Category: 2007 Interim

As I was sitting last night in the Everett Events Center for a town hall meeting on the new UW North Puget Sound campus, I was struck by the steady parade of representatives from local businesses who came up to the microphone to describe their dire need for more college graduates in science, technology, engineering and math fields.  As the evening progressed, I realized that at midnight, we would reach the 50th anniversary of the launching of the Russian satellite Sputnik — a defining moment in the 20th century, at least for American education.

Although I was too young at the time to even fathom the significance of the event, the Sputnik phenomenon is certainly credited with inspiring and motivating millions of baby-bommers to embark on educational and professional careers in science and technology.  President John Kennedy’s call to place a man on the moon by the end of the 1960’s also played a strong part as well.  Our current position as a world leader in innovation and research owes much to these historical events.

But we all know that our global leadership position is in serious jeopardy.  Many other nations are investing much more in their research universities than the U.S. and are producing unprecedented numbers of baccalaureate and graduate students in science and technology fields.  Local and national businesses continue to report their inability to find sufficient qualified workers to fill a growing number of jobs that require academic background in these areas, and competition for foreign engineers and scientists has also grown increasingly difficult.

There are many ways to try and address this problem and clearly the Governor and the state legislature are working on many of them.  I can’t help thinking though that what we really need is a Sputnik-like event to shock this state and the nation out of its technological complacency.  I’m certainly not arguing for a return of the Cold War and the mistrust and fear of the Soviet Union which most certainly heightened the impact of Sputnik.  However, it also seems clear that reports, conferences and speeches have not yet proven sufficient to tackle this major 21st century educational challenge.

One of the worst kept secrets in Olympia over the past couple of months is the persistent rumor that Dr. Chang Mook Sohn, the long-time head of the state’s Economic and Revenue Forecast Council (which determines official general fund revenue projections) would run for state treasurer in 2008 when incumbant Mike Murphy steps down.

Today, Seattle Times chief political correspondent David Postman broke the story in his blog.  While there has been no official announcement, Postman references another story from Northwest Asian Weekly two weeks ago that Sohn was exploring running for the treasurer post and that he would run as a Democrat.

State Rep. Jim McIntire who currently represents the 46th legislative district in Seattle has already announced his intention to run for state treasurer as a Democrat.  Current deputy treasurer Allan Martin has announced his intention to run as a Republican.

For more than two decades, Sohn has been known more for his non-partisanship and resistence to partisan pressure either from the Governor’s office or the state legislature.  He has earned the nickname “Dr. Doom” more for his tendency to get ahead of economic downturns and his perceived unwillingness to more quickly recognize the economic upswings.

Stay tuned as we’ll see if his explorations lead to the “discovery” of another candidate for this state office.

You may recall that this summer, the Office of State Relations began publishing a quarterly report called Global Challenge State Update.  The purpose of the report is to provide interested parties with information on higher education fiscal and policy matters in those states which the UW is now being benchmarked against for both funding and accountability measures.

A couple of weeks ago, we posted the September 2007 update and I’d like to share some of the highlights if you haven’t had time to download the full report off the state relations website.

California finally passed its state budget in late August and the University of California schools fared very well.  General fund appropriations increased by over 6 percent with student fees increasing by 7 percent (identical to Washington State).  Enrollments will grow by over 5,000 systemwide and an additional $20 million in new state funding was included for research initiatives.

Virginia is one of several states on the eastern seaboard that are experiencing budget shortfalls.  Despite the passage of the much-publicized “Chartered University Initiative” just two years ago, Governor Timothy Kaine has asked the University of Virginia to reduce expenditures by 7.5 percent because they are currently funded at a level that is at or above the level needed to meet “base funding adequacy.”

Massachusetts finished their new state budget this past July with higher education receiving a 4 percent annual increase in state funding.  The budget also creates a new Commonwealth Covenant Fund to make loan repayments for graduates who are employed in the areas of science, technology, engineering and mathematics.

Connecticut provided for a rather modest 2.5 percent funding increase for public higher education in their recently enacted budget.  However, significant budget investments were made in financial aid programs which will permit more than 10,000 new students to receive grants in 2008 — an increase of more than 45 percent.

New Jersey provided for a 4 percent budget increase for Rutgers University over the prior year state budget.  In addition, the legislature approved a $450 million stem cell research bond that will go before the voters this November.

Maryland is another eastern state with budget troubles and the Governor has asked the University of Maryland system to reduce spending by 1 percent or $12 million.  Maryland has also established a Legislative Commission to Develop the Maryland Model for Funding Higher Education.  The group continues to meet as it attempts to better integrate state policies on tuition, state appropriations and financial aid.

Sorry to have neglected the blog this past week, but I’ve been on the road a lot and today and tomorrow are legislative assembly meetings in Olympia (more on that later).

First, the bad news.  Spent last weekend in Los Angeles with an old friend from Sacramento days who is a big UCLA fan.  We went to the game in Pasadena and as you must know by now, the Dawgs lost and I ended up buying a very late (and expensive) dinner.  Oh well.  There’s always next year.

Earlier this week, I had a chance to attend the biennial Technology Institute in Leavenworth sponsored by the Technology Alliance who are strong supporters of higher education and the research universities in particular.  Lots of interesting presentations many of which focused on the tremendous challenges facing the state and all higher education institutions as they try and produce more science, technology, engineering and math students, commonly referred to at “STEM” degrees.  UW engineering dean Matt O’Donnell certainly got the group’s attention during the Tuesday morning presentation when he remarked that the UW engineering school could triple or quadruple its current size (at a significant cost I might add) and still not make a major dent in the number of engineering graduates needed in both the private and public sectors.  Clearly, this is an issue that will require a lot of effort from both the K-12 and higher education systems and it will certainly require more financial resources from the state.

Providing more STEM degrees is one of the goals of the new UW North Puget Sound campus.  You may have read in the paper that the number of potential sites has been narrowed even further, and that only four sites in Snohomish county remaining in the running.  Two of these sites are in Everett, one in Marysville and one in Lake Stevens.  I have been also busy this week attending various outreach meetings in the north Puget Sound region updating communities on both the site selection and evaluation process and on the progress of the UW’s academic planning group.  Much work remains as the November 15th deadline for a report to the Governor and legislature looms on the horizon.

The new UW north Puget Sound campus has also been the subject of legislative hearings in Olympia today and tomorrow.  Both the Senate and House higher education committees have asked for Debora Merle from the Governor’s office and yours truly to provide updates on the site selection and academic planning process and I just finished a similar presentation for the House capital budget committee which met this afternoon.  Predictably, most of the questions focused on the sites themselves and the criteria chosen to narrow the field.

The legislature will end their two day assembly tomorrow as political attention will start to focus on the November election and speculation about which well-known Republican might announce their candidacy for Governor in the next several weeks.

Governor Gregoire announced this morning that current TVW President (and former UW Regent) Cindy Zehnder, will replace current chief of staff Tom Fitzsimmons who announced his resignation earlier this week.  Zehnder is a very familiar face in Olympia, having previously served as Chief Clerk in the House of Representatives and a deputy commissioner at the Department of Employment Security.

Zehnder has two degrees from the University of Washington and has served as head of TVW since 2003.  She will assume her new duties on October 1.

The Governor’s office announced this afternoon that Tom Fitzsimmons, her chief of staff since taking office in January 2005 will step down.  Fitzsimmons has decided to resign his position after serving in the position for the past two and a half years.

Fitzsimmons also served as Governor Gary Locke’s chief of staff for the last 18 months of his administration.  He previously served as Director of the Department of Ecology.  No word from the Governor’s office on a replacement for Fitzsimmons though they did announce that he will stay on through the transition of the new appointee.

The September 2007 revenue forecast for Washington State was released today in Olympia and general fund tax collections are projected to be $282 million higher than predicted this past June.

Dr. Chang Mook Sohn, the state’s chief revenue forecaster, said that although economic and revenue growth is slowing, Washington State has yet to feel the full effects of the national housing slowdown (which has already impacted a number of eastern states including Virginia, Florida and Rhode Island).  He did caution that the risk of a major national economic downturn is higher now than it has been in several years.

Dr. Sohn also indicated that Washington’s aerospace and other export industries are benefiting from a strong global economy and favorable currency rates.  Since the first quarter of 2005, Washington exports have increased by more than $8 billion or 109 percent.

With the additional forecasted revenue, the state’s budget surplus has grown to more than $1.5 billion.  This includes $1.1 billion in unobligated reserves and $431 million in a protected Rainy Day Fund if voters approve the measure creating the fund at the November general election.

Governor Gregoire announced this past Monday the appointment of Boeing Commercial Airplanes President Scott Carson to the Washington State University (WSU) Board of Regents.  Carson, a Federal Way resident, graduated from WSU with a B.A. in Business Administration.  He received his M.B.A. from the University of Washington.

Carson is President and Chief Executive Officer of Boeing Commercial Airplanes and Executive Vice President of The Boeing Company.  He has served on the Board of Governors for the WSU Foundation as well as several WSU academic department advisory boards.

Some of you may already know that Carolyn Busch, the current chief of staff of the State Senate Democratic Caucus will be joining the UW Office of Planning and Budgeting on October 1 as a policy analyst, in part, to help support the Office of External Affairs including the Office of State Relations.

This morning Senate Majority Leader Lisa Brown announced that Rich Nafziger, currently the Chief Clerk of the State House of Representatives will replace Carolyn as Senate Democratic Caucus staff director.  In addition to his four years of experience as Chief Clerk, Rich has also worked as a policy advisor to the Governor as well as for the State Board for Community and Technical Colleges.  He is also a member of the Olympia School Board.

Seattle Times chief political reporter David Postman reports in his blog this morning that the State Supreme Court has unanimously rejected a challenge to Tim Eyman’s latest anti-tax initiative.  The court ruled against the Service Employees International Union and Futurewise who had argued that Initiative 960 should be kept off the November 2007 general election ballot because its requirement for a supermajority vote of the legislature on tax increase measures would be a defacto change in the state Constitution which is not permitted through the Initiative process.

As we discussed in the blog in July, I-960 is referred to as the “Taxpayer Protection Initiative.”  It would require a two thirds vote of the legislature or voter approval to enact any tax increase; ensure a public vote on any tax increase enacted with an emergency clause, and require the issuance of press releases by the Governor’s budget office on any proposed legislation which would increase taxes.

The Office of Financial Management (OFM) has recently released a potential fiscal impact statement for I-960.  OFM estimates that the initiative could cost up to $1.8 million annually from requirements to hold statewide advisory votes on legislatively enacted tax increases, preparation of 10-year cost projections for all proposed tax and fee increase proposals and notification of legislators and the public about any proposed revenue legislation.