HOUSE BILL REPORT

                  HB 1551

                    As Passed Legislature

Title:  An act relating to higher education fiscal flexibility.

Brief Description:  Increasing fiscal flexibility for institutions of higher education.

Sponsors:  By House Committee on Higher Education (originally sponsored by  Representatives Mason, Carlson, Radcliff, Kenney, Cooper, Conway, Costa, Sullivan, Wolfe, Scott, O'Brien and Wood).

Brief History:

Committee Activity:

Higher Education:  2/13/97, 2/14/97 [DP].

Floor Activity:

Passed House:  3/11/97, 97‑0.

Passed Legislature.

HOUSE COMMITTEE ON HIGHER EDUCATION

Majority Report:  Do pass.  Signed by 8 members:  Representatives Carlson, Chairman; Radcliff, Vice Chairman; Mason, Ranking Minority Member; Kenney, Assistant Ranking Minority Member; Butler; Dunn; O'Brien and Sheahan.

Staff:  Suzi Morrissey (786-7120).

Background:  Public baccalaureate institutions and community colleges may waive all or a portion of tuition and fees for students through approximately 35 different tuition waiver programs.  There is a statutory maximum on the amount of operating fee revenue that each baccalaureate institution and the community colleges as a whole may waive.  The waiver cap ranges from a high of 35 percent for community colleges to a low of 6 percent for The Evergreen State College.  There is statutory intent language that suggests that the Legislature will not reduce state support for institutions that do not waive the entire amount of revenue permitted under the cap.

Most waiver programs are designed to help a student with particular circumstances.  For example, waivers are permitted for needy students, teaching and research assistants working half-time or more, the children of deceased and disabled firefighters and law enforcement officials, a stipulated number of international students, and active duty military personnel, to name a few.  Only one program gives the institutions the flexibility to waive tuition and fees for students with no special circumstances.  Under this program, baccalaureate institutions may waive up to 1 percent of their operating fee revenue for any student, except on the basis of intercollegiate athletics.  Community colleges have the same authority, but their revenue limit under this program is .075 percent of their operating fee revenue.

Summary of Bill:  Each baccalaureate institution may use up to 2 percent of the institution=s operating fee revenue to waive all or a portion of tuition and fees for any student, except on the basis of intercollegiate athletics.  This authority is subject to the existing statutory waiver cap in effect for each institution.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Passage of this legislation will provide baccalaureate institutions with another tool to help students with special circumstances.  It provides additional fiscal flexibility within the overall waiver cap, so the authority is revenue neutral.

Testimony Against:  None.

Testified:  Terry Teale, Council of Presidents (pro); and George Durrie, Eastern Washington University (pro).