Two key pieces of potential budget policy could affect tuition and financial aid. They are the tuition-setting power bill, Senate Bill 6562, and the governor’s proposed budget, which could ax State Need Grants.

The bill that would grant WSU Board of Regents tuition-setting power passed unanimously Friday in the Senate Higher Education Committee in Olympia.

Senate Bill 6562, sponsored by Sen. Derek Kilmer, D-Gig Harbor, would grant WSU, University of Washington and Western Washington University power to set tuition. The first draft of 6562 gave all state institutions that power. Because three other state universities declined to support it, they were not granted tuition-setting authority in the newest draft.

Also included in the bill is a continuation of the 14 percent annual cap on tuition hikes, as well as a 9 percent annual average cap. Performance agreements have also been added to the bill. The agreements are a type of contract that say the state will give the school a certain amount of money if the school meets certain benchmarks.

Sam Shaddox, ASWSU director of legislative affairs, supports performance agreements. They present a solution to the tuition-setting debate, he said Friday.

However, because the state is reluctant to enter that type of contract, Shaddox said the performance agreements in 6562 are too watered down to do much good.

Shaddox says ASWSU still stands behind the bill sponsored by Sen. Paull Shin, D-Edmonds, which would leave tuition-setting authority to the state. He pointed to schools that had taken advantage of tuition-setting authority and later regretted it.

He said a 14 percent increase every year, as outlined by Kilmer’s bill, would cause tuition to double every five years. He feels that if the bill passes, tuition caps could rise in the future.

However, the bill’s companion must pass in the state House of Representatives before it could be law.

“Right now, it doesn’t look like it’s going to pass,” Shaddox said.

Meanwhile, WSU will be forced to raise tuition or make cuts if the State Need Grant is not approved, Shaddox said.

About 4,000 lower-income WSU students rely on the grant for tuition and other college-related expenses, according to state Legislature testimony.

Gov. Chris Gregoire’s original Book 1 budget proposed a suspension of the grant, but her revised budget would reinstate nearly $150 million to the program.

However, this depends on the passage of a revenue package of more than $700 million. Due to the current political atmosphere, Shaddox said he doesn’t know if legislators are willing to vote for tax increases. If they don’t, the grant will be cut.

“If the State Need Grant falls out, students are screwed,” he said Friday.

He said the loss of the grant would significantly hurt WSU enrollment. To offset this, he said the university would have to raise tuition, cut programs or make administrative cuts.

“There’s not much more the university can do,” he said.