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63 rd Washington State Legislature: 2 013 Session Review & 2014 Session Preview

CRESD 113 — Superintendents Meeting Tumwater, October 23 , 2013. 63 rd Washington State Legislature: 2 013 Session Review & 2014 Session Preview. 63 rd Washington State Legislature. 2013 Session Review November 2012 Election 2013-15 Budget Education Policy 2014 Session Preview

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63 rd Washington State Legislature: 2 013 Session Review & 2014 Session Preview

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  1. CRESD 113— Superintendents Meeting Tumwater, October23, 2013 63rd Washington State Legislature:2013 Session Review & 2014 Session Preview

  2. 63rd Washington State Legislature • 2013 Session Review • November 2012 Election • 2013-15 Budget • Education Policy • 2014 Session Preview • Education Policy Items • McCleary Implementation • WASA 2014 Legislative Platform

  3. Setting the Stage for 2013 • Odd-year “long” session, limited to 105 days • Major focus: adoption of Biennial Budgets • 2011-13 Operating Budget • 2011-13 Capital Construction Budget • 2011-13 Transportation Budget Major concern: projected shortfall and compliance with McCleary …with little-to-no revenue options

  4. Legislative Elections—2012 • Pre-election party strength: • House: 56 Democrats, 42 Republicans • Senate: 27 Democrats, 22 Republicans • Democratic Governor • Post-election party strength: • House: 55 Democrats, 43 Republicans • Senate: 26 Democrats, 23 Republicans • Democrats retain Governor’s mansion

  5. Major Facelift in Olympia! • Jay Inslee (D), first new Governor in 8 years • 21 new members in House (total=23 seats) • 10 new members in Senate (+3 vacancies) • Over 40 new caucus and/or committee leadership positions

  6. Mayhem in the Senate • 2 moderate Democrats join with 23 “minority” Republicans to form new “Senate Majority Coalition Caucus” • Install Sen. Rodney Tom (D-Medina) as Senate “Majority” Leader • Install Sen. Tim Sheldon (D-Potlatch) as Senate President Pro Tempore • Stated Priorities: Balanced Budget, Education, Jobs • Major Theme: “Reform before Revenue”

  7. 2013-15 Budget Situation • November forecast: $900 million shortfall* • March forecast: $1.3 billion shortfall* • Caseloads: up $301 million • Revenues: up $40 million • Bracken decision: $160 million loss • June forecast:$1.0 billion shortfall* • Caseload/Revenue: up net $320 million *Projections do NOT include $1.0-2.0 billion required McCleary down payment

  8. 2013-15 Budget

  9. 2013-15 Operating Budget

  10. 2013-15 K-12 Budget – Major Highlights

  11. 2013-15 Basic Education Enhancements Source: Article IX Litigation Cmte, 7/13

  12. Additional K-12 Education Enhancements Source: Article IX Litigation Cmte, 7/13

  13. K-12 Education “Savings” and Reductions Source: Article IX Litigation Cmte, 7/13

  14. Education Policy Issues

  15. Education Policy Issues “Reform Before Revenue” Adopted Bills: • School Accountability Framework (SB 5329) • Educational Health “Dashboard” (SB 5491) • K-4 Reading/Literacy (SB 5946) • LAP Reform (SB 5946) • ALE Revisions (SB 5946) Numerous additional bills introduced

  16. There Are No “Dead” Bills ALL un-adopted bills are automatically reintroduced in the Second Year of the Biennial Session

  17. 2014 Session • Even-year “short” session, limited to 60 days • Major focus: • Policy issues • All un-adopted bills reintroduced • 2014 Supplemental Budgets • Tweaks to 2-year Operating & Capital Budgets • Full Transportation Budget & Revenue Package

  18. 2014 Education “Reform” Issues • A-F Letter Grading of Schools • Staff Assignment—“Mutual Consent” • Definition of a “School Day” (and SBE waivers) • Student Growth in Teacher Evaluations • School Director/Administer Training

  19. 2014 Ed Funding “Reform” Issues • Supplemental Contracts • capping/focusing/eliminating TRII pay • Levy Lids & Local Effort Assistance • Small School & Small High School Funding • Levy “Swap” • “The swap could be done well or badly, but some version of it is obviously necessary to comply with McCleary and the constitutional mandate. Lawmakers – and the governor – should be arguing about how to do it, not whether.” TNT editorial, 7/13

  20. The Levy “Swap” Basic Concept of a Complicated Funding Plan: • Create a revenue-neutral “swap” of local levies for the state Common School Levy (aka State Property Tax)—and use the new BEA model to drive out the new funding to schools • Allow growth greater than the current 1% restriction on the Common School Levy • Reset local levy caps at $2500 per student • Make local levies reliable by making them permanent (with automatic adjustments for COLAs and enrollment growth)

  21. The Levy “Swap” Source: Rep. Ross Hunter, 11/11

  22. McCleary v. State Implementing McCleary

  23. Education Funding Task Force’s Adopted McCleary Spending Plan Source: Joint Task Force on Education Funding, Final Report, 12/12

  24. 24

  25. 25

  26. Initial McCleary Investment 2013-15 Operating Budget Initial McCleary Basic Education Investment 2013-15 Operating Budget

  27. McCleary v. State Is the State making “steady progress” toward full compliance with Article IX, Section 1 of the Constitution?

  28. Real and steady progress towards full funding --as testified by the State in McCleary-- Source: Network for Excellence in Washington Schools, 11/12

  29. Real and steady progress towards full funding -- State Testimony vs. Actual Funding-- Source: Network for Excellence in Washington Schools response to 2013 Post-Budget Filing, 9/13

  30. K-12 Basic Education, SY 2008-09 to 2013-14 http://bit.ly/H4DYHJ Source: OSPI, 10/13

  31. Current K-12 Spending is Below Pre-Recession Level Change in spending per student, inflation-adjusted, FY08 to FY14 (includes Basic Education and Non-Basic Education funding) Source: Center on Budget & Policy Priorities, 9/13

  32. 2013-15 Budget Talking Points • Legislators claim the 2013–15 Operating Budget includes a “$1 billion” basic education enhancement. • Enhanced basic education funding lacks flexibility and/or includes “strings.” • State funding enhancements require additional unfunded expenditures of local resources.

  33. 2013-15 Budget Talking Points • Basic education enhancements require expenditures for additional and/or upgraded facilities, but no additional funding is provided or contemplated. • The Legislature’s 2013–15 budget solution is not sustainable, jeopardizing the ability to fully fund basic education by 2018.

  34. 2013-15 Budget Solution Balanced on Unsustainable Short-term Actions and Assumptions

  35. Additional Revenue Necessary to Sustain Investments in Education and Other Priorities

  36. State’s 2nd Compliance Report • The 2013-15 operating budget contains “$982.0 million in enhancements to basic education allocation formulas. Funding is provided to address…full-day kindergarten; early elementary class size reduction; pupil transportation; and materials, supplies, and operating costs (MSOC).” Also, funding is provided for “the enhancement to instructional hours for grades 7 through 12…”.

  37. State’s 2nd Compliance Report • In addition, the Legislature funded: “an increase in the Learning Assistance (LAP) allocation; a new program providing state-funded supplemental instruction following a student's exit from the Transitional Bilingual Instructional Program (TBIP); and new funding formula allocations for parent involvement coordinators and middle school and high school guidance counselors.”

  38. State’s 2nd Compliance Report • The Legislature's “2013 post-budget Report demonstrates ‘forward movement’ toward ample funding and implementation of ESHB 2261, including transportation, MSOCs, all-day kindergarten, and class size reduction. That movement is more rapid in some areas than in others, but there is progress toward implementing the reforms identified in ESHB 2261 and SHB 2776.”

  39. State’s Conclusion • “The Court should find that the State is making progress toward implementing the reforms initiated in ESHB 2261 and achieving full compliance with Article IX, Section 1 by 2018.”

  40. NEWS Response • Defendant's $982 million “increase" claim falls short of steady progress to full Article IX, §1 compliance by 2018 • Defendant's School Salary “restoration" claim falls short of adetailed plan or steady progress to full market rate funding by 2018 • Defendant's Transportation “full funding" claim stops short of steady progress to full Article IX, §1 compliance by 2018

  41. NEWS Response • Defendant's MSOC movement falls short of steady progress to full Article IX, §1 compliance by 2018 • Defendant's Full-Day Kindergarten claim falls short of steady progress to full Article IX, §1 compliance by 2018 • Defendant's Class Size Reduction claim falls short of steady progress to full Article IX, §1 compliance by 2018

  42. NEWS Response • Defendant submits No plan or steady progress for ESHB 2261's “Highly Capable Program“

  43. NEWS Conclusion “Plaintiffs humbly request that - at a minimum - this Court stop the defendant State from digging its unconstitutional underfunding hole even deeper with any unfunded mandates and issue a clear, firm, unequivocal warning to the defendant State that leaves recalcitrant elected officials no doubt that the State's continued failure to comply with this Court's Orders will result in a holding of contempt, sanctions, or other appropriate judicial enforcement which, frankly, makes compliance their far preferable option.” http://waschoolexcellence.org/

  44. 2014 Legislative Platform 44

  45. WASA 2014 Legislative Platform • WASA asks the Legislature to ensure the state’s new basic education finance system is fully implemented by 2018—as directed by the Supreme Court’s McCleary decision—while maintaining current obligations, such as Local Effort Assistance (LEA). • WASA supports appropriate school accountability; however, we urge the Legislature to fully fund basic education and satisfy the McCleary Court decision before starting any new program. Further, new programs should be not be adopted without adequate funding.

  46. WASA 2014 Legislative Platform • WASA urges the Legislature to review and take action on the final report submitted by the Compensation Technical Working Group (June 2012) to ensure the state meets its responsibility to establish an equitable and adequate allocation system for public school employee compensation.

  47. WASA’s Message • An educated citizenry is critical to the state’s democracy; a well-educated population is the foundation of our democracy, our economy, and the American dream • Public education plays a critical role in promoting equality, operating as the great equalizer; public education provides unprivileged citizens with the tools they need to compete on a level playing field with citizens born into wealth or privilege

  48. WASA’s Message • Education plays a critical role in building and maintaining a strong economy; public education builds the well-educated workforce necessary to attract more stable and higher wage jobs to the state’s economy • Washington’s duty to education is constitutionally declared to be its paramount duty • In summary: Public education is a wise “investment” in the future

  49. Daniel P. Steele Assistant Executive Director, Government Relations 825 Fifth Avenue SE Olympia, WA 98501 360.489.3642 dsteele@wasa-oly.org CRESD 113— Superintendents Meeting

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