SENATE BILL REPORT

SB 6509

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Title: An act relating to modifying the budget recommendations developed by the higher education coordinating board to include recommendations on tuition and fees.

Brief Description: Modifying the budget recommendations developed by the higher education coordinating board to include recommendations on tuition and fees.

Background: Prior to Fiscal Year (FY) 1999, the Legislature set tuition through statute. Since FY 1999 the Legislature has given institutions of higher education limited tuition setting authority by permitting maximum percentage tuition increases annually. In academic years 2009-10 and 2010-11 the Legislature authorized institutions to increase tuition a maximum of 14 percent at four-year institutions of higher education and 7 percent at community and technical colleges. In academic year 2011-12 until academic year 2016-17, tuition and fees may increase no greater than 7 percent over the previous academic year in any institution of higher education.

Institutions and the State Board for Community and Technical Colleges currently submit outlines of their proposed operating budgets to the Higher Education Coordinating Board (HECB) for review and evaluation.

Summary of Bill: Institutions must include proposed tuition and fee rates in budget requests submitted to the HECB for the following biennial budget. Tuition and fee rate increases are evaluated by the HECB based on alignment with board priorities, institutional missions, the Strategic Master Plan, and individual performance agreements. The HECB must make recommendations on tuition and fee increases to the Office of Financial Management and the Legislature.

Staff Summary of Public Testimony: PRO: The HECB is staffed by specialists in higher education costs and would be best able to fairly price tuition. The HECB rejects the high tuition, high aid policy and the realities of the budget make high aid hard to maintain. The HECB is better suited to maintaining affordable tuition and understands the mission of keeping higher education a public good.

Persons Testifying: PRO: Senator Shin, prime sponsor; Jono Hanks, Marcus Sweetser, Peter Sterr, Jamie Marine, Sam Shaddox, Richard Lum, Mike Bogatay, Steve Lindstrom, Washington Student Association; Spring Atkinson, Sierra Harris, WSU-Vancouver; Sarah Reynevald, UW Graduate and Professional Student Senate; Ann Daley, HECB.