Budget cuts really hurt.

<p><a href=“http://www.sheeo.org/finance/shef/SHEF_FY10.pdf[/url]”>http://www.sheeo.org/finance/shef/SHEF_FY10.pdf&lt;/a&gt;&lt;/p&gt;

<p>There is some interesting data in this report. Pages 28-33 are particularly relevant.</p>

<p>I don’t see the New Hampshire approach as particularly offensive. Vermont is a much more troubling example because despite relatively low state support the VT university system burns an awful lot of cash.</p>

<p>Some pretty interesting numbers there - particularly on net tuition dollars for Rhode Island. I think that OOS students have a pretty big influence on the numbers for some states.</p>

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<p>Washingtonians would go to Oregon to buy a car in order to avoid paying the sales tax which they would have been charged in Washington. Washington sales tax runs up to 10%, which is quite an incentive to drive south for a day of car-shopping. This situation is a “win” for Oregon car dealers; these are sales they wouldn’t otherwise have made. The losers, as you note, are car dealers in Washington, and the good people of Washington who lose tax revenues to fund UW, among other things.</p>

<p>California has always had the use tax. We’re <em>supposed to</em> report purchases for which we didn’t pay California sales tax, either online, by mail, or goods purchased in other states. This hasn’t been enforced in the past, but word is they’re going to start cracking down. I’m not sure how they’d know about such purchases for an individual, but where I work we are fastidious about reporting such purchases because the state audits us for this.</p>

<p>i guess when u register your car with the dmv (for california) they’d find out where u bought the car. folks going down to mexico to get a good deal (and a cute, different-looking car!) are probably gonna get slammed with fees this year!</p>

<p>You cannot register a car you bought in Oregon, in Washington without paying the sales tax unless you actually also lived outside Washington for a year. That’s how they get you. If you drive it with Oregon plates for too long in Washington they will stop you and you will have to pay the taxes plus a penalty–substantial penalty.</p>

<p>I guess cars are too easy to track…thank goodness expensive shoes and computers aren’t so visible to the taxman.</p>

<p>“Short-changing the schools is like eating your seed corn. The bad consequences roll decades into the future. For everyone.”</p>

<p>Amen. Ditto shortchanging support for nutrition/health for mothers and children. It’s really the same thing.</p>

<p>barrons, makes sense. My info is from when I was living in WA, 20 years ago. That’s how it was done back then, but they’ve caught on. </p>

<p>I also knew people from Seattle who drove to Portland to do their Christmas shopping, back-to-school-clothes shopping, etc. I wonder how Washington captures that lost revenue.</p>

<p>hanna: it really IS the same thing. no difference at all!</p>

<p>You’ve never been able to avoid paying sales (use) tax on vehicles purchased outside WA state but licensed in the State. My family had a relative who was a car dealer OOS and we always paid the tax. The State assesses value and you pay the tax (even if you paid less or say you paid less). The vehicle license fees are now quite reasonable - the flip side is the loss of revenue (and poor road/highway maintenance).</p>

<p>It is painful for a lifelong Husky to see good students head OOS. Worse yet, many of those students will not return to WA after graduation.</p>

<p>Same for Wyoming and Montana. Montana has no sales tax but Wyoming drivers who buy in Montana have to pay the wyoming sales tax when the register the car back home. Makes no difference if they bought it in Montana or Wyoming. I suspect the same is true in Washington.</p>

<p>Now that 55" TV will escape sales tax but not a car.</p>

<p>Wyoming has no Income tax, a 4% sales tax, and very low Property tax. But they tax the tar out of the coal and natural gas companies. There is not an old high school in the state that has not been rebuilt in the last few years with state money, not local bonds. They really put the cash into k-12 schools. BTW kids who graduate from a Wyo High School with at least a B and a decent ACT score go to college or trade school tuition free. No cuts in Wyo or North Dakota, in fact they are running deep in the black.</p>

<p>Wyoming is reaping a resource boom. Oil and gas companies are doing great given the turmoil in the Middle East and the new aversion to nuclear power due to the Japanese problems.</p>

<p>I’m a bit surprised that there are so many winks at not paying sales tax here in the context of states not getting enough in revenue.</p>

<p>Funding is to the point of being ridiculous in Colorado. CU/Boulder last year only received 5% of its funding from the state, and this year even that will be drastically cut. </p>

<p>There have been rumors flying about CU going private. The biggest problems are around real estate taxes and the limited liability afforded by being a state institution. If they solve those two issues, CU will be a private school.</p>

<p>The three top state schools, Colorado School of Mines, CU and CSU, are all in the mode of having a massive disparity in admission standards between in state and out of state students. It sounds like other states are similar. Does this mean that what we will end up with is massive “churn”, whereby a student in state “A” who can’t get into state “A”'s flagship goes to State “B” and a student in state “B” who can’t get into state “B”'s flagship goes to state “A”?</p>

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<p>I think that you are seeing it. There are states that don’t care that much about this and then there are other states with high taxes where residents feel that slots should be reserved for in-state students. I would hope that it would result in a stronger student body with higher requirements for OOS students. That said, those stronger students might wind up paying in-state rates due to merit aid.</p>

<p>8000= California is in this “churn” process right now. And hotly debated. Unless the OS students displace the low income/low performing HS student accepted at UC’s (Not going to happen, AA action alive and well with UC regents, doesn’t matter that it is “illegal”) no way the OS student is going to make a “stronger” student body for the UC’s, at least at the UC’s the OS student will be willing to pay 50,000 a year for.</p>

<p>I guess that California is a little different. It doesn’t have reciprocity agreements with other nearby states?</p>

<p>California participates in the WUE/WICHE program, but not all universities have the reciprocal agreements with OOS.</p>

<p>The program looks similar to the NERSP program in New England. NERSP publishes the numbers on students (by major and degree type) going from one state to another institution so that you can see where students are going for out of state public programs within New England.</p>

<p>Are most of the OOS students from the regional cooperative?</p>

<p>Quibble </p>

<p>some folks upthread dont understand the word “entitlement” in govt budgeting. Some programs are appropriated for each year. These are called discretionary programs. “1 million dollars will be spent in 2011 to buy widgets for Coast Guard”, etc. Some (at least at the federal level) have terms set by statute “Medicare shall pay for treatment Y for everyone over 65” and the dollar amounts are automatic. They are called “entitlements” because they are not appropriated year by year at legislative discretion. </p>

<p>State University subsidies, AFAIK, are discretionary in every state in the union. They are NOT entitlements.</p>

<p>BC Eagle,</p>

<p>According to website nearly 8000 students went out of state from California for neighboring states using WUE/WICHE discounts.</p>

<p>Only about 1026 students came into California using these discounts. </p>

<p>Granted, the students could only apply discounts at the following institutions:</p>

<p>Cal Maritime
CSU Bakersfield
CSU Chico
CSU Dominguez Hills
CSU East Bay
CSU Monterey Bay
CSU Sacramento
CSU Stanislaus
CSU Humboldt</p>

<p>There are 23 CSUs and 9 UCs. As you can see, that leaves many off the list.</p>

<p>So the question you asked earlier…the OOS students are paying full out of state fees for the majority of California public schools even within the WUE/WICHE program.</p>