Presentation Transcript

1. WASA 113 Superintendents’ Component Group Tumwater, March 26, 2014 Legislative Review 2014
2. 2014 Legislative Review Background Setting the Stage for the 2014 Session 2014 Supplemental Budget Overview Operating Budget McClearyImpacts Capital Budget Key Legislation 2015-17 Biennium
3. Setting the Stage for 2014 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
4. Setting the Stage for 2014 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-
5. January Supreme Court Order 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.” 5
6. January Supreme Court Order 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.”
7. January Supreme Court Order “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
8. 2014 Supplemental Budget Proposal
9. Superintendent Dorn 2014 Budget Proposal K-12 Education Policy Enhancements
10. Superintendent Dorn K-12 Education Funding Plan 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 10
11. 2014 Supplemental Budget Proposal
12. Gov. Inslee 2014 Budget Proposal K-12 Education Policy Enhancements
13. Gov. Inslee K-12 Funding Proposal Responding to January 9 Supreme Court Order 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
14. Gov. Inslee K-12 Funding Proposal Responding 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 14
15. 2014 Supplemental Budget(s)
16. Senate K-12 Budget (Dollars in Thousands)
17. House K-12 Budget (Dollars in Thousands)
18. Final K-12 Budget (Dollars in Thousands)
19. 19 19
20. Initial McCleary Investment 2013-15 Operating Budget Initial McCleary Basic Education Investment 2013-15 Operating Budget 20
21. 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 21
22. April 30 McCleary “Plan” 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
23. April 30 McCleary “Plan” 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
24. Capital Construction Budget 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
25. Capital Construction Budget 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
26. Additional K-12 Facilities 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
27. Additional K-12 Facilities 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
28. Final Action on Capital NO 2014 Supplemental Capital Budget was adopted (Related facilities bills also died)
29. Education Legislation
30. Major K-12 Issues 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
31. E2SSB 6552Modifying Instructional Hours 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 31
32. Student Growth Data in Evaluations 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
33. Student Growth Data in Evaluations 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
34. 2015-17 What Does the Future Hold?
35. 2013-15 & 2015-17 Budget Outlook (Dollars in Millions) Source: Senate Ways & Means Cmte, 3/14
36. Source: Washington State Budget & Policy Center, 3/14
37. Real Per Capita General Fund-State Revenues (2009 Dollars) Source: OFM, 12/13
38. Source: Washington State Budget & Policy Center, 2/14
39. More Than $5 Billion Needed Over Next 2 Biennia to Meet Statutory K-12 Requirements Source: OFM, 1/14
40. Additional Revenue Necessary to Sustain Investments in Education and Other Priorities 40
41. Daniel P. Steele Assistant Executive Director, Government Relations 825 Fifth Avenue SE Olympia, WA 98501 360.489.3642 dsteele@wasa-oly.org WASA 113 Superintendents’ Component Group