Fund Splits. Central services (CS) are core services provided by a centralized agency to support other state agencies in conducting their operations. CS include administrative hearings, auditing, information technology, legal, statewide financial systems, and workers compensation. For public institutions of higher education (public institutions), funding for CS costs in the operating budget is split between General Fund-State (GF-S) and higher education non-appropriated tuition operating fee revenue.
Employee Compensation and Central Services Paid by State Funds. Starting in the 2029-31 biennium, funding levels for increases in employee compensation and CS for expenditures paid with appropriated state funds or tuition reverts to funding levels in the 2023-25 biennium. The state fund levels per entity from 2023-25:
A 10 percent increase is required each biennium proceeding the 2029-31 biennium until the increases for employee compensation and central services are fully funded by state funds.
State funds cannot backfill any dedicated fund sources which have insufficient revenue for the compensation increases.
Compensation is defined as the cost of salaries, wages, and pension contribution costs, subject to the Higher Education Retirement Plan, that are reported to the Office of Financial Management for purposes of the state budget and accounting systems with a funding source of an appropriated state fund or tuition.
Washington State Institute for Public Policy Study. Washington State Institute for Public Policy (WSIPP) must conduct a study, in consultation with public baccalaureates and the State Board for Community and Technical Colleges, to define and evaluate essential student services standards. WSIPP’s study must look at academic support, wellness and basic needs, instructional quality including class size and number of tenure track faculty, career and workforce readiness, and funding alignment. In conducting their study, WSIPP must reach out to certain entities and utilize certain research.
WSIPP must report its findings and recommendations to the Legislature by December 1, 2026.