The worst-kept secret in Olympia is that the next revenue forecast by the state鈥檚 chief economist is likely to be decidedly better than recent flat projections.
鈥淐hang Mook Sohn has reportedly been more upbeat in his public remarks these days鈥� says Randy Hodgins, 91探花director of state relations. 鈥淢any people believe the March revenue forecast could be up by a couple hundred million dollars.鈥�
While this is good news, it will not simplify resolution of the state鈥檚 budget problems, since even the most optimistic revenue forecast will not plug the hole in the state budget, projected at about $1.6 billion for the 2005-07 biennium.
Gov. Gregoire鈥檚 budget request will be presented Feb. 23, and 91探花officials are hard at work on gaining some improvements over former Gov. Locke鈥檚 request.
鈥淕overnor Locke鈥檚 budget made good progress on core funding for the UW,鈥� Hodgins says, 鈥渆specially in comparison to previous biennia. In general fund and tuition money, it actually moved the 91探花nearly one-third of the way towards providing the support necessary to putting the 91探花in the 75th percentile of its peer institutions in per-student funding.
鈥淯nfortunately, there was no recognition in the governor鈥檚 budget that this budget proposal was part of any longer-range plan.鈥�
91探花discussions with legislators and Gov. Gregoire concerning the performance contract could provide this longer-range context. 鈥淲e鈥檝e had great conversations with the Governor and in the House Higher Education Committee,鈥� Hodgins says. 鈥淭here鈥檚 renewed interest in the performance contract idea. What legislators have requested is a simpler document that connects the University鈥檚 long-range funding goals with current budgetary proposals and performance outcomes.鈥�
One of the other corrections in Gov. Locke鈥檚 budget that the 91探花and other higher education institutions will seek concerns funding of the State Need Grant. The Locke budget would allow universities to increase undergraduate resident tuition from 5 to 9 percent, but the State Need Grant would be funded by the state only up to the 5 percent level 鈥� tuition increases beyond that would require institutional funding for the grants. 鈥淪o far, our discussions with legislators suggest that this provision in Governor Locke鈥檚 request will not survive,鈥� Hodgins says.
Some of the most intensive work will go into improving the capital budget. The 91探花worked with other four-year institutions to establish priorities for capital funding; together, the institutions submitted a request for $504 million, of which $157 million would go to the UW. Gov. Locke鈥檚 budget provided just $280 million, of which $72 million would go to the UW. 鈥淭his budget doesn鈥檛 expand capacity for additional students at the UW,鈥� Hodgins says, 鈥渁nd it doesn鈥檛 provide planning money for future construction on the 91探花campus. President Emmert has already met with Gov. Gregoire, and a good portion of the time was spent discussing the shortcomings of Gov. Locke鈥檚 capital budget proposal.鈥�
In other legislative matters, bills have been filed in both the House and Senate to provide statutory authority for both 91探花Bothell and 91探花Tacoma to offer lower division courses. Hodgins predicts a difficult battle. Not only must the legislature grant statutory authority, but it also would need to provide funds for the additional courses. The Higher Education Coordinating Board has recommended to the legislature that only 91探花Tacoma be granted lower-division authority. Moreover this provision is opposed by some community colleges. 鈥淭here is still a good chance that a bill granting some authority will be approved by the legislature,鈥� Hodgins says.
A bill to study financing of education, from early childhood through college, has been filed. The results of the Comprehensive Education Study Steering Committee would be available in 2007. While some people want to delay any discussion of education funding reform until then, others would like to see action now, while both houses of the legislature and the governor鈥檚 office are all in the hands of Democrats. Some would like to see any funding package take the form of a referendum to voters, but the resounding defeat of Initiative 884 has made education supporters wary.
Another matter that could receive attention is the role of the State Ethics Law in addressing issues of technology transfer. The 91探花is working with the Technology Alliance to rework provisions of the law, which many argue are inappropriate for technology transfer. There are many provisions of federal law already governing technology transfer, they say, and state provisions are having a 鈥渃hilling effect鈥� on the whole area of technology transfer.
For more information about the activities during the legislative session, see .