State Senate votes to let universities set tuition

The spirited debate over whether lawmakers should allow university leaders to set tuition will move to the state House, after the Senate approved the idea late Monday.

The proposal that passed the Senate 29-19 would allow the state's three largest universities — the University of Washington, Washington State University and Western Washington University — to set their own tuition for a trial period and within strictly defined limits. A mix of Democrats and Republicans voted both for and against the measure.

The vote is considered a milestone in a debate that has gone on for years. While lawmakers have been reluctant to cede authority in the past, this year's state budget shortfall, after deep cuts to higher education last year, has lawmakers reconsidering.

"The Senate has done what was considered off-limits," said Larry Ganders, assistant to the president at WSU. "The fact they had a good discussion, a good floor debate, and came to the conclusion that institutions should have tuition-setting authority, in a bipartisan way, is very significant."

University leaders say they need tuition authority to help shore up finances and to provide budgeting certainty.

However, the bill faces big hurdles in the House, where some key lawmakers — including Rep. Deb Wallace, D-Vancouver, who chairs the House Higher Education Committee — have concerns about such a move.

And university lobbyists, while thankful the measure passed the Senate, are worried that some of the restrictions may be unworkable.

Under the bill, the universities could set their tuition rates for seven academic years, beginning in the fall of 2011. The maximum tuition increase in any given year would be 14 percent, and the universities would be limited to average annual increases of 9 percent, as calculated on a compounding basis over 15 years.

In exchange, the universities would agree to annual performance measures, which would be hashed out later, and to keep tuition in line with peer institutions. The universities also would pledge to ensure poorer students received financial aid.

It's the specifics of that final provision that has university officials worried. The provision would guarantee that the poorest students get free tuition, and that others — including those from families earning up to 125 percent of the state's median income — would get discounts. Ganders said that could cost WSU millions of dollars even without any tuition increases.

Sen. Derek Kilmer, D-Gig Harbor, who sponsored the bill, SB 6562, said the details could be modified in the weeks to come. He said he hopes the bill helps stabilize higher education.

"It gets to the issues around the continued quality and affordability of college," Kilmer said. "People on all sides of the debate acknowledge the current model is broken."

Opponents argued the bill would result in higher tuition for everyone, and that unelected trustees and regents at local universities shouldn't be the ones setting tuition.

According to testimony for the bill, Washington remains one of only a handful of states in which the Legislature sets tuition.

Nick Perry: 206-515-5639 or nperry@seattletimes.com