5325-S AMH JACO HOSC 011

SSB 5325 ‑H AMDS TO H COMM AMD(H2753.1)793 ADOPTED 4/12/95

By Representative Jacobsen

On page 3, line 9, after "categories." insert "During the 1997-98 through 2000-01 academic years, a research university participating in the fiscal autonomy program under section 301 of this act may increase base tuition fees for any student category up to a maximum of fifteen percent each year."

On page 4, line 38, after "categories." insert "During the 1997-98 through 2000-01 academic years, a regional university participating in the fiscal autonomy program under section 301 of this act may increase base tuition fees for any student category up to a maximum of fifteen percent each year."

On page 12, line 18, after "act" insert ", minus the amount of revenue collected from raising base tuition fees above the level specified in sections 102(1) and 103(1) of this act by institutions participating in the fiscal autonomy pilot program under section 301 of this act,"

On page 12, line 27, after "28B.15.910;" strike "and"

On page 12, line 30, after "act" strike "." and insert "; and"

On page 12, after line 30, insert the following subsection:

"(5) The general fund state appropriation shall not be reduced by the amount of revenue collected from raising base tuition fees above the level specified in sections 102(1) and 103(1) of this act by institutions participating in the fiscal autonomy pilot program under section 301 of this act."

On page 19, after line 37, insert the following:

"PART 3 - INSTITUTIONAL FISCAL AUTONOMY

NEW SECTION. Sec. 301. A new section is added to chapter 28B.80 RCW to read as follows:

The higher education coordinating board shall design and administer a higher education fiscal autonomy pilot program. In its administration of the pilot program, the board shall have the following powers and duties:

(1) In consultation with institutions of higher education and appropriate state agencies, identify state laws and rules that may inhibit effective fiscal decisions by institutions of higher education.

(2) Select one research and one regional university to participate in the pilot program.

(3) Work with state agencies to exempt participating institutions from state rules that inhibit effective fiscal decisions.

(4) By December 1, 1996, report to the governor and appropriate legislative committees with a preliminary report on the progress of the pilot program and with a list of state laws and rules that may need to be revised in order to encourage effective fiscal decisions by institutions of higher education.

(5) This section shall expire on June 30, 2001.

Sec. 302. RCW 43.10.19054 and 1975-'76 2nd ex.s. c 21 s 7 are each amended to read as follows:

The provisions of RCW 43.19.1905 shall not apply to materials, supplies, and equipment purchased for resale to other than public agencies by state agencies, including educational institutions. In addition, RCW 43.19.1905 shall not apply to purchases by institutions of higher education participating in the fiscal autonomy pilot program under section 301 of this act or liquor purchased by the state for resale under the provisions of Title 66 RCW.

Sec. 303. RCW 41.06.382 and 1979 ex.s. c 46 s 1 are each amended to read as follows:

(1) Nothing contained in this chapter shall prohibit any institution of higher education, as defined in RCW 28B.10.016, or related board from purchasing services by contract with individuals or business entities if such services were regularly purchased by valid contract at such institution prior to April 23, 1979: PROVIDED, That except as provided in subsection (2) of this section, no such contract may be executed or renewed if it would have the effect of terminating classified employees or classified employee positions existing at the time of the execution or renewal of the contract.

(2) An institution of higher education participating in the fiscal autonomy pilot program under section 301 of this act may purchase services by contract with individuals or business entities if the contract would not result in increased expenditures of public funds for the contracted service and if the contract would not result in the termination of classified employees employed at the institution on the effective date of this act.

Sec. 304. RCW 43.88.110 and 1991 sp.s. c 32 s 27 and 1991 c 358 s 2 are each reenacted and amended to read as follows:

This section sets forth the expenditure programs and the allotment and reserve procedures to be followed by the executive branch for public funds.

(1) Allotments of an appropriation for any fiscal period shall conform to the terms, limits, or conditions of the appropriation.

(2) The director of financial management shall provide all agencies with a complete set of operating and capital instructions for preparing a statement of proposed expenditures at least thirty days before the beginning of a fiscal period. The set of instructions need not include specific appropriation amounts for the agency.

(3) Within forty-five days after the beginning of the fiscal period or within forty-five days after the governor signs the omnibus biennial appropriations act, whichever is later, all agencies shall submit to the governor a statement of proposed expenditures at such times and in such form as may be required by the governor.

(4) Except as provided in subsection (9) of this section, the office of financial management shall develop a method for monitoring capital appropriations and expenditures that will capture at least the following elements:

(a) Appropriations made for capital projects including transportation projects;

(b) Estimates of total project costs including past, current, ensuing, and future biennial costs;

(d) Comparisons of estimated construction start and completion dates with actual dates;

(e) Documentation of fund shifts between projects.

This data may be incorporated into the existing accounting system or into a separate project management system, as deemed appropriate by the office of financial management.

(5) If at any time during the fiscal period the governor projects a cash deficit in a particular fund or account as defined by RCW 43.88.050, the governor shall make across-the-board reductions in allotments for that particular fund or account so as to prevent a cash deficit, unless the legislature has directed the liquidation of the cash deficit over one or more fiscal periods. Except for the legislative and judicial branches and other agencies headed by elective officials, the governor shall review the statement of proposed operating expenditures for reasonableness and conformance with legislative intent. Once the governor approves the statements of proposed operating expenditures, further revisions shall be made only at the beginning of the second fiscal year and must be initiated by the governor. However, changes in appropriation level authorized by the legislature, changes required by across-the-board reductions mandated by the governor, changes caused by executive increases to spending authority, and changes caused by executive decreases to spending authority for failure to comply with the provisions of chapter 36.70A RCW may require additional revisions. Revisions shall not be made retroactively. Revisions caused by executive increases to spending authority shall not be made after June 30, 1987. However, the governor may assign to a reserve status any portion of an agency appropriation withheld as part of across-the-board reductions made by the governor and any portion of an agency appropriation conditioned on a contingent event by the appropriations act. The governor may remove these amounts from reserve status if the across-the-board reductions are subsequently modified or if the contingent event occurs. The director of financial management shall enter approved statements of proposed expenditures into the state budgeting, accounting, and reporting system within forty-five days after receipt of the proposed statements from the agencies. If an agency or the director of financial management is unable to meet these requirements, the director of financial management shall provide a timely explanation in writing to the legislative fiscal committees.

(6) Except as provided in subsection (9) of this section, it is expressly provided that all agencies shall be required to maintain accounting records and to report thereon in the manner prescribed in this chapter and under the regulations issued pursuant to this chapter. Within ninety days of the end of the fiscal year, all agencies shall submit to the director of financial management their final adjustments to close their books for the fiscal year. Prior to submitting fiscal data, written or oral, to committees of the legislature, it is the responsibility of the agency submitting the data to reconcile it with the budget and accounting data reported by the agency to the director of financial management.

(7) Except as provided in subsection (9) of this section, the director of financial management shall monitor agency operating expenditures against the approved statement of proposed expenditures and shall provide the legislature with quarterly explanations of major variances.

(8) The director of financial management may exempt certain public funds from the allotment controls established under this chapter if it is not practical or necessary to allot the funds. With the exception of exemptions that may be granted to institutions of higher education that are participating in the fiscal autonomy pilot program under section 301 of this act, allotment control exemptions expire at the end of the fiscal biennium for which they are granted. The director of financial management shall report any exemptions granted under this subsection to the legislative fiscal committees.

(9) In consultation with the higher education coordinating board, the director of the office of financial management shall develop and implement a simplified allotment and reporting procedure for institutions of higher education participating in the fiscal autonomy pilot program under section 301 of this act."

On page 20, line 23, strike "and 301 through 303" and insert "301 through 304, and 401 through 403"

Renumber the remaining part and sections appropriately, and correct any internal references and the title accordingly.