Online Edition | Washington State University | Pullman, Washington | Friday, June 21, 2001

Legislature Passes Capital & Operating Budgets;
Plods Toward Adjournment

By Larry Ganders, assistant to the president, Washington State University

Like a large, weary, sweaty Clydesdale plodding toward home after long, hot 
toiling in the fields, the lumbering 2001 Washington Legislature appears to 
be tediously ending its long spring work season.

Adjournment after 153 days in session over nearly six months could come 
today at the summer solstice. The Legislature cultivated some late-session 
improvements for WSU, including flexibility to partially fund the Pullman 
Student Recreation Center, the best higher education salary package of the 
session, the authority to consider a public-private partnership for a new 
Pullman power plant, and design money for the Spokane Academic Center at 
Riverpoint.

While the capital and operating budgets are in the barn and awaiting Gov. 
Gary Locke's signature, the Legislature is already looking back on this 
session with regrets that could force a September special session, or at 
least big complications for next January.

A significant improvement in transportation funding appears unfinished and 
no money has been plowed into a $125 million gap in the budget that the 
House has refused to take out of "surplus" law enforcement and firefighter 
pension funds. That hole may not be filled until next January or with 
gubernatorial veto action, Senate sources say.

Progress on Quality, Institutional Control
WSU went into the session knowing it was in a difficult year, financially 
and politically. Throughout the session, the university held firm with two 
key objectives: to put the emphasis back on quality instruction, and to 
secure flexibility to decide its destiny. President Lane Rawlins new 
legislative agenda was dubbed, "A New Way of Doing Business." The new 
Rawlins Administration can claim progress on both fronts.

With this writing there are still issues unresolved for WSU including 
passage of a faculty retirement bill (House Bill 2244.) But here's some of 
what has been gleaned from the 2001 Legislature so far:

Net Budget Increase for WSU
The university's state general fund operating budget will actually have a 
net increase 8.1 percent to $411.36 million. The increase was a significant 
accomplishment in a tough budget year but the funds will be more than 
consumed by inflation, carry-forward costs, and salary increases. And 
within the $411 million total, program cuts were mandated by the Legislature.

Salary Improvements for Quality
At the top of WSU's quality agenda was salaries for its employees. The 
final budget provides 3.7 percent this year, compared to 3 percent 
recommend by the House and 2.2 percent recommended by the governor. Enough 
funding is provided for a 2.6 percent increase next year, but the 
Legislature has committed itself to review that figure in January. WSU 
continued to resist double-digit tuition increases throughout this session 
and attempted to keep pressure for general fund state support. It will use 
the Legislature's flexible tuition authority to increase resident 
undergraduate tuition 6.7 percent this fall to $3,574. WSU will NOT use the 
Legislature's maximum 12 percent tuition increase for graduate business 
students and will use its discretion allowed in the new budget to hold the 
increase to 3.5 percent for all graduate students next year. Much of the 
tuition increases will go to pay for salary increases mandated - but not 
completely funded - by the Legislature. It also will be applied to unfunded 
obligations such as increased energy costs and inflation.

Program Cuts Limited to 1 percent
WSU succeeded in holding its program reductions to the $4.7 million 
recommended by governor, about 1 percent of WSU's total budget. In the end, 
the cuts did not target research, as had once been suggested, nor limited 
cuts to the research universities, as the Senate had proposed.

Tempering the Legislature's Enthusiasm for More Enrollments
The university repeatedly objected to lawmakers contemplating program cuts, 
on one hand, and investing substantially in increased enrollments on the 
other hand. Those actions create the impression that higher education is 
growing while actually fewer resources are being committed per each 
student. House leaders seemed to particularly listen to this message and 
the final budget seemed to reflect an effort to hold the line on cuts. WSU 
specifically received a $951,000 appropriation that may be used to offset 
cuts for Student Recreation Center maintenance and utilities. That money 
was taken out of Pullman enrollments. The budget still left room for 42 
additional students for WSU Spokane and 82 for WSU Vancouver in 2002. The 
final budget provides $300,000 for the Advanced Technology Initiative, a 
modest effort by the Legislature to support research. The original program 
was designed for appropriations in increments of $1 million.

$103 million Capital Construction Budget
The capital construction budget for WSU finished up at just under $103 
million, the third largest appropriation of general fund-state monies in 
university history. Capital budget writers praised WSU for reshuffling 
priorities to meet the core needs of the university. New construction for a 
Pullman Energy Plant that could have a value in excess of $60 million with 
a private partnership can now be possible. Construction of a $12.6 million 
Murrow Hall Addition, a $12.4 million Shock Physics Building, and a 
Vancouver Multi-media Building can now begin.

More Construction Projects In The PipeLine
The WSU construction outlook for 2003-2005 brightens: Design efforts are 
funded for the Spokane Academic Center, the Johnson Hall Addition and a 
Vancouver Student Services Center. Cleveland Hall Addition was delayed to 
2003-2005.

Clark College Building Slated for WSU Vancouver in 2003-2005
Projects not on WSU's capital agenda could nevertheless impact our 
programs: Design funds were provided for a Clark College Building on the 
WSU Vancouver Campus, a $19.4 million structure that could be constructed 
in 2003-2005. Yakima Valley College received construction funds to complete 
a $22.5 million Higher Education Center. The Department of Ecology received 
$250,000 to study a City of Pullman/WSU water reclamation project.
Funds were also provided for the rebuilding of Merrill Hall on the campus 
of the University of Washington in Seattle. This is the Urban Horticulture 
Building that was fire-bombed by arsonists during the legislative session.