Category: 2008 Interim

Senate Democrats have announced their committee lineup and chairs for the upcoming session.  In the biggest change affecting higher education, the Higher Education Committee has been renamed “Higher Education and Workforce Development” with Sen. Derek Kilmer of Gig Harbor taking the chairmanship.  Former Chair Sen. Paull Shin will lead a new subcommittee on International Relations.  Sen. Margarita Prentice of Renton remains the Chair of the Senate Ways and Means Committee and Sen. Karen Fraser of Olympia remains the Vice Chair for the Capital Budget.  Sen. Rodney Tom of Medina will take over as Vice Chair for the Operating Budget.  You can find a full slate of Committees here.

Expect lots of stories in the press during the runup to the release of Governor Gregoire’s budget next week.  Today the Seattle papers had two different takes, with the Seattle P-I reporting a Republican proposal to pass major adjustments to the current biennial budget early in session, and the Seattle Times looking at the often-stated assumption that the state must run a balanced budget.

Earlier this year the University announced the creation of a new College of the Environment, designed to draw together a number of degree programs and to serve as a hub for multidisciplinary education and research on environmental issues. Yesterday the Senate Natural Resources, Ocean and Recreation Committee took up how the creation of the new College will affect forestry education.

Provost Phyllis Wise, Dean Bruce Bare of the College of Forest Resources and Interim Dean Dennis Hartmann of the College of the Environment appeared before the committee, answering questions from lawmakers. The Committee was reassured that the goal of the new College is to increase opportunities for students and faculty, and that the University is committed to continued excellence in forestry education. A number of lawmakers supported the new structure, noting it will provide a focal point for research and collaboration between the University and the broader community.

The week of the 15th brings the Governor’s budget proposal — the best guess at this point is Wednesday. What is certain is that there will be plenty of shared pain as we expect the proposal will close a more than $5 billion budget hole without raising taxes. Watch for more details here as soon as they become available.

President Emmert was in Olympia Wednesday meeting with a number of key lawmakers as members gathered for the Legislative Assembly. He also met Thursday with Governor Gregoire for an in-depth discussion of the issues facing higher education.

On the hill, besides a full slate of committee hearings, plenty of time was allocated to meetings to reorganize legislative committees and name chairs.

In the House, Rep. Kelli Linville of Bellingham will succeed retiring Seattle Rep. Helen Sommers as chair of the Appropriations committee, which is being renamed Ways and Means. Rep. Deb Wallace of Vancouver remains the chair of the Higher Education committee and Rep. Hans Dunshee of Snohomish remains the Capital Budget chair. Senate committee announcements are expected shortly.

More hearings are set for Friday, but the big shoe waiting to drop is the release of the Governor’s budget proposal, scheduled the week of December 15. Given the state’s revenue situation, it’s safe to say the budget is a package no one is looking forward to opening.

Finally, The Seattle Times weighed in on higher education editorially today, urging lawmakers to put Snohomish and Skagit Counties first in line for a new state university when resources become available. The effort stalled last year when lawmakers could not agree on a location in Everett or Marysville.

“Three yards and a cloud of dust” is an old football saying, originally used to describe Ohio State’s offense under Woody Hayes.

It could also apply to some of the debate over the University’s proposal to renovate Husky Stadium which continues to move forward, but not without some dust getting thrown up in the process.

To clear up the dust, below is a letter sent by President Emmert to the Faculty Senate which offers a clear and concise description of the reasons for and funding of the stadium project.

Dear Members of the Faculty Senate:

A number of concerns about athletic department funding, the expected salary for a new head football coach, and the Husky Stadium renovation project have reached me, and I want to provide some information and my perspective on these matters. I assume many of you recognize that the athletic department is a fully self-sustaining entity, with no state tax dollars, no University dollars, and no student fee dollars going to support its operations or capital expenses. The department is responsible for generating all of the $60 million a year it spends. It generates its revenue from ticket sales, media revenue, and philanthropy. To put the department in perspective, its annual budget represents about two percent of the University’s overall annual budget of $3.2 billion. Approximately 700 student-athletes participate in the 23 sports for men and women, roughly two percent of our undergraduate student population. Needless to say, the sports in which we compete receive far more attention from the public and the media than this two percent measure warrants.

There are about 14 athletic programs in the country that are self-sustaining. We, fortunately, are one of them and are able to do so largely on the strength of our football program, which generates about 85 percent of the department’s revenues. We are, by the way, the only institution in the state that does not subsidize its athletic program. Like all units at the University right now, the athletic department has been undergoing a process of examining its costs and expenditures and reducing them in the current economic climate.

A successful football program allows us to operate the other 22 sports. Success requires superb leadership, not just in providing a high quality educational experience for the students in the program, but on the field of competition as well. As in everything we do, we want our students to have access to the highest level of competition and success possible, and that means finding the right coach. Athletic Director Scott Woodward and I are looking for that person right now. Some of you may have seen some very large amounts reported in the newspapers for what it may take to hire such a coach. Some of the speculation has been greatly exaggerated. Nonetheless, salaries for coaches in the marketplace have escalated significantly in recent years, and we are prepared to pay a competitive salary for someone who can bring the program the kind of success it requires. I consider it a good business decision to invest the dollars necessary to keep the program healthy and competitive and to keep the revenues flowing to the athletic department to support all of its programs.

Another element of the success of the football program involves the renovation of Husky Stadium. Anyone who has been to the stadium in recent years knows that it is sorely in need of repair and renovation. The original lower bowl sits on the same earthen foundation built for it 90 years ago. We have developed a program for its renewal that totals $300 million, $50 million of which is targeted for a new football training and office facility adjacent to the stadium. Another $100 million would rebuild the press boxes on the stadium’s south side and provide other stadium enhancements. The remaining $150 million would address fundamental safety improvements, including replacing the crumbling lower bowl, meeting seismic requirements, and complying with ADA requirements.

We have a funding plan to accomplish this project. We believe the athletic department can raise through a variety of means $150 million from donors, seat-related contributions, and other departmental sources. This $150 million is earmarked for the new football facility and stadium enhancements. We are proposing that the other $150 million, earmarked for safety improvements, be funded from existing taxes collected only in King County and currently paying debt on Safeco and Qwest Fields. The taxes are on rental cars, hotels and motels, and restaurants. When they were created to support these sports facilities, they were intended as a stimulus to bolster tourism in the city and the county.

We are seeking from the 2009 Legislature authorization to redirect some of these taxes when the debt on the other two stadiums is paid. It is important to get authorization now so that we can issue the debt to begin construction. The University would receive no dollars from these tax sources in the 2009-2011 biennium. The first dollars from these taxes do not become available until 2012 at the earliest and more likely 2013. The Qwest Field dollars do not free up until 2021. So, what we have is a public works project to renovate the state’s largest public football stadium-creating thousands of jobs at a time when the construction industry badly needs the work-and the public dollars to help pay for the project are still years away. We believe this is a sound approach and of great benefit to the state economy now and to the University and its athletic programs for years to come.

I look forward to the discussion at the Senate meeting on Thursday.

Sincerely yours,

Mark A. Emmert

President

It’s Legislative Assembly week and there will be no shortage of discussion about the state’s big shortage of cash. This marks the first time since the election and the most recent revenue forecast that lawmakers have gathered in Olympia for a full slate of committee hearings. Given the growing budget problems facing the state, the election winners may be wondering exactly what it was they won.

For higher education, the week will see hearings on higher education capital financing plans (including branch campuses), the higher education strategic plan, and performance measurement for higher ed. On Thursday, the Senate Natural Resources, Ocean and Recreation Committee has slated a hearing on forestry higher education.

Still, the big buzz in town this week will certainly be the recent revenue forecast, which increased the gap facing the state in the next biennium to over $5 billion, and has required additional cuts in the current biennium to make the books balance. Gov. Gregoire is preparing her budget proposal, and a recent article in the Seattle Times outlines the magnitude of the spending cuts being considered. “Ugly” is the most printable word being used to describe the choices facing budget writers this year.

Finally, some news from Ellensburg. Central Washington University has announced that James Gaudino, formerly of Kent State University, has been named the University’s new president, succeeding Jerilyn McIntyre, who retired after eight years in the job.

OFM Director Victor Moore just told the press that they will have to go back out to state agencies to find additional reductions for this biennium.  That’s because with the projected loss of $500 million in 2007-09, the state is now likely in the “red” in the current fiscal year.  This could mean more reductions on top of the $10 million the UW has been asked to find in FY 2009.

Moore also confirmed that the projected budget deficit has now tipped past the $5 billion mark.

The capitol press corps is asking whether the Governor and Legislature can really balance the state budget without increased revenues and so far, the collective response is that they are going to stick with an all reduction solution.

Here’s the official statement from the Governor and her budget office on this morning’s revenue forecast.

In blogging live right now listening to the meeting of the state’s Revenue Forecast Council in Olympia.

Dr. Arun Raha, the state’s chief economist just announced that the state revenue forecast is being adjusted downward by $1.9 billion over the next three years.  That’s right, I said $1.9 billion.

This is comprised of a loss of about $500 million in the current fiscal year which ends next June 30th, an another reduction of $1.4 billion in forecasted revenue for the 2009-11 biennium.

The expected budget deficit for 2009-11 has just pushed past the $5 billion mark.  I hope to have more later.

Here’s the latest information I have on the state legislative races.

In the state Senate, no real change from last week’s update.  The Democrats appear to have lost one seat with the Republicans gaining one for a 31-18 split.  In the 2nd legislative district (SE Pierce County) longtime Democratic incumbent Marilyn Rasmussen has been defeated by Randi Becker, a retired medical administrator from Eatonville.  Democrats were able to hold open seats in the 40th district (Bellingham, San Juan) where Kevin Ranker is the new Senator-elect replacing the retiring Harriet Spanel and in the 41st district (Bellevue, Mercer Island) where current House member Fred Jarrett will replace the retiring Brian Weinstein.  Incumbent Senators held serve in all remaining races.

In the state House, the latest tally seems to indicate that majority Democrats have also lost one seat, dropping from a current majority of 63-35 to a 62-36 advantage over the Republicans.  Here are the changes by district:

6th District (Spokane).  Both incumbents appear to have lost their seats.  Democratic incumbent Don Barlow was defeated by Republican challenger Kevin Parker.  In the other position, Republican incumbent John Ahern is trailing Democratic challenger John Driscoll, by less than 100 votes.  If these results hold, no net change.

17th District (Clark).  In the race to replace Republican incumbent Jim Dunn (who lost in the August primary), Democrat Tim Probst appears to be the winner over Republican Joseph James.  A pick-up for the Democrats.

26th District (Kitsap, Pierce).  In the race to replace retiring Democrat Pat Lantz, Republican Jan Angel has defeated Democrat Kim Abel by a 53-47 percent majority. A pick-up for the Republicans.

44th District (Snohomish).  Incumbent Democrat Liz Loomis (who was appointed to this seat last year when Jon Lovick was elected Snohomish County sheriff) is narrowly trailing Repubilcan challenger Mike Hope by a little more than 100 votes.  If this result holds, a pick-up for the Republicans.

In all the other races, either existing incumbents were re-elected or party control did not change.  Here is a list of new House members by district.

4th District (Spokane Valley).  Republican Matt Shea replaces the retiring Lynn Shindler.  Shea is executive director of the Washington Family Foundation.

7th District (NE Washington).  Republican Shelly Short replaces Bob Sump who retired this year.  Short is a former congressional staffer for Congresswoman Cathy McMorris- Rodgers.

8th District (Benton).  Republican Brad Klippert succeeds Shirley Hankins who also retired this year.  Klippert’s background is in law enforcement and education.

14th District (Yakima).  Yakima City Councilmember Norm Johnson is the new Republican from this district replacing the retiring Mary Skinner.

25th District (Pierce).  Incumbent Republican Joyce McDonald stepped down to run successfully for the Pierce County Council.  Bruce Dammeier, a partner in a commercial printing business, is the new Republican member from this district.

33rd District (King).  Democrat Tina Orwall, a social worker and affordable housing advocate, replaces the retiring Shay Schaul-Berke in this south King County district.

35th District (Mason, Kitsap).  Democrat Fred Finn, a real estate developer and manager replaces the retiring Bill Eickmeyer.

36th District (Seattle).  Mobile phone and software industry executive and State Community and Technical College board member Reuven Carlyle replaces longtime incumbent Helen Sommers in this race that saw two Democrats face off in the general election.

41st District (Bellevue, Mercer Island).  Democrat Marcie Maxwell, a real estate broker and Renton school district and chamber of commerce member will suceed Democrat Fred Jarrett who moves to the state Senate.

46th District (Seattle).  Scott White, a King County Council staffer defeated Gerry Pollett in another all-Democratic general election in the race to succeed Jim McIntire who was elected State Treasurer.

49th District (Vancouver).  Democrat Jim Jacks won the race to succeed the retiring Bill Fromhold.  Jacks served as Governor Gregoire’s SW Washington representative.

At the risk of continuing to beat the bad budget news horse to death, here are a few news items that portend nasty state economic news on the horizon.

State sales tax collections are down below last year as this news item reports in today’s Seattle P-I.

Andrew Garber from the Seattle Times reports that the Governor has no expectations that she will love her budget this year as much as she has previous spending plans.

The Olympian reported this past Monday that state workers are concerned about the potential for layoffs as government downsizing plays out next session.

And here’s a recent blog post that quotes Rep. Hans Dunshee (D-Snohomish), Vice Chair of the House Appropriations Committee as saying the budget deficit could balloon to more than $4.6 billion after next week’s revenue forecast update.

And if I remember the words to Fogerty’s song, there was something in the lyrics about “rivers overflowing?”

Here’s an excellent argument for the importance of continuing to support higher education in these exceedingly troubled financial times from Susannah Malarky, Executive Director of the Washington Tech Alliance.

Always nice to hear others express support for what we are all about here at the UW.