SENATE BILL REPORT
SB 5512
As of February 15, 2023
Title: An act relating to adding financial transparency reporting requirements to the public four-year dashboard.
Brief Description: Adding financial transparency reporting requirements to the public four-year dashboard.
Sponsors: Senators Holy, Liias, Rivers, Salomon, Wilson, J., Schoesler, Torres, Wilson, L., MacEwen, Dozier, Wagoner, Warnick, Gildon, McCune, Short, King, Braun, Muzzall, Nguyen, Billig and Boehnke.
Brief History:
Committee Activity: Higher Education & Workforce Development: 1/25/23, 2/08/23 [DPS-WM].
Ways & Means: 2/18/23.
Brief Summary of First Substitute Bill
  • Adds measures of institutional resources and financial health to the statewide public four-year dashboard.
SENATE COMMITTEE ON HIGHER EDUCATION & WORKFORCE DEVELOPMENT
Majority Report: That Substitute Senate Bill No. 5512 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.
Signed by Senators Randall, Chair; Nobles, Vice Chair; Holy, Ranking Member; Hawkins and Liias.
Staff: Alicia Kinne-Clawson (786-7407)
SENATE COMMITTEE ON WAYS & MEANS
Staff: Sarian Scott (786-7729)
Background:

The six, public four-year institutions of higher education in the state are required to submit data for a number of accountability measures to the Office of Financial Management by December 1st each year. The education data center manages the statewide public four-year dashboard which displays the accountability measures identified in statute. Data required to be submitted includes enrollment information, the number and types of degrees awarded, graduation rates, transfer rates, time and credits to degree, credit accumulation, retention rates, student debt load, market penetration, and much more.

Summary of Bill (First Substitute):

The following measures are added to the statewide public four-year dashboard:

  • ratio of fall headcount students to fall headcount faculty appointments;
  • annualized ratio of full-time equivalent (FTE) students to FTE nonfaculty positions;
  • net position for the academy as defined by the National Center for Education Statistics;
  • annual primary reserve ratio as measured by expendable net assets to total expenses;
  • cash on hand as calculated by the ratio of total cash on hand for the academy divided by operating expenses for the academy minus noncash expenses divided by 365;
  • viability ratio as measured by unrestricted and expendable net assets;
  • ratio of total expendable net assets for the academy per FTE student; and
  • total market value of endowment holdings.

 

Data must be reported to the office of financial management by January 15th.

EFFECT OF CHANGES MADE BY HIGHER EDUCATION & WORKFORCE DEVELOPMENT COMMITTEE (First Substitute):
  • Specifies that the measures are specific to the academic enterprise.
  • Clarifies definitions and uses the National Center for Education Statistics definitions where appropriate.
  • Modifies the reporting date.
Appropriation: None.
Fiscal Note: Available.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony on Original Bill (Higher Education & Workforce Development):

The committee recommended a different version of the bill than what was heard. PRO: This bill is simple and straightforward. Larger research universities have revenue streams that are outside the sphere of our information. Concurrently, there is a fluctuation in enrollment in all state universities. This bill tries to find a common crossroad between all universities with different revenue streams, resources, and enrollment patterns, and gives an idea of the stability and financial status of the universities. This bill will help highlight the way administrations have grown at the expense of faculty over the last fifty years. It will highlight university debt. This is a first check in with state universities. This bill has utility value in the way education has fluctuated within the last five years This bill should ensure there are common definitions and assumptions for each data set required in this bill. It should provide consistent and relevant data across all institutions. Not having enough tenured professors can become a serious accrediting challenge.

Persons Testifying (Higher Education & Workforce Development): PRO: Senator Jeff Holy, Prime Sponsor; Ruben Flores, Council Of Presidents; Bill Lyne, United Faculty of Washington State.
Persons Signed In To Testify But Not Testifying (Higher Education & Workforce Development): No one.