Category: State Budget

The 2023 legislative session ended on time yesterday after the House and Senate passed the state’s biennial operating, capital, and transportation budgets. The budgets will now be delivered to the Governor for his consideration and signature.

Major investments for the UW in the operating budget include:

• $30.4M for nonrepresented employee compensation increases of 4% in fiscal year 2024 and 3% in FY25
• $6.5M for state approved CBAs for represented employees
• $17.6M to improve the state portion of the compensation fund split to 60% (up from 58% in the previous biennium)
• $10.55M to grow a local, more diverse STEM workforce at all three UW campuses:
  • $6M for the Paul G. Allen School of Computer Science & Engineering to increase enrollment, and $250,000 in one-time money for the Startup program
  • $1.7M for the UW Bothell School of Science, Technology, Engineering & Mathematics to develop a program modeled after STARS to support 75 pre-major students in accessing and graduating with computer science degrees, and $362,000 in additional support for the STARS program in Seattle
  • $2.85M for the UW Tacoma School of Engineering & Technology to increase enrollment
• $1.4M for student support services at UW Tacoma
• $8.5M in maintenance and operations for UW Bothell’s STEM4 building, the UW Interdisciplinary Engineering Building, and the Behavioral Health Teaching Facility
• $3M to develop a clean energy transformation strategy that transitions the Seattle campus energy infrastructure to 100% clean energy

Investments for UW Medicine include:

• $150M in one-time funding for UW Medical Center and Harborview Medical Center so they can continue serving as the state’s safety-net and workforce training hospitals
• $4.9M in one-time funding for the Behavioral Health Teaching Facility for physician support and facilities fees, and $7.5M in one-time funding for costs associated with opening the facility
• $2M for the Family Medicine Residency Network, which trains high quality family medicine physicians in the WWAMI (Washington, Wyoming, Alaska, Montana, Idaho) region
• $1M to create a UW Center for Indigenous Health
• $1M to continue firearm injury research

Overall, the University’s section of the operating budget included funding for 54 new provisos and legislation.

Additionally, the capital budget makes significant investments in the UW:

• $58M for phase 2 of the Magnuson Health Sciences Center renovation and replacement. The Center is the primary teaching space for the UW’s six health science schools and new facilities will promote innovative, multidisciplinary learning.
• $28.65M to design and renovate Anderson Hall, which was constructed in 1925 and has an antiquated learning environment that lacks adequate classroom and collaborative spaces for the School of Environmental and Forest Sciences.
• $9M to design and construct phase 2 of wǝɫǝbʔaltxʷ– Intellectual House. wǝɫǝbʔaltxʷ is a learning and gathering place for the UW’s American Indian and Alaskan Native students, faculty, and staff and a center for sharing the knowledge of Northwest Indigenous peoples.
• $13M for the behavioral health renovation of UW Medical Center-Northwest. This project provides an additional 25 90/180-day long term civil-commitment beds to help meet the state’s behavioral health care needs.
• $7.7M for land acquisition at UW Tacoma to accommodate future growth.
• $15M from the state Climate Commitment Account for infrastructure renewal, which has historically been funded from the UW Building Account.
• $7.5M for the UW Clean Energy Testbedsto continue to accelerate the development and adoption of new sustainable technologies.
• $6M for the Rainier Valley Early Learning Center, which expands access to affordable, high-quality childcare and preschool in the vibrant Rainier Valley neighborhoods.
• $3M to restore and renovate the historic ASUW Shell House.

For a comprehensive summary of the budgets, see the UW Office of Planning & Budgeting’s brief.

Over the past week, the Senate and House released their draft 2023-25 operating and capital budgets. The state’s operating budget pays for the day-to-day operations of state government, while the capital budget is used to acquire, build, and maintain state facilities. The legislative leaders of the Senate Ways & Means Committee and the House Appropriations and Capital Budget Committees are charged with crafting the budget proposals. After they’re passed in committee, the budgets move to their respective floors for consideration by the entire chamber.

Investments for the UW in the operating budgets include:

• $30.4M (Senate & House) for nonrepresented employee compensation increases of 4% in fiscal year 2024 and 3% in FY25
• $6.5M (Senate & House) for state approved CBAs for represented employees
• $22.8M (Senate) I $17.3M (House) to improve the state portion of the compensation fund split. The Senate’s budget improves the fund split to 66% state funding and the House improves it to 60% state funding
• $10.58M (Senate) I $8.45M (House) to grow a local, more diverse STEM workforce at all three UW campuses:
  • $6M (Senate) I $4M (House) for the Paul G. Allen School of Computer Science & Engineering to increase enrollment, and $250,000 (House) in one-time money for the Startup program
  • $1.7M (House & Senate) for the UW Bothell School of Science, Technology, Engineering & Mathematics to develop a program modeled after STARS to support 75 pre-major students in accessing and graduating with computer science degrees, and $362,000 (House) in additional support for the STARS program in Seattle
  • $2.85M (Senate) I $2.14M (House) for the UW Tacoma School of Engineering & Technology to increase enrollment
• $2.3M (House) to expand the UW School of Dentistry RIDE program, which trains dentists to meet the needs of rural and underserved populations
• $4.33M (House) for student support services at UW Tacoma
• $8.5M (Senate) I $2.9M (House) in maintenance and operations (M&O) for UW Bothell’s STEM4 building, the UW Interdisciplinary Engineering Building, and the Behavioral Health Teaching Facility. The BHTF was not funded in the House.
• $25.83M (Senate) shift in M&O funds back to the operating budget, which frees up a commensurate amount in the UW Building Account for critical building renewal and deferred maintenance
• $3M (House) to develop a clean energy transformation strategy that transitions the Seattle campus energy infrastructure to 100% clean energy

Investments for UW Medicine include:

• $150M (Senate) I $100M (House) in one-time funding for UW Medical Center and Harborview Medical Center so they can continue serving as the state’s safety-net and workforce training hospitals
• $6.6M (Senate) I $4.9M (House) in one-time funding for the Behavioral Health Teaching Facility for physician support and facilities fees
• $2M (Senate & House) for the Family Medicine Residency Network, which trains high quality family medicine physicians in the WWAMI (Washington, Wyoming, Alaska, Montana, Idaho) region
• $1M (Senate & House) to continue firearm injury research
• $1M (Senate) to create a UW Center for Indigenous Health

The Senate has already passed their operating budget off the floor and the House will consider theirs in the coming days.

On Monday, the House also released their capital budget proposal with $58M for phase 2 of the Magnuson Health Sciences Center renovation and $7.7M for land acquisition at UW Tacoma to accommodate future growth. Unfortunately, the proposal did not include funding for Anderson Hall, wǝɫǝbʔaltxʷ – Intellectual House, Chemical Sciences, the behavioral health renovation of UW Medical Center-Northwest, and the Clean Energy testbeds, all of which were included in the Governor and Senate budget proposals. The Senate unveiled their capital budget last week.

The House and Senate will now work toward final compromise budgets, which must be voted on by the last day of session scheduled for April 23.

For a more detailed overview of the House and Senate budget proposals, see the UW Office of Planning and Budgeting’s briefs page.

The Senate unveiled their capital budget proposal today with funding for all of the UW’s major priorities:

• $58M for phase 2 of the Magnuson Health Sciences Center renovation and replacement. The Center is the primary teaching space for the UW’s six health science schools and new facilities will promote innovative, multidisciplinary learning.
• $28.7M to design and renovate Anderson Hall, which was constructed in 1925 and has an antiquated learning environment that lacks adequate classroom and collaborative spaces for the School of Environmental and Forest Sciences.
• $9M to design and construct phase 2 of wǝɫǝbʔaltxʷ – Intellectual House. wǝɫǝbʔaltxʷ is a learning and gathering place for the UW’s American Indian and Alaskan Native students, faculty, and staff and a center for sharing the knowledge of Northwest Indigenous peoples.
• $5M to design the modernization of chemical sciences in Seattle. Built in 1937 and 1957, current facilities for chemistry, materials science, and chemical engineering do not meet the requirements for interdisciplinary, modern science education and research.
• $7.7M for land acquisition at UW Tacoma to accommodate future growth.
• $13M for the behavioral health renovation of UW Medical Center-Northwest. This project provides an additional 25 90/180-day long term civil-commitment beds to help meet the state’s behavioral health care needs.

In addition, $7.5M for the UW Clean Energy Testbeds was allocated from the state’s Climate Commitment Account.

The Office of State Relations greatly appreciates the significant investments included in the proposal for the UW, as well as the bipartisan work that went into crafting it. Thank you for your leadership and support, Chair Mark Mullet, Ranking Member Mark Schoesler, and Senators Yasmin Trudeau, Ann Rivers, and Judy Warnick. To view the entire budget bill and summary and project lists, click here.

The Senate is scheduled to release their draft operating budget Thursday and the House is expected to unveil their operating and capital budget proposals early next week. After, budget leaders in the House and Senate will negotiate the final compromise budgets, which must pass both chambers by April 23.

The Washington State Economic Revenue Forecast Council (ERFC) also published their quarterly economic and revenue forecast today. The report projects the state’s General Fund revenue will increase by $194 million for the remainder of the current biennium (2021-23), but will decrease by $438 million for the upcoming 2023-25 budget cycle. Although slowing, it also shows that consumer price inflation remains high, particularly in the Seattle metropolitan area. The legislature will take these most recent findings into consideration when drafting the state’s final compromise budgets.

For a detailed summary of the March revenue forecast, see the UW Office of Planning & Budgeting’s most recent blog post. More information can also be found on the ERFC’s website.