SENATE BILL REPORT

SB 5394

BYSenators Saling, Patterson and Smitherman; by request of Higher Education Coordinating Board

Revising provisions for tuition fees.

Senate Committee on Higher Education

Senate Hearing Date(s):February 16, 1989; February 20, 1989; February 21, 1989

Majority Report:  That Substitute Senate Bill No. 5394 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

      Signed by Senators Saling, Chairman; Patterson, Vice Chairman; Bauer, Cantu, Smitherman, Stratton.

Senate Staff:Scott Huntley (786-7421)

                  February 21, 1989

AS REPORTED BY COMMITTEE ON HIGHER EDUCATION, FEBRUARY 21, 1989

BACKGROUND:

Since 1977 tuition fees at state institutions of higher education have been based upon the educational costs of those institutions.  The actual percentage of these costs which is charged for tuition has varied over the years, but the basic policy of setting tuition based on educational costs has remained intact.

The Higher Education Coordinating Board recommends changing from cost-based tuition charges to a tuition structure based on the market principle.  The board recommends setting tuition at the projected national average for the undergraduate and graduate level tuition categories at state institutions of higher education.

The board maintains that certain rates of tuition charged in the state of Washington, especially at the graduate level, are much higher than the national averages, making it difficult to attract quality students in the national market.  Tuition charged in other categories, particularly that of resident undergraduate students, are below the national averages.

The board also recommends altering the tuition policy regarding students taking in excess of 18 credits per term, and giving the board greater authority over establishing part-time tuition policy.

SUMMARY:

Tuition fees charged at state institutions of higher education shall reflect the projected national average of undergraduate and graduate level tuition fees for each particular category of tuition charged by institutions.  The Higher Education Coordinating Board shall determine the projected national averages upon which tuition fees will be based.  Regardless of what the projected national average is for any category of tuition fees, the tuition rates charged at any institution may not be reduced from current approved rates.

Tuition fees for students pursuing the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine at the state research universities shall be established at 200 percent of the fees charged to resident and nonresident graduate students, respectively, at those institutions.

Services and activities fees are included in the definition of the term "tuition fees."

The per credit hour extra charge imposed upon students who take in excess of 18 credits per term is repealed.

The Higher Education Coordinating Board will establish the threshold level between part-time and full-time tuition fees, and the proportion of full-time fees charged to part-time students.

The state institutions of higher education, in cooperation with the Higher Education Coordinating Board, will perform an educational cost study every four years beginning in 1990.

EFFECT OF PROPOSED SUBSTITUTE:

Annual tuition fees (operating and building fees) for resident graduate students at regional universities and The Evergreen State College are established for 1989-90 at $1,834.50, and for 1990-91 at $1,942.50.  Annual tuition fees for nonresident graduate students at regional universities and The Evergreen State College are established for 1989-90 at $5,986.50, and for 1990-91 at $6,358.50.

The Higher Education Coordinating Board shall conduct a full review and analysis of the accuracy and consistency of the educational costs study.  The board will report to the Legislature with recommendations by December, 1990.  The board will conduct an analysis and comparison of the tuition fees charged at the University of Washington and Washington State University with those fees charged at their respective peer institutions.

The state institutions of higher education, in cooperation with the Higher Education Coordinating Board, will perform an educational cost study every four years beginning in 1990.

All other provisions of the original bill are eliminated.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: Richard Wescott, College of Veterinary Medicine (against); Richard Crain, WSU faculty (against); John C. Wallace, Graduate Student Association, WSU (against); Laurie McGlothlin, Washington Association of Community College Students (against); Ann Daley, Higher Education Coordinating Board (for); Mike Bigelow, OFM (against); Elizabeth Woody, Washington Student Lobby; Terry Hughes, Washington Student Lobby