Last week, we posted a policy brief comparing the House and Senate budgets’ treatments of higher education. Both budgets propose significant tuition hikes on state-resident undergraduate students, with the increases in the Senate budget somewhat greater than those in the House budget (11–16 percent vs. 11–13 percent).

These proposals are now irrelevant, however. Early this week both chambers approved Engrossed Second Substitute House Bill 1795. This bill gives the four-year institutions authority to set their own resident undergraduate tuition rates for the next eight academic years. Gov. Gregoire has said that she will sign the bill (Seattle Times story here).

For academic years 2011-12 through 2014–15, this tuition setting authority is unlimited. For academic years 2015–16 through 2018-19, tuition for each institution is capped at the lesser of (1) the 60^th percentile of tuition at similar institutions in the Global Challenge States (the top performing states on the New Economy Index published by the Progressive Policy Institute) or (2) the tuition that would place the institution at the 60^th percentile of total funding (tuition plus state funding) per student at similar Global Challenge States institutions.

Institutions will be able to vary tuition rates by field of study.

Under E2SHB 1795’s provisions, the legislature would continue to set tuition rates for the community and technical colleges. The bill does allow the State Board for Community and Technical Colleges to authorize differential tuition models.

Depending on how much it hikes tuition, each four-year school is required to use either 4 or 5 percent of tuition revenue for financial aid, with need-based financial aid available to students from families with incomes up to 125 percent of the state’s median family income. The community and technical colleges must use 3.5 percent of tuition for financial aid.

Schools may charge tuition to Running Start students (high school students who enroll in college courses for simultaneous high school and college credit) equal to 10 percent of the resident undergraduate tuition.

Responding to news reports that increasing numbers of high paying out-of-state students are crowding out state residents at the UW, the bill requires the UW to enroll at least as many resident freshman each year as it enrolled in the 2009–10 academic year.

The bill also contains provisions related to accountability, transfer and prior credit policy, and regulatory relief for the institutions. The bill reportprovides some more details. The intrepid can read the bill itself.