifted from the general fund to the building accounts for maintenanceactivitiesCompensation reductions totaling 126 million 16 million enhancement for student‐centered initiative 2 million enhancement for services to facilitate greater success with low‐incomestudentsTuition increases ( 330 million):––– 11% per year at UW, WSU, and WWU9% per year at TESC, CWU, and EWU10% per year at community and technical colleges 92 million increase to the State Need Grant to offset tuition increasesNOTE: Complete list can be found in the Appendix.State Funds Near General Fund State Federal ARRA Opportunity Pathways Account Opportunity Express Account8
After accounting for tuition, state funds at the institutions decreased by10% during the 2009‐11 biennium for core academic functions. Afteradjustments the Governoradjustments,Governor’ss 2011‐13 proposal will decrease thesebudgets by 4%.State Funds Tuition Reductions(not including compensation)2009‐11(incl. 2010 Supplemental, 4.3% ATB, and Special Session)Governor's ‐20%‐22%‐25%State FundsState Funds TuitionState Funds Near General Fund State Federal ARRA Opportunity Pathways Account Opportunity Express Account9
Capital Budget Overview10
The 2009‐11 capital budget totaled 3.7 billion,53% of which are bonds. Higher educationrepresents 26% of the bonds budget.Total State Bonds 2.0 Billion,2009‐11 BienniumHuman Servicesand General GovGov’tt 565 Million29%Research 121 Million6%HigherEd tiEducation 509 Million26%K‐12K12Education 453 Million23%NaturalResources 442 Million22%Comprehensives 133 Million7%Community &Technical Colleges 254 Million13%11
Higher education projects are ranked using anevaluation system. Financing is achieved viathree methods. Evaluation Systemy– The State Board for Community and Technical Colleges reviews, ranks,and prioritizes projects within specific categories.– As a result of legislation enacted in the 20092009‐1111 bienniumbiennium, projects over 2 million for four year institutions are reviewed, ranked, and prioritizedwithin specific categories via a panel with final recommendationssubmitted byy the HighergEducation Coordinatingg Board. Financing Mechanisms– State bonds – backed by the state and subject to the debt limit– Certificatesfoff Participation ((COPs)) andd otherh bbondsd – not backedb k dbby thehstate or subject to the debt limit; debt is paid via specific revenue sources– Building accounts – includes a portion of revenue from tuition; managedb thebyh institutions12
During 2009‐11, state bonds made up 52% of the highereducation capital budget, with COPs and the buildingaccounts representing 27% and 22%, respectively. 67 Million15% 122 Million28% 96 Million27% 142 Million40% 51 Million28% 121 Million34% 134 Million72%Research 360 MillionComprehensives 184 MillionState BondsCertificates of Participation 254 Million57%Community & Technical Colleges 443 MillionBuilding Accounts13
Governor’s Capital BudgetProposal14
Highlights of the Governor’s2011 13 C2011‐13Capitali l BudgetB dProposalPl Spends 473 million less in higher education than in2009‐11– 197 million less in bonds Priority was given to minor works, renovation andremodel projects Generally, no funding was provided for new buildingconstruction, predesign, design, and land acquisition– Exceptions:Eti House of Knowledge Centralia Community College Student Services Building15
Governor’s Proposed List of Capital Projects(Four Year Institutions) in ThousandsBondsTotalMinor Works 44,129 142,079Construction - Design completed in 2009-11 Budget49,40749,40738,63010 77710,77738,63010 77710,77718,01122,8617,5112,50008 0008,0007,5112,5004,8508 ,50018,0004,799,4,4804,9508,20019,50018,000 166 677 166,677 276 976 276,976EWU - Patterson Hall Remodel Phase 2TESC - CommunicationsCi tiLabL b BldgBld PreservationPti & RenovationRtiInfrastructureEWU - Upgrade Campus Water SystemWSU - Pedestrian Bridge ReplacementUW - High Voltage Infrastructure ImprovementCWU - Combined UtilitiesGrowthUW - House of KnowledgeRenovationWWU - Classroom and Lab UpgradespgWWU - Fraser Hall RenovationTESC - Science Lab 2nd Floor ModernizationWSU - Fulmer Hall Partial RenovationUW - Odegaard Library RenovationWSU - Design Disciplines FacilityNOTE: Complete list can be found in the Appendix.16
Governor’s Proposed List of Capital Projects(Community and Technical Colleges) in ThousandsBondsTotal 0 85,47242,69942,699Green River - Science, Math & Technology Bldg21,83821,838North Seattle - Technology Building Renewal20,86120,861102 228102,228108 966108,966Everett - Index Hall Replacement37,63337,633Skagit Valley - Academic and Student Services Building29,49429,494Lower Columbia - Health and Science Building35,10137,70104 1384,138 144,927 237,137Minor WorksRenovationReplacementCentralia - Student Services Building DesingTOTALNOTE: Complete list can be found in the Appendix.17
Some policy questions to considerwhenh makingki spendingdi ddecisionsiiOperating Budget: Should tuition be increased and, if so, by how much? Should the policy of holding certain financial aid programsharmless to tuition increases continue? Should core academic functions be reduced beyond the levelpbyy tuition?replaced Should financial aid programs be reduced? Should specific performance targets be incorporated?Capital Budget: How should capital budget funding decisions be prioritized? ShouldSh ld a certaini numberb off designd i projectsjb fundedbef d d to preparefor new construction in the 2013‐15 biennium?18
Appendix19
Overview of the Governor’sOperatin BudgetOperatingB d et ProposalsACADEMIC FUNCTIONSHigher Education ReductionsCap Retirement Plan Funding at 6%Maintenance Fund ShiftReduce Financial AidStudent Services and Achievement InitiativeMaintain State Need GrantTotalNet reduction in state funds( in Thousands)Inst.CTCsTotalHECB(145,773) (444,249)(222)(24,991) (57,950)(26,452) 80,852) (92,788) (18,747) (19,184) (10,936) (30,976) (186,446) (539,929)57,207UWWSUEWUCWUTESCWWU(149,279) (75,846) (17,353) (17,632) (10,412) (27,954)(16,683) (8,284) (1,894) (2,052) (1,024) (3,022)(14,890) (8,658)-29.0%Tuition Increase1Total 2011-13 BudgetNet reduction in state funds (with tuition increase)Net reduction from state funds tuition %124,88760,030(55,965) 7183,820 329,652(7,405) (102,626) .5%( in Thousands)3% Salary ReductionSuspension of I-732 COLAsSuspension of Plan 1 COLATotal Compensation ReductionsNet reduction in state fundsNet reduction in state funds (with tuition increase)Net reduction from state funds tuition base111%UWWSUEWUCWUTESCWWUCTCs(24,010) (14,267) (3,257) (3,558) (1,920) (5,037) (30,001)(27,703)(2,842) (2,164)(663)(850)(463)(841) (7,960)(26,852) (16,431) (3,920) (4,408) (2,383) (5,878) .5%-40.4% -106.7%-12.3% -12.2%-8.8%-7.1%per year at UW, WSU, WWU; 9% per year at TESC, CWU, EWU, and 10% per year at CTCs0.0%10.3%10.3%-18.5%-8.5%-5.3%20
Capital project requests submitted by thecommunity and technical colleges are scored andprioritized by the state board.21
For the four year institutions, projects over 2million are scored via a panel of peers and thenprioritized by the HECB.22
Governor’s Proposed List of Major Capital Projects(Four Year Institutions)2009‐11 Previously Scored Renovation �132011 13 Agency2011‐13RequestUWDenny Hall Renovation174.0Const 54,615,000EWUPatterson Hall Remodel Phase 2270.8Const 34,800,000TESCCommunication Lab367.9Const 10,679,000UWLewis Hall Renovation460.7Const 23,130,000WSURiverpoint Biomedical/Health Sciences Facility559.2Const 70,775,000UWBothell Phase 3Not scoredNot scoredConst ‐13 AgencyRequestPredesign Category (62 points maximum)WSUPlant Sciences141.2Predesign 250,000WWUAcademic Services & Performing Arts Facility240.4Predesign 350,000CWUNutrition, Exercise, and Health Science (NEHS) Facility339.4Predesign 300,000UWMiller Hall Renovation433.4Predesign 275,000WSUWenatchee Fruit Quality & Integrated Pest Mgt Facility531.3Predesign 140,000TESCLecture Hall Renovation628.0Predesign 300,000WSUAgriculturalll Animall Healthl h Researchh Facilityl724.0Predesignd 250,000Highlighted projects are included in the Governor’s proposal.23
Governor’s Proposed List of Major Capital Projects(Four Year Institutions)Infrastructure Category (58 points �13 AgencyRequestEWUInfrastructure ‐ Upgrade Campus Water System143.0P‐C 7,511,000WSUInfrastructure ‐ Bridge Replacement242.6D‐C 2,500,000UWHigh Voltage Infrastructure Improvement Project341.8D‐C 4,850,000CWUCombined Utilities441.0P‐C 8,000,000CWUBiomass CHP536.2D‐C 8,000,000WWUNorth Campus Utility Upgrade628.6D‐C 3,529,000WWUPerforming Arts Exterior Renewal728.4D‐C 2,877,000TESCAlternative Energy Project (aka Campus‐Wide Alternative Energy)828.1D‐C 10,000,000WWUWireless Network Upgrade921.0D‐C h Category (90 points maximum)2011‐13 AgencyRequestCWUScience Phase II166.9Design 3,500,000UWHouse of Knowledge242.9D‐C 2,700,000Highlighted projects are included in the Governor’s proposal.24
Governor’s Proposed List of Major Capital Projects(Four Year amuelson Union BuildingScience Lab 1 Modernization (2nd Flr)Fulmer Hall Partial Renovation56759.258.356.7D‐CD‐CD‐C 35,821,0004,950,0008,200,000UWWSUCWUOdegarddd LibrarybRenovationTroy Hall RenovationBusiness Continuity and Disaster Recover Data Center891055.150.648.4D‐CDesignP‐C UCWUDesign Disciplines FacilityBurke Museum RenovationBrooks Library RenovationWashington Building 3rd Floor RenovationVancouver Library 2nd Floor ConversionRiverpoint S. Campus Facility Ph 2Health Center RemodelPsychology RenovationRandall Michaelson Remodel11121314151617181947.845 545.544.042.142.041.239 CD‐CD‐C 18,000,00055,000,000000 00 0004,900,0004,900,000Renovation Category (101 points maximum)WWUCarver Academic RenovationWWUClassroom & Lab UpgradesWWUFraser Hall RenovationUWAnderson Hall RenovationCWUHighlighted projects are included in the Governor’s proposal.2011‐13 AgencyRequest 6,784,000 4,799,000 4,480,000 2,500,000,,25
Governor’s Proposed List of Major Capital Projects(Four Year Institutions)Land Acquisition Category (48 points maximum)TESCUWWWUTacoma Campus AcquisitionUWT Land Acquisition/RemediationLand Acquisition ‐ WaterfrontReplacement Category (101 points maximum)EWUWSUCWUScience I (aka Biology‐Chemisty Science Center)Mt. Vernon Plant Growth/Eq/ q Stor/Repair/ pPeterson Hall ReplacementResearch Category (104 points maximum)WSUWSUWSUWSUClean Technology LaboratoryGlobal Animal Health Building Phase II/WA Animal DiseaseDiagnostic & Research FacilityProsser ‐Agric Tech Bldg AdditionProsser Viticulture/Enology FacilityWSUCollegelloff Agriculture'sl' Dairy Research/Teachingh/h Milkinglk 13 Acquisition 3DesignD‐CD‐C2011‐13 AgencyRequest 4,500,000 3,000,000,, 4,900,000OFMRank1OFMScore77 577.5PhaseRequested11‐13Design2011‐13 AgencyRequest 5,800,0005 800 00023473.559.356.7DesignD‐CD‐C 5,300,0002,500,0003,500,000555.4D‐C 8,300,000Highlighted projects are included in the Governor’s proposal.11,000,0007,597,0005,000,00026
Governor’s Proposed List of Capital Projects(Community and Technical 2223242526272829303132TypeMinor Works ‐ PreservationRoof Repairs "A"AFacility Repairs "A"Site Repairs "A"Matching Fund ProjectsMatching Fund ProjectsMatching Fund ProjectsMinor Works ‐ ProgramM j ProjectMajorP j t ‐ ConstructionC t tiMajor Project ‐ ConstructionMajor Project ‐ ConstructionMajor Project ‐ ConstructionMajor Project ‐ ConstructionMajor Project ‐ ConstructionMajor Project ‐ ConstructionMajor Project ‐ DesignMajor Project ‐ ConstructionMajor Project ‐ ConstructionMajor Project ‐ DesignMajor Project ‐ ConstructionMajor Project ‐ DesignMajor Project ‐ DesignMajor Project ‐ ConstructionMajor Project ‐ DesignMajor Project ‐ DesignMajor Project ‐ DesignMajor Project ‐ ConstructionMajor Project ‐ ConstructionMajorj Projectj ‐ ConstructionMajor Project ‐ DesignMajor Project ‐ ConstructionMajor Project ‐ tewideMatching Fund ProjectsMatching Fund ProjectsMatching Fund atewideStatewideStatewidePeninsulaSpokane FallsLower ColumbiaStatewideS kSpokaneFallsF llSouth Puget SoundClover ParkEverettGreen RiverSkagit ValleyLower ColumbiaOlympicNorth SeattleTacomaCentraliaBellevueColumbia BasinPeninsulaGrays HarborSouth SeattleRentonEdmondsSeattle CentralYakima ValleyGreen RiverWhatcomBatesClarkProjectEmergency Repairs and ImprovementsRoof RepairsFacility RepairsSite RepairsFort Worden Education CenterStadium and Athletic FieldsMyklebust GymnasiumMinor Program ImprovementsCCampusClassroomsClLearning Resource CenterAllied Health Care FacilityIndex Hall ReplacementScience Math and Technology BuildimgAcademic and Student Services BuildingHealth and Science BuildingCollege Instruction CenterTechnology Building RenewalHealth Careers CenterStudent ServicesHealth Science BuildingSocial Science CenterAllied Health and Early Childhood Dev CenterScience and Math BuildingCascade CourtAutomotive Complex RenovationScience Engineering Technology BldgSeattle Maritime AcademyPalmer Martin BuildingTrades and Industryy BuildinggLearning CommonsMohler Communications Technology CenterHealth and Advanced Technologies BuildingHighlighted projects are included in the Governor’s proposal.Requested16,000,0009 125 00,00020,000,00020 761 89,616,,1,622,76322,325,00038,828,00027
Jan 18, 2011 · EWU Patterson Hall Remodel Phase 2 2 70.8 Const 34,800,000 TESC Communication Lab 3 67.9 Const 10,679,000 UW Lewis Hall Renovation 4 60.7 Const 23,130,000 WSU Riverpoint Biom
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