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COVID-19

Washington, Idaho colleges to receive $281 million from federal stimulus package

A large sculpture of a cougar wears a face mask at dusk on Friday, outside Washington State University’s Martin Stadium in Pullman. The university, like others in the region, is counting on a federal relief funds to soften the financial blow of the COVID-19 pandemic. (Geoff Crimmins / AP)

Colleges and universities in Washington and Idaho are expected to receive about $281 million from a federal stimulus package aimed at dampening the economic impact of the COVID-19 pandemic.

At least half of that money will go directly to students in the form of emergency grants to help with tuition, child care, technology and other needs. Schools will have some discretion in how they spend the rest, although officials at several Eastern Washington institutions say they’re awaiting clarification from the U.S. Department of Education on what kinds of expenditures will be permitted.

The money comes from the $2 trillion Coronavirus Aid, Relief and Economic Security, or CARES, Act that Congress passed in late March.

It’s welcome assistance for colleges and universities struggling with sudden drops in revenue, as students have moved out of dormitories, canceled meal plans and demanded refunds for services like bus transportation and access to the campus gym.

Some schools also worry about declines in enrollment, which would mean less tuition revenue, as well as broader economic impacts such as a decline in Washington’s sales tax revenue, which could limit how much lawmakers devote to higher education.

Nearly $12.6 billion from the CARES Act is earmarked for higher education institutions and students nationwide.

Schools in Washington are expected to receive a total of $224.3 million. That includes $21.7 million for Washington State University, $10.4 million for Eastern Washington University, $4.2 million for Spokane Community College, $3.5 million for Spokane Falls Community College, $2.7 million for Gonzaga University and $2.6 million for Whitworth University.

The University of Washington is expected to receive more than any school in the state – nearly $38.8 million for its campuses in Seattle, Bothell and Tacoma.

Schools in Idaho, meanwhile, are expected to receive a total of $57 million, including $7.3 million for the University of Idaho and $2.3 million for North Idaho College.

Students at each of those schools continue to take most courses online due to gathering restrictions aimed at preventing transmission of the novel coronavirus. School officials are struggling to gauge how their institutions are being impacted financially, as it’s unclear how long the social distancing measures will go on.

Gonzaga University

In an email to faculty, staff and administrators on Tuesday, Gonzaga President Thayne McCulloh said the university’s decision to refund students for housing, meals and gym fees has cost about $7.2 million.

“Given these refunds, and prior-COVID-19 additional expenses in areas such as financial aid and tuition waivers, our projected revenues now amount to negative $8.8 million,” he wrote.

But administrators have found opportunities to reduce spending in other parts of the university, McCulloh wrote.

“Although some technology-related expense has been necessary, through a combination of slowdowns in hiring, a decrease in travel and related expenses, the recovery of certain utilities costs and a variety of other operational expenses, we have identified approximately $4.3 million that can help to offset the negative revenue performance,” he wrote.

McCulloh said all employees will be “fully compensated” at least through April 30. Gov. Jay Inslee’s stay-home order is scheduled to expire May 4, although Inslee indicated Tuesday he is not ready to lift most restrictions.

Gonzaga, like other schools, is still figuring out how it can spend its portion of the CARES Act money.

“We await further clarification as to what the remaining funds can be used for, as well as when the allocation will be made,” McCulloh wrote.

Whitworth University

“Like most every university, we have vacated our campus except for those students who couldn’t leave – mostly international students,” said Larry Probus, Whitworth’s vice president for finance.

“We probably have 40 to 50 students still on campus, and we have a very scaled-back food service for them,” Probus said. “For all the other students who had paid room and board, we gave credits and/or refunds for the unused portion of their room and board.”

Probus said Whitworth also has given credits and refunds for canceled study-abroad trips that students had paid for.

“Those are the primary costs we’re incurring because of the COVID response,” he said.

It remains to be seen how the pandemic will affect enrollment.

“I don’t think anybody knows what the fall semester is going to hold,” Probus said.

“Obviously, if we had to have a continuation of online instruction as we did for the end of the current semester, that would be very challenging for us,” he said. “But even if we’re able to resume having classes on campus, there are questions and concerns about, will fewer students come because of the economic stress their families have been placed under?”

Whitworth currently anticipates a roughly $3 million loss due to disruptions from the pandemic, Probus said, meaning the university won’t break even with only its portion of the CARES Act money.

“It certainly helps a lot, but it definitely will not cover it,” he said.

Eastern Washington University

EWU spokesman Dave Meany said the university has lost close to $7 million in housing and dining revenue. Usually about 1,500 students live on the Cheney campus, but now that number is down to a few hundred, he said.

EWU may have lost some enrollment, but the university won’t need to return much, if any, tuition money due to the pandemic, Meany said. The social distancing orders began during EWU’s spring break, between academic quarters. Unlike those at schools that use the semester system, EWU students weren’t disrupted partway through their courses.

“For lack of a better word, we got a bit of a break,” Meany said.

Community Colleges of Spokane

CCS is the district that includes Spokane Community College and Spokane Falls Community College.

SCC President Kevin Brockbank said the colleges have been juggling many new expenses, including stepped-up cleaning regimens and technology updates. And that’s on top of dwindling enrollment.

“A bunch of little examples like that add up to a lot, at this point,” Brockbank said. “And we don’t know, frankly, what the total will be on that, because I think we all have some anticipation that the governor could extend his stay-home order.”

Brockbank said college administrators have been posing numerous questions to federal officials about restrictions on CARES Act spending.

“We’re getting a trickle of information from the Department of Ed on what are allowable ways to spend that, and so we’re trying to sift through some of the confusion there,” Brockbank said. “There’s been conflicting guidance on some of that.”

Washington State University

WSU spokesman Phil Weiler said the university already has given refunds for student housing and dining services, as well as the option to credit those payments toward future expenses.

“We are looking at each of those fees line by line and determining which of those we can provide refunds for and which ones we can’t,” Weiler said.

Some money won’t be easy to refund. Weiler noted a portion of fees for WSU’s recreation center pays for staff, maintenance and gym equipment, while the rest pays off debt from the construction of the building – an arrangement the student body voted to approve years ago.

Without that fee revenue, “we’re going to default on that debt service, which is something I don’t think anybody wants us to do,” Weiler said.

As for tuition, Weiler said “students always have the ability to petition for a tuition refund if they have an extenuating circumstance,” like getting injured in a car accident or experiencing a family emergency. “That petition process is still in play with COVID-19.”

WSU celebrated last year when it eliminated a $30 million deficit in its main operating budget, marking the first time since 2013 that the university broke even or ended a fiscal year with leftover funds. Now the university could be forced to dip into its reserves again.

“I think it’s early to put specific numbers on it, but obviously all revenue sources are at risk,” Weiler said. “We’re on track to put money back into out reserves – or at least we were before COVID-19.”

Weiler said WSU will likely use its portion of the CARES Act money to cover the cost of transitioning to online instruction.

“I think there’s a need for clarity among universities in terms of what that money can be used for,” he said.

University of Idaho

In an email to students, faculty and staff on Tuesday, UI President Scott Green announced the university will freeze hiring and limit paid overtime work and administrative leave.

The decision comes after UI slashed its budget by $22 million and Gov. Brad Little ordered additional 1% cuts across state agencies. UI spokeswoman Jodi Walker said school officials are particularly worried about enrollment, which has been waning for years already.

“It is, nevertheless, important for the University of Idaho to support the fight against COVID-19 – the infection and the financial impact – both in spirit and in deed,” Green wrote. “It is my hope that quick actions will help prevent COVID-19 from undoing much of what we have already accomplished financially this year and better position us to overcome the financial obstacles ahead.”