McCleary : Update on Court Oversight of State Action

1. McCleary: Update on Court Oversight of State Action JoLynn Berge – Chief Financial Officer, OSPI Andrea Cobb – Policy Analyst, OSPI

2. Findings and Conclusions (Trial Court, February 2010) • Funding for basic education is not ample, stable or dependable • Proposed Remedy: • Determine the cost of amply providing for basic education • Comply with the constitutional mandate to provide stable and dependable funding for such costs of basic education

3. Original Order(Supreme Court, January 2012) • Affirms the trial court’s ruling that the State was not meeting its obligation under Article IX • Finds that ESHB 2261 was a promising reform, and if funded, would remedy the deficiencies in state funding • Expresses intent to retain jurisdiction over the case to monitor implementation of ESHB 2261 and help ensure the State’s progress toward complying with its paramount duty by 2018

4. House Concurrent Resolution 4410 (February, 2012) • Establishes the Joint Select Committee on Article IX Litigation to: • Facilitate communication between the Washington Supreme Court and the Legislature with regard to Article IX legislation • Advise the attorneys who represent the Legislature before the supreme court • Inform members of the Legislature about communications from the supreme court regarding McCleary

5. Judicial Oversight(July, 2012) • Jurisdiction is retained at the Washington Supreme Court • The court requires the State to file annual reports to the court through the Article IX committee following budget enactment • The court’s review of the reports focuses on whether the State has made “real and measurable progress” • Reports were submitted in September 2012 and August 2013

6. Article IX Committee Report(September 2012) • The Legislature did not make changes to basic education funding during the 2012 legislative session • The report provides a baseline description of the K-12 budget

7. December 2012 Order • Finds that “the State’s first report fell short” • There is insufficient indication of how full compliance with Article IX will be achieved • Reiterates that 2018 is a firm date for full constitutional compliance • Specifies that the 2013 report must set out a plan in sufficient detail to allow measurement of progress according to periodic benchmarks • The report should indicate the phase in plan achieving the State’s mandate and demonstrate how the State’s budget meets its plan • The plan must address all areas identified in ESHB 2261

8. Article IX Committee Report(August 2013) • Provides information on the $982 M enhancement made to basic education in the 2013-15 operating budget including: • Full-day kindergarten $89.9 M • Pupil Transportation $131.7 M • Materials, supplies and operating costs $374 M • Early elementary class size $103.6 M • Learning Assistance Program $141.3 M • Transitional Bilingual Program $18.9 M • Parent Inv. Cord. & Guidance Counselors $24.1 M • Instructional Hours $97 M

9. January 2014 Order • Acknowledges that “meaningful steps were taken in the 2013 legislative session” • States however, that 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” • Ordered the State to submit a complete plan for fully implementing its program of basic education for each school year between 2014 and 2018 no later than April 30, 2014

10. Definition of Basic Education(As revised by ESHB 2261) • Instructional program of basic education • Instructional hours • Instruction in the EALRS • Opportunity to complete 24 credits for high school graduation • Learning Assistance Program • Transitional Bilingual Instruction Program • Special Education Services • Highly Capable Program • Institutional programs (for juveniles in detention) • Transportation • Full-day Kindergarten

11. Enhancement to Basic Education(As required by ESHB 2261 & SHB 2776) *E2SSB 6552, adopted in 2014, revised the requirements related to increased instructional hours and the opportunity for 24 credits

12. 2014 Legislative Action • E2SSB 6552 – Student hour and graduation requirements • Increased minimum instructional hour requirements beginning in 2015-16 • Implemented the SBE college and career ready graduation framework for the graduating class of 2019 (Opp. to earn 24 credits) • Increased funding for: • High school guidance counselors to from 2.009 to 2.539 • MSOC in grades 9-12 by $164.25 • Lab science class size to 19.98 FTE • ESHB 2207 – Basic education funding • Prohibited the state from offsetting the first $70,000 of federal forest revenues for districts with greater than 57% poverty • ESSB 6002 – Operating budget • Provided allocations to fully implement the expected cost model for pupil transportation funding beginning in the 2014-15 SY

13. 2014 Legislative Proposals • Full Funding Proposals • SHB 2792 – Education Funding Allocations • SB 6574 – Education Funding • Other Basic Education Funding Proposals • HB 2589 & SB 6438 – Basic ed allocation formula • Revenue Proposals • HB 2796 – Ed funding/tax pref. changes • SHB 2244 & SB 6546 – Capital budget/edresources • SSB 5881 – Revenue growth for education • SB 6571 – Remote Seller tax/ed funding • Capital Funding Proposals • EHB 2797 – Kindergarten & Elementary • SB 6483 – Education facilities/bonds

14. 2014 Legislative Proposals • Full Funding Proposals • SHB 2792 – Education Funding Allocations • SB 6574 – Education Funding • Other Basic Education Funding Proposals • HB 2589 & SB 6438 – Basic ed allocation formula • Revenue Proposals • HB 2796 – Ed funding/tax pref. changes • SHB 2244 & SB 6546 – Capital budget/edresources • SSB 5881 – Revenue growth for education • SB 6571 – Remote Seller tax/ed funding • Capital Funding Proposals • EHB 2797 – Kindergarten & Elementary • SB 6483 – Education facilities/bonds

15. 2014 Full Funding Proposals

16. 2014 Full Funding Proposals

17. Elements of the Prototypical Model That Were Not Addressed in 2014 The values in the columns represent the full funding values recommended by the QEC along with current statutory funding levels

18. Other Remaining Issues • Local funds used for basic education • ESB 6499, SHB 2792 (Sec 7), and ESSB 6002 (Sec 924, as passed House) proposed a local finance taskforce • Salary compliance • SHB 2792 proposes up to a 10% local salary enhancement beyond salaries fully funded in SY 2020-21 • Capital • EHB 2797 proposed funding FDK and K-3 class size reduction with lottery revenue bonds • SB 6483 created a competitive grant program to provide additional FDK and K-3 classrooms as well as and STEM labs

19. Conclusions • Many elements of basic education have not been addressed by the Legislature at this point • The proposals that have put forward are not far apart on the elements of basic education that they do address • Potential areas of debate in the 2015 session include: • Compensation for certificated instructional staff • Local levy capacity