March 30, 2009 - Budget Update

Colleagues,

The picture I shared with you last Wednesday in the form of the Seattle Rotary remarks is playing out as expected.  This morning, the Senate announced a budget that proposes a cut of $513,000,000 for public higher education. For our institution, that would be a reduction of 25% in our 2009-10 budget.

Further, the Senate chose to limit tuition increases to 7%.  For our students, that is another $100/quarter.  By the way, 7% was adopted as the tuition increase cap back in good times when the state was committing to INCREASE the share of instructional costs it intended to cover.  Now, it is drastically disinvesting.

A statement I issued today can be found at President`s statement. We will require time to fully understand the proposal, but I did want you to have this information.  And, I will add several concluding thoughts.

In earlier communications, we have been quite specific about the implications for access and quality.  More recently, I have been startled to find that some of our key leaders think that, regrettable as this may be, Washington is simply having to do what other states are doing when it comes to such cuts.  Not so!

Paula Gilman and her colleagues did some very interesting research on what is happening among peer institutions.  It can be found at peer institutions. Bottom line:  Washington is proposing cuts three to four times as large as the average for our peers in the Global Challenge states.

This confirms my more anecdotal conclusions after taking time to talk with a dozen leaders at institutions around the country this weekend.  While they -- as we -- are still speculating about where the bottom line will end up, I heard:  California State System (and from the head of that system), expect about a 2% reduction; Texas comprehensive university, budget up now but, when dust settles, may be down a percentage point or two; Ohio comprehensive, actual budget increases; ….  Nobody I talked with was looking at cuts in state support even approaching double digits. 

Over decades past, Washington has been a leader in forging a link between investments in higher education and brighter state futures; this week, our state is emerging as among the leaders – perhaps the leader – in rolling back support for higher education.

I share these comparisons not to make us feel bad about where we rank, nationally.  No, we must help our leaders and citizens understand that these other states, the Global Challenge states with which Washington wishes to compete, are not throwing in the towel.  We, however, appear to be waving a white flag.

We now know the numbers.  And, as I write this, I know many here and across the state -- alumni, donors, students and their families, faculty and staff -- are being informed of the facts and are being encouraged to share their views.  I encourage you to do the same.

We will come through this as a strong university -- we must for the sake of the state we, as a proudly public and premier university, exist to serve.  Only, though, if we stay together, stay well informed, and use candor in assuring that others are as fully informed.

Thanks, as always, for all you do,

Bruce