Office of the PresidentPresident Cantwell’s MessagesLetter to WSU CommunityWeekly UpdateBudget Update: Legislative Proposals and What They Mean for WSU

Budget Update: Legislative Proposals and What They Mean for WSU

Dear colleagues,

I want to provide a clear and candid update on the proposed state operating budgets and what they mean for Washington State University.

Both the House and Senate released their budget proposals Sunday afternoon. If approved, the net impact to us is a $2.6 million reduction in the House budget and a $1.4 million reduction in the Senate budget, both representing less than 1 percent of our overall operating budget. Our system was largely treated the same as other universities and community colleges statewide.

Cuts this relatively modest happen because money is being shifted around inside the capital budget. A one‑time $45 million cut to WSU’s operating budget is being covered with cash that WSU received in last year’s capital budget. That cash is then replaced with unused state bond capacity so WSU’s capital budget stays whole.

The House and Senate still need to pass their budgets and negotiate a compromise. But in absence of any significant changes, the final budget agreement should provide sufficient time for us to implement the longer term adjustments that require additional lead time.

Although, the state and the university’s financial challenges have not gone away. Both the House and Senate budget rely on large amounts ofone‑time dollars to push this year’s deficit to next year. Even if the state witnesses improved revenue projections in the months to come, thefinancial challenge will have been deferred, not resolved.

There are a few additional points worth noting:

  • The larger House reduction reflects a significant cut to INEF, part of a broader statewide reallocation of legacy Climate Commitment Act funding as lawmakers reassess how those dollars are being used.
  • The self-insurance issue was addressed more moderately than proposed earlier, through direct appropriation rather than premium increases, with no impact to us.
  • Neither the House nor the Senate funded our operating budget requests for academic student employees or for the ROAR program, which helps ensure higher education opportunities for students with intellectual and developmental disabilities.

The broader budget picture also matters. Both the House and Senate rely heavily on the Rainy‑Day Fund and impose similar administrative reductions across state agencies, while making deeper cuts in areas such as childcare, K–12 education, and behavioral health.

Because the two proposals are closely aligned, the final legislative negotiations are expected to be relatively straightforward.

Our focus must remain disciplined and forward-looking. Over the coming months, we will:

  • Take a thoughtful approach to developing structural adjustments rather than short‑term fixes
  • Protect core academic priorities and minimize disruption to students
  • Create aligned reductions correlated with our long‑term strategic goals
  • Make decisions that hold for the long term, instead of rushed ones that could have unintended, lasting consequences

We’re greatly appreciative of our legislative advocates who have shaped these two budget proposals. The ability to plan rather than react is significant, and it is time we must use wisely.

If approved, we will have been given a window, not a solution. How we use this time will matter.

Thank you for your continued focus, collaboration, and commitment as we navigate this transition together.

Sincerely,

BETSY CANTWELL
President, Washington State University