Washington State University

2016 Supplemental Budget

COMPROMISE 2016 SUPPLEMENTAL BUDGET

The House and Senate released a proposed compromise 2016 supplemental operating budget on March 28, 2016.  Approved by both legislative bodies on March 29, 2016, the budget proposal was signed by Governor Inslee on April 18, 2016.  ESHB 2376 striking amendment H-4773.2 increases state general fund spending by $191 million. The increase is a combination of $203 million in maintenance level adjustments for caseload and current law requirements and a net $13 million decrease in new policy level spending. Policy level increases focus primarily on health and human services while policy level decreases result from lower caseloads and federal and other contingency funding. The compromise bill also appropriates $190 million from the Budget Stabilization Account for costs associated with the 2015 wildfire season.

Operating Budget

The compromise budget includes new policy level state appropriations totaling about $27.7 million for the state's higher education institutions. A little under $20 million is appropriated to the community and technical colleges to partially cover the cost of settling claims in the Moore v. HCA settlement discussed below. Another $7.8 million of new funding is for adjustment of backfill tuition funding associated with a mandatory reduction in resident undergraduate tuition rates for the 2015-17 biennium. All higher education budgets reflect maintenance and policy level adjustments for revised costs of various central services provided by the State. The following table illustrates the compromise budget recommendations for the research and regional universities as well as the community and technical colleges.

                                                    COMPROMISE 2016 SUPPLEMENTAL BUDGET
                  ALL RESEARCH, REGIONAL INSTITUTIONS, AND COMMUNITY AND TECHNICAL COLLEGES
                                                                  STATE FUNDS  ($ thousands)

1 The maintenance level budget represents the cost of providing currently authorized services in the new budget
       period.
2 Policy level adjustments allow for new or expanded services in the ensuing budget period.

The compromise budget shifts $18 million of savings in the College Bound Scholarship program to the State Need Grant for increased costs in the 2015-17 biennium.

The bill also appropriates $80 million to an account for the purpose of paying settlement costs of Moore v. HCA lawsuits involving public employee health benefit eligibility. The higher education sector is expected to transfer just under $60 million into the account; $6.8 million of which is attributable to WSU.

The compromise budget for WSU reflects incremental maintenance and policy level funding to cover benefit rate changes and adjusted biennial costs for state services and self-insurance premiums. New funding of $2 million is provided as additional tuition backfill associated with enrollment growth. WSU also received funds for a honey bee research position and funding to develop an organic agriculture program at WSU North Puget Sound at Everett. The table below compares WSU's supplemental budget request to the Governor, House, Senate and compromise budget proposals.

                                                                         2016 SUPPLEMENTAL BUDGET
                                                                     SIDE-BY-SIDE BUDGET VERSIONS
                                                                           STATE FUNDS  ($ thousands)

1 The maintenance level budget represents the cost of providing currently authorized services in the new budget
       period.
2 Policy level adjustments allow for new or expanded services in the ensuing budget period.

In addition to the appropriations above, WSU will receive funding for research and development of a marijuana breathalyzer through a contract with the Department of Social and Health Services.

CAPITAL BUDGET

Under the Office of Superintendent of Public Instruction, the compromise budget adds $786,000 to an existing $1.55 million proviso for the Washington State University extension energy office to conduct onsite visits to assess inventory and condition of all facilities for K-12 school districts that lack current studies and surveys. The compromise proposal also includes a $75,000 grant for the university's college of engineering and architecture related to engineering test results on cross-laminated timber used in building construction and $981,000 for a WSU water quality project. The budget proposal language included an allowance for spending ten percent of a capital project's art allocation during the design phase in order to select an artist and design art to be integrated into building design. Previously the full allowance was to be expended during construction. The new language applies only to 2015-17 funded capital projects.



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