State budget puts high priority on student aid

by Greg on April 23, 2010

in budget,financial aid,Legislature

The Washington State Capitol. Greg Scheiderer photo.

The Washington State Capitol. Greg Scheiderer photo.

When the Washington State Legislature passed a budget and adjourned a “week-long” special session on its 30th day April 13, the expenditure side of the ledger looked much as it did when the regular session ended a month before. The solution to a $2.8 billion budget gap included:

  • $755 million in spending reductions, including a $73 million cut to public higher education institutions
  • $618 million in expected federal funding assistance
  • $690 million in fund transfers, including a dip into the state’s “rainy day” fund
  • $757 in new revenue, including increased taxes on beer, soda, bottled water, cigarettes, and in B&O taxes on some services

Given the magnitude of cuts to higher education, we’re pleased that reductions to student aid were relatively minor. The bread and butter program, the State Need Grant, was funded fully as originally budgeted last year. The students with greatest need will actually see their grants increase next year, to $7,717 for the academic year. Students from families earning up to 70 percent of the state median family income, about $54,500 for a family of four, will be eligible to receive some aid under the State Need Grant.

Our biggest disappointment with the budget is a 30 percent reduction in the State Work Study program, achieved by freezing award amounts, asking employers to pay a greater share of the wage, and cutting nonresident students from the program “to the maximum extent practicable.” The budget also scales back on other aid programs such as Washington Scholars and WAVE. Current recipients of both will continue to receive that aid, but fewer new awards will be made. It’s not quite official as of this writing. The governor has not yet signed the budget, but we expect she will.

Legislative Action CenterThanks to all of those who helped protect student aid. ICW Advocates have sent almost 2,000 messages to the governor and legislators through our Legislative Action Center since December, when the governor proposed a budget that included disastrous cuts to student aid.  Now would be a good time to visit the center and write a thank-you note to lawmakers who recognized the value and importance of student aid. Thanks, too, to Student Workers Solidarity which coordinated a successful effort to put aid recipients in contact with legislators. Great work!

Perhaps our SaveStudentAid.org buttons were the difference!

Perhaps our Save Student Aid.org buttons were the difference!

Keep an eye on this blog and on SaveStudentAid.org for updated information on financial aid issues. Analysts are already predicting budget shortfalls for the next biennium, so there may once again be pressure to cut student aid when the legislature returns in January to start writing the next budget.

Budget and policy wonks can find lots of detailed budget information on the Legislative Evaluation and Accountability Program Committee website, including the complete bill text and a summary. There’s also a good session wrap-up summary on the Higher Education Coordinating Board website.

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