Operating budget proposals released by Legislative leadership on Sunday afternoon would result in net reductions of $1.4 million for the Senate proposal and $2.6 million for the House proposal for Washington State University.
The reductions amount to a cut of less than one percent of WSU’s state appropriation, compared to the 5.2 percent reduction proposed by the governor in December. This modest decrease was made possible by Senate and House budget writers backfilling a one-time cut made to the university’s state appropriation with $45 million in cash appropriated to WSU through the capital budget adopted last year. That cash would then be replaced by new bonding authority that otherwise would have been used to build a larger supplemental capital budget this year. Both budgets adopt this tactic to hold the line on reductions for all public four-year baccalaureat institutions and the community college sector.
The proposals comes on the heels of a revenue forecast that increased the state’s budget outlook to the tune of $827 million in the current biennium.
Reductions made in the House proposal are greater as a result of a $1.9 million cut to WSU’s Institute for Northwest Energy Futures, half of its total appropriation, as part of a comprehensive re-purposing of some Climate Commitment Act funds.
Both proposals also neutralize a plan found in the governor’s budget to drive up agency self insurance premiums as part of his plan for refilling the state’s self insurance liability account. The House and Senate address the issue by providing direct appropriation instead, resulting in no direct impact on WSU.
WSU testified on the operating budget proposals in the Senate and House fiscal committees late Monday. You can view that testimony below, beginning at one hour, 16 minutes and 28 seconds.
The two proposals are expected to be voted off the floor of their respective chamber by week’s end, allowing budget negotiations on a compromise to begin as soon as this coming weekend. A final budget agreement needs to be sent to the governor before the Legislature adjourns Sine Die on March 12.