Governor commends legislative efforts

On Monday, Gov. Chris Gregoire thanked the Legislature for its hard work after an on-time adjournment Sunday night. (And just in case you slept through Sine Die, you can relive it.)

“There is simply no way to sugarcoat the impact of a $9 billion hole in the state budget,” Gregoire said. “This was the toughest legislative session in 30 years and maybe the toughest since the Great Depression.”

“I asked the Legislature to summon the spirit of courage and sacrifice,” she said. “And that is exactly what they did.”

“The budget is responsible and reflects courage,” she said, “but there is something in there for everyone to hate.”

She gave an overview of cuts:

• Higher education: Decreased access, increased tuition, and increased class sizes. In each of the next two years, the public four-year institutions are authorized to raise tuition by up to 14% and the community and technical colleges by up to 7%.

• She said tuition increases are necessary to offset cuts and to maintain quality and access in higher education, so colleges and universities can continue to prepare students to succeed in a 21st Century economy.

• Health care: 40,000 fewer people will receive state-subsidized health insurance.

• K-12 education: Cuts to class-size reduction funds mean larger classes.

• Human services: Provider reimbursement rates will be reduced, resulting in less access to services.

• State agency employees: Will do more with less. For instance, employees may be asked to take unpaid furloughs to save jobs and money.

Gov. Gregoire shared highlights of other legislation in transportation, economic development, education, environment, and civil rights.

Potential special session

The Legislature adjourned with some key issues unresolved, including the levy lid bill for K-12 and offender sentencing measures. The Governor will meet with legislative leadership to decide when to call a special session to address these items.

She said she will only bring Legislators back to Olympia if there is mutual agreement. She wants them to come back with their differences resolved and not spend days in debate. At press time, there was speculation about a May 13-15 or May 14-15 session.

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Operating budget approved by Legislature

Except for a handful of unfinished bills, HB 1244, the 2009-11 Operating Budget, was adopted on the last day of the session, making operating appropriations for fiscal years 2007-2009 and 2009-2011.

Highlights of the final 2009-11 Legislative Operating Budget Proposal for the community and technical college system include:

• A $164 million biennial cut — or 10.7% — which includes reductions the system already took this year, with additional cuts spread evenly over two years.

• Tuition increases limited to 7% in the first year and another 7% in the second year for resident undergraduates (14% per year for applied baccalaureate program upper division courses).

• With tuition yields added back, the net biennial cut for the system is calculated at 7.6%.

Budget provisos of statewide significance include:

• $3.5 million of existing funds for the Student Achievement Initiative.

• $2.25 million to enhance on-line distance learning and open courseware technology.

• $1.5 million to increase the Hospital Employee Education Training (HEET) grants.

Up to $4 million in federal stimulus funds provided in the Community Trade and Economic Development (CTED) budget for weatherization training. Funds are directed for the SBCTC to provide workforce training related to weatherization and energy.

On the financial aid front, State Need Grant funding is increased commensurate with tuition increases, and the 70% of median family income threshold for State Need Grant eligibility remains.

The operating budget bill now awaits the Governor’s signature.

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Capital budget approved

The House and Senate reached agreement on HB 1216, the 2009-11 Capital Construction Budget, and HB 1272, authorizing bond issuance.

As expected, the overall capital budget is down $1.7 billion from the current biennium ($3.0 billion compared to $4.7 billion last biennium). Debt limit bonds are down 17% ($1.8 billion versus $2.2 billion).

Two significant factors contribute to the decline.

• The Legislature transferred $780 million in capital funds into the operating budget to reduce the impact of operating revenue declines. Several of these fund transfers are backfilled with state general obligation bonds.

• The loss of general revenue reduced bond capacity. The Legislature funded maintenance and operating activities in the Capital budget with building fees and backfilled some minor works accounts with bonds.

In crafting the capital budget, the Legislature appeared to adopt the Senate criteria for project selection:

• Creating jobs now.

• Promoting access to provide and improve educational space.

• Emphasizing high-demand fields of study.

The community and technical colleges were not immune to the major cuts. In general, the Legislature respected and adhered to the system’s capital projects priority list within each category; however, all pre-design projects were removed and other decisions were made using the additional criteria.

Proposed 2009-11 Capital Budget for the community and technical colleges

The proposed 2009-11 capital budget for the community and technical college system is $400.3 million. The system request was approximately $550 million. This amount is a combination of appropriated bond funds, Certificates of Participation (COP), and tuition building fees.

The community and technical college bond funds are set at $307.8 million (versus $438.5 million in the current biennium). This represents 53% of all bonds authorized for higher education.

Another $55.5 million is provided as alternative financing (COP funding) against the system’s Building Fee Account. This includes two replacement projects scheduled for construction in the 2009-11 biennium.

The Legislature shaved costs on the replacement and renovation projects as well as the roof repair budget and made significant reductions to the minor works list.

In addition, $22.8 million of maintenance and operations funding remains in the capital budget and is funded with tuition building fees.

With the exception of the Highline Federal Way Towne Center and Lower Columbia College’s Myklebust Gym—which were withdrawn by the colleges—all college-specific COPs were funded.

All pre-design projects were removed across higher education. Two community and technical college design projects were delayed due to uncertainty of future bond capacity. Three major growth projects were shifted to the 2011-13 biennium.

The SBCTC Capital budget includes several appropriations that were not in the system’s original request:

• Columbia Basin College: Tri-City STEM High School, $800,000

• North Seattle Community College: Employment Resource Center, $5 million

• Seattle Central Community College: kitchen modernization, $378,000

• Walla Walla Community College: William A. Grant Environmental Center, $1.75 million

The following appropriations—included in other agency capital appropriations—will impact community and technical college interests:

• The criminal justice training center budget includes $500,000 to complete half of the remaining community and technical college mapping with the remaining unmapped area to be funded in 2011-13.

• OSPI includes $9,049,000 for the Northeast King County Skills Center (Collocation with the Lake Washington Technical College Allied Health Building).

• The Tri-Tech Skills Center Walla Walla Branch Campus is included for $100,000 in the OSPI budget.

• Eastern Washington University includes an appropriation for $5.5 million from their university building account to support the purchase of half of the Riverpoint Center. Use of the funds is contingent on the sale of 701 West First Avenue.

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Trustee and State Board appointments confirmed by Senate

One of the responsibilities of the Senate is to confirm the appointments of community and technical college trustees and members of the State Board for Community and Technical Colleges. The appointments are made by the Governor and then referred to the Senate for confirmation.

For the first time in more than a decade, all community and technical college trustee appointments were confirmed prior to the end of the legislative session. When it was all said and done, 41 two-year college trustees and two SBCTC members were confirmed.

The trustee confirmation process started in the Senate Higher Education and Workforce Development Committee, chaired by Sen. Derek Kilmer, D-Gig Harbor. Contrary to previous years’ process, first-time appointees were not required to appear before the Senate.

Sen. Joe McDermott, D-West Seattle, was responsible for managing the Senate confirmation calendar and shepherded the confirmation process for all gubernatorial appointments once they reached the Rules Committee.

The two SBCTC members confirmed for a second term were Chair Erin Mundinger, Omak, and Jim Bricker, Coupeville.

Trustees confirmed for their first term were Dan Altmayer, Highline Community College; Mark Asmundson, Bellingham Technical College; Greg Bever, Community Colleges of Spokane; Jack Burkman, Clark College; Beverly Cheney, Olympic College; Betty Cobbs, Everett Community College; Joseph Dolezal, Centralia College; Timothy Douglas, Whatcom Community College; Heidi Heywood, Lower Columbia College; Arlene Joe, Pierce College District; Bruce Lachney, Clover Park Technical College; Angela Pixton, Big Bend Community College; Philip Rasmussen, Wenatchee Valley College; Barbara Reid, Highline Community College; Constance Rice, Seattle Community Colleges; Erik Rohrer, Peninsula College; Miguel Sanchez, Walla Walla Community College; Joanne Schwartz, Centralia College; Jerry Smith, Shoreline Community College; and Mike Wren, Big Bend Community College.

Trustees receiving confirmation for their reappointments to local boards were: Sonia Arévalo-Hayes, Bellingham Technical College; Barbara Clarkson, South Puget Sound Community College; Edward Davila, Highline Community College; Marc Gaspard, Pierce College District; Katherine Kenison, Big Bend Community College; Carol Landa-McVicker, Community Colleges of Spokane; Debra Lisser, Skagit Valley College; Jean Magladry, Cascadia Community College; Thomas Malone, Seattle Community Colleges; Michael Martino, Cascadia Community College; Enriqueta Mayuga, Columbia Basin College; Mauri Moore, Edmonds Community College; Mary Moss, Clover Park Technical College; Stanley Rumbaugh, Bates Technical College; Fawn Sharp-Malvini, Grays Harbor College; Larry Sanchez, Yakima Valley Community College; Margaret Sundstrom, Centralia College; Frederick Whang, Tacoma Community College; Patricia Whitefoot, Yakima Valley Community College; and Roy Wilkinson, Cascadia Community College.

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Sine die and the final bill round-up

For our faithful readers, here’s the gripping conclusion of the 2009 session: the re-cap of the bills of interest to the community and technical colleges that passed out of the Legislature and were sent to the governor for her possible signature, veto or partial veto.

On May 20, the final Session Report will be posted at http//www1.leg.wa.gov/Senate/Committees/Default.htm

Signed by Governor

The following bills have already been signed into law by Gov. Gregoire.

2SHB 1025 Requiring disclosure of certain information relating to higher education course materials, sponsored by Rep. Mike Armstrong, R-Wenatchee.

SHB 1128 Innovation partnership zones, sponsored by Rep. Phyllis Gutierrez-Kenney, D-Seattle.

HB 1196 Small works roster projects, sponsored by Rep. Kathy Haigh, D-Shelton.

HB 1197 Alternative public works, sponsored by Rep. Kathy Haigh, D-Shelton.

HB 1199 Regarding retainage of funds on public works projects, sponsored by Rep. Kathy Haigh, D-Shelton.

SHB 1323 Providing for coordination of workforce and economic development, sponsored by Rep. Phyllis Gutiérrez Kenney, D-Seattle.

SHB 1328 Allowing public technical colleges to offer degrees that prepare students to transfer to certain bachelor degree programs, sponsored by Rep. Reuven Carlyle, D-Seattle.

2SHB 1355 Establishing the opportunity internship program for high school students, Rep. Tim Probst, D-17th District.

HB 1394 Workforce training and education, sponsored by Rep. Scott White, D-Seattle.

SHB 1415 Providing for the sales of wine at the legislative gift center, sponsored by Rep. Bob Hasegawa, D-Seattle.

HB 1474 Changing border county opportunity program provisions, sponsored by Rep. Ed Orcutt, R-Carrolls.

HB 1487 Regarding resident student classification, sponsored by Rep. Ross Hunter, D-Medina.

HB 1675 Changing the work experience provisions of the alternative route partnership grant program, sponsored by Rep. Mike Sells, D-Everett.

SHB 1808 Creating an interdisciplinary work group for paramedic and nursing training, sponsored by Rep. Bill Hinkle, R-Cle Elum.

E2SHB 2021 Revitalizing student financial aid prime, sponsored by Rep. Phyllis Gutiérrez Kenney, D-Seattle.

SHB 2071 Education for parents of needy families, sponsored by Rep. Tami Green, D-Lakewood.

SSB 5043 Student college information portal, sponsored by Sen. Derek Kilmer, D-Gig Harbor.

SSB 5044 Changing work-study provisions, sponsored by Sen. Derek Kilmer, D-Gig Harbor.

SSB 5616 Connecting business expansion and recruitment to customized training, sponsored by Sen. Paull Shin, D-Edmonds.

SB 5720 Including stepchildren in tuition waivers for children of veterans and national guard members, sponsored by Sen. Mike Hewitt, R-Walla Walla.

SSB 5776 Regarding student fees, charges, and assessments, sponsored by Sen. Joe McDermott, D-34th District.

ESSB 5873 Regarding apprenticeship utilization, sponsored by Sen. Adam Kline, D-Seattle.

ESB 5925 Regarding insurance for higher education students participating in study or research abroad, sponsored by Sen. Paull Shin, D-Edmonds.

Delivered to Governor

The Governor has five days to sign a bill during session and 20 days after session.

ESHB 1216 Concerning the capital budget, sponsored by Rep. Hans Dunshee, D-Snohomish.

ESHB 1244 Making operating appropriations for fiscal years 2007-2009 and 2009-2011, sponsored by Rep. Kelli Linville, D-Bellingham.

HB 1272 Concerning state general obligation bonds and related accounts, sponsored by Rep. Hans Dunshee, D-Snohomish.

SHB 1395 Clarifying terms for workforce and economic development, sponsored by Rep. Deb Wallace, D-Vancouver.

SHB 1758 Expanding options for students to earn high school diplomas, sponsored by Rep. Dave Quall, D-Mount Vernon.

SHB 1943 Requiring recommendations for preparation and professional development for the early learning and school-age program workforce, sponsored by Rep. Ruth Kagi, D-Lake Forest ParK.

2SHB 1946 Regarding higher education online technology, sponsored by Rep. Reuven Carlyle, D-Seattle.

EHB 1986 Authorizing a peer mentoring pilot program at Western Washington University and a community or technical college, Rep. Bob Hasegawa, D-Seattle.

ESHB 2049 Concerning personnel practices regarding exempt employment, sponsored by Rep. Larry Seaquist, D-26th District.

2SHB 2119 Expanding dual credit opportunities, sponsored by Rep. Deb Wallace, D-Vancouver.

E2SHB 2227 Enacting the Evergreen Jobs Act, sponsored by Rep. Tim Probst, D-17th District.

ESHB 2254 Concerning construction financing for colleges and universities, sponsored by Rep. Scott White, D-Seattle.

ESHB 2344 Regarding resident undergraduate tuition, sponsored by Rep. Kathy Haigh, D-Shelton.

SSHB 2363 Temporarily suspending cost-of-living increases for educational employees, sponsored by Rep. Kelli Linville, D-Bellingham.

SSB 5001 Eliminating the matching fund requirement for the American Indian endowed scholarship program, sponsored by Sen. Ken Jacobsen, D-Seattle.

SSB 5286 Regarding exemptions from the WorkFirst program, sponsored by Sen. Debbie Regala, D-Tacoma.

SB 5410 Regarding online learning, sponsored by Sen. Eric Oemig, D-Kirkland.

ESSB 5414 Regarding statewide assessments and curricula, sponsored by Sen. Rosemary McAuliffe, D-Bothell.

ESSB 5473 Designating projects of statewide significance, sponsored by Sen. Jim Kastama, D-Puyallup.

SB 5554 Regarding the job skills program, sponsored by Sen. Derek Kilmer, D-Gig Harbor.

E2SSB 5560 Regarding state agency climate leadership, Sen. Kevin Ranker, D-San Juan Island.

E2SSB 5649 Regarding energy efficiency in buildings, sponsored by Sen. Phil Rockefeller, D-Kitsap County.

SSB 5734 Regarding tuition at institutions, sponsored by Sen. Derek Kilmer, D-Gig Harbor.

E2SSB 5809 Revising unemployment compensation and workforce training provisions, sponsored by Sen. James Hargrove, D-Hoquiam.

ESB 5995 Eliminating certain boards, committees, and commissions and the transfer of certain duties, sponsored by Sen. Craig Pridemore, D-Vancouver.

See you in 2010

It has been our pleasure to serve as your legislative reporters this session. The SBCTC Legislative News crew will be back next year to cover the whole process all over again.

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