SENATE BILL REPORT

                                    SB 5709

                            AS OF FEBRUARY 20, 1991

Brief Description:  Creating a state higher education budget process.

SPONSORS:Senators Jesernig, Saling, Bauer, Patterson and Stratton.

SENATE COMMITTEE ON HIGHER EDUCATION

Staff:  Scott Huntley (786‑7421)

Hearing Dates:February 26, 1991

BACKGROUND:

Presently, each state college and university, and the State Board for Community College Education, on behalf of the community colleges, submit a separate budget request for the support of their respective institutions to the Governor, and receive separate appropriations in the operating and capital budgets for the support of their respective institutions. 

The Higher Education Coordinating Board establishes budget guidelines which reflect the board's higher education priorities in each biennium, and the board evaluates and makes recommendations on the operating and capital requests submitted by the institutions in respect to those guidelines.  The board receives outlines of the institution's budget requests and submits its recommendations on those requests to the Office of Financial Management and the Legislature.

It is argued that utilizing the Higher Education Coordinating Board as a central budget clearinghouse will best serve the interests of the entire higher education system by allowing for improved long-range planning (and improved implementation of such planning).  It is also maintained that allowing the Higher Education Coordinating Board to submit a single higher education budget request, and to disburse the operating and capital appropriations for higher education, will help reduce the impact of geographic and institutional politics in establishing the higher education budget.

SUMMARY:

The Higher Education Coordinating Board is responsible for preparing a single budget request for the operating and capital support of the state college and universities and the state system of community colleges.  Beginning with the 1993-95 biennial budget, the state college and universities and the State Board for Community College Education will not submit their respective budget requests to the Governor, but will prepare and submit their budget proposals for the Higher Education Coordinating Board for its consideration in submitting a single higher education budget to the Governor.

The Higher Education Coordinating Board will be responsible for receiving state appropriations for higher education, and disbursing to the state college and universities and the State Board for Community College Education those funds appropriated for the operating and capital support of higher education.  The disbursement, by the board, of operating and capital appropriations for higher education must be consistent with the proportion of the total funds set for each institution in the higher education budget request submitted by the board to the Governor.

The provisions in this bill will apply beginning with the 1993-95 biennial budget process and will not impact the 1991-93 biennial budget process or the 1991-93 Omnibus Appropriations Act.

Appropriation:  none

Revenue:  none

Fiscal Note:  requested February 15, 1991