New State Bill Reinforces Spending Restraints

PULLMAN, Wash. – Washington State University administrators are continuing to hold the line on any new spending in the wake of a bill signed last week by Washington Gov. Chris Gregoire that reinforces and tightens state spending policies.

The bill, Engrossed Substitute Senate Bill 5460, affects all state agencies, including higher education.

“We agree with the governor about the need to restrain spending. This bill reinforces many policies at the state level that have already been in place at WSU. We will continue to seek savings as the budget crisis continues,” said Elson S. Floyd, president of Washington State University.

Here is a brief summary of the items that affect WSU.

• No salary or wage increases can be granted to individuals in exempt positions for the next 12 months, until Feb. 18, 2010.

• From now through June 30, 2009, all agencies of the executive branch – including higher education institutions, boards and commissions, and statewide elected officials – are prohibited from filling new or vacant positions and creating new positions; entering into new personal services agreements or contracts or contract amendments that increase costs.
• Through June 30, 2009, purchasing equipment costing more than $5,000 and authorization of out-of-state travel or training are also prohibited.
 
Many principles of this bill have been in place at WSU since last April, when Floyd called for a slowdown in hiring and travel. See  https://www.wsutoday.wsu.edu/pages/publications.asp?Action=Detail&PublicationID=12145&TypeID=10)
 
Joan King, executive director of planning and budget, said the freeze in salaries and wages for faculty or AP positions appears to apply to all fund types and does not provide a process to seek exemptions.  However, it likely will not apply to authorized and approved promotions. This section does not apply to civil service or bargaining unit employees.
 
Exception requests to other policies outlined in the bill must be forwarded to the director of the OFM, who will bundle requests for legislative review every 30 days. Meanwhile, WSU will continue its current freeze policies and use of the online approval system. The new requirements added by this legislation will be integrated into the existing freeze policies.
 
WSU officials are working with the Office of Financial Management and other higher education institutions to answer further questions about the bill’s implementation.

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