SENATE BILL REPORT

ESB 5821

BYSenators Rinehart, Patterson, Gaspard, Saling and Anderson

Continuing reciprocal tuition and fee programs.

Senate Committee on Education

Senate Hearing Date(s):February 26, 1987; March 2, 1987

Majority Report:  Do pass as amended.

      Signed by Senators Gaspard, Chairman; Bauer, Vice Chairman; Rinehart, Vice Chairman; Bailey, Bender, Craswell, Saling, Smitherman, Warnke.

Senate Staff:Judy McNickle (786-7423)

                  April 8, 1987

AS PASSED SENATE, MARCH 13, 1987

BACKGROUND:

The 1983 Legislature unanimously approved legislation authorizing the Council for Postsecondary Education (CPE) to establish reciprocal tuition and fee waiver agreements with Idaho and British Columbia.  These agreements were similar to that which the state already had with Oregon, which allowed for waiver of nonresident tuition and fees for border area residents attending higher education institutions of each state.

The Idaho agreement required all Washington higher education institutions, including the community colleges, to waive nonresident tuition and fees for all Idaho residents contingent upon completion of an agreement that granted all Washington residents reciprocal waivers.  It further required a biennial payment between Washington and Idaho whenever the loss of one state's revenue exceeded that of the other by more than $25,000 a year.  The British Columbia agreement involved only the four-year public institutions and required that a balanced exchange of enrollments be considered.  CPE was required to review costs and benefits of each agreement and make recommendations to the Legislature on their continuation or termination by January, 1987.

Those recommendations were completed last month by the Higher Education Coordinating (HEC) Board, which replaced CPE in January of 1986.  The HEC Board reported that two agreements have been negotiated with Idaho.  The first, with the Idaho Board of Education, involved 160 students in 1986-87, including 80 Washington students enrolled in Idaho schools (8 at Boise State, 9 at Idaho State, 20 at Lewis-Clark State, and 43 at the University of Idaho) and 80 Idaho students enrolled in Washington schools (15 at University of Washington, 40 at Washington State University, 10 at Central Washington University, 5 at Eastern Washington University, 5 at Western Washington University, and 5 at Walla Walla Community College).  Annual cost of fee waivers in the first agreement was $142,500.

The second Idaho agreement, negotiated with North Idaho College, involved 152 students, including 95 Washington students at North Idaho College and 57 Idaho residents divided among Washington State University (5), Eastern Washington University (41) and the Spokane community colleges (11).  Annual cost of fees waived in 1986-87 by Washington was $99,170 and by North Idaho College was $101,650.

The British Columbia agreement involved 180 students in 1986-87, including 90 Washington residents attending British Columbia universities and 90 British Columbia students divided among Washington State University (20), University of Washington (20), Central Washington University (5), Eastern Washington University (10), The Evergreen State College (5), and Western Washington University (30).  Annual cost waivers at Washington schools is approximately $278,000.  Revenue waived for Washington undergraduates in British Columbia totals approximately $54,000, but 70 percent of Washington students are enrolled in British Columbia graduate programs for which no foreign student differential is charged.  This imbalance of fee revenue is consistent with the policy that requires a balanced exchange of enrollment opportunities rather than a financial balance.

The HEC Board has recommended that authority for continuing these reciprocal agreements with Idaho and British Columbia be granted, and that the Board be required to report by January, 1989 on all authorized reciprocity agreements and the extent to which each meets educational objectives contained in Washington's master plan.

SUMMARY:

Obsolete sections of statute are deleted and termination dates for reciprocal tuition and fee agreements with Idaho and British Columbia are repealed.  The Higher Education Coordinating Board is prevented from entering into any further reciprocity agreements with Idaho after 1988 if that state continues to levy a state income tax on Washington citizens who travel through Idaho in the course of their regular employment.

The State Board for Community College Education is added to those institutions which can participate in the reciprocity agreement with British Columbia, and a title amendment is added to reflect that addition.

Fiscal Note:      available

Senate Committee - Testified: No one

HOUSE AMENDMENT:

Deletes the provision that prevented the Higher Education Coordinating Board from entering into any further reciprocity agreements with Idaho after 1988 if that state continues to levy a state income tax on Washington citizens who travel through Idaho in the course of their regular employment.