OPERATING BUDGET

Compensation: $53.9 million in new state appropriations is provided for
increased compensation. This amount includes funding to implement all
negotiated collective bargaining agreements. In addition, funds are provided
to ensure at least a 3.2% and 2.0% cost of living adjustment over the next
two years for faculty and other non-represented professional staff, effective
September 1 of each fiscal year. Funds are also included for employee health
insurance benefit changes.

Enrollments: $23.6 million is provided for 1,630 new enrollments during the
next two academic years. This includes 500 new undergraduate enrollments on
the Seattle campus (250 per year) for math, science, engineering and other
high demand fields; 210 new graduate enrollments on the Seattle campus (105
per year); 480 new enrollments for the UW Tacoma campus (240 per year); and
440 new enrollments for the UW Bothell campus (220 per year).

Research: $10.1 million is provided in new funding for research initiatives.
This includes $6.3 million for Department of Global Health; $3.3 million to
support operations and maintenance of the new Benjamin Hall Interdisciplinary
Research Building; and $500,000 to enhance the University technology transfer
“gap fund” used to help commercialize research discoveries.

WWAMI/RIDE: $4.5 million is provided in the UW operating budget for the
medical and dental school expansion in Spokane.

Partners for Our Children: The Governor’s 2007 Supplemental Budget includes
$1 million one-time funding to assist with the establishment of a “best
practices” center at the University of Washington School of Social Work to
research factors affecting the well being of foster children.

Other: Other items which received funding include $500,000 in new resources
to help improve retention rates for low income and first generation students;
$340,000 to support the Washington Academy of Sciences; $225,000 for the
William Ruckelshaus Center (plus $25,000 in the 2007 supplemental budget);
and $168,000 for support of the UW State Climatologist.

CAPITAL BUDGET

Restore the Core: The UW’s “Restore the Core” package of requests to
renovate historic buildings on the Seattle campus is funded with $94 million
in new state capital appropriations. This includes full funding of
construction for Savery Hall, Clark Hall, Playhouse Theater and Magnuson
H-Wing (also received $3.0 million from local funds). In addition, full
funding for planning and design is provided for the next phase of restoration
projects including Balmer Hall, Lewis Hall and Denny Hall.

Data Center: The budget provides $25.0 million to construct a new primary
Data Center in the UW Tower and to provide ongoing campus computing and
communications infrastructure and connectivity.

Interdisciplinary Academic Building: $5.0 million is provided for pre-design
and design for a new facility that will enable significant advances in the
UW’s molecular engineering program.

UW Tacoma Phase 3: $6.2 million is provided for pre-design and design for
major renovation of the Joy Building, including the addition of a fourth
floor. This will provide nearly 70,000 square feet of additional classroom
and faculty office space.

UW Bothell Phase 3: $5.0 million is provided for pre-design and design for a
multi-purpose academic building to accommodate a capacity increase of at
least 600 student FTE’s.

Intermediate Student Service and Classroom Improvements: $8.4 million is
provided to continue renovation of general assignment classrooms on the
Seattle campus, consolidate and modernize space for Student Services programs
and provide classroom space for the WWAMI/RIDE medical and dental expansion.
The amount provided is $6.6 million less than the UW had requested.

Minor Works: As requested by the University, minor works preservation and
program projects would be funded through local building account funds.

There is a long legislative road ahead for this budget to become a reality.
We will be working hard in the coming months to make sure the Legislature
understands our needs and the very positive ways in which the Governor’s
budget addresses them. I will keep you posted from time to time on how we are
doing.