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WSU Government Relations Newsbeat

Senate budget awaiting floor vote

Today starts the final week of this year’s 105 day regular session, though a special session is anticipated in order to finish the considerable work still before the Legislature.

While the House and Senate will be ironing out differences in various policy bills they’ve already approved, lots of attention will still be focused on the budget and all the bills necessary to implement it.

On Friday, the Senate Ways and Means Committee advanced the upper chamber’s budget proposal to the floor after agreeing to a raft of mostly non-controversial amendments. None of them had any great bearing on higher education.

A floor vote is expected sometime today. Both the House and Senate convene at 10. To view the potential impacts on WSU, you can find a side-by-side comparison of the three budget proposal on the table here.

As negotiators begin their work of reaching agreement on a budget to send to the governor, WSU will be pressing for changes that would provide the university more flexibility to administer budget cuts.

State update for Friday April 15, 2011

The House Ways and Means Committee last night moved out a bill that would grant Washington’s public universities tuition setting authority for four years.

House Bill 1795 was advanced on a 22-5 vote and now heads for a vote of the full House of Representatives. It’s lengthy, complicated and very much a work in progress.  For now, the bill would allow universities to set tuition rates up to the amount authorized in the budget without incurring any new financial aid obligations.  Were universities to use its tuition setting authority to exceed that threshold, the current 3.5 percent holdback for all tuition revenues would increase to 5 percent to provide additional financial aid dollars for low and middle income students.

Beginning in 2015, tuition rates would be indexed to rates seen in Global Challenge States.  The bill also includes new performance and accountability language.  And there are other details in the bill that need to get cleaned up.

If anything seems certain, it’s that this bill is not in its final form.

UPDATE: The WSU Budget Office has posted this summary of the Senate budget proposal and this side-by-side comparison of the budgets proposed by the Governor, House and Senate.

Federal Update: finalizing FY11 budget

The Federal Government is proceeding with finalizing the FY2011 budget and beginning to discuss the FY2012 budget.  It is expected that the long term Continuing Resolution will be adopted by both Houses and signed by the President by the end of the day this Friday.

The 2012 Budget discussion has begun.  Congressman Ryan introduced his Budget Resolution last week, and the President presented his vision in a speech yesterday the 13th.  The Senate is expected to present a proposal in the next week or two.

The updates below will give you an overview of the process to proceed with the 2011 bill and summary of the Republican 2012 Budget Resolution.

WSU government affairs staff will provide further information as additional details become available.

FY2011 Spending Agreement Passes the House

With a vote of 260-167, the FY2011 appropriations measure, HR 1473, passed the House this afternoon. The measure will fund the federal government through September 30th, the end of the fiscal year. The Senate is expected to pass the measure later today.

FY2012 Budget Resolution

This afternoon, the House is expected to begin consideration of H Con Res 34 <http://budget.house.gov/UploadedFiles/fy2012FullReportText.pdf> , the Budget Resolution for FY 2012, which House Budget Committee Chairman Paul D. Ryan (R-WI) introduced last week. The House plans to hold four hours of general debate today with final votes scheduled for Friday.

Overall, the resolution calls for total spending of $3.53 trillion in FY 2012, $179 billion less than requested by the Obama administration. The resolution calls for non-defense discretionary budget authority of $360 billion in FY 2012 which is $105 billion less than the President’s request. It cuts $6 trillion over 10 years of federal spending.

The resolution would also:

·         Continue the current earmark ban

·         Bring non-security discretionary spending to below 2008 levels

·         Assume defense spending increases over the next 10 years

Items of interest to Higher Education include recommendations to student aid and cuts to research.

Proposed changes to Pell Grants include:
·         Ending the year-round Pell.
·         Setting  stricter lifetime limits from the current 18 semesters (9 years) to a recommended limit of 12 semesters (6 years), or their equivalents for part-time students.
·         Rolling back certain recent expansions to the need analysis to ensure aid is “targeted to the truly needy.” Potentially by altering the level at which a student qualifies for an automatic zero ‘Expected Family Contribution’ [EFC] and the income protection allowance to pre- College Cost Reduction and Access Act of 2007 levels.
·         Eliminating administrative fees, $5 per grant, paid to participating institutions. “Schools already benefit significantly from the Pell program because the aid makes attendance at those schools more affordable.”
·         Considering including a maximum income cap.
·         Eliminating eligibility for less-than-half-time students. “Funding should be reserved for students with a larger commitment to their education.”
·         Terminating eligibility for those who currently receive the minimum award. As the minimum Pell award of $278 “is unlikely to have much, if any, impact.”
·         Adopting a sustainable maximum award level, noting that recent program growth can be attributed to the $619 increase in the maximum award that came from the stimulus bill.

For Scientific Research:

For Function 250, the function that funds general science, including the National Science Foundation (NSF), general science programs of the Energy Department, and the non-aviation programs at the NASA, the resolution calls for $27.3 billion in budget authority in FY 2012 “The resolution projects gradually increasing levels of discretionary funding for these programs, reaching $30.3 billion in FY 2021.”

“The resolution preserves basic research, providing stable funding for NSF to conduct its authorized activities. The budget also recognizes the vital strategic importance of the United States to remain the pre-eminent space-faring Nation. In the President’s request, the administration shifted priorities away from the 2010 NASA authorization, allocating about $2 billion to commercial cargo and crew and Earth Science climate change initiatives. The budget realigns funding in accordance with the NASA authorization and its specified spending limits to support robust space capability.  [I think there is a missing set of quotes here somewhere.]

The report provides illustrations of the kinds of proposals that can help meet the budget’s fiscal guidelines. For function 250, the report states:

The stimulus bill provided $1.6 billion, $800 million of which is currently unspent, for the Department of Energy’s Office of Science. Included were some areas, such as biological and environmental research, that could potentially crowd out private investment. The resolution levels support preserving the Office of Science’s original role as a venue for groundbreaking scientific discoveries, while paring back applied and commercial research and development.”

In Function 550, the health-sciences related function, the report does not specifically reference cuts to the National Institutes of Health, but assumes the discretionary spending levels will be the baseline proposed by H.R. 1, which will “reduce aggregate spending for the Department of Health and Human Services.”

Other:

For Function 500 (Education), in addition to the Pell grant changes, the report recommends that “the committees of jurisdiction address the duplication between the 82 programs that are designed to improve teacher quality.”

For this function, the report offers the following illustrations of proposals that could save money:

Encourage Private Funding for Cultural Agencies. Federal subsidies for the National Endowment for the Arts, the National Endowment for the Humanities, and the Corporation for Public Broadcasting can no longer be justified. The activities and content funded by these agencies go beyond the core mission of the Federal Government and they are generally enjoyed by people of higher education and income levels, making them a wealth transfer from poorer to wealthier citizens. These agencies can raise funds from private-sector patrons-which will also free them from any risk of political interference.”

Promote State, Local, and Private Funding for Museums and Libraries. The Federal Institute of Museum and Library Services is an independent agency that makes grants to museums and libraries. This is not a core Federal responsibility. This function can be funded at the State and local level and augmented significantly by charitable contributions from the private sector.”

Repeal New Funding From the Student Aid and Fiscal Responsibility Act [SAFRA] of 2010…First, it could repeal the expansion of the Income-Based Repayment [IBR] program…Second, Congress could repeal the new mandatory College Access Challenge Grants…Third, it could make discretionary payments to non-profit servicers, rather than mandatory payments.”

Accept the Fiscal Commission’s Proposal to Eliminate In-School Interest Subsidies for Undergraduate and Graduate Students.”

Additional information from the budget resolution

·         Restructure the Medicare and Medicaid programs. For Medicare, it alters the funding structure from the current “fee-for-service” model to model where future beneficiaries would receive a subsidy to purchase a qualified private health insurance plan rather than being directly covered by the government.  The funding structure of Medicaid is changed to a block grant program to states instead of the joint state-federal matching program as currently.
·         Extend the 2001 and 2003 tax cuts
·         Extend the current estate tax rates, providing a 20% deduction to small business and authorizing trade agreements, among others
·         Reduce the top individual and corporate tax rate from 35% to 25%, offset by eliminating some corporate and individual tax deductions
·         Establish a binding cap on total spending as a percentage of gross domestic product (GDP) and requires any increase in debt levels to be accompanied by spending reductions

UPDATE from NPR: Congress Sends Budget Compromise To Obama

State update for Wednesday April 13, 2011

A bipartisan group of leaders in the Senate on Tuesday evening unveiled the upper chamber’s operating and capital budget proposals, and work continued into the night to assess their impacts.

The cut to WSU’s state appropriation would be $112 million, compared to the $110 million in the House budget.  Unlike the House budget, it does not hold any of the university’s remaining appropriation in reserve as a performance incentive.

The Senate plan also would authorize resident undergraduate tuition increases of up to 16 percent compared to 13 percent in the House plan.  Largely because of that, the net cut to the university would be $44 million over the course of the 2011-13 budget cycle compared to $53 million in the House.

A hearing is scheduled for 2:30 today in the Senate Ways and Means Committee.

The Senate’s capital budget for WSU was highlighted by the $60.2 million it would provide for the proposed Biomedical and Health Sciences Building in Spokane.  Some $70.8 million was requested for construction.  The House plan would provide $35 million.  The Senate plan also included $8.2 million to support a partial renovation of Fulmer Hall on the Pullman campus.

Federal update for Tuesday April 12, 2011

Over the next several days, we will see an overwhelming amout of information and language regarding the Continuing Resolution that was decided on late last night.  We will post updates as we receive them, and due to the large amount of material, please click on the links below to follow the most up to date news.
Tuesday April 12 Part One
Tuesday April 12 Part Two
Tuesday April 12 Part Three

State update for Monday April 11, 2011

On Saturday the House of Representatives approved its budget proposal and the North Puget Sound University Center legislation, sending both to the Senate.

Senate Bill 5636 was approved 66-31.  It would have WSU assume management of the university center in Everett in 2014 following the completion of an academic plan for the region and the establishment of an engineering program at the facility.  Were the Senate to approve the bill with changes made in the House it would go straight to the Governor’s Office to be signed into law.

The budget bill was approved 53-43 after a series of amendments were approved Friday.  None of them had any great significance for WSU.  You can learn more about the proposal here and about its effects on WSU here.

Leaders in the Senate are expected to roll out their budget proposal this week, possibly tomorrow.  But members also are preoccupied with Tuesday’s 5 p.m. cutoff.  All bills not necessary to implement the budget must be voted out of the opposite chamber – House bills must have been voted out of the Senate and vice versa.  That would leave 12 days for legislators to reconcile differences between versions of bills approved in both chambers before the scheduled adjournment on April 24.

Federal update for Friday April 8, 2011

Although WSU has been prepared for a few months, communication of cuts to congressional directed, or ‘earmarked’, research dollars has been made official.  The Office of Grant and Research Development was issued official notice from the National Institute of Food and Agriculture that all funding to the following programs has been eliminated for the remainder of FY2011:

Virus-free Wine Grape Cultivars, WA- Special Research Grant

STEEP IV-Water Quality in Northwest- Special Research Grant

Organic Cropping, WA- Special Research Grant

Perrenial Wheat, WA- Special Research Grant

Grass Seed Crop Systems for Sustainable Ag., ID, OR, WA- Special Research Grant

Food Security, WA- Special Research Grant

Competitiveness of Agriculture Products, WA- Special Research Grant

Asparagus Production Technologies, WA- Special Research Grant

Aquaculture, ID and WA- Special Research Grant

Aegilops Cylindrica (Jointed Goatgrass), WA- Special Research Grant

Diabetes Detection, Prevention, WA, PA- Federal Administration-Extension Grant

PM-10 Study, WA – Federal Administration-Research Grant

We do not yet know the full impact of these cuts, but will make every effort to keep you updated on federal funding issues as they evolve.

Federal update for Thursday April 7, 2011

Yesterday afternoon, House Republicans announced they are marking up a Republican bill to keep the government open another week, exacting $12 billion in spending cuts and funding the Defense Department until the end of September. The bill is expected to be on the House floor for a vote Thursday.  The administration and Democrats on Capitol Hill had initially pegged cuts for the remainder of this fiscal year at $33 billion, but Boehner and House Republicans appear to be pushing for deeper cuts.

Last night, the President held a meeting with Boehner and Reid at the White House to discuss budget negotiations.  A deal wasn’t struck, however a joint press appearance after the White House meeting between Reid and Boehner spoke volumes to the efforts both leaders are now making to reach an agreement.  During Boehner’s statement, he said there was no agreement on either the amount of spending or the inclusion of policy riders (federal support for Planned Parenthood or defunding of the EPA).  Speaking to the divide within the Republican Conference, conservatives have begun to come on board with the Republican’s short term proposal, citing the importance of continuing to fund the military.

Boehner and Reid will meet again this morning in an attempt to come to terms on a budget deal.  The President has also said he will summon the two leaders again to the White House this evening if necessary.

UPDATE:

President Obama, House Speaker John Boehner and Senate Majority Leader Harry Reid didn’t reach a deal on the budget after a Thursday afternoon meeting. Outside the White House, Reid told reporters that they would reconvene at 7 p.m.

Boehner chose to proceed with House passage of a stop-gap “troop funding” bill which the president has already promised to veto.  Adopted 247-181, the measure would put the Defense Department on permanent footing through the end of this fiscal year but demand $12 billion more in immediate cuts to keep the rest of the government open through next week.

State update for Thursday April 7, 2011

The House Ways and Means Committee last night approved a handful of amendments before moving the House operating budget proposal to the floor.

Most notably for WSU was an amendment that would limit how much money the university would have to hold in reserve as a sort of performance incentive fund.  Originally, the proposal called for $4 million to be held back each year.

To get the money the university would have to demonstrate certain performance improvements to be determined later.  Because it’s money the university wouldn’t be certain to receive, it’s money that is difficult to budget for.

An amendment approved last night would limit that holdback to just the first year of the two-year budget cycle set to begin July 1.

While the House budget now awaits a floor vote, leaders in the Senate are expected to roll out their proposal in the next week or so.

You can read more about the House budget and other budget proposals on the WSU budget page.

UPDATE: WSU President Elson Floyd comments here on the House budget proposal in a new Perspectives column.

Federal update for April 5, 2011

Discussions continue today between the White House, Senate, House of Representatives and the two political parties to come to terms on a long-term Continuing Resolution (CR) which would fund the federal government for the remainder of fiscal year 2011.  The current short-term CR will expire this Friday, April 8th and the hope is that a deal can be negotiated by the end of the week.  If a long-term CR is not passed by Friday, the House is preparing an additional one week CR that will extended government operations until April 15th.

If no long-term CR agreement is reached by Friday, and no short-term CR is passed by the House, the federal government will shut down and a majority of federal employees will be furloughed and prevented from working even on a voluntary basis.  If you have pending business with a federal agency that you were expecting to conduct next week, you should reach out to your contacts as soon as possible to understand potential impacts on your specific program, and steps to take in the event a government shutdown does occur.

In addition to the continuing negotiations around the remained of fiscal year 2011, the House Republicans unveiled their 2012 budget outline yesterday.  You can read their proposal at http://www.roadmap.republicans.budget.house.gov/.