11 bill package:◦ Revenue bill; Bond bill; Spending Plan; 8 “reforms”
$15.0 Billion Spending Plan◦ Funds 6 “megaprojects” & 58 regional projects◦ $3.5 million – Safe Routes to Schools Grants
11.7 cent gas tax increase
SB 5990-Exempts certain transportation projects from sales tax; diverts other trans sales tax from General Fund to transportation
3
“Early Action” Supplemental, HB 1105
$217.9 million increase over 2013-15
Funds:◦ Wildfires & Oso landslide◦ Mental health beds (Supreme Court)◦ In-home care compensation (Supreme Court)◦ Extended foster case services
Signed Feb. 19
4
Superintendent’s RequestK-12 Education - $3.18 billion
School Construction Assistance Program - $1.14 billion
K-3 Class-size Reduction - $1.98 billion
Local Assistance Grants - $50.2 million
Energy Grants - $8.0 million
Skills Centers - $43.7 million
5
Governor’s RequestK-12 Education - $657.2 million
“Fully Funds” School Construction Assistance Program - $596.1 million
All-day Kindergarten - $10.0 million
Small Repair/Healthiest Next Generation - $5.0 million
Skills Centers - $36.1 million
6
SB 5859 (and HB 2161)◦ Enhancements to Construction Cost Allowance &
Student Space Allocation◦ Raises minimum funding floor from 20 percent to
30 percent
HB 1941/HJR 4210◦ Simple Majority for school district bonds◦ November election only
7
10
Basic Education (HB 2261/HB 2776) $7.2 billion
Basic Education: CTE $169,800,000
High School Graduation Rates ($29,360,000)
Dropout Prevention/Student Support $31,730,000
Technology Literacy $139,000,000
Professional Learning Support System $10,990,000
WaKIDS Grants $1,492,000
Bus Depreciation $676,604
Seattle Children’s Hospital $931,378
Student Information/Customer Support $410,700
Data Privacy $442,000
CTE Course Equivalency $250,000
Certification Fee Increase $1,787,000
PESB Cut ($594,704)
10
Superintendent Dorn 2015-17 Budget ProposalSuperintendent Dorn 2015-17 Budget ProposalK-12 Education Policy EnhancementsK-12 Education Policy Enhancements
11
Expenditure Category
School Year
2015-16 2016-17 2017-18
Early Elem. Class Sizes $202,812,515 $458,130,044 $789,926,548
Later Grade Class Sizes $133,333,329 $283,414,747 $454,901,508
Support Staff $355,610,606 $717,775,681 $1,086,485,908
Program Hours $103,507,914 $243,698,593 $475,794,541
Prof. Development $144,351,361 $305,633,637 $490,144,289
Compensation $2,489,265,379 $2,767,697,512 $3,336,149,391
TOTALS $3,428,881,103
$4,776,350,213
$6,633,402,184
11
Supt. Dorn 2015-17 Budget ProposalSupt. Dorn 2015-17 Budget ProposalBasic Education Enhancement, HB 2261/HB 2776Basic Education Enhancement, HB 2261/HB 2776
Source: OSPI, 10/14
1313
Basic Education (HB 2776) $1.3 billion
MSOC $751.8 million
K-3 Class Size $448.1 million
Full-Day Kindergarten $107.6 million
Promoting Student Success $40.7 million
High School Graduation Rates $18.1 million
High-Quality Teaching/Instructional Leadership $30.4 million
Compensation $596.6 million
K-12 Total $1.99 billion
Gov. Inslee 2015-17 Budget ProposalGov. Inslee 2015-17 Budget ProposalK-12 Education Policy EnhancementsK-12 Education Policy Enhancements
1515
Education Funding Task ForceAdopted Spending Plan
Source: Joint Task Force on Education Funding, Final Report, 12/12
1616
Initial Initial McClearyMcCleary Basic Education Basic Education InvestmentInvestment
2013-15 Operating Budget2013-15 Operating Budget
$5
$4
$3
$2
$1
$0
Bill
ion
s
1717
State’s K-12 Funding PromisesTestimony Under Oath During McCleary Trial
(Per Pupil State Funding)
Source: Network for Excellence in Washington Schools, 9/14
1818
$7,279 per pupil funding, as adopted in 2ESSB 5034 (2013-15 budget)
$9,710 per pupil funding by 2017-18, as testified in trial—does not include market rate salaries, inflation after 2007-08 or capital construction needs
$12,701 per pupil funding by 2017-18, promised funding including market rate salaries ($2.9 billion) as recommended by Compensation Technical Working Group (June 2012)◦ Calculation: $9,710 + $2,991=$12,701 per pupil
18
State’s K-12 Funding State’s K-12 Funding PromisesPromises
1919
Real and Steady Progress Towards Full Funding— State Testimony vs. Actual Funding, 2013—
(Per Pupil State Funding)
Source: Network for Excellence in Washington Schools, 9/14
2020
Real and Steady Progress Towards Full Funding— State Testimony vs. Actual Funding, 2014—
(Per Pupil State Funding)
Source: Network for Excellence in Washington Schools, 9/14
2121Source: Network for Excellence in Washington Schools, 1/15
Real and Steady Progress Towards Full Funding— State Testimony vs. Actual /Proposed Funding—
(Per Pupil State Funding)
24
“The McCleary ruling’s statutory components derive from HB 2776 (2010) which required funding enhancements in four areas by the 2017-18 school year: transportation (completed in 13-15), MSOC (required to be done in 15-17), and all-day kindergarten and K-3 class size reduction (required to be done in the 17-19 biennia).”
- Sen. Andy HillWays & Means Chairman
24
McClearyMcCleary & Compensation & Compensation
25
In 2009, ESHB 2261 adopted, establishing a new definition of basic education and a new education funding system.
ESHB 2261 stated the Legislature’s intent to “enhance the current salary allocation model,” with the understanding that “continuing to attract and retain the highest quality educators will require increased investments.”
25
McClearyMcCleary & Compensation & Compensation
26
“Substantial evidence at trial also showed that the State consistently underfunded staff salaries and benefits. Testimony revealed that the State allocation for salaries and benefits fell far short of the actual cost of recruiting and retaining competent teachers, administrators, and staff.”
- McCleary rulingJan. 5, 2012
26
The Court & CompensationThe Court & Compensation
27
“Another area in which the State's Report falls short concerns personnel costs. Quality educators and administrators are the heart of Washington's education system. The Report … skims over the fact that state funding of educator and administrative staff salaries remains constitutionally inadequate.”
- McCleary OrderJan. 9, 2014
27
The Court & CompensationThe Court & Compensation
28
“Nothing could be more basic than adequate pay. The inescapable fact is that salaries for educators in Washington are no better now than when this case went to trial....It is deeply troubling that the State's Report does not address this component of ESHB 2261 or offer any plan for meeting its goals.”
- McCleary OrderJan. 9, 2014
28
Supreme Court & Supreme Court & CompensationCompensation
29
Enacted in 2009, ESHB 2261
Convened in July 2011
Statutory Charge: Recommend the details of an enhanced salary allocation model that aligns state expectations for educator development and certification with the compensation system.
Report submitted in June 2012
2929
Compensation Technical Working Compensation Technical Working GroupGroup
303030
1)Increase the Starting Salary for Teachers and Educational Staff Associates to $48,786
2) Provide Fair Market-based Salary Allocations for all K-12 Staff
3) Maintain Comparable Wage Levels through an Annual Cost of Living Adjustment and Periodic Wage Analysis
4) Align the Salary Allocation Model to the Career Continuum for Educators
5) Invest in 10 Days of Professional Development
Compensation Technical Working Compensation Technical Working GroupGroup
June 2012 RecommendationsJune 2012 Recommendations
313131
6) Allocate Mentors and Instructional Coaches in the Basic Education Funding Formula
7) Provide Appropriate Staffing Levels and Increased Program Support for Basic Education
8) Amply Fund State Basic Education Salary Allocations and Limit Locally Funded Salary Enhancements to No More than 10% of the State Allocation
9) Ensure School Districts receive the Same or Higher State Salary Allocations per State-funded Employee
Compensation Technical Working Compensation Technical Working GroupGroup
June 2012 RecommendationsJune 2012 Recommendations
Full Report at: http://bit.ly/1qeFvcb
32Note: Salaries are for all programs and do not include benefits
Source: OSPI, 9/14
School District Employee SalariesSchool District Employee SalariesPercentage of Average Salary Paid by State and Local DistrictPercentage of Average Salary Paid by State and Local District
Key Recommendations:
Fund the full cost of basic education labor first, followed by other improvements as outlined in ESHB 2261 and SHB 2776
Update and implement recommendations of Compensation Technical Working Group
Recognize and mitigate impact of any reduction to local levy authority on districts’ ability to meet financial obligations
Local Funding Workgroup
White Paper: http://bit.ly/1wxMg3a Talking Points: http://bit.ly/1GACQ7l
3434
Where will the Legislature find theWhere will the Legislature find thefunds to enhance K-12 Education—funds to enhance K-12 Education—and other necessary state services?and other necessary state services?
Revenue Growth?Revenue Growth?
Spending Reductions?Spending Reductions?
Tax Increases?Tax Increases?
353535
Four-year Budget Outlook(Dollars in Millions)
Source: Economic & Revenue Forecast Council, 11/14
3737Source: Office of Financial Management, 8/14
Spending Reductions? Two-thirds of the Spending Reductions? Two-thirds of the statestate
budget constitutionally or federally budget constitutionally or federally protectedprotected
383838
General Fund-State Revenues asGeneral Fund-State Revenues asPercentage of Washington Personal IncomePercentage of Washington Personal Income
Source: Office of Financial Management, 12/13
3939
Taxable Sales as Percentage of Personal Income
Source: Economic & Revenue Forecast Council, 9/14
Daniel P. SteeleAssistant Executive Director,
Government Relations825 Fifth Avenue SEOlympia, WA 98501
360.489.3642
ERNN 2015 Annual Conference