By Emily S. Rueb
May 8, 2019 - The New York Times
Washington State lawmakers have taken a major step toward offering free or reduced college tuition using funds from businesses there, including Amazon and Microsoft, in a move that is being applauded by policy analysts for its innovation and reach.
Last week, state lawmakers passed the Workforce Education Investment Act, which would raise almost $1 billion over a four-year period with a surcharge on companies that employ highly skilled workers, like accounting, engineering, architecture and consulting firms, and the technology behemoths that operate in the state.
The bill, which is before Gov. Jay Inslee, a Democrat, would effectively provide free or reduced tuition for lower- and middle-income students attending community colleges and public institutions, provide new funding for strapped community colleges and eliminate wait lists for financial aid beginning in 2020.
“It’s a game changer for the state,” said Michael Meotti, the executive director of the Washington Student Achievement Council, a state agency that focuses on education.
Forty percent of high school students in Washington earn advanced degrees or certifications before age 26, and Mr. Meotti said the measure would “increase college-going success.”
Full tuition support and fees would be available for students from families of four earning about $50,000 a year or less, with partial scholarships for students from households making up to the state’s median income, which is about $90,000 a year for a family of four.
In most cases, people who have lived in the state for at least a year would qualify, as long as the purpose of relocating was not to attend college.
The fund would also apportion about $200 million for community colleges, public four-year colleges and universities, and apprenticeships, according to State Representative Drew Hansen, a Democrat who sponsored the bill.
Counseling and advising services would be expanded to make it easier for students to complete credentials to get into the work force, as would degree programs in high-demand fields such as nursing, computer science and engineering.
“I think it’s going further than virtually any state has to address both the challenge of affordability for students and the underfunding of colleges,” Sara Goldrick-Rab, a professor of higher education at Temple University, said.
Professor Goldrick-Rab said the measure was more flexible than other initiatives, such as New York State’s Excelsior Scholarship program, which requires applicants to reside in the state after graduation and covers only two- to four-year degree programs.
“This is a much more efficient and cost-effective bill,” she said.
Mr. Hansen said the bill was partly designed to help people in their 50s and 60s who have fallen on hard times get better jobs.
Mr. Hansen also noted that Washington’s proposal is more comprehensive than initiatives in other states, such as Tennessee’s Promise program, which offers two years of free tuition at community or technical colleges.
Tennessee’s program is funded by proceeds from the state lottery, but Washington’s will raise funds through a surcharge on “businesses that depend on higher education to survive,” Mr. Hansen said.
The state would place a surcharge on companies in fields such as engineering, accounting and consulting that pay the business-and-occupation tax, which is a tax on gross receipts.
The largest tech firms would pay a higher rate, up to $7 million a year.
Ana Mari Cauce, the president of the University of Washington, told The Seattle Times that the funding would provide a cushion for financial downturns.
“We talked about the importance of this being the year for higher education,” she said, “and I think the Legislature did that.”
Governor Inslee has, in the past, supported measures to increase funding for financial aid. He is still reviewing the bill, according to a spokeswoman, and could act as soon as next week.
While some smaller businesses and physicians operating rural clinics have resisted the increases, according to The Times, two resident tech giants have expressed support.
Brad Smith, the president of Microsoft, said in a joint op-ed in The Times in March that he supported paying “a bit more” to the fund because his company and others in the tech sector rely on highly educated workers.
On Tuesday, Mr. Smith said in a statement that he applauded the Legislature “for passing a sustainable, recession-proof funding model that empowers our next generation.”
Amazon also endorsed the bill.
“We have a long history of supporting local education,” the company said in a statement. “We welcomed the constructive dialogue on H.B. 2158 and are supportive of the outcome that delivers increased funding for higher education in Washington State.”
Mr. Hansen said there had been “a lot of talk about free colleges,” especially by politicians.
“This is not free college as an empty slogan,” he said. “This is free college that is real, and funded by a dedicated revenue source, which I think is unusual.”