SENATE BILL REPORT

ESHB 1415

BYHouse Committee on Higher Education (originally sponsored by Representatives Jacobsen, Van Luven, Doty, Anderson and P. King; by request of Higher Education Coordinating Board)

Revising provisions for tuition fees.

House Committe on Higher Education

Rereferred House Committee on Appropriations

Senate Committee on Higher Education

Senate Hearing Date(s):March 23, 1989; March 29, 1989

Majority Report: Do pass as amended.

Signed by Senators Saling, Chairman; Patterson, Vice Chairman; Bauer, Cantu, Smitherman, Stratton, von Reichbauer.

Senate Staff:Scott Huntley (786-7421)

March 30, 1989

AS REPORTED BY COMMITTEE ON HIGHER EDUCATION, MARCH 29, 1989

BACKGROUND:

Tuition and fee rates at state institutions of higher education are based on the costs incurred in educating students at that type of institution. Students are charged a percentage of their educational costs. That percentage varies depending on the type of institution the student attends.

The Higher Education Coordinating Board establishes the formula for determining educational costs. That recommended formula is presented to the program and fiscal committees of the Legislature every two years. If no action is taken by the committees, or if a disagreement exists, the recommendations of the board are deemed to be approved.

During 1988, the board and the institutions initiated a cost study for the first time in 10 years. That cost study is used as the means for determining educational costs. It is also used to allocate costs between graduate and undergraduate students. As a result of the study, tuition rates for graduate students at the regional universities and The Evergreen State College are scheduled to increase by about 56 percent for resident students and 61 percent for nonresident students in the 1989-90 academic year. This increase will drive tuition rates for graduate students at those institutions above the rates for graduate students at the research universities. Institutional personnel have expressed concern about the varying methodologies used by the institutions, and the outcomes of the cost study.

There is also concern about the steadily rising cost of tuition over the past several years. This concern has generated interest in the prepaid tuition payment programs established in some other states.

SUMMARY:

Annual tuition fees (operating and building fees) for resident graduate students attending the regional universities and The Evergreen State College will be $1,834.50 during the 1989-90 academic year, and $1,942.50 during the 1990-91 academic year. Nonresident graduate students will pay $5,986.50 for the 1989-90 academic year, and $6,358.50 for the 1990- 91 academic year.

The Higher Education Coordinating Board will review and analyze the educational cost study for consistency and accuracy. The board will report its findings and recommendations to the Legislature by December, 1990.

The board will analyze and compare the educational costs at the University of Washington and Washington State University. The board will also compare the tuition and fees charged at the two research universities with those of their respective peers, and recommend whether different levels of fees should be charged at each of the two universities.

Criteria, definitions, and procedures for determining educational costs will be developed every four years beginning in 1990, instead of every two years. The state institutions of higher education will perform an educational cost study every four years. The study will be based on every fourth academic year beginning with 1990-91. The board will review, consolidate, and distribute the study. The institutions will also develop a methodology that requires the collection of comparable educational cost data, using a faculty activity analysis or alternative instrument.

The State Treasurer, in cooperation with other appropriate state agencies and institutions, is directed to study prepaid tuition payment programs and submit a report, including recommendations, to the Higher Education Committees of both the House and Senate by January 1, 1990.

Appropriation: none

Revenue: none

Fiscal Note: requested March 15, 1989

SUMMARY OF PROPOSED SENATE AMENDMENTS:

The amendment strikes all of the language of the bill and replaces with the following provisions:

Annual tuition fees for students at the regional universities and The Evergreen State College will be established, for the 1989-91 biennium, by utilizing the Central Washington University undergraduate and graduate cost relationship.

Criteria, definitions, and procedures for determining educational costs will be developed every four years beginning in 1989, instead of every two years. The state institutions of higher education will perform an educational cost study every four years. The study will be based on every fourth academic year beginning with 1989-90. The board will review, consolidate, and distribute the study. The institutions will develop a methodology that requires the collection of comparable educational cost data, using a faculty activity analysis or similar instrument.

Senate Committee - Testified: FOR: Terry Teale, Council of Presidents; Ann Daley, Higher Education Coordinating Board; Judy McNickle, Western Washington University; Elizabeth Woody, Washington Student Lobby; Jennifer Jaech, The Evergreen State College; Dick Thompson, Central Washington University