Community and Technical Colleges
Original Air Date: 4/1/2010
Washington, like many states, is trying to climb out of a huge budget deficit. It’s not a pretty picture as agencies and organizations work through another series of deep cuts. Higher education is not immune and local colleges are struggling to balance budgets and student services.
Guests
Legislative Updates as of March 12, 2010
Budget
EHB 2561 Funding construction of energy cost saving improvements to public facilities, sponsored by Rep. Hans Dunshee, D-Snohomish, is still in House Rules Committee.
HB 3178 Creating efficiencies in the use of technology in state government, sponsored by Rep. Reuven Carlyle, D-Seattle, has been delivered to the Governor for her signature. The bill was amended to remove higher education from information technology purchasing requirements; however, colleges and universities will be required to report the total cost of ownership of IT assets, including acquisition, development, and operations.
SSB 6382 Reducing the cost of state government operations by restricting compensation (“Salary Freeze” bill), sponsored by Sen. Margarita Prentice, D-Renton, has been sent signed into law.
Educational Programs
E2SHB 1418 Establishing a statewide dropout re-engagement system is being signed by the Governor today. The bill provides a framework for a system to provide educational opportunities and access to services for students ages 16 to 21 who have dropped out of high school or are not earning enough credits to complete a high school diploma in a public school before age 21.
HB 2580 Concerning secondary career and technical education courses is still in the House Rules Committee. The bill ensures Tech Prep students will receive credit for eligible courses at a reasonable transcription fee.
SSB 6357 Credit for prior learning and private career college credit—which directs the SBCTC to develop policies for awarding academic credit for prior learning experiences (such as military and law enforcement training, career college training, internships, apprenticeships)—sponsored by Sen. Derek Kilmer, D-Gig Harbor, is on its way to the Governor for signature.
Tuition and Financial Aid
HB 2973 Creating resident student classifications for certain members of the military, their spouses, and dependents has been delivered to the Governor for her signature.
Workforce, Economic Development
HB 2630 Creating the Opportunity Express program, sponsored by Rep. Tim Probst, D-17th District, is being held as possibly necessary to implement the budget. Among other things establishes automatic Worker Retraining program eligibility for recipients of unemployment insurance, food stamps, TANF, or free and reduced price lunches, and the requires colleges to track participation for all.
SHB 2684 Establishing Opportunity Centers at community colleges, sponsored by Rep. Phyllis Gutiérrez Kenney, D-Seattle, has been delivered to the Governor for her signature today.
HB 3141 Regarding delivery of Temporary Assistance to Needy Families and authorization for Working Connections Childcare (WorkFirst Bill) has been delivered to the Governor for her signature.
Operating budget update
Both chambers have passed versions of the 2010 supplemental operating budget, Senate Bill 6444, and have passed a revenue package, Senate Bill 6143, but have not yet reconciled differences on either.
The House’s version proposes smaller permanent cuts for the community and technical college system compared to the Senate’s proposal, but the Senate proposed more Worker Retraining funds for the upcoming fiscal year. See the side-by-side operating budget proposals comparison for details on both Senate and House proposals as they relate to the community and technical college system.
Capital budget update
Following House floor action on the 2010 Supplemental Capital Budget (ESB 6364) Thursday evening, the Senate and the House are now prepared to conference on the capital budget. The House has proposed a $40 million cut to the overall community and technical college bond authority, while the Senate’s proposal is at a $50 million reduction.
After the college system’s building fees are added back to the budget, the net cut in the House proposal is $33 million, while the cut in the Senate is $35.5 million. See the side-by-side capital budget proposals comparison for a more detailed look at the Senate and House proposals.
Final approval of the capital budget is expected during special session.
What does the Governor’s proposed budget mean for community and technical colleges?
Operating Budget Reduction
· The Governor’s supplemental 2010 budget would cut another $43.5 million in FY 2011. This is in addition to the $82 million annual reduction already taken, for a total reduction of 15%.
Potential financial aid reductions
· State Need Grant
· Two-year colleges support retaining current funding levels for the State Need Grant, as the Governor has proposed in her “book 2” budget.
· The Governor’s original proposal reduced the State Need Grant by $146 million (62%) for all of higher education.
§ A cut of that magnitude would affect nearly 43,000 community and technical college students. To stay in college, students would be forced to borrow more and work more.
§ Awards would be cut in half for about 34,000 low-income community and technical college students and nearly 8,000 would be completely cut off from the State Need Grant.
· Work Study Program
· The entire Work Study Program would be eliminated, a reduction of approximately $22 million, plus a $6 million employer match.
· Nearly 3,600 community and technical college students were employed through Work Study last year, which provides jobs to students so they can earn while they learn.
Worker Retraining Program
§ $11.5 million is provided in 2011 for 2,500 Worker Retraining enrollments.
§ Last year, the legislature provided funding for 6,200 Worker Retraining FTES, but two-year colleges served 9,000 or 2,800 more than the funded level.
§ This fall, Worker Retraining enrollments were up 70 percent and demand is expected to continue, with more than 16,000 estimated to qualify for the Worker Retraining Program in 2010 and 2011.
§ The $11.5 million is a first step in addressing the huge demand in workforce training as thousands of laid-off Washington workers turn to community and technical colleges for new skills.
Job Recovery—Jan 2010
Job recovery is priority one.
Washington’s community and technical colleges strengthen state and local economies by preparing a well-educated workforce.
Washington’s competitive edge depends on a skilled and talented workforce:
· Today, higher education is essential for a good job or a promotion.
· Thousands of out-of-work Washingtonians need new skills to compete for jobs in an ever-changing economy.
· More than one million Washington adults lack the basic education they need to succeed in today’s economy.
· Even now, Washington employers report difficulty recruiting skilled workers in some fields.
· To move out of this recession, Washington must invest in its current and future workforce by funding training for jobs and careers.
How community and technical colleges can help:
Short-term: Laid-off workers need help now!
· The Worker Retraining Program is an answer, providing training for the new skills and knowledge needed to successfully re-enter the workforce.
· The program has experienced a 70 percent increase since last fall and, with adequate resources, could reach record highs this year.
· Worker Retraining program graduates experience an 81 percent job-placement rate, with high wage recovery levels—87 percent for pre-layoff higher-wage jobs and 118 percent for workers in pre-layoff lower-wage jobs.
Long-term: Continue to supply skilled people to keep our industries profitable, productive, and on the cutting edge.
· Continue working closely with business and industry to educate and train qualified employees in high-skill, high-demand fields.
· Occupations expected to provide the greatest number of new jobs over the next decade include green economy jobs, accountants, retail salespersons and healthcare workers. Community and technical colleges provide quality and affordable training for these occupations.
What community and technical colleges need:
· Help us keep our doors open to students by minimizing cuts.
· Increase investments in the Worker Retraining Program to meet the unprecedented demand that will continue for years to come.
· Provide the necessary financial aid our low-income students need to attend college and prepare for new jobs and careers.
· Allow two-year colleges to maintain flexibility to manage local programs and meet local employer needs.
Washington Community and Technical Colleges by the Numbers
471,145 Students enrolled in 2008-09
175,000 Students in 2008-09 who reached key milestones in college success: earning a degree or certificate, completing an apprenticeship, reaching the “tipping point” of 45 credits or other key completions, such as basic skills and college-level math
10,053 Increase in full-time-equivalent (FTES) student enrollments from last fall to this fall
$40, 708 The average annual income of a two-year degree holder ($9,500 more than a high school diploma or GED)
10,656 The number of Worker Retraining FTES students served this fall
70% The increase in Worker Retraining students from last fall to this fall
73% The increase in Integrated Basic Education and Skills Training enrollments from last fall
WRT Request - Jan 2010
Laid-off workers need our help now. Thousands of unemployed workers in Washington need to make the best of a bad situation and, for many, the Worker Retraining Program is the answer.
Worker Retraining Program background
· Worker Retraining provides training for dislocated and unemployed workers to gain the new skills and knowledge needed to successfully re-enter the workforce.
· Worker Retraining financial aid helps pay for tuition, books, fees, and other related expenses for individuals who lost their jobs due to economic changes and for those receiving Unemployment Insurance benefits.
· The Legislature provides $28.8 million per year in funding for 6,200 Worker Retraining FTES (full-time equivalent students). This level of funding has remained unchanged since 1997, while tuition has doubled.
· Of the $4,639 per FTES, $1,300 is dedicated to student financial aid (to bridge the time it takes formerly employed workers to become eligible for financial aid) and the rest goes to support colleges' instruction and other related costs.
Worker Retraining enrollment is up and expected to stay that way
· Worker Retraining enrollments are up 70% over last fall. These are laid-off adults who are gaining skills for new and better jobs.
· Last year, the legislature funded 6,200 Worker Retraining FTES, yet community and technical colleges served more than 9,000 FTES.
· With unemployment expected to continue increasing through spring 2010, community and technical colleges expect 16,000 FTES would be eligible for the Worker Retraining program in 2010 and 2011.
· With job placement rates above 80% and wage recovery levels that range from 87% (for workers who left higher-wage jobs) and 118% (for workers who left lower-wage jobs), this program is working for those who need it most and is well worth the state’s investment.
Community and technical colleges need more investments in the Worker Retraining program to meet the unprecedented demand that will continue for years to come ($49.6 million)
· 6,000 additional FTES enrollment slots beginning next year ($27.8 million)
· Additional financial aid funding for Worker Retraining students ($21.8 million)
A $170 million cut to state financial aid would close the door to higher education for thousands of two-year college students.
The State Need Grant would be reduced by $51.6 million to community and technical college students.
• Nearly 43,000 of our lowest income families and students would no longer have a pathway to higher education.
• 34,000 students would see their State Need Grant awards cut by 54 percent (students earning zero to 50 percent of median family income).
• Another 8,000 would see their State Need Grant completely eliminated (students earning 51 to 70 percent of median family income).
• The loss of up to 25% of a needy student’s financial aid package will force many eligible students to withdraw from degree programs and/or increase student debt load.
The State Work Study program would be eliminated, a reduction of approximately $8.4 million to community and technical college students and $1.2 million would be cut from foster youth programs and students pursuing training in high demand fields.
• Suspending the entire State Work Study program would directly impact students who already juggle personal and family responsibilities to work their way through college.
• 3,500 community and technical college students were employed through Work Study last year, gaining valuable workplace experience while earning money for college.
• These 3,500 students—earning $2,900 on average toward their tuition—will not receive State Work Study paychecks. For many, this could mean the difference between staying in college or being forced to drop out.
• With an approximate $2 million employer match, students earn a combined total of $10.3 million annually.
• An additional 325 students would be affected by cuts in programs like Passport for Foster Youth and Washington Award for Vocational Excellence (WAVE).
Bottom line: A total cut of $61.2 million in financial aid for community and technical college students would force students to take fewer classes, work more, borrow more, or even drop out of college altogether.
