Office of Planning & Budgeting

April 13, 2011

WA Senate Budget: Deeper Cuts, Higher Tuition, Compensation Reductions

Senate Ways & Means leadership released their bipartisan budget last night after a 7PM press conference. Budget reductions total $4.8 billion and the largest cuts are targeted to K12 education, higher education,  employee compensation across all sectors of state governemnt, and basic health.

The UW’s general fund appropriation is cut more in the Senate budget ($217 million) than the House engrossed budget, but the Board of Regents would be authorized to increase resident undergraduate tuition higher (16% per year). BEFORE tuition increases, the Senate budget cut would be a 34.2% reduction from our maintenance level.

The Senate budget contains two compensation related cuts, which are limited to employees paid from state general fund (GOF), the medical account, and the accident account (the latter two provide critical funds for Public Health).

  1. Like the House engrossed budget, the Senate budget includes 3% “compensation savings” reducing our appropriation by $24 million over the biennium. Individual salaries will not be affected but our general fund, medical aid, and accident approprations would be reduced.
  2. The Senate budget would require stepped furloughs for “highly paid” employees, excluding faculty and Harborview personnel. The budget bill does not contain language to this effect but rather, the budget overview indicates that the policy will be included, perhaps in SB 5860. The general fund cut for furloughs would be $10.2 million over two years.

A full OPB brief is available for review.