2017 LEGISLATIVE SESSION & BIENNIAL BUDGET Jed Bradley Higher Education Policy Analyst Office of Planning & Budgeting

BIENNIAL SESSIONS & BUDGETS Session will last 105 days (January 9- April 23), with the possibility of one or more 30-day special sessions Biennial budgets are our opportunity to request funding for: New initiatives Expanded programs However, we’ve been asked to limit requests for new funding Bill introductions start from a clean slate Biennial Sessions and Budgets   -In odd numbered years, the legislature is tasked with passing two-year, or biennial, state budgets. The regular session will last 105 days (January 9- April 23), with the possibility of one or more 30-day special sessions. -Biennial budgets are our opportunity to request funding for: New initiatives Expanded programs -However, due to funding pressures I’ll get into later, we’ve been asked to severely limit requests for new funding -Bill introductions start from a clean slate (unlike sessions in even-numbered years, bills from the previous year are not automatically reintroduced)

2017 SESSION REVENUE FORECAST & BUDGET OUTLOOK The November revenue forecast predicted a moderate increase in expected revenue for the coming biennium (now $41.3 billion). The cost of continuing appropriations from the 2015-17 biennial operating budget into the 2017-19 biennium is nearly $42 billion dollars. In addition, the state is experiencing: Ongoing K-12 funding obligations (McCleary decision and sanctions) Increased caseload for health and social services 2017 Session – Revenue Forecast & Budget Outlook   -The most recent revenue forecast, which was in November, predicted a moderate increase in expected revenue for the coming 2017-19 biennium (now $41.3 billion). -The cost of continuing appropriations from the 2015-17 biennial operating budget into the 2017-19 biennium is nearly $42 billion dollars, so there’s already a gap that will need to be filled. -In addition, the state is experiencing: Ongoing K-12 funding obligations (McCleary decision and sanctions) You might recall that last year, the legislature passed a “plan to have a plan” to fully fund education in the coming biennium. This issue is expected to finally come to a head this session, and the state Supreme Court is watching closely. As usual, the state is also experiencing increased caseloads in health and social services

2017 SESSION GOVERNOR’S PROPOSED 2017-19 BUDGETS On December 14, Governor Inslee released his proposed 2017-19 biennial operating and capital budgets. His $46.4 billion biennial operating budget would rely on over $4 billion in new revenue from closing tax loopholes, a new capital gains tax, and other revenue Includes some new appropriations for the UW: Compensation support Tuition freeze and backfill WWAMI Expansion (10 additional students per class) The Governor’s capital budget includes funding for the Burke Museum, seismic upgrades, the Population Health Sciences Building, CAMCET, and minor capital repairs (4) 2017 Session – Governor’s Proposed 2017-19 Budgets -Last month, Governor Inslee released his proposed 2017-19 biennial operating and capital budgets. -His biennial operating budget would rely on over $4 billion in new revenue from closing tax loopholes, instituting a new capital gains tax, and other smaller revenue increases. -Includes some new appropriations for the UW: • He would provide partial funding to support compensation increases for faculty and professional staff with the intent of providing a 2% increase in the first year and two- 2% increases in the second year • Next, you’ll recall that resident undergraduate tuition was reduced in the previous biennium. Current policy is that tuition will now increase by an inflationary factor, which would be just over 2% per year. Instead, the Governor proposed freezing tuition and providing funding to institutions that would match the revenue expected from those increases. • The Governor also provided funding to support 10 additional students in our WWAMI Program in Spokane -The Governor’s capital budget would provide funding to finish construction of the Burke Museum, and funding for seismic upgrades for unreinforced masonry buildings, the Population Health Sciences Building, CAMCET (Center for Advanced Materials and Clean Energy Technologies), and minor capital repairs

AS A REMINDER… Leadership in the House and Senate will release their own budget proposals over the course of session OPB will review budgets as they are released and will produce budget briefs for all major budget proposals Stay tuned to session related emails and the OPBlog (depts.washington.edu/opbblog/) for updates regarding: Budget proposals Revenue forecasts (5) As a reminder… -Leadership in the House and Senate will release their own budget proposals over the course of session, which could start to happen within a couple months. -OPB will review budgets as they are released and will produce budget briefs for all major budget proposals. We post budget briefs on our website here. Our brief for the Governor’s budgets is already posted! Finally, please stay tuned to session related emails and the OPBlog (which is here) (depts.washington.edu/opbblog/) for updates regarding: • Budget proposals • Revenue forecasts