With nearly 10,000 employees spread throughout Washington and over 25,000 students enrolled in classes in 2024, WSU generated nearly $4 billion dollars for the state that year alone. However, without a state income tax, the state has missed out on fully tapping into this potential source of income.
Though not merely a result of no state income tax, Gov. Bob Ferguson and state legislators are now facing a state budget deficit exceeding $2 billion. Among other things, the governor’s proposed operating budget proposes a multifaceted plan including cuts to WSU’s state funding by 3.2%, or about $11 million.
In a statement to faculty and staff, President Cantwell said her administration has taken proactive steps to reduce the university’s operating budget, notably by making cuts to the administration itself and eliminating educational and community programs, such as the Yakima-based PharmD program and WSU’s Autism and Neurodevelopmental Clinic in Spokane.
Noticeably absent from Cantwell’s letter is an acknowledgment of the increased strain on students. Last November, the WSU Board of Regents voted to increase tuition by 3.3%, marking the tenth consecutive year WSU has increased tuition and the third consecutive year the university has done so by the maximum amount permitted.
As an R1 research institution, rated for “very high research activity,” state-wide and system-wide budget cuts may also impact faculty and student research, programs and more. Cantwell said during this upcoming budget cycle, the university will continue to review resources and programs to ensure the greatest impact for students and the state.
“In this coming budget cycle, we will continue our strategic review to ensure our resources are aligned with programs that deliver the greatest impact for students and the state,” she said. “We will need to adapt to continue to prioritize student success, research with impact, and community engagement.”
Budget cuts and increased tuition come amid broader admission struggles. Just last year, WSU announced the third consecutive year of first-year enrollment growth, despite facing an overall enrollment that remains the lowest in a decade, down nearly 20% after six consecutive years of decline.
Despite declining enrollment system-wide, WSU reportedly generated $12 in economic impact for every $1 it received in state funding. A decade earlier in 2015, WSU reported a generated $3.4 billion, or $18.87 for every $1 it received.
This report comes from Community Attributes Inc., an outside community and economic development consulting firm WSU hired to evaluate the economic contributions the university provided to Washington in 2024. The last report of its kind was conducted in 2015, also by Community Attributes Inc.
To conduct its study, the firm used operational data provided by WSU, including but not limited to revenue, expenditures, employment, enrollment, research and athletics. The firm gathered additional information from state and federal data, including the Washington Department of Revenue.
The firm used the Washington State Input-Output Model, a state-wide standardized method for estimating broad economic impacts.
