Last Legislative Update of the Year: Twelve Drummers Drumming

It’s that time of year, when state agencies must submit their reports to the Legislature. Some of the reports were required by bills or by budget provisos during the 2011 session; some are annual or biennial reports.

WSSDA has created a quick summary of 12 reports that have been sent to lawmakers – just a little “light reading” if you’re trying to stay awake on new year’s eve … Many thanks to WSSDA Government Relations assistant Justin Rossetti for compiling this list from the OSPI web site.

Also, as reported earlier, the Washington State Health Care Authority has released its report on a consolidated K-12 health benefits system. A link to that report is also in the Legislative Update.

For the list of reports, please go to WSSDA Legislative Updates for December 23, 2011.

News from Olympia: Deck the halls

At its last meeting of the year, the Quality Education Council (QEC) agreed to forward two major recommendations to the Legislature for the 2012 session, as well as provide a status report on recommendations it presented in 2011.

In the wake of an announcement that Washington state had won a Race to the Top grant for early learning of $60 million, the QEC will recommend the 2012 Legislature establish a new, voluntary preschool program with expanded eligibility and modified program components. The plan would be to phase in preschool for all by the 2024-2025 school year, making it an entitlement from that point forward.

The program builds on existing programs – federal Head Start and the state’s Early Childhood Education Assistance Program (ECEAP) – as well as the variety of preschool programs across the state. 

Rather than being limited by caps set for Head Start and ECEAP, the new program would be for all three and four-year-old children. Families with incomes above 250 percent of the federal poverty-level would pay a co-payment, with the amount set by the state Department of Early Learning (DEL).

Other major components of the expanded preschool program would include:

·         A minimum of 450 classroom hours to qualify.

·         Class size limits of 18 children per class, with a teacher/child ratio of 1:9.

·         Coordination of child health services (e.g., mental, physical) but not health care benefits.

·         Transportation costs as an eligible expenditure by the provider.

·         Provider qualifications and readiness assessments.

·         Data tracking for evidence-based accountability.

In addition to giving DEL administrative, rule-making and reporting responsibilities to implement the new program, the recommendations address early learning teacher qualifications. Initial recommendations from the Early Learning Workgroup (set up in ESHB 2261) would have required a bachelor’s degree for all lead teachers and a two-year degree for other instructors.

The QEC agreed with a recommendation from the Early Learning Advisory Council (ELAC) that a BA requirement in the first few years might keep some providers from participating. The compromise was to ask DEL to convene an early learning subcommittee that will report back to the QEC and Legislature by June 30, 2012, with a phase-in requirement for a bachelor’s degree in early childhood education or equivalent.

With a nod at the research regarding brain development in infants and toddlers, the QEC also will recommend a concurrent phase-in of high-quality preschool readiness programs targeted at Birth to Three and high-quality child care programs.

Dr. Betty Hyde, DEL director, told legislators and other members of the QEC that no funding would be required in the current biennium, but the expanded preschool program would need about $5 million to $6 million in the 2013-15 biennium.

Program proponents said that implementation would start in locations where schools have received funding for state-funded all-day kindergarten to build a strong level of continuity in these schools. Then it would branch out as all-day kindergarten expands across the state.

… With boughs of holly

The other major recommendation decided today at the QEC meeting related to the revised funding formula for the Transitional Bilingual Program (TBIP) described in the 2011-13 operating budget (Sec. 514).

As you might recall, the Legislature adopted a provision that would change the formula to direct more money to Level 1 participants, with less money for Level 2, even less money for Level 3, and two years of additional funding for students who exit the program. The QEC was charged with examining the revised funding model developed for TBIP through this proviso, and making recommendations to the Legislature.

Since the budget proviso was added at the end of negotiations, the QEC and others have grappled with legislative intent, calling upon sponsor Sen. Joe Zarelli, R-Ridgefield, for more details. Zarelli said he was concerned that many students seemed to be “hanging out” in Level 3 for an exceptionally long time, and he wanted to provide an incentive to move students up and out of the program more quickly.

The QEC debated the issue at the November meeting and again today. (This was also the topic of conversation at the State Board of Education’s meeting in November.) Ultimately, the QEC recommendations would have the following components included in the next supplemental operating budget bill:

·         For the 2012-13 school year, the revised funding model will be revenue neutral – students will be funded in Levels 1 – 3.

·         Additional funding for students who successfully exit TBIP will be phased in beginning in the 2013-14 school year. The idea is that students who exit in the previous school year would receive additional academic support in 2013-14.

·         Beginning in the 2014-15 school year, the funding model should provide funding for students who have successfully exited TBIP in the two previous school years.

·         Districts that lose funding compared to the old formula would be held harmless in FY13, with funding, albeit at a lower level, possible in the 2013-14 school year.

The QEC decided that the additional funding for Level 4 would not be an entitlement but would be used to support students who continue to need the services to move beyond language proficiency and achieve academic success.

The initial recommendation from OSPI staff was to peg Level 4 funding as the same as Level 2 average allocations. Rep. Bruce Dammeier, R-Puyallup, questioned why Level 4 shouldn’t be set at 3.0 hours or the same level as Level 3, and suggested school districts be given the flexibility to use up to 20 percent of the additional dollars to strengthen and support their transitional bilingual program.

Members debated the suggestion, eventually deciding to include both components in their recommendations but also to also ask the bilingual advisory council to report back by June 30, 2012 with recommendations. These would include: the appropriate number of hours and suggested phase-in schedule for Levels 1 – 3; where to set the level for additional funding for students who have exited the program; and whether a school district should have the authority to transfer or use a percentage of the additional funding to support their TBIP.

Fa la la la la

The final bit of business was to look at the 2011 QEC recommendations to the Legislature and decide what to include in the group’s 2012 recommendations – beyond the two topics described above. During the 2011 session, Reps. Dammeier and Marcie Maxwell, D-Renton, had put forward two bills (HB 1443, HB 2111) that would have addressed some of the recommendations. Both bills passed the House but stalled in the Senate.

After a reminder summary of the 2011 recommendations and their status,  QEC members directed OSPI Chief Financial Officer Shawn Lewis, who serves as lead support staff to the QEC, to draft a report that describes the 2011 recommendations as “completed,” “in progress,” or “not addressed.” The draft report will be shared with the QEC executive committee and then forwarded to the Legislature.

Sine die, silent night

In an anticlimactic finish, the gavels fell at 3:49 p.m., Wednesday, Dec. 14, bringing an end to a special session that started Nov. 28 to close the gap on a projected $1.4 billion for the current biennium and put another $600,000 in reserves.

The end was quite a contrast to the start of the special session, which was marked with noisy protests, crammed hearing rooms, and an increased Washington State Patrol presence on the Capitol campus.

Once House Democrats reached agreement a week ago, and the Senate followed suit a few days later, an “early action” 2012 supplemental budget of about $480 million was put on a fast track to get legislators home to constituents and families for the holidays.

SHB 2058 passed the House 86-8, and the Senate 42-6. While some House Republicans used floor time to express disappointment and dissatisfaction with the process and the ultimate result, both parties in the Senate moved the bill quickly with minimal discussion.

The early action or “down payment,” as some are referring to it, is a combination of actual cuts, transfers, and delayed payments, as well as $50 million in unclaimed property, and another $83 million of savings captured from “under-spending” and budget adjustments.

Two funding changes for K-12 were made: moving bus depreciation payments from October to the following August – for a one-time savings of $49 million; and adding a June count day for enrollment purposes – for anticipated ongoing savings to the state in general apportionment and in categorical programs.  Both higher education and early learning were spared, although OSPI received an additional 10 percent reduction.

Gov. Chris Gregoire will sign the budget bill and other bills that passed during the special session Tuesday, Dec. 20 at 3 p.m.

Hard Candy Christmas

The really tough decisions face lawmakers when they return for the 60-day regular session Jan. 9.

All the big pieces remain on the table, including cutting school days, reducing or restructuring Local Effort Assistance (LEA), increasing class sizes, or reducing K-12 staff salaries again.

Other ideas still in play are shifting the June 30 apportionment payment to July 1, thereby shifting the obligation to the following year; reducing bonuses for National Board Certified Teachers; and anything else not explicitly seen as protected under “basic education.”

In addition, Gov. Chris Gregoire had an even larger list of “cuts” ideas she delivered to legislators in October. Any of those may be fair game, although some, such as eliminating all bus transportation for students, is so unpopular is it highly unlikely to be in a final supplemental budget.

While legislators couldn’t agree on the types or size of the big cuts to make, they do agree that K-12 will be touched when they return next year. Both House and Senate leadership have stated there is no way to close the budget shortfall without K-12 taking some cuts – how much and where those cuts will fall is still up for debate, as are the various proposals floating around regarding new revenue.

All I Want for Christmas …

When the Governor submitted her recommendations for a supplemental budget Nov. 21, she also announced a proposal to increase the sales tax by half a cent for three years. With the projected $500 million to be raised, the Governor would ask voters to “buy back” cuts to K-12 and higher education to the tune of $411 million.

While many who testified before House and Senate fiscal committees expressed support for considering new revenue to blunt the impact of cuts – particularly using an existing source that could bring a quick infusion of cash into the system – others expressed concern.

In what might seem an odd alignment, the Association of Washington Business and some larger businesses (e.g., Boeing and Microsoft) in the state are saying they could support a temporary bump in sales tax, while the Washington Education Association has come out against the proposal. It’s just politics, folks, and has the potential to get very messy come next February/March when the real decisions have to be made.

Other revenue ideas still floating around are eliminating or limiting tax exemptions, getting the federal government to require sales tax collection on Internet sales, a potential property tax shift dedicated to K-12 offered by Rep. Ross Hunter, D-Medina, charging sales tax on services, and even income tax.

Most have been dismissed as taking too long to bring in funds needed to plug the gap between revenues and expenditures in this biennium or too controversial or both. Still, an all-cuts budget is unpalatable to many lawmakers, and we are hearing that all revenue ideas are “still on the table.”

Next week’s Carol of the Bells continues, with updates on the Governor’s Education Reform proposals, the K-12 Health Benefits report, State Board of Education rule-making restricting waivers, and actions from the Quality Education Council’s meeting Monday, Dec. 19.

Technical fix planned on “unexcused absence” bill reference

Following a Legislative Update sent earlier today, Senate budget staff has shared with WSSDA that it was not legislators’ intent to change the number of days regarding unexcused absences prior to disenrollment.

According to staff, the dollar value and the budget notes are correct, but include only the part of the Governor’s attendance proposal that would add another count date at the end of the school year.

A technical amendment to the budget bills will be offered to remove the sentence: “The reported monthly district enrollment must exclude any student absent without excuse as required under RCW 28A.225.010 on the enrollment count day and for the four consecutive school days preceding the count day.”

A Ways & Means committee vote on the House budget proposal is planned for 9 a.m. Tuesday, Dec. 13 in House Hearing Room A. Technical fixes and slight adjustments to the budget bill will be made during this time.

House, Senate unveil "early action" supplemental

(NOTE: This blog has been updated following a heads up about a technical fix that will be offered to the budget.)

The House and Senate introduced identical 2012 supplemental operating budget proposals as a step towards closing $1.4 billion in a projected budget shortfall that brought legislators back to Olympia Nov. 28.

The “early action” proposal includes $479.7 million in proposed cuts, fund transfers, an infusion of $50 million in new revenue from unclaimed property, and maintenance changes since the 2011-13 operating budget was adopted last May.

Both House and Senate budget committees have scheduled public hearings today on their substitute bills (House, Senate), with the House scheduling floor action tomorrow to vote on the early action budget. The Senate is expected to follow suit and, with minor adjustments, is expected to adopt this first cut at the supplemental budget by the end of the week.

The actual bills are PSHB 2058 in the House and PSSB 5883 in the Senate. K-12 education funding is found in Part V of the budget bills.

No cuts to LEA, days or other major K-12 policy programs

Neither proposal would make controversial policy changes to the number of school days, increased class sizes, or Local Effort Assistance (LEA).

The $11 million reduction to LEA shown in the budget bill is a maintenance-level adjustment, based on projected property values going down. According to House budget staff, the adjustment reflects the most recent projections from the state Department of Revenue. When assessed values decrease, so does LEA. The reduction was also included in Gov. Chris Gregoire’s supplemental budget proposal released last month.

Lawmakers will grapple with these thorny issues and more when they return Jan. 9 for the 60-day regular session.

June count added, bus depreciations shifted

Both the House and Senate proposals would add a June count (or last school day in May) to counts already conducted September through May.

The budget bills included a provision that could have been construed as moving towards a suggestion made by Gov. Chris Gregoire to change the number of unexcused absences from 20 days to five days. According to Senate budget staff, that language will be removed as a technical fix during committee action this week.

The budget proposals also adopt the Governor’s proposal to shift bus depreciation payments from October to August, which would move the payment into the next fiscal year or biennium, for a one-time savings to the state of nearly $49 million.

WSSDA will share more information as it becomes available.

The budget proposals also adopt the Governor’s proposal to shift bus depreciation payments from October to August, which would move the payment into the next fiscal year or biennium, for a one-time savings to the state of nearly $49 million.

WSSDA will share more information as it becomes available.

School district representatives speak out on cuts to days, LEA

In a work session today before the House Ways & Means Committee, four representatives of school districts asked members to protect Local Effort Assistance (LEA) and to consider alternatives to cutting the number of school days from 180 to 176.

Speakers included:

·         Mary Fertakis, Director, Tukwila School District and WSSDA President

·         Kathy Gillespie, Director, Vancouver Public Schools

·         Holly Ferguson, Government Relations Director, Seattle Public Schools

·         Cece Mahre, Associate Superintendent for Teaching and Learning, Yakima School District

Speakers gave examples of how cuts to LEA or days might affect their districts in the 15 minutes designated for the panel.

Gillespie mentioned that Vancouver Public Schools has invested $1 million in extending the school day and year for some students in 14 high-poverty schools based on need, and designated it the Opportunity Zone.

“Our students, all students, need more time in school, not less, to prepare for their future,” Gillespie told committee members.

Fertakis had just returned from a trip to California where she met with her counterparts from similar school director associations. “California has cut five days from their schedule,” she said. “Now they are looking to cut six to eight more days … I don’t think we want to emulate California.”

The panel fielded questions from legislators, including several about the use of half days in school districts and whether that represented a good investment of state funding.

Another panel of stakeholders, including State Board of Education executive director Ben Rarick, also voiced concerns about these cuts in the 2012 supplemental budget proposal. (Rarick is the former House Ways & Means education budget analyst and spent the past few years working on the K-12 budget.)

Speaking for the SBE, Rarick reminded legislators that basic education is a minimum program of entitlement currently defined as 180 days and 1,000 hours of instructional time.  “We can have lots of lively and interesting conversations about how to define basic education. But not to bail out the state’s general fund,” he said.

Rarick also pointed out that LEA was being used to shore up the state’s lack of funding for basic education, paying for activities like transportation and helping get students college and career ready. “We can have a conversation about what really is ‘property poor,’ but districts rely on that money now for what the state should be paying for basic education.”

Jonathon Johnson, vice president of the NAACP, said that the civil rights issue of the century is education. “If we fail to address the education needs of our children, we will be paying for it in the future.”

And the financing equation

The second work session of the day focused on Committee Chair Rep. Ross Hunter’s proposal to find a different way to fund education in a “revenue neutral” way. The main ideas of the proposal would:

·         Increase the state property tax by $1.17 per $1,000 of assessed value, starting in calendar year 2013.

·         Make this a permanent rate change for the state portion of property tax, earning about $1 billion in additional revenue.

·         Create a new school district excess levy cap for maintenance & operations levies at $2,500 per student.

·         Eliminate grandfathering.

The staff presentation can be found here. Other information includes the overview, Table 1 and Table 2.

Committee members showed interest and concern about the proposal, with Rep. Bruce Dammeier, R-Puyallup, asking for a deliberative process that doesn’t rush the solution but fully vets the idea. Rep. Kathy Haigh, D-Shelton, said she was concerned about a loss of LEA, but if the proposal helped fill in the holes, it had her interest.

A panel with school district representation was also on hand to share their thoughts. The panel included:

·         David Iseminger, Director, Lake Stevens School District and a member of the WSSDA Board of Directors

·         Dr. Ken Hoover, Superintendent, Monroe School District

·         Holly Ferguson, representing Seattle Public Schools

·         Scott Izutsu, Assistant Superintendent for Business Services, Yakima School District

Iseminger, who has been working with Hunter on the proposal, said he is a strong proponent because it would stabilize school district funding, leverage the collective capacity of the state, is fairer than the current funding system, and sets a course for ample funding.

“Is this the full solution? No,” Iseminger said. But the proposal puts more money from the state into the basic education equation and funding formulas, which would provide resources where they were needed the most and have the biggest impact.

Ferguson and Izutsu expressed some reservations, although both said they had not enough time to fully analyze the proposal, while Hoover said it might be a way out of many of the funding challenges and inequities between school districts. All representatives appreciated the conversation to identify a stable, sustainable revenue system for K-12 education.

Their thoughts were echoed by Lisa McFarlane, League of Education Voters, and Randy Parr, Washington Education Association, who encouraged Chairman Hunter to keep working on the solution to full and ample education funding. 

One step beyond

Next week’s calendar is posted, with several hearings on education and budget bills. We will highlight the most significant committee meetings in tomorrow’s update, but for a sneak peek, go to the following links for agendas:

House Education Committee

Senate Early Learning & K-12 Education Committee

House Ways & Means

Senate Ways & Means

House budget committee to discuss cuts to days, LEA

Instead of a public hearing as scheduled last week, the House Ways & Means Committee will hold a work session at 10 a.m., Wednesday, Dec. 7 on the Governor’s proposal to cut four days from the school year and reduce and restructure Local Effort Assistance.

The budget committee will hear from the governor’s office and panels of school districts and stakeholders during the morning work session.

Participating school districts will be from Seattle Public Schools, Vancouver Public Schools, Yakima School District, and WSSDA President Mary Fertakis (Tukwila). Stakeholders will include the State Board of Education and Washington State PTA, among two others.

The budget work session will be immediately followed by another work session on Committee Chair Rep. Ross Hunter’s property tax proposal (refer to the Dec. 2 Legislative Update). School districts will be represented for the discussion, including the Monroe School District, Yakima School District, Seattle Public Schools, and Lake Stevens Director David Iseminger, who has been working with Rep. Hunter on his proposal. Iseminger is a member of the WSSDA Board of Directors.

A look ahead

House members who aren’t on the Ways & Means Committee have been allowed to return to their districts for the remainder of the week. The budget committee will hold the work session Wednesday and a public hearing on Thursday, Dec. 8. No committee meetings or floor action are scheduled for Friday.

In the other chamber, Senate budget and policy committees continue to hold hearings and work sessions. The Senate Early Learning & K-12 Committee will hold a work session on the Levy/LEA Technical Working Group report Thursday, Dec. 8 at 10 a.m. in Senate Hearing Room 1. Public testimony will not be taken, although a panel that includes school district representation is planned.

All committee meetings can be tracked on TVW.  

Everything old is new again

Districts with an interest in the 2009 and 2010 legislation that put in place a new definition of basic education and a schedule for implementation (with a target of full funding by 2018) should be aware that last year’s SB 5475 has been referred to the Senate EL & K-12 committee for consideration. (The plan and schedule are commonly referred to as ESHB 2261 (2009) and SHB 2776 (2010)).

While a public hearing hasn’t been scheduled yet, it is seen as one of the “necessary to implement the budget” bills the Legislature will need to pass to align with recommendations for the 2012 supplemental budget. The bill serves as a starting place, and elements are likely to change.

In its most recent form before the Legislature, most of the bill changes would remove the 2018 implementation date and would replace it with language along the lines of “an implementation schedule adopted by the legislature.”

In addition, Section 11 would direct the State Board of Education (SBE) to synthesize the various technical working group reports by January 1, 2014, and to recommend to the Legislature an implementation schedule – including a prioritization plan – for the enhancements to the funding formulas and increases in basic education instructional programs.

Under the same section, the SBE would also be asked to make recommendations about how to fund I-728 (class size reduction) and on significant policy changes such as common core and the teacher/principal evaluation program, also by January 2014.

Section 12 would add another element to the Compensation Technical Working Group’s workload, namely whether I-732 (teacher COLAs) should be removed as a separate funding source and included in basic education.

Finally, Section 13 would create a budget stabilization account that would provide funding to implement ESHB 2261. The account would receive 60 percent of all general state revenues that exceed the previous fiscal biennium’s general state revenues. The idea is similar to a proposal floated by school director Iseminger under his strategy for full funding of K-12 education and was offered as an amendment to the bill last session by Sen. Steve Hobbs, D-Lake Stevens.

Editor’s Note: We are still working out the kinks in our new format for Legislative Updates and with the WSSDA First Reading Blog. We hope to have all the bugs worked through soon. Thanks for reading!

Week one of special session ends, four to go?

Dec. 2, 2011

Thousands of protesters greeted legislators when they convened Monday, Nov. 28 for the start of a 30-day special session called by Gov. Chris Gregoire to fix a projected $2 billion budget problem for the biennium ending June 2013.

Protesters disrupted hearings the first two days, bringing a strong Washington State Patrol presence to the Capitol campus (resulting in a handful of arrests) that remained throughout the week. As hearings continued over the days, the crowds dwindled but still packed the hearing rooms to voice concerns about program cuts or to express support for new revenue, or sometimes both.

School directors Paul Wagemann (Clover Park), WSSDA past-president Deborah Heart (Goldendale), WSSDA vice president Mari Taylor (Lake Stevens), and WSSDA staff testified before House and Senate budget committees on WSSDA priorities and the impact of the Governor’s proposed supplemental budget on school districts.

Heart and Wagemann specifically raised concerns about the restructuring and loss of Local Effort Assistance (LEA) funds to districts and asked legislators to keep this flexible funding source intact. Wagemann provided examples of how LEA has been used to help increase the districts graduation rates and how the loss of funding would jeopardize innovative approaches to helping all students achieve success.

Their voices were joined by other education advocates who took varying positions on cutting days, LEA, specific programs, and revenue options. SPI Randy Dorn took a stance against any cuts to basic education and LEA, and urged legislators to continue funding dropout prevention programs that help keep kids in school.

LEA, days and funding focus of work sessions next week

School directors may want to clear some time next Wednesday to participate in a committee meeting Dec. 7 at 10 a.m. in Hearing Room A. That’s when the House Ways & Means has scheduled a public hearing to discuss a Governor-request bill to reduce school days and make changes to LEA funding.

Note: A bill number is not available at the time of this report, but we understand that cutting school days and LEA will be in one bill. We will post the link to the bill when it is available.

The public hearing will be followed by a work session on reducing the number of school days and making changes to LEA/levy equalization.

Also on the schedule is a discussion of a proposal being floated by committee chair Ross Hunter, D-Medina, to create a long-term education funding strategy through changes to the state’s collection of property taxes. The school property tax proposal can be found at the following link: http://leg.wa.gov/House/Committees/WAYS/Documents/2011/H-3045.2.pdf.

Hunter described his proposal at the WSSDA Annual Conference in Bellevue last month. A review of this information and his blog post explains the thinking behind the bill. In addition, links to the data tables can be found in annual conference handouts 2 and 3 in session 35 or on Hunter’s web site.

In addition, the Senate Early Learning & K-12 Education committee will hold a work session Dec. 8 at 10 a.m. on recommendations from the Levy and LEA Technical Working Group that wrapped up deliberations last June.

The group had been tasked under ESHB 2261 (Chapter 548, Laws of 2009) and SHB 2776, section 6 (Chapter 236, Laws of 2010) to develop options for a new system of K-12 supplemental funding through local levies and LEA, and to recommend a phase-in plan to ensure no district receives less funding when a new system is implemented.

After more than a year of discussion, the group reaffirmed its support for LEA as a necessary tax equity program and for a minimum of 50 percent levy equalization funding. In addition, the group considered but rejected a sliding scale or “tiered” approach that would have established a different formula for LEA funding based on the level of tax rates.

The full report was issued in July 2011. It includes data comparing school districts and the impact of the different options considered on the districts. The report, executive summary, meeting minutes, and other related documents can be found here. (Levy equalization options start on page 98 of the report.)

The committee also will get a briefing the same day from Leslie Goldstein, the governor’s policy advisor for higher education, on the Higher Education Steering Committee recommendations. Two committees received the same report this week, which recommends creating an Office of Student Achievement, a 13-member advisory board, and a joint legislative-select committee on educational attainment.

Under the proposal, the State Board of Education and the Higher Education Coordinating Board (HEC Board) would be merged, and the Office of Student Financial Assistance and the Educational Research and Data Center would be part of the new Office of Student Achievement.

Goldstein told committee members that she hoped the final report would be released next week, with a bill possibly in the following week of the special session. The report was called for by ESSB 5182, which passed last session and eliminated the HEC Board effective July 1, 2012.

Virginia: Is there a budget in sight?

While both the House and Senate budget committees are holding public hearings and work sessions on the Governor’s supplemental budget proposal and starting to hear “Necessary to Implement the Budget” – NTIB – bills, the real question is whether lawmakers can come to some agreement on the details and send a new spending plan to the Governor before the end of the month.

Given the challenges they had this week in approving a bill to help the city of Wenatchee and the area’s public facilities district avoid defaulting on a $42 million bond, it’s hard to see how they will reach consensus on which funding cuts to adopt. But never say never.

Committee chairs and members have shared their priorities with budget negotiators, and some lines are being drawn about what will be acceptable in an all-cuts budget.

In the House, most policy committee work has been suspended, and members are expected to take up HB 2415, the “Wenatchee” bill, on Monday for floor action. The rest of the week appears reserved for the House Ways & Means Committee, which has shifted its meeting times to 10 a.m. Tuesday through Thursday.

In the Senate, policy committees such as the Senate Early Learning & K-12 Education Committee and the Higher Education & Workforce Development Committee will continue to hold work sessions on topics that are budget-related. And the Senate Ways & Means Committee will continue to take public comment on the budget by topical area.

New faces, new digs
Three former House members have joined the Senate since the end of last session, including Sen. Christine Rolfes, D-Bainbridge Island, who is now serving as the vice chair of the Senate EL & K-12 committee. Sen. Nick Harper, D-Everett, remains on the committee but is taking a more active role as majority whip and vice chair of the Senate Judiciary Committee.
Sen. David Frockt, D-Seattle, replaced Sen. Scott White who died unexpectedly in October. Sen. Mike Padden, R-Spokane Valley, won a Nov. 8 special election to fill the seat that came open earlier this year when Sen. Bob McCaslin resigned for health reasons. Both Frockt and Padden have been appointed to the Senate Ways & Means Committee.
In addition, Rep. Drew Hansen, D-Kitsap County, who replaced Rolfes in the House, has scored a seat on the House Education Appropriations & Oversight Committee.
With renovation work on the John L. O’Brien Building almost completed, House members began moving into their new offices at the end of the week. Please check the House roster for the most up-to-date office information.

State Board of Education Adopts Changes to 20-Credit Requirement

At a formal meeting today in Vancouver, the State Board of Education (State Board) voted 9-3 to change the structure of the current 20-credit requirements for high school graduation.

Dissenting votes were Steve Dal Porto and Bob Hughes, who are WSSDA representatives to the SBE, and SPI Randy Dorn. Voting in support were Connie Fletcher, Bunker Frank and Tre Maxie, also WSSDA representatives to the SBE.

The State Board chose to adopt the new rules for the graduating class of 2016, but to allow districts to request a two-year extension for only the English and Social Studies credit requirements.

To apply for the extension, a school district Board of Directors would need to pass a resolution to delay the implementation of English and Social Studies and file the written resolution with the Board by June 1, 2012. If filed with the Board, the changes would apply to the graduating class of 2018 rather than the class of 2016.

The extension was viewed by some State Board members as a compromise between members who wanted to proceed with the changes and those who were concerned about the fiscal impact on school districts that don’t meet the requirements now.

Dal Porto also mentioned his concern about breaking the State Board’s commitment with school districts to push forward no unfunded mandates until funding is provided for the changes.

The biggest rule changes are increasing the credit requirement for English from 3 credits to 4 credits, and moving from 2.5 credits to 3 credits of social studies. In addition, the rule change adds a .5 credit requirement for civics, makes successful completion of Washington state history a non-credit requirement, and reduces the number of electives from 5.5 credits to 4 credits.

Lake Stevens Director David Iseminger Presents to QEC

David Iseminger, a Lake Stevens director and member of the WSSDA board of directors, is presenting his funding plan for a more sustainable and stable source of funding for K-12. It's on TVW now.

Levies and LEA are a big part of today's QEC agenda. Members are expected to discuss options and recommendations this afternoon at 1 p.m.

QEC sets meeting schedule, LEA/Levy Equalization Report Discussion in September

The QEC has tentatively set three meetings over the next three months:

• September 27 - the day will be devoted to the report and options from the Levy/Local Effort Assistance Work Group
• October 26 or 31
• November 30

The QEC has two reports it must make some decisions about before the 2012 session starts - the Early Learning Technical Working Group and recommendations about the Transitional Bilingual Program Revised Funding Model. It plans to weigh in on the levy/local effort assistance report as well.

Quality Education Council meets 8/24

The Quality Education Council is meeting today in Olympia and the meeting is being broadcast on TVW.

The meeting started with a briefing from the State Board of Education, including the introduction of new Executive Director Ben Rarick, the former budget analyst for the House Ways & Means Committee. The SBE is seeking a more active partnership with the QEC, and Chair Jeff Vincent and Rarick stressed their desire to make more strategic goals that are tied to clear measures, and to anticipate the policy issues the Legislature will grapple with in the future and bring forward recommendations.

The other presentation that has been completed is from House and Senate non-partisan education committee staff regarding the 2011 legislative session, the QEC recommendations from the 2011 report and how they fared in the session, and new work that had been assigned to the QEC.

2011 Legislative Summary available

As a wrap up of the 62nd Legislative Session, WSSDA is pleased to release a summary of 2011 policy and budget bills, and their relevance to school directors and school staff across the state.

 

The summary includes sections on: 

• the capital and operating budgets;
• education-related bills that passed and didn’t pass;
• how the WSSDA 2011 positions fared; 
• a review of rules, work groups, reports and other requirements – most with due dates between now and next January; and 
• an index by bill number and by key word. 

Copies of the 98-page summary will be mailed to each school district’s Legislative Representative in the next few weeks. A limited number of additional copies are being printed for school directors, for distribution upon request.

 

Paramount Duty: KUOW reports on schools and the recession

This week, Seattle NPR station KUOW is running an indepth series "Paramount Duty: K–12 Education And The Recession." Compiled by KUOW education reporter Phyllis Fletcher, the four-day series examines "how schools are struggling to meet the complex needs of an increasingly impoverished student body with less funding from shrinking budgets." The final program. airing Thursday, includes an interview with WSSDA President-elect and Tukwila School Director Mary Fertakis. Transcripts and audio from the programs are available online at http://kuow.org/specials/paramountduty.php.

Special Legislative Update: Should school districts be concerned about changing the state’s debt limit?

The 2011 special legislative session nearly ground to a halt due to a lack of agreement between the Senate and the House Democrats on whether to approve a bill that would have sought a constitutional change to the state’s debt limit. This special legislative report looks at the issue and provides links to podcast interviews with legislative proponents and opponents.

Read the full report here.

Legislative Update: Governor signs budget bills, revenue forecast down again

Saying she was truly dismayed by $1.8 billion in cuts to education, Gov. Chris Gregoire signed the 2011-13 operating budget June 15.

The largest reductions were in suspending I-728 and I-732 and eliminating K-4 class size enhancement for about $1.4 billion in “savings” to the state.

Another large reduction was $179 million for K-12 salaries – 3 percent for administrators and 1.9 percent for certificated and classified staff – which shifted the state budget problem to local school districts, forcing them to determine whether to pass on the reduction or make up the difference.

Read the full update here.

A quick view of bills passed that affect public schools, K-12 funding

WSSDA is preparing a summary of the 2011 legislative session and special session, which will be available soon.

In the meantime, here is an updated chart of bills that passed in 2011. While no means exhaustive, the chart reflects the main education policy and fiscal bills that have landed on Gov. Chris Gregoire’s desk, and may be useful to school directors who need a quick summary of the session(s).

Legislative Wrapup Report: For a Few Dollars More

With less than two hours to spare, the 2011 legislature adjourned Wednesday, May 25, ending the special session with the House and Senate gaveling the day to a close together with a mixture of relief and celebration.

The final days were marked by exceptionally long hours and closed door sessions, and once a budget agreement was delivered Monday, the pace picked up. It was time to go home.

The 2011-13 operating budget, E2SHB 1087, includes $4.5 billion in reductions and $459 million in transfers, to close a $4.9 billion budget shortfall. It also leaves more than $700 million in reserves.

In many cases, the budget represents a continuation of funding decisions started in the 2009-11 biennial budget, last December’s budget bill (HB 3225) and the early action supplemental budget in February (ESHB 1086).

Read the Full Update

Go ahead, make my day

The Senate recently passed the 2011-13 operating budget (ESHB 1087), the 2011-13 capital budget bond bill (HB 2020) and the construction cash only bill (ESHB 1497), and the bill that would task a blue ribbon commission with reviewing the state's debt limit and putting a lower working rate in place (starting in 2015).

Other bills that have passed in the last two hours are ESHB 1410, which would delay the requirement to pass the science assessment to graduate until the class of 2015, and ESB 5919, the policy bill that puts in place many of the education funding cuts including a new formula for the Transitional Bilingual program that will phase in 2012-13.

A handful of other bills have made their way across both chambers, and it appears that they are ready to sine die. The big doors are opening and all looks well.

Congratulations legislators - you did it!

Rolling in the deep

With eight hours left to go on Day 30 of the special session, the wheels are turning slowly.

The House came in at 9 a.m., went into caucus, and has emerged to pass the capital budget, the bond bill and the blue ribbon commission on right-sizing the state's debt limit. A couple of other bills have passed as well, but big ticket items like state agency consolidation remain.

The Senate has also been rather pokey, with the operating budget, capital budget, bond bill, ALE funding, and education reforms still on the calendar. After a three-hour "recess" over lunch to go back to the table on the operating budget for a unexpected glitch, they are on the floor.

As long as the Senate passes the capital budget, the school construction assistance program is golden. In addition, the capital budget includes $20 million for energy efficiency grants, $5 million for emergency repairs, and funding for three skills centers plus $1 million for Aviation High School.

More later ... it's time for science, finally.

House begins floor action on budget

The House is beginning work on the 2011-13 operating budget. Speaker Frank
Chopp, D-Seattle, is running the floor action.

Capital budget deal announced

The agreement includes a smaller capital budget and some limits to the debt capacity.

The capital budget will include a $1.1 billion bond budget ... HB 2020. Senator Derek Kilmer, D-Gig Harbor, said that every school district that has passed a bond measure will get the school construction assistance they have been counting on, plus some funding for skills centers is included.

On the constitutional amendment, the compromise is to put something into statute this year on a working debt limit but not to seek an amendment at this time.

Reporting on the agreement, Senator Linda Evans Parlette, R-Wenatchee, indicated that they have agreed on reducing the debt limit over time and will create a blue ribbbon commission to assist with the thinking on what the right level of debt should be. The commission will include legislators, the state treasurer, OFM, and others with expertise on bonds and financing.

SB 5181 will create the commission, and will put in place a working debt limit smaller than the 9% currently in the constitution. The working debt limit is currently 8.75, and bonding capacity has been based on a three-year average; the language they are working on is to reduce this over time, with a goal of reducing the debt service in the operating budget to about 5.5 percent.

A constitutional amendment has been put aside for now, although it might be something the blue ribbon commission may recommend.

The cash projects in the capital budget will show up in a striking amendment for SHB 1497. This is a new approach, according to ranking committee member Judy Warnick, R-Moses Lake, where the bond bill (HB 2020) and the cash bill (HB 1497) will be more transparent on what the state is buying.

No bills or summary details yet; probably tomorrow. Negotiators worked until 5 a.m., and gave the Governor and the governor's office credit for helping them reach agreement.

The press conference will be available on TVW later today.

Legislative Update: Compromise operating budget announced

House and Senate leaders and budget negotiators gathered this morning to announce a bi-partisan budget that makes $4.6 billion in reductions, including some painful cuts to K-12 education.

While not ideal, early agreement had been reached on suspending citizen initiatives on class size (I-728) and COLAs (I-732), which would save the state at least $1.2 billion right off the bat. K-4 class size enhancements were also on the chopping block, which cut about $170 million.

Districts had also expected a June apportionment shift, but the hit is less than originally projected—$128 million shifted from June 30 to July 1.

The compromise budget also includes $33.5 million for K-3 class size reduction in high poverty schools.

Local effort assistance (LEA) was protected in both the House and Senate budget proposals, and remains preserved in the compromise plan.

One of the largest cuts to K-12 is a 1.9 percent salary reduction for certificated and classified staff and 3 percent for administrative staff. An exemption is included for those who make less than $30,000. The cut represents $179 million that will be pushed down to local districts to deal with.

Read the full update.

Legislative Update: Come together

Senate and House leaders and budget writers will hold a press conference Tuesday, May 24 at 10 a.m. to announce the agreed-upon 2011-13 operating budget.

Faced with a $5.1 billion shortfall between revenues and expenditures/commitments, negotiators have taken nearly all 30 days of the special session to reach an agreement. The end is in sight.

No one believes that K-12 education will be spared some deep cuts, and as budget committees march towards the final day of special session (this Wednesday, May 25 at midnight), we continue to get a peek at what’s in store for public schools.

Read the full update.

Budget update

Just a quick update that it looks like there is agreement on the operating budget but few details. Both caucuses are expected to share details with their members and the budget will be revealed at 10 a.m. Tuesday.

A quick glance at HB 2065, indicates a 15% cut to ALE programs (online, parent partnership and contracted ALE), which is a cut to basic education. Legislators are trying to garner $40M and don't think the savings on eliminating parent partnership stipends will net enough.

Speculation is rampant on K-12 salary reductions, but the rumors are an agreement on 1.9% for teacher pay cut and 3% to classified and administrative employees.

As to bus depreciation and the $95 million tied to the lump sum payment, no word on where this will end up. Some speculation is that will be taken but not at such a large rate.

The House is currently doing the workers compensation reform bill(s), while Senate Ways & Means is getting ready to run a number of bills necessary to implement the budget. The House Ways & Means Committee is supposed to start their meeting at 5 p.m., but it could be delayed based on what happens on workers comp and how much time that takes.

Final sticking points of major issues: the capital budget tied to the constitutional amendment to reduce the debt limit from 9% to 7%, and reorganization of several state agency operations and contracting out provisions. A five-corners meeting just broke up on the constitutional amendment with no agreement. We may end up with a cash-only capital budget, which would result in $330 million for school construction match.

Also in the final countdown is the science assessment bill that would delay the link between graduation and passing the science test to either 2017 or, under an amendment by Rep. Dammeier, roll it back to 2015. We think there is agreement to roll back to 2015 but to drop the requirement that students in the class of 2014 that fail the test have to take a third science credit - a serious unfunded mandate to schools.

More later.