Beat Note

The Economy: Washington State University

Introduction
The economy has quickly become a highly controversial issue that has incited a vigorous political debate. This is especially true because of the trouble it is currently causing in regards the national economy. An economy is not a specific size. It can be used to describe the entire world (international market), a country (national economy) or a city (local economy), as long as it is involved in the production of goods and services.
It is important for the average individual to understand at least the basic mechanisms of the nation’s economy. The news media has already partially informed Americans about the economy’s influence on the international and domestic stock markets, state and local government’s budgets, interest rates, unemployment rates and retirement plans. It will be the focus of this beat to examine the effects of the national and local economies on the average individual (student or employee) in Pullman, Wash. and Washington State University.
The growing financial crisis began in July of 2007. It was initially referred to as the “credit crunch” or “credit crisis” by the United States news media. The economic volatility peaked in September of 2008 when a variety of international stock markets crashed, causing a myriad of banks, mortgage lenders and insurance companies to fail. The crisis is often attributed to the collapse of America’s housing market but, America’s financial system was already volatile because of highly insecure financial contracts.
The economic crisis at first, affected only those directly involved with home construction and mortgage lending such as Countrywide Financial. Mortgage lenders, Fannie Mae and Freddie Mac, were then taken over by the Federal government. Washington Mutual, the largest savings and loan association in the United States also failed.
As a result, the United States Congress passed a 700 billion bailout plan for the finance industry. Consequently, Congress also passed legislation that gave 25 billion to the “Big Three” (Ford, GM and Chrysler) in order to bailout the automotive industry. This has ultimately caused a variety of industries to seek a Federal bailout, including the adult entertainment industry.
Washington State officials are projecting a 5 billion dollar deficit for the next two-year budget. Governor, Christine Gregoire says this could increase to 6 billion due to the deteriorating economy. Gregoire has asked the state’s colleges and universities to prepare for a 20 percent budget cut, or 600 million over the next two years.
Washington State University has already begun to prepare for the hard economic times. President, Elson S. Floyd implemented a hiring freeze during the spring and took a cut in pay.

Story Proposals

1. The hiring freeze and its effect on student employees and/or hiring new professors, deans and professional support.


2. Statewide budget cuts and how it’s affecting Washington State University.


3. How budget cuts within departments at Washington State University are influencing other WSU businesses.


4. The housing market and how it’s performing in Pullman and the effect of low interest rates on real estate.


5. Pullman’s financial situation as compared to other cities in Washington.


6. Washington State University’s financial situation as compared to the University of Washington.

Relevant News Articles

1. “Gregoire looking at massive state budget cuts” by Andrew Garber, The Seattle Times, http://seattletimes.nwsource.com/html/politics/2008451090_budgetcuts30m.html.


2. “WSU finds ways to deal with steep budget cut” by Andy Jones, The Daily Evergreen, http://www.dailyevergreen.com/story/27333.


3. “Academic budget to be cut by $2.5 million” by Staff Reports, The Daily Evergreen, http://www.dailyevergreen.com/story/27306.


4. “Economy drives universities to stall hiring” by Karlee Weinmann, MN Daily, http://www.mndaily.com/2008/11/23/economy-drives-universities-stall-hiring.

Potential Sources

1. Joan King, Executive Director of Planning and Budget


2. Javin Bakke, ASWSU Senator


3. Shawn Hoch, Executive Director of Dining Services


4. Greg Blanchard, Manager/Chef


5. Madeline Verochio, University Relations Assistant