ERNN Annual Conference Olympia, February 28, 2015.

ERNN Annual ConferenceOlympia, February 28, 2015

Budget(s) Update

McCleary Implementation

Educator Compensation

Revenue Question

Local Bargaining

2

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

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

3

“Early Action” Supplemental, HB 1105

$217.9 million increase over 2013-15

Funds:◦ Wildfires & Oso landslide◦ Mental health beds (Supreme Court)◦ In-home care compensation (Supreme Court)◦ Extended foster case services

Signed Feb. 19

4

Superintendent’s RequestK-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

Energy Grants - $8.0 million

Skills Centers - $43.7 million

5

Governor’s RequestK-12 Education - $657.2 million

“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

6

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

7

2015-17 Operating 2015-17 Operating BudgetBudget

99

2015-17 Operating2015-17 OperatingBudget ProposalBudget Proposal

10

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)

10

Superintendent Dorn 2015-17 Budget ProposalSuperintendent Dorn 2015-17 Budget ProposalK-12 Education Policy EnhancementsK-12 Education Policy Enhancements

11

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 $2,489,265,379 $2,767,697,512 $3,336,149,391

TOTALS $3,428,881,103

$4,776,350,213

$6,633,402,184

11

Supt. Dorn 2015-17 Budget ProposalSupt. Dorn 2015-17 Budget ProposalBasic Education Enhancement, HB 2261/HB 2776Basic Education Enhancement, HB 2261/HB 2776

Source: OSPI, 10/14

1212

2015-17 Operating2015-17 OperatingBudget ProposalBudget Proposal

1313

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

Gov. Inslee 2015-17 Budget ProposalGov. Inslee 2015-17 Budget ProposalK-12 Education Policy EnhancementsK-12 Education Policy Enhancements

McCleary v. State of McCleary v. State of WashingtonWashington

— — Implementation —Implementation —

1515

Education Funding Task ForceAdopted Spending Plan

Source: Joint Task Force on Education Funding, Final Report, 12/12

1616

Initial Initial McClearyMcCleary Basic Education Basic Education InvestmentInvestment

2013-15 Operating Budget2013-15 Operating Budget

$5

$4

$3

$2

$1

$0

Bill

ion

s

1717

State’s K-12 Funding PromisesTestimony Under Oath During McCleary Trial

(Per Pupil State Funding)

Source: Network for Excellence in Washington Schools, 9/14

1818

$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

18

State’s K-12 Funding State’s K-12 Funding PromisesPromises

1919

Real and Steady Progress Towards Full Funding— State Testimony vs. Actual Funding, 2013—



2020

Real and Steady Progress Towards Full Funding— State Testimony vs. Actual Funding, 2014—



2121Source: Network for Excellence in Washington Schools, 1/15

Real and Steady Progress Towards Full Funding— State Testimony vs. Actual /Proposed Funding—


State’s K-12 Funding PromisesState’s K-12 Funding Promises

Competitive Public SchoolCompetitive Public School

Employee CompensationEmployee Compensation

24

“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).”

- Sen. Andy HillWays & Means Chairman

24

McClearyMcCleary & Compensation & Compensation

25

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.”

25

McClearyMcCleary & Compensation & Compensation

26

“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 rulingJan. 5, 2012

26

The Court & CompensationThe Court & Compensation

27

“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 OrderJan. 9, 2014

27

The Court & CompensationThe Court & Compensation

28

“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 OrderJan. 9, 2014

28

Supreme Court & Supreme Court & CompensationCompensation

29

Enacted in 2009, ESHB 2261

Convened in July 2011

Statutory Charge: Recommend the details of an enhanced salary allocation model that aligns state expectations for educator development and certification with the compensation system.

Report submitted in June 2012

2929

Compensation Technical Working Compensation Technical Working GroupGroup

303030

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


June 2012 RecommendationsJune 2012 Recommendations

313131

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


June 2012 RecommendationsJune 2012 Recommendations

Full Report at: http://bit.ly/1qeFvcb

32Note: Salaries are for all programs and do not include benefits

Source: OSPI, 9/14

School District Employee SalariesSchool District Employee SalariesPercentage of Average Salary Paid by State and Local DistrictPercentage of Average Salary Paid by State and Local District

Key Recommendations:

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

Local Funding Workgroup

White Paper: http://bit.ly/1wxMg3a Talking Points: http://bit.ly/1GACQ7l

http://bit.ly/1wxMg3a

http://bit.ly/1wxMg3a

http://bit.ly/1GACQ7l

http://bit.ly/1GACQ7l

3434

Where will the Legislature find theWhere will the Legislature find thefunds to enhance K-12 Education—funds to enhance K-12 Education—and other necessary state services?and other necessary state services?

Revenue Growth?Revenue Growth?

Spending Reductions?Spending Reductions?

Tax Increases?Tax Increases?

353535

Four-year Budget Outlook(Dollars in Millions)

Source: Economic & Revenue Forecast Council, 11/14

36Source: Office of Financial Management, 11/14

2015-17 Budget Outlook

$4.45B

3737Source: Office of Financial Management, 8/14

Spending Reductions? Two-thirds of the Spending Reductions? Two-thirds of the statestate

budget constitutionally or federally budget constitutionally or federally protectedprotected

383838

General Fund-State Revenues asGeneral Fund-State Revenues asPercentage of Washington Personal IncomePercentage of Washington Personal Income

Source: Office of Financial Management, 12/13

3939

Taxable Sales as Percentage of Personal Income

Source: Economic & Revenue Forecast Council, 9/14

What aboutWhat aboutCollective Bargaining?Collective Bargaining?

Daniel P. SteeleAssistant Executive Director,

Government Relations825 Fifth Avenue SEOlympia, WA 98501

360.489.3642

[email protected]

ERNN 2015 Annual Conference

ERNN Annual Conference Olympia, February 28, 2015.

Documents

Transcript of ERNN Annual Conference Olympia, February 28, 2015.