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WSU leaders outline state and federal budget risks as FY26 planning continues
Summary
Committee members heard an update on Governor Ferguson’s budget principles, proposed higher‑education cuts, a proposed furlough plan and key Olympia dates; WSU staff said they are preparing internal scenarios and pushing for non‑prescriptive reductions to preserve institutional discretion.
Leslie Ranelli and the university’s external affairs and government relations staff briefed the finance committee on state budgeting activity in Olympia and recent gubernatorial budget submissions.
The update noted that Governor Ferguson submitted budget principles broadly consistent with Governor Inslee’s prior proposal but recommended making a native foods scholarship permanent. Ranelli said the current governor’s materials would help shape legislative negotiations but that the Legislature — not the governor — writes the state budget.
Why it matters: Ranelli told regents that the governor’s proposal indicated a 3% reduction in higher‑education funding overall but did not designate prescriptive line‑item cuts for the public baccalaureate institutions, an outcome WSU views as preferable. The committee also discussed a proposed state employee furlough option — one unpaid day per month over two years — that would equal roughly a 4.6% reduction in pay for affected employees if applied to higher‑education staff.
Key operational dates and processes mentioned included the March 18 revenue forecast (the update that often triggers final budget writing), an operating‑budget release in March, and an April 27 target sign date for the governor. Ranelli said WSU’s internal budget schedule is likewise tied to legislative timing and warned that a later legislative schedule would push WSU’s own planning timeline into May.
WSU’s lobbying posture: The committee heard that WSU has advocated for non‑prescriptive cuts so that the university maintains flexibility to allocate reductions internally rather than having the Office of Financial Management specify line‑by‑line reductions for individual institutions. Ranelli and other leaders said they have emphasized the university’s prior internal cuts and the need to protect core priorities during negotiations.
Additional federal intersections: External affairs staff briefed the committee about parallel federal budget uncertainties — continuing resolutions, reconciliation processes and agency actions — and said those dynamics further complicate FY26 planning because some federal earmarks and new program funds could be delayed if appropriations are not finalized.
Ending: Regents asked for continued regular updates. The finance team said it would return scenarios to the board as the Legislature and Congress move through revenue forecasts and appropriations milestones.
