Dear Highline Community,

I want to take a moment to update you on current priorities of the Washington State Legislature that may significantly impact community and technical colleges across our state.

As lawmakers focus on balancing the state budget, addressing K–12 funding obligations, public safety, behavioral health, and other statewide priorities, higher education—and particularly the community and technical college (CTC) system—faces increasing fiscal pressure. While our colleges remain central to workforce development, economic mobility, and regional economic growth, budget proposals under consideration may not fully address the structural challenges we are experiencing.

In collaboration with the Washington State Board for Community and Technical Colleges (SBCTC), we continue to advocate for sustainable funding solutions. However, it is important that our workforce understand the four cumulative drivers behind the community and technical college sector’s current budget challenges:

1. Tuition Cap Constraints
   In 2015, the Legislature began basing tuition increases on “the average annual growth rate of the state’s median hourly wage over the previous 14 years.” While well-intended, this policy has steadily eroded colleges’ ability to respond to reductions in state funding and rising inflation.

During the Great Recession (Dec 2007 – June 2009), when enrollment surged and state funding was reduced, colleges were able to meet student demand because tuition revenue helped fill funding gaps. Now, as enrollment rebounds following the Covid-19 pandemic, the combination of long-term state funding erosion and restricted tuition growth prevents us from scaling programs and services to meet our renewed student demand.

2. The State Not Fully Funding COLAs
   When cost-of-living adjustments (COLAs) are authorized but not fully funded, the difference becomes a permanent budget shortfall for colleges. Because financial margins are extremely slim, covering these gaps often results in direct reductions to student services, staffing, and program capacity. Over time, these ongoing shortfalls compound structural deficits.
3. Growth in Provisos (Restricted Funding)
   An increasing percentage of college budgets is tied to provisos—targeted funds restricted for specific purposes—while flexible operating dollars continue to shrink. At the same time, general costs such as inflation and unfunded COLAs continue to rise. The imbalance between restricted and flexible funding has reached an untenable level, limiting our ability to manage core operations effectively.
4. Inflationary Pressures
   The daily cost of operating a college—electricity, water, insurance, software licenses, supplies, and contracted services—has increased dramatically. These basic operational expenses are unavoidable. Yet our ability to absorb these increases is constrained by limited revenue flexibility and insufficient state backfill.

These factors are cumulative, not isolated. Together, they create a structural challenge that affects every college in the system. Without policy adjustments or increased flexible funding, colleges may be forced to make difficult decisions that directly impact students, programs, and staffing levels.

System-wide, chancellors and presidents are committed to clear and transparent communication as the legislative session moves forward. Together, educators, staff, students, and community leaders, have a powerful and respected voice. By staying engaged and sharing your experiences, you help policymakers understand the essential role we play in advancing workforce development, expanding opportunity, and supporting student success.

I am immensely grateful for the dedication and care you bring to this work each day and for the difference you make across our colleges and communities. Thank you!

Kind regards,

Jamilyn Penn, EdD

Interim President

Highline College