BILL REQ. #:  H-0797.2 

Read first time 01/24/2003.   Referred to Committee on Higher Education.

     AN ACT Relating to focusing public investment in higher education on priority academic disciplines; amending RCW 28B.80.330; adding a new section to chapter 28B.80 RCW; creating new sections; providing an expiration date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   (1) The legislature finds that taxpayer support of higher education represents an investment in the economic and social vitality of Washington state over the long term. Benefits from higher education accrue both to the individuals who choose to pursue higher learning and to society at large through improving our schools, our businesses, and our communities.
     (2) However, the legislature also finds that public financial resources will always be in more limited supply than the demands placed upon them. Increasingly, taxpayers expect a clear connection between the investment of public funds and the benefits society gains as a result.
     (3) Therefore, it is the policy of the state that a greater focus of the public investment in higher education be to support educational and degree programs in priority academic disciplines. Priority academic disciplines are those that prepare individuals for occupations necessary for the state's overall economic and social well-being over the medium and long term. Beginning with the 2003-2005 biennium, it is the intent of the legislature to begin implementation of this policy at the four-year institutions of higher education through the state funds appropriated to each college and university. Thereafter, the legislature intends to create an ongoing process for reprioritization of the public investment in higher education.

Sec. 2   RCW 28B.80.330 and 1997 c 369 s 10 are each amended to read as follows:
     The board shall perform the following planning duties in consultation with the four-year institutions, the community and technical college system, and when appropriate the work force training and education coordinating board, the superintendent of public instruction, and the independent higher educational institutions:
     (1) Develop and establish role and mission statements for each of the four-year institutions and for the community and technical college system;
     (2) Identify the state's higher education goals, objectives, and priorities;
     (3) Prepare a comprehensive master plan which includes but is not limited to:
     (a) Assessments of the state's higher education needs. These assessments may include, but are not limited to: The basic and continuing needs of various age groups; business and industrial needs for a skilled work force; analyses of demographic, social, and economic trends; consideration of the changing ethnic composition of the population and the special needs arising from such trends; college attendance, retention, and dropout rates, and the needs of recent high school graduates and placebound adults. The board should consider the needs of residents of all geographic regions, but its initial priorities should be applied to heavily populated areas underserved by public institutions;
     (b) Recommendations on enrollment and other policies and actions to meet those needs;
     (c) Guidelines for continuing education, adult education, public service, and other higher education programs;
     (d) Mechanisms through which the state's higher education system can meet the needs of employers hiring for industrial projects of statewide significance;
     (e) Recommendations developed by the expert committee under section 3 of this act for focusing the public investment in higher education on support of student enrollment in priority academic disciplines.
     The initial plan shall be submitted to the governor and the legislature by December 1, 1987. Comments on the plan from the board's advisory committees and the institutions shall be submitted with the plan.
     The plan shall be updated every four years, and presented to the governor and the appropriate legislative policy committees. Following public hearings, the legislature shall, by concurrent resolution, approve or recommend changes to the initial plan, and the updates. The plan shall then become state higher education policy unless legislation is enacted to alter the policies set forth in the plan;
     (4) Review, evaluate, and make recommendations on operating and capital budget requests from four-year institutions and the community and technical college system, based on the elements outlined in subsections (1), (2), and (3) of this section, and on guidelines which outline the board's fiscal priorities. These guidelines shall be distributed to the institutions and the community college board by December of each odd-numbered year. The institutions and the community college board shall submit an outline of their proposed budgets, identifying major components, to the board no later than August 1st of each even-numbered year. The board shall submit recommendations on the proposed budgets and on the board's budget priorities to the office of financial management before November 1st of each even-numbered year, and to the legislature by January 1st of each odd-numbered year;
     (5) Institutions and the state board for community and technical colleges shall submit any supplemental budget requests and revisions to the board at the same time they are submitted to the office of financial management. The board shall submit recommendations on the proposed supplemental budget requests to the office of financial management by November 1st and to the legislature by January 1st;
     (6) Recommend legislation affecting higher education;
     (7) Recommend tuition and fees policies and levels based on comparisons with peer institutions;
     (8) Establish priorities and develop recommendations on financial aid based on comparisons with peer institutions;
     (9) Prepare recommendations on merging or closing institutions; and
     (10) Develop criteria for identifying the need for new baccalaureate institutions.

NEW SECTION.  Sec. 3   A new section is added to chapter 28B.80 RCW to read as follows:
     (1) In preparing the comprehensive master plan, the higher education coordinating board shall convene an expert committee to analyze supply and demand for college and university graduates in Washington state. The committee shall be made up of labor market economists, economic forecasters, business and community leaders, college faculty and administrators, and other individuals with experience examining local, regional, and state educational and employment needs.
     (2) Using a planning horizon of five to ten years into the future, the expert committee shall examine available data regarding supply and demand for college and university graduates in Washington state and identify possible gaps that could be addressed by reprioritizing the public funds that support higher education. Supply data includes number and type of degrees awarded by public colleges and universities, patterns of student enrollment in major academic disciplines, and patterns of postgraduation employment by individuals previously enrolled in public colleges and universities. Demand data includes forecasted job openings and employer demand for college and university graduates in particular occupations, both statewide and by major region of the state. The committee shall also consider expert testimony, business projections, economic forecasts, regional factors, and other relevant information. Within available funds, the committee may contract for independent research to expand the data available for its consideration.
     (3) As a result of its deliberations, the committee shall make specific recommendations to expand capacity and student enrollment in priority academic disciplines where the committee expects greater demand than supply of qualified graduates statewide or in a major region of the state. The committee shall make its recommendations specific enough, including by discipline area and by institution, to guide reallocation of public funds for higher education in support of the priority academic disciplines. After adoption by the committee, the recommendations shall become part of the state comprehensive master plan for higher education.

NEW SECTION.  Sec. 4   (1) Within the general fund--state appropriation provided in the 2003-2005 biennial operating budget, the University of Washington shall reallocate at least $3,996,000 for fiscal year 2004 and at least $3,996,000 for fiscal year 2005 to provide additional student enrollments and enrollment capacity in priority academic disciplines identified in subsection (7) of this section.
     (2) Within the general fund--state appropriation provided in the 2003-2005 biennial operating budget, Washington State University shall reallocate at least $1,685,000 for fiscal year 2004 and at least $1,685,000 for fiscal year 2005 to provide additional student enrollments and enrollment capacity in priority academic disciplines identified in subsection (7) of this section.
     (3) Within the general fund--state appropriation provided in the 2003-2005 biennial operating budget, Eastern Washington University shall reallocate at least $587,000 for fiscal year 2004 and at least $587,000 for fiscal year 2005 to provide additional student enrollments and enrollment capacity in priority academic disciplines identified in subsection (7) of this section.
     (4) Within the general fund--state appropriation provided in the 2003-2005 biennial operating budget, Central Washington University shall reallocate at least $643,000 for fiscal year 2004 and at least $643,000 for fiscal year 2005 to provide additional student enrollments and enrollment capacity in priority academic disciplines identified in subsection (7) of this section.
     (5) Within the general fund--state appropriation provided in the 2003-2005 biennial operating budget, Western Washington University shall reallocate at least $712,000 for fiscal year 2004 and at least $712,000 for fiscal year 2005 to provide additional student enrollments and enrollment capacity in priority academic disciplines identified in subsection (7) of this section.
     (6) Within the general fund--state appropriation provided in the 2003-2005 biennial operating budget, The Evergreen State College shall reallocate at least $166,000 for fiscal year 2004 and at least $166,000 for fiscal year 2005 to provide additional student enrollments and enrollment capacity in priority academic disciplines identified in subsection (7) of this section.
     (7) For fiscal years 2004 and 2005, the priority academic disciplines receiving the funding reallocation shall be health sciences, technology, educator preparation, and engineering. Washington State University may also reallocate funds to support veterinary medicine. Each institution may choose how much of the reallocation each priority academic discipline receives and is not required to reallocate funds to every discipline.
     (8) Within the priority academic disciplines, the institutions shall focus on expanding capacity in upper division and graduate courses for degrees in occupational fields where employers are experiencing difficulty finding enough qualified graduates to fill available jobs. The institutions shall use the reallocated funds to hire additional faculty, add courses or course sections, or take other actions necessary to expand enrollment capacity.
     (9) The amounts reallocated under this section shall supplement but not supplant the institutions' existing allocation of moneys from the general fund--state or any other revenue source for instruction or support of the priority academic disciplines.
     (10) By December 1, 2004, the institutions shall report the results of the funding reallocation to the legislature, including but not limited to the number of additional students enrolled, additional courses or faculty provided, and a description of the overall impact of the reallocation. The reports shall provide evidence that the institutions did not supplant existing funding for the priority academic disciplines, but used the reallocation to expand enrollment capacity.

NEW SECTION.  Sec. 5   (1) A task force on reprioritizing the public investment in higher education is established. The task force shall consist of sixteen members, as follows:
     (a) Two members from each major caucus of the senate, appointed by the president of the senate, including one member appointed to serve as cochair of the task force;
     (b) Two members from each major caucus of the house of representatives, appointed by the speaker of the house of representatives, including one member appointed to serve as cochair of the task force;
     (c) Three members representing the community and technical colleges, including one member representing the state board for community and technical colleges, appointed jointly by the president of the senate and the speaker of the house of representatives;
     (d) Three members representing public four-year institutions of higher education, including one member representing the higher education coordinating board, appointed jointly by the president of the senate and the speaker of the house of representatives;
     (e) Two members representing the business community in the state, appointed jointly by the president of the senate and the speaker of the house of representatives.
     (2) The task force shall examine the following issues:
     (a) Options for funding mechanisms and processes that will systematically and on an ongoing basis focus the public investment in higher education to support priority academic disciplines as identified by the expert committee established by this act.
     (b) Options for phasing in the reallocation of funds toward priority academic disciplines, including the feasibility of expanding the reallocation process to include the community and technical colleges.
     (c) Options for ongoing monitoring and accountability of the reallocation and its outcomes to ensure legislative objectives are being met.
     (3) The task force shall use legislative facilities and staff from senate committee services and the office of program research. Staff from the state board for community and technical colleges and the higher education coordinating board shall provide additional assistance and information where necessary.
     (4) Each nonlegislative member of the task force shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060. With the exception of staff assistance from the state board for community and technical colleges or the higher education coordinating board, all expenses of the task force, including travel, shall be paid jointly by the senate and the house of representatives.
     (5) The task force shall report its findings and recommendations to the legislature by December 15, 2003.
     (6) This section expires July 1, 2004.

NEW SECTION.  Sec. 6   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.