wasa 113 superintendents’ component group tumwater, march 26, 2014
TRANSCRIPT
Legislative Review2014
WASA 113 Superintendents’ Component GroupTumwater, March 26, 2014
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Background◦ Setting the Stage for the 2014 Session
2014 Supplemental Budget Overview◦ Operating Budget
McCleary Impacts◦ Capital Budget
Key Legislation
2015-17 Biennium
2014 Legislative Review
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Even-year “short” session, limited to 60 days◦ (Convenes: Jan. 13; Sine Die: March 13)
Major focus:◦ 2014 Supplemental Budgets
Tweaks to 2-year Operating & Capital Budgets
◦ Policy issues All un-adopted bills reintroduced
◦ Full Transportation Budget & Revenue Package
Setting the Stage for 2014
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14 new members in Legislature◦ 8 new House members◦ 6 new Senate members (5 from House)
Legislative Control:◦ House: D’s maintain control, 55-43◦ Senate Majority Coalition (23 R’s + 2 D’s) gain 1
new R, control with 26-23 members
Budget Situation: Ending Fund Balance◦ June ’13 - $53 million◦ November ‘13 - $214.9 million◦ February ‘14 - $228.9 million-
Setting the Stage for 2014
The Legislature took “meaningful steps in the 2013 legislative session to address the constitutional imperative of amply providing for basic education.”
The funding provided, however, represents “only a 6.7% increase over the current constitutionally inadequate level of funding” and the state “cannot realistically claim to have made significant progress when its own analysis shows that it is not on target to implement ESHB 2261 and SHB 2776 by the 2017–18 school year.”
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January Supreme Court Order
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The Legislature failed to comply with the Court’s December 2012 Order and the new Order directs the state to “submit, by April 30, 2014, a complete plan for fully implementing its program of basic education for each school year between now and the 2017–18 school year.” The plan must also include “a phase-in schedule for fully funding each of the components of basic education.”
The 2014 session presents “an opportunity to take a significant step forward.”
January Supreme Court Order
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“The need for immediate action could not be more apparent. Conversely, failing to act would send a strong message about the state’s good faith commitment toward fulfilling its constitutional promise.”
The Legislature must “demonstrate, through immediate, concrete action, that it is making real and measurable progress, not simply promises.”
http://1.usa.gov/1evdg54
January Supreme Court Order
2014 SupplementalBudget Proposal
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K-12 Education
Substitutes/Admin Staff Hours 1,200,000
OSPI Support 659,000
Alternative Assessments 665,000
Basic Education Funding 385,595,000
Biology Collection of Evidence 297,000
Collection of Evidence Adjustments (6,698,000)
CTE/Skills Center MSOC Correction 51,800,000
CTE/Skills Center Staffing Correction 20,800,000
Federal Authority Adjustment 37,003,000
Standards Implementation – Regional Support 3,855,000
School Bus Depreciation System 787,300
Spending Authority (Urban School Turnaround) 638,392
Learning Improvement Days – State Directed 45,169,053
Student Outcomes Reduction (237,000)
Transportation Start Up Costs 1,903,521
K-12 Education Total 543,437,266
Superintendent Dorn 2014 Budget ProposalK-12 Education Policy Enhancements
Sales Tax: Adds one cent to the state sales tax
Property Tax: Raises state property tax to $3.60 per $1,000 of assessed valuation
Local Levies: Reduces local levies and prohibits use of local levies for basic education costs, including salaries
Changes would be implemented on January 1, 2018, unless Supreme Court finds Legislature has achieved full funding
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Superintendent DornK-12 Education Funding Plan
2014 SupplementalBudget Proposal
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Gov. Inslee 2014 Budget ProposalK-12 Education Policy Enhancements
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Addresses two key needs:
Making sure classrooms are properly equipped with materials, supplies and curricula; and
Restoring voter-mandated teacher cost-of living salary increases
MSOC enhancement = $130 million($118 per FTE student)
I-732 COLA = $74 million(projected 1.3% adjustment)
TOTAL PACKAGE = $204 million
Gov. Inslee K-12 Funding ProposalResponding to January 9 Supreme Court Order
Proposed Funding Mechanism:
Repeal sales tax exemption for trade-ins valued over $10,000
Repeal public utility tax deduction for in-state portion of interstate transportation
Repeal use tax exemption for extracted fuel Refund state portion of sales tax to nonresidents Repeal sales tax exemption on bottled water Repeal sales tax exemption for janitorial services Repeal preferential business and occupation tax
rate for resellers of prescription drugs
EXPECTED REVENUE = $414 million per biennium
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Gov. Inslee K-12 Funding ProposalResponding to January 9 Supreme Court Order
2014 Supplemental Budget(s)
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Technology MSOC 38,200
CBA Portal 198
Paraeducator Development 129
Youth Suicide Prevention 100
Expanded Learning Opportunity
83
Interactive Gaming 66
Homeless Student Education Outcomes
44
Biliteracy Seal 21
TOTAL $39,872
Senate K-12 Budget(Dollars in Thousands)
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I-732 COLA (1.2%) 47,870
MSOC 60,000
Federal Forest Revenues 2,000
Transportation Funding Adjustment 558
Paraeducator Development 293
CTE Equivalencies 287
Program Compliance 267
Closing Opportunity Gap 245
Washington Achievers 234
Community Engagement 200
ESD 101 Learning Platform 100
Instructional Hours Correction 90
TOTAL $112,341
House K-12 Budget(Dollars in Thousands)
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MSOC 58,000
Federal Forest Revenues 2,000
New Teacher Mentor Program 2,000
Transportation Funding Adjustment 558
24-Credit Grad & CTE Equivalencies 309
Program Compliance 267
Closing Opportunity Gap 245
Community Engagement 200
Youth Suicide Prevention 148
Paraeducator Development 128
Expanded Learning Opportunity 83
Homeless Student Outcomes 44
Biliteracy Seal 21
TOTAL $63,637
Final K-12 Budget(Dollars in Thousands)
191919
2020
Initial McCleary Investment2013-15 Operating Budget
Initial McCleary Basic Education Investment
2013-15 Operating Budget
2121
Real and steady progress towards full funding-- State Testimony vs. Actual Funding—
(Per Pupil State Funding)
Source: Network for Excellence in Washington Schools response to 2013 Post-Budget Filing, 1/14
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Senate Republicans: SB 5881—“Kids First Act” From July 1, 2015 through June 30, 2025, two-thirds
of new revenue must be expended on education programs (early learning, K-12 and higher education). Subject to public referendum.
House Democrats: HB 2792 Would codify the state’s phased-in funding plan
adopted by Joint Task Force on Education Funding – including teacher/staff salary increases; 24-credit graduation requirement; and pupil transportation funding adjustments
April 30 McCleary “Plan”
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Senate Democrats: SB 6574 Includes: (1) Phase-in plan for HB 2776
components, including 24-credit graduation requirement and salary increases; (2) Provision of immediate basic education enhancements; and (3) Closes a series of tax loopholes as a funding source for education enhancements.
House Republicans: No Action
April 30 McCleary “Plan”
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Senate Proposal(SB 6020/SB 6081/SB 6516)
$121 million “package”
$24 million net reduction in K-12:
School Construction Assistance Program—($78 million) STEM facilities—$25 million, competitive grants All-day kindergarten facilities—$25 million, competitive
grants Skills Centers—$2.9 million Emergency Repair Pool—$1.1 million
Capital Construction Budget
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House Proposal(HB 2224)
$167 million
$87 million net reduction in K-12
School Construction Assistance Program—($90 million)
Nutrition Equipment Grant—$1 million Spokane Valley Tech—$1 million Water bottle filling stations—$750,000 Kione-Benton high school parking lot-$125,000
Capital Construction Budget
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HB 2797 - $700 million
Revenue to immediately provide grants for facilities to implement all-day kindergarten and class size reduction; local “match” not required
Lottery revenues support the bond and the debt service on bonds
Addresses Supreme Court’s Jan. 9 Order
Additional K-12 Facilities
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SB 6483 - $825 million
Revenue to provide competitive grants for facilities for all-day kindergarten, class size reduction and STEM labs
$50 million appropriated for all-day kindergarten and $50 million appropriated for STEM labs
$500,000 to fund an inventory to determine facility need for class size
Bill states “intent” to provide $825 million (total) over three biennia
Additional K-12 Facilities
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NO2014 Supplemental Capital
Budget was adopted
(Related facilities bills also died)
Final Action on Capital
Education Legislation
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Instructional Time/1,080 Hours/24-credit Diploma
Student Growth in Teacher/Principal Evaluations – Federal ESEA Waiver
State-funded Learning Improvement Days/Professional Development
Student Achievement/Opportunity Gap
Major K-12 Issues
Provides for CTE course equivalencies Delays increase in instructional hours Restructures instructional hour requirement Addresses senior graduation week issue Authorizes SBE to implement 24-credit
diploma Reprograms 2013-15 instructional hour
appropriation
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E2SSB 6552Modifying Instructional Hours
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SB 5246 (Litzow)◦ Changed “can” to “must” use student results on relevant
assessments in evaluations◦ Required OSPI to adopt rules dictating that student growth
goals must assume one year of student growth in a given academic year
◦ Required weighting (50%) of student growth data◦ Restricted weighting (10%) of use of seniority
SB 5960 (McAuliffe)◦ Changed “can” to “must” use student results on relevant
assessments in evaluations
SB 6055 (Superintendent Dorn)◦ Changed “can” to “must” use student results on relevant
assessments in evaluations◦ Delayed implementation until 2016-17 school year
Student Growth Data in Evaluations
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HB 2800 (Governor Inslee/Supt Dorn)◦ Changed “can” to “must” use student results on
relevant assessments in evaluations◦ Delayed implementation until 2017-18 school
year◦ Included “contingency clause” which would void
the law if Washington loses its NCLB waiver
SB 5880 (Litzow)◦ Changed “can” to “must” use student results on
relevant assessments in evaluations
Student Growth Data in Evaluations
2015-17
What Does the Future Hold?
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2013-15 & 2015-17 Budget Outlook
(Dollars in Millions)
Source: Senate Ways & Means Cmte, 3/14
36Source: Washington State Budget & Policy Center, 3/14
Real Per Capita General Fund-State Revenues(2009 Dollars)
Source: OFM, 12/13
Source: Washington State Budget & Policy Center, 2/14
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More Than $5 Billion Needed Over Next 2 Bienniato Meet Statutory K-12 Requirements
Source: OFM, 1/14
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Additional Revenue Necessary to Sustain Investments in Education and
Other Priorities
Daniel P. SteeleAssistant Executive Director,
Government Relations825 Fifth Avenue SEOlympia, WA 98501
360.489.3642
WASA 113 Superintendents’ Component Group