[ Editor's note: The following information is from George Pierce, vice president for Business and Financial Affairs at Western Washington University. ]

Engrossed Substitute Senate Bill 5460 was signed into law Feb. 18. The bill in its entirety can be found here. In principle, the act relates to reducing the administrative cost of state government during the 2007-2009 and 2009-2011 fiscal biennia by amending RCW 41.06.070 and creating seven new sections.  RCW 41.06.070 (2) statute applies to executive officers, academic personnel and professional staff at Western Washington University.

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Although further clarification is being sought from the state's Office of Financial Management, described below are the provisions affecting higher education, and the implications for Western, that we know today. These additional measures do not supersede more stringent budget reduction measures currently in place at Western.

Amendment to Sec. 1. (page 5, line 17-19) “For the twelve months following the effective date of this section, a salary or wage increase shall not be granted to any position exempt from classification under this chapter”.

For Western, it is clear there will be no across-the-board increases to positions that are covered under RCW 41.06.070. 

Human Resources has a record of the point factor/grade of all professional staff positions at Western.  While we will not be providing individuals in positions with pay increases, if, due to restructuring/reorganization efforts, position responsibilities are redefined, Human Resources may evaluate the redefined position to ensure an appropriate level of compensation is maintained.  The vice presidents may initiate such a review.

NEW SECTION. Sec. 6. (page 10, line 5-page 11, line 18) “(1) From the effective date of this section until July 1, 2009 and consistent with the governor’s directive dated August 4, 2008 state agencies of the legislative, executive, and judicial branches shall not establish new staff positions or fill vacant existing staff positions except as specifically authorized by this section”.  Applicable exceptions include:

“(n) In institutions of higher education, any positions directly related to academic programs, as well as positions not funded from state funds or tuition;

(q) Activities that are necessary to receive or maintain federal funds by the state.” 

For purposes of this section, Business and Financial Affairs, in consultation with other institutions, considers “academic programs” to include all of Academic Affairs.  Positions that receive and maintain federal funds would include Research and Sponsored Programs, Financial Aid, and Student Financial Services/Bursar.  (We are awaiting further guidance from the Office of Financial Management (OFM) on these interpretations.)

Positions not funded from “state funds or tuition” include self-sustaining or auxiliary funds, capital funds and funding from grants and contracts.

Vice Presidents will review the Human Resource’s Position Management Report, which indicates positions currently in the search process, and indicate where an exception may be granted in their respective areas to fill vacancies. Exceptions can be approved where:

1. Positions will not be funded from state operating or tuition funds,*
2. Positions are directly related to academic programs, or
3. Filling the position is necessary to receive or maintain federal funds
   tied to state programs.

* Fee revenues such as service and activities fees, health service fees, technology fee, non-academic building fees, renewable energy fees, student recreation fees and transportation fees are not considered to be state or tuition funds.  Capital building fee and the education construction account are considered state funds.

If a position does not fall in the above categories, but is deemed critically necessary, a request to fill the position vacancy can be submitted to OFM. We are awaiting clear instructions from them on the exception process. 

Note: Departments who have made a written or verbal offer of employment as of February 19th, are exempted from these restrictions.  

NEW SECTION 7. (Page 11, line 22-25) Personal Services Contracts.

“…shall not enter into any contracts or other agreements for the acquisition of personal services not related to an emergency or other catastrophic event that requires government action to protect life or public safety.”

Personal Service Contracts are professional or technical services provided by a consultant (contractor) to accomplish a specific study, project, task, or other statement of work where professional opinions, judgments, or recommendations are made.

Most WWU contracts issued are for client services, in other words those where our students are being directly served.  These include AS Performers, guest lecturers, disability resources, campus health type services, etc.  These client services are excluded from this restriction. 

NEW SECTION 8. (Page 12, line 4-7) Equipment Purchases.

“…shall not enter into any contracts or other agreements for the acquisition of any item of equipment the cost of which exceeds five thousand dollars and is not related to an emergency….”

For Western, we will honor existing contractual obligations as of February 19th.

Purchases with capital appropriated funds are not affected.

NEW SECTION 9.  (Page 12, line 17-23) State Employee Travel and Training.

“…shall not make expenditures for the cost or reimbursement of out-of-state travel or out-of-state training by state employees where the travel or training is not related to (1) an emergency…or (2) direct service delivery, and the travel or training occurs after the effective date of this section and before July 1, 2009.”

Western Travel Authorizations that have been approved by the appropriate vice president and where funds have been expended or committed will be honored if the approval date occurred prior to February 19, 2009.

 An exception for travel related to “direct delivery of services” may be made by the appropriate vice president. 

Further clarification for allowable travel will be forthcoming from OFM next week.

For immediate questions contact Chyerl Wolf-Lee for human resource matters and Sally McKechnie for purchasing and contract issues.

Speaking for President Shepard and my colleagues, we certainly understand the additional burden this new act will place on faculty and staff.  Business and Affairs staff will provide support and assistance to allow for as smooth transition into next biennium as will be possible given these additional requirements.

-George Pierce

Vice President, Business and Financial Affairs