HOUSE BILL REPORT

HB 1285

BYRepresentatives Prince, Jacobsen, Van Luven, Spanel, R. King, Basich, Jesernig, Rayburn, Nelson, Wineberry, Kremen, Wood, Locke, Rector, O'Brien, K. Wilson and Silver

Regarding services and activities fee programs.

House Committe on Higher Education

Majority Report:  Do pass with amendments.  (12)

      Signed by Representatives Jacobsen, Chair; Spanel, Vice Chair; Van Luven, Ranking Republican Member; Basich, Doty, Fraser, Heavey, Inslee, Jesernig, Miller, H. Myers and Wood.

Minority Report:  Do not pass.  (1)

      Signed by Representative Prince.

House Staff:Susan Hosch (786-7120)

AS REPORTED BY COMMITTEE ON HIGHER EDUCATION FEBRUARY 23, 1989

BACKGROUND:

Services and activities fees are statutorily defined to mean fees which are charged to all students, and are used to fund student activities and programs.  These fees are also dedicated to repaying bonds and other indebtedness for facilities such as student activity buildings, dormitories, hospitals, infirmaries, dining halls, parking facilities, and student, faculty, and employee housing.

In 1980, legislation was enacted which gave students an assured role in proposing budgetary recommendations on the use of these fees.  The legislation required the creation of a services and activities fees committee, with the majority of the members to be students recommended by the school's student government.  The legislation outlined the process to be followed for putting budget proposals together, and for presenting the proposals to the governing board.

In 1986, at the request of the Washington Student Lobby, the statutory process was revised.  Currently, the services and activities fees committee puts together a proposed budget and submits that budget to the institution's administration. Informational copies of the proposal are submitted to the governing board.  If the administration responds with a different proposed budget, that response, with supporting documentation, must be given to the committee and the board.  If the committee and the administration disagree, they must make a good faith effort to resolve any disputes before a proposed budget is submitted to the governing board by the administration.

Before adopting a budget, the governing board must address any differences between the committee's recommendations and those of the administration.  The governing board then makes the final decision on the budget for expending services and activities fees.

SUMMARY:

BILL AS AMENDED:  The college or university administration may recommend program priorities and budget levels for services and activities fees to the services and activities fees committee.  The budget recommendation must outline potential areas of difference between the administration and the committee.  This recommendation is due 30 days before the committee's recommendations are due to the governing board.

After holding a public meeting, the services and activities fees committee will propose program priorities and budget levels for services and activities fees to the institution's governing board.

The board may decrease, but may not increase, the committee's proposed expenditure per proposal without the written agreement of the committee. Excepting moneys needed for bond covenant agreements, the board is not permitted to fund projects that were not included in the committee's proposals without the committee's agreement.

Once a budget has been approved by the board, funds cannot be shifted from moneys for associated students or departmentally related categories until the administration provides written justification to the board and the committee (instead of the student governing organization),  or until the board gives its express approval.  The fund transfers cannot increase the original budget allocation of the board without the written agreement of the board and the committee.

AMENDED BILL COMPARED TO ORIGINAL:  The administration of an institution of higher education may, rather than shall, recommend program priorities and budget levels for services and activities fees to the services and activities fees committee; and a misspelling is corrected.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Bob Ferguson, Sung Yang and Keith Watenpaugh, Associated Students of the University of Washington; Bruce Ellis, Associated Students of Eastern Washington University.

House Committee - Testified Against:      Ernest R. Morris, University of Washington; Tom Keegan, Tacoma Community College; Jan Yoshiwara, State Board for Community College Education.

House Committee - Testimony For:    Services and activities fees are paid by students for nonacademic student services.  When the legislature instituted the fees, they indicated that students should have a great deal of control over the allocation of those fees.  However, students don't control the disposition of the fees, the governing boards do.  And, governing boards have made decisions that outraged students, such as using the fees to help returf Husky Stadium.  This bill will provide a better system of checks and balances to ensure that such decisions are not imposed, over the strenuous objections of those paying the fees.  However, the governing boards may still veto budget items that are not in the best interests of the institution.

House Committee - Testimony Against:      Governing boards have the responsibility for running the institutions, so they should have the authority to make decisions that accompanies that responsibility.  This legislation would give one institutional committee the authority to override a decision of the governing board.  Since the present law has been in effect, there have not been any problems with governing boards overriding student wishes.  The existing statute works, so why change it.  The legislation would not protect legal contractual obligations or stability for programs that affect all students.  It would remove $40,000,000 per biennium from the direct control of the people responsible for managing the institutions.