The guessing is over. Gov. Gary Locke has signed the 2002–03 budget into law. Now, the university must decide the best strategy for dealing with the upcoming budget cut.
There are two methods to address the university’s funding dilemma — cutting the operating budget and increasing tuition. Budget cuts mean fewer services and possibly fewer classes. Tuition for resident undergraduates, by state mandate, can be increased by a maximum of 16 percent to offset the state funding reduction.
In an effort to find the best balance of cuts and tuition increases, WSU is holding a variety of meetings which are open to faculty, staff, students, administrators and citizens for comment and questions (see related list). The final decision is slated for May 10, at the next regularly scheduled Board of Regents meeting.
“This is the budget that pleases no one,” said President V. Lane Rawlins. “Just at the time when Washington State University has strengthened its commitment to quality and to the personal community spirit that makes us special, we must contend with an unfriendly financial situation thrust upon us by external forces.
“In the past few days, I have received many communications from members of our university community who are upset about the state budget for WSU,” Rawlins said. “Faculty and staff write because they are getting no salary increases while others in K – 12 and community colleges will get them. Students write because they cannot afford tuition increases or want to know why tuition increases are necessary. Finally, others write to express fears about losing jobs, having classes canceled, or other individual results of WSU having less funding. I understand everyone’s unhappiness because I share it.”
The governor finalized the state’s budget on April 5, but before he put his signature on the bottom line, he used his veto privilege to eliminate a $6 million pool of money that the Legislature had reserved for recruiting and retention of faculty at four-year universities. That action shoved WSU’s budget cut from $14.5 million to $16.2 million — based on the Legislature’s original 2001 – 03 biennial budget. The governor was quoted by Associated Press as saying that higher education has to “bear some of the pain of budget cuts.”
Part of the frustration is that the state’s new budget eliminated a scheduled 2.6 percent salary increase for all faculty and staff, while giving it to high schools and community colleges.
“It’s worthwhile remembering that while $16.2 million in reductions is significant, it is part of a total annual budget of over $500 million, and we will certainly be able to continue most of the important things we are doing and continue to make some progress,” said Rawlins.
The need to both raise tuition and make operating budget cuts is clear. Here’s why. If the university attempted to maintain employee salary increases and take no budget cuts, it would require a 40.5 percent increase in undergraduate resident tuition to balance the budget. Even with salary increases eliminated (which was mandated by the Legislature), a 28 percent increase in tuition would still be necessary, if the university wanted to avoid all budget cuts. Tuition hikes of this size are unacceptable to administrators and exceed legislative limits.
To help everyone see WSU’s alternatives more clearly, the Budget Office has created several tuition increase/budget cut scenarios, with resident undergraduate tuition increases ranging from 6.1 to 16 percent, resident graduate tuition increases ranging from 3.5 to 4 percent, and operating budget cuts ranging from $6.8 to $11.1 million. These budget cuts would result in the elimination or non-filling of 171 to 274 positions over the long-haul (many positions are already vacant due to the hiring freeze that began last fall).
“There is no way to make up a $16.2 million deficit through small adjustments here and there and still protect the quality that is essential to the education of our students and the future of Washington State University,” Rawlins said.
The university is holding tightly to its top priority to maintain educational excellence, said Karl Boehmke, executive budget director. Tuition increases, while undesirable, are needed to minimize the impact of reductions on programs, including the number of classes cancelled.
“It would do the students a great disservice if we tried to keep tuition down by making further cuts in programs and services,” said Boehmke. “That would severely decrease the students’ ability to get the classes they need to graduate.”
A 16 percent rise in undergraduate resident tuition translates into a $326 hike per semester, “which is not as big as some might imagine,” he said.
Both Rawlins and Boehmke emphasized that over the long haul, WSU’s focus needs to be on convincing the Legislature to increase the state’s commitment to adequate and consistent funding of higher education.
For the past 10 years, Washington has been part of a nationwide trend in which state governments have been decreasing their funding to higher education, while expecting students to make up the difference through higher tuition rates. This has resulted in ongoing budget cuts and steadily rising tuition rates throughout the country.
“Many legislators recognize that the current method of funding higher education is unstable and that they need to come up with a more stable form of funding,” Boehmke said. “Past governors Daniel Evans and Booth Gardner have been working actively to come up with an acceptable plan.
“The current state financing situation is such that, even when the state economy improves — which it most certainly will — something needs to change. The tax base and commitments are out of balance, and the Legislature needs to address that.”
Connecting that trend to WSU’s current budget situation, Rawlins said, “Program quality remains our highest priority. To protect it we must raise tuition. At the same time we need to reaffirm the state’s responsibility to fund the major share of instructional costs and to fund higher education at a level adequate to protect academic quality.”
Rawlins urged faculty, staff and students to “write your legislator, take a few minutes to vent your anger, and then let’s all go to work trying to make this an even stronger, more supportive community.”
