Update from Les 12-9-09

This morning, the Governor presented her budget proposal for 2010-11.  Her proposal would modify the state's 2009-11 biennial budget to respond to a budget deficit that is currently estimated at $2.6 billion.
 
Final legislative action on the budget is still months away.  The final budget will undoubtedly differ from the proposal presented today as the proposal is modified to reflect legislative priorities and at least one more revised revenue forecast.  In addition, the Governor has signaled her intention to propose a set of revenue and tax increases that would at least partially offset the reductions she proposed this morning.  Nevertheless, the Governor's proposal is an important milestone in our budget planning process.
 
For higher education, the Governor's budget would eliminate $89.5 million from higher education funding, returning Evergreen to 2006 funding levels.  The budget includes a drastic reduction of the State Need Grant program, which currently provides the largest source of state grant funding for needy students.  The Governor also proposed suspension of the state-funded work study, merit scholarships and scholarships for future teachers.
 
Statewide, 77,000 students rely on the State Need Grant.  The Governor's proposal would change eligibility requirements to remove more than 12,000 students from the program and cut the level of grant for the remaining students almost in half.  At Evergreen, more than 1300 resident undergraduate students – 41% of our resident undergraduates – currently rely on the State Need Grant for at least a portion of their total cost of attendance.  The average size of the grant is about $4,200.  While the Governor has indicated her desire to restore funding for student financial aid in a budget proposal she will release in January, the final impact on specific students will not be known until the legislature completes its work at the end of March.
 
In addition to slashing student financial aid, the proposed budget would permanently reduce state support for Evergreen and its students by an additional $4 million.  The last round of cuts represented a 22% reduction in state support, mitigated by federal stimulus money and a tuition increase of nearly 30% over a two-year period.  The Governor's proposal would further reduce our State General Fund support by almost 9.5%, of which $3 million would be mitigated by borrowed money from the Capital budget.
 
Both of these reductions would go into effect in the next academic year that begins July 1, 2010.
 
The Governor's proposal provides a starting point for our budget decision making.  Needless to say, these proposed cuts are especially daunting at a time when we are still absorbing the impact of the cuts and tuition increases from last year.  Beginning in early January, we will be focusing on specific responses for Evergreen in light of the Governor's proposal and the legislative proposals that will emerge.
 
As part of that process, we will update our budget communications Web site by January to provide a place where you can ask questions and access documents and resources related to the budget.  We will be using our budget cut scenarios from last year as a starting point for decision making.  It is likely that modifications will be made to ensure that those proposals ultimately reflect our current and future priorities.
 
As I always remind us, there will be many twists and turns, but one thing is certain:  we will begin the second year of this biennium with reduced resources.  We will all need to work together to address this reality.
 
You can learn more about the Governor’s budget proposal online.  You can also view or listen to the Governor’s press conference at: www.tvw.org
 
Les Purce