Transcript Slide 1

ERNN Annual Conference
Olympia, February 28, 2015

Budget(s) Update

McCleary Implementation

Educator Compensation

Revenue Question

Local Bargaining
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
11 bill package:
◦ Revenue bill; Bond bill; Spending Plan; 8 “reforms”

$15.0 Billion Spending Plan
◦ Funds 6 “megaprojects” & 58 regional projects
◦ $3.5 million – Safe Routes to Schools Grants
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
11.7 cent gas tax increase
SB 5990-Exempts certain transportation
projects from sales tax; diverts other trans
sales tax from General Fund to transportation
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
“Early Action” Supplemental, HB 1105

$217.9 million increase over 2013-15
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Funds:
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◦
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◦
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Wildfires & Oso landslide
Mental health beds (Supreme Court)
In-home care compensation (Supreme Court)
Extended foster case services
Signed Feb. 19
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Superintendent’s Request
K-12 Education - $3.18 billion

School Construction Assistance Program $1.14 billion

K-3 Class-size Reduction - $1.98 billion

Local Assistance Grants - $50.2 million
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Energy Grants - $8.0 million
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Skills Centers - $43.7 million
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Governor’s Request
K-12 Education - $657.2 million
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

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“Fully Funds” School Construction Assistance
Program - $596.1 million
All-day Kindergarten - $10.0 million
Small Repair/Healthiest Next Generation $5.0 million
Skills Centers - $36.1 million
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
SB 5859 (and HB 2161)
◦ Enhancements to Construction Cost Allowance &
Student Space Allocation
◦ Raises minimum funding floor from 20 percent to
30 percent

HB 1941/HJR 4210
◦ Simple Majority for school district bonds
◦ November election only
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2015-17 Operating Budget
2015-17 Operating
Budget Proposal
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Superintendent Dorn 2015-17 Budget Proposal
K-12 Education Policy Enhancements
Basic Education (HB 2261/HB 2776)
$7.2 billion
Basic Education: CTE
$169,800,000
High School Graduation Rates
($29,360,000)
Dropout Prevention/Student Support
$31,730,000
Technology Literacy
$139,000,000
Professional Learning Support System
$10,990,000
WaKIDS Grants
$1,492,000
Bus Depreciation
$676,604
Seattle Children’s Hospital
$931,378
Student Information/Customer Support
$410,700
Data Privacy
$442,000
CTE Course Equivalency
$250,000
Certification Fee Increase
$1,787,000
PESB Cut
($594,704)
0.41
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Supt. Dorn 2015-17 Budget Proposal
Basic Education Enhancement, HB 2261/HB 2776
Expenditure Category
School Year
2015-16
2016-17
2017-18
Early Elem. Class Sizes
$202,812,515
$458,130,044
$789,926,548
Later Grade Class Sizes
$133,333,329
$283,414,747
$454,901,508
Support Staff
$355,610,606
$717,775,681 $1,086,485,908
Program Hours
$103,507,914
$243,698,593
$475,794,541
Prof. Development
$144,351,361
$305,633,637
$490,144,289
Compensation
TOTALS
Source: OSPI, 10/14
$2,489,265,379
$2,767,697,512 $3,336,149,391
$3,428,881,103
$4,776,350,213 $6,633,402,184
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2015-17 Operating
Budget Proposal
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Gov. Inslee 2015-17 Budget Proposal
K-12 Education Policy Enhancements
Basic Education (HB 2776)
$1.3 billion
MSOC
$751.8 million
K-3 Class Size
$448.1 million
Full-Day Kindergarten
$107.6 million
Promoting Student Success
$40.7 million
High School Graduation Rates
$18.1 million
High-Quality Teaching/Instructional Leadership
$30.4 million
Compensation
$596.6 million
K-12 Total
$1.99 billion
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McCleary v. State of Washington
— Implementation —
Education Funding Task Force
Adopted Spending Plan
Source: Joint Task Force on Education Funding, Final Report, 12/12
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Initial McCleary Basic Education Investment
2013-15 Operating Budget
$5
Billions
$4
$3
$2
$1
$0
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State’s K-12 Funding Promises
Testimony Under Oath During McCleary Trial
(Per Pupil State Funding)
Source: Network for Excellence in Washington Schools, 9/14
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State’s K-12 Funding Promises
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$7,279 per pupil funding, as adopted in
2ESSB 5034 (2013-15 budget)
$9,710 per pupil funding by 2017-18, as
testified in trial—does not include market rate
salaries, inflation after 2007-08 or capital
construction needs
$12,701 per pupil funding by 2017-18,
promised funding including market rate
salaries ($2.9 billion) as recommended by
Compensation Technical Working Group (June
2012)
◦ Calculation: $9,710 + $2,991=$12,701 per pupil
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Real and Steady Progress Towards Full Funding
— State Testimony vs. Actual Funding, 2013 —
(Per Pupil State Funding)
Source: Network for Excellence in Washington Schools, 9/14
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Real and Steady Progress Towards Full Funding
— State Testimony vs. Actual Funding, 2014 —
(Per Pupil State Funding)
Source: Network for Excellence in Washington Schools, 9/14
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Real and Steady Progress Towards Full Funding
— State Testimony vs. Actual /Proposed Funding—
(Per Pupil State Funding)
Source: Network for Excellence in Washington Schools, 1/15
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State’s K-12 Funding Promises
Competitive Public School
Employee Compensation
McCleary & Compensation
“The McCleary ruling’s statutory components
derive from HB 2776 (2010) which required
funding enhancements in four areas by the
2017-18 school year: transportation (completed
in 13-15), MSOC (required to be done in 15-17),
and all-day kindergarten and K-3 class size
reduction (required to be done in the 17-19
biennia).”
Means Chairman
Sen. Andy Hill
Ways &
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McCleary & Compensation


In 2009, ESHB 2261 adopted, establishing a
new definition of basic education and a new
education funding system.
ESHB 2261 stated the Legislature’s intent to
“enhance the current salary allocation model,”
with the understanding that “continuing to
attract and retain the highest quality
educators will require increased investments.”
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The Court & Compensation
“Substantial evidence at trial also showed that
the State consistently underfunded staff
salaries and benefits. Testimony revealed that
the State allocation for salaries and benefits fell
far short of the actual cost of recruiting and
retaining competent teachers, administrators,
and staff.”
- McCleary ruling
Jan. 5, 2012
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The Court & Compensation
“Another area in which the State's Report falls
short concerns personnel costs. Quality
educators and administrators are the heart of
Washington's education system. The Report …
skims over the fact that state funding of
educator and administrative staff salaries
remains constitutionally inadequate.”
- McCleary Order
Jan. 9, 2014
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Supreme Court & Compensation
“Nothing could be more basic than adequate
pay. The inescapable fact is that salaries for
educators in Washington are no better now
than when this case went to trial....It is deeply
troubling that the State's Report does not
address this component of ESHB 2261 or offer
any plan for meeting its goals.”
- McCleary Order
Jan. 9, 2014
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Compensation Technical Working Group
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Enacted in 2009, ESHB 2261
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Convened in July 2011
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Statutory Charge: Recommend the details of an
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Report submitted in June 2012
enhanced salary allocation model that aligns
state expectations for educator development
and certification with the compensation system.
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Compensation Technical Working Group
June 2012 Recommendations
1) Increase the Starting Salary for Teachers and
Educational Staff Associates to $48,786
2) Provide Fair Market-based Salary Allocations for all
K-12 Staff
3) Maintain Comparable Wage Levels through an
Annual Cost of Living Adjustment and Periodic
Wage Analysis
4) Align the Salary Allocation Model to the Career
Continuum for Educators
5) Invest in 10 Days of Professional Development
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Compensation Technical Working Group
June 2012 Recommendations
6) Allocate Mentors and Instructional Coaches in the
Basic Education Funding Formula
7) Provide Appropriate Staffing Levels and Increased
Program Support for Basic Education
8) Amply Fund State Basic Education Salary
Allocations and Limit Locally Funded Salary
Enhancements to No More than 10% of the State
Allocation
9) Ensure School Districts receive the Same or Higher
State Salary Allocations per State-funded Employee
Full Report at: http://bit.ly/1qeFvcb
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School District Employee Salaries
Percentage of Average Salary Paid by State and Local District
100.0%
90.0%
$(1,400)
99.2%
$(1,200)
90.8%
80.0%
85.7%
79.7%
70.0%
78.9%
77.2%
60.0%
$(1,000)
$(800)
50.0%
$(600)
40.0%
30.0%
20.3%
20.0%
10.0%
21.1%
22.8%
$(400)
14.3%
$(200)
9.2%
0.8%
0.0%
$1987-88
1992-93
Total $ Underfunded
Source: OSPI, 9/14
1997-98
2002-03
% of Average Salary Paid by State
2007-08
2012-13
% of Average Salary paid by District
Note: Salaries are for all programs and do not include benefits
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Local Funding Workgroup
Key Recommendations:
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

Fund the full cost of basic education labor
first, followed by other improvements as
outlined in ESHB 2261 and SHB 2776
Update and implement recommendations of
Compensation Technical Working Group
Recognize and mitigate impact of any
reduction to local levy authority on districts’
ability to meet financial obligations
White Paper: http://bit.ly/1wxMg3a
Talking Points: http://bit.ly/1GACQ7l
Where will the Legislature find the
funds to enhance K-12 Education—
and other necessary state services?
Revenue Growth?
Spending Reductions?
Tax Increases?
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Four-year Budget Outlook
(Dollars in Millions)
Source: Economic & Revenue Forecast Council, 11/14
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2015-17 Budget Outlook
$4.45B
Source: Office of Financial Management, 11/14
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Spending Reductions? Two-thirds of the state
budget constitutionally or federally protected
Source: Office of Financial Management, 8/14
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General Fund-State Revenues as
Percentage of Washington Personal Income
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Source: Office of Financial Management, 12/13
Taxable Sales as Percentage of Personal Income
Source: Economic & Revenue Forecast Council, 9/14
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What about
Collective Bargaining?
Daniel P. Steele
Assistant Executive Director,
Government Relations
825 Fifth Avenue SE
Olympia, WA 98501
360.489.3642
[email protected]
ERNN 2015 Annual Conference