JoLynn Berge – Chief Financial Officer, OSPI Andrea Cobb – Policy Analyst, OSPI

 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 2

 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 3

 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

4

    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 5

 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 6

   ◦ 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 7

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

   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 9

    ◦ ◦ ◦ ◦ ◦ ◦ ◦ 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 10

Enhancement Area

Pupil Transportation Materials, Supplies & Operating Costs Full Day Kindergarten (FDK) Early Elementary Class Size (K-3) Increase Instructional Hours* Opportunity for 24 Credits* Compensation

Policy

Move to expected cost model

Statutory Deadline

2013-15 Biennium Fund actual cost per pupil as of 2007-08 SY adjusted by inflation Continue implementation of state funded FDK for all schools beginning with highest poverty Reduce to 17.0 FTE students per teacher Increase to 1,080 hours in each of grades 7-12 th grades 1 st and 1,000 in each of – 6 th Provide students the opportunity to complete 24 credits for graduation Requires a technical workgroup to make recommendations for an enhanced compensation model 2015-16 School Year 2017-18 School Year 2017-18 School Year Schedule to be adopted by the Legislature Schedule to be adopted by the Legislature No required date or target specified *E2SSB 6552, adopted in 2014, revised the requirements related to increased instructional hours and the opportunity for 24 credits 11

   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 12

    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/ed resources 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 13

    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/ed resources 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

Enhancement Area

Pupil Transportation Materials, Supplies & Operating Costs Full Day Kindergarten (FDK) Early Elementary Class Size (K-3) Increase Instructional Hours Opportunity for 24 Credits Compensation

SHB 2792 SB 6574

Aligns the statutory funding formula to reflect full funding and implementation of the system beginning in 2014-15 Allocations for MSOC are increased for students in grade 9-12 beginning in 2014-15 Provides an implementation schedule for FDK of equal annual increments beginning in 2015 16 Provides an implementation schedule for K-3 class size reduction of equal annual increments beginning in 2014-15 for schools with >50% FRPL and 2015-16 for all others Revised to 1,000 in grades 1-8 and 1,080 in grades 9-12, beginning with the 2015-16 school year. Allows hours to be averaged districtwide Directs the state board to adopt rules to implement 24 credits Career and College Ready Framework for the class of 2019 Increases classified and certificated administrative staff salaries in equal annual increments to the market rate salary in the 2017-18 school year Not addressed Increases funding for general MSOC and provides additional allocations for MSOC for students in grade 9-12 beginning in 2014-15 Provides an implementation schedule for FDK of equal annual increments beginning in the 2015-17 biennium, and increase funding for FDK to 57.5% of students in 2014-15 Provides an implementation schedule for K-3 class size reduction of equal annual increments beginning in the 2015-17 biennium, and reduced grade 2 high poverty class size from 24.10 to 20.85 in SY 2014-15 Revised to 1,000 in grades 1-8 and 1,080 in grades 9-12, beginning with the 2015-16 school year. Allows hours to be averaged districtwide Authorizes the implementation of the opportunity for 24 credits beginning with the graduating class of 2019 Increases classified and certificated administrative salaries beginning in the 2015 17 biennium; provides that a revised salary allocation schedule should be phase in for CIS between the 2015-16 and 2020-21 SYs 15

Enhancement Area

Learning Assistance Program Transitional Bilingual Instruction Program Other Class Size Reduction Elementary and Middle School Staff High School Staff

SHB 2792 SB 6574

Increased funding to 2.3975 hours per week Provides an implementation schedule to increased allocations to 6 hrs./wk. in middle school and 8 hrs./wk. in high school beginning in the 2015-16 SY Reduces lab science class size in grades 9-12 to 19.98

Increased allocations for elementary family engagement coordinators and middle school guidance counselors beginning in 2015-16 Increased allocations for guidance counselors beginning in 2015-16 Increased allocations to 6 hrs./wk. in middle school and 8 hrs./wk. in high school beginning in the 2015-17 biennium Provides an implementation schedule to reduce general education class size in grade 9-12 to 23; lab science and CTE to 19, and skill center class size to 16 beginning in the 2015-17 biennium Increased allocations for guidance counselors and family and community engagement coordinators Increased allocations for principals, assistant principals, other certificated administrators and guidance counselor 16

Base Enrollment Principals Current allocation Teacher Librarians Current allocation Guidance Counselors Current allocation

Staff Type Students CAS CIS CIS Elem (K-6) 400 1.30

1.25

1.00

0.663

0.50

0.493

School level staffing per base enrollment

Middle (7-8) High (9-12) 432 1.40

1.35

1.00

0.519

2.000

1.216

600

1.90

1.88

1.00

0.523

3.50

2.539

Health & Social Services School Nurses Current allocation Social Workers Current allocation Psychologists Current allocation Teaching Assistants Current allocation Office Support Current allocation Custodians Current allocation Student & Staff Safety Current allocation

CIS CIS CIS CLS CLS CLS CLS 0.585

0.076

0.311

0.042

0.104

0.017

1.195

0.936

3.220

2.012

3.524

1.657

0.099

0.079

0.888

0.060

0.088

0.006

0.024

0.002

1.295

0.700

3.029

2.325

3.454

1.942

0.506

0.092

0.824

0.096

0.127

0.015

0.049

0.007

1.121

0.652

3.382

3.269

4.512

2.965

0.723

0.141

CLS

0.676

0.676

0.676

Parent Involvement Coordinators Current allocation

0.0825

0 0

The values in the columns represent the full funding values recommended by the QEC along with current statutory funding levels 17

 ◦ 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 18

 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 19