WASA New Superintendent WorkshopOlympia, July 28, 2015

Where We’ve Been◦ McCleary v. State of Washington

◦ Education Finance Reform

Where We Are◦ 2015-17 Budget Overview

◦ McCleary impacts

Where We’re Going◦ 2016 and beyond

Superintendent Advocacy

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2005: The Network for Excellence in Washington Schools (NEWS) is formed

◦ Comprised of many organizations and school districts committed to improving the quality of public education in Washington (430+ members in 2014)

2007: McCleary v. State of Washington filed in King County Superior Court

NEWS filed a lawsuit, asking the courts to order the State of Washington to live up to its paramountconstitutional duty to make ample provision for the education of all Washington children

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0

2

4

6

8

10

12

State Funding Actual District Costs

Statewide Funding – all 295 School Districts

2007-08 School Year

State’s “basic education” funding

Other State funds

School facilities

Classroomteachers

Pupil transportation

Librarians, counselors, safety personnel, health

Principals, etc.

Utilities, insurance, etc.

ExtracurricularFood service

Capital Project Fund expenses

ASB Fund expenses

Dollars

in B

illions

Local levy revenue at the same level as before Doran Decision

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%Percent of State and Local Revenue Sources

(excludes federal and other revenue sources)

State Revenue

Local Revenue

20.5%

Source: OSPI 5/10

2009: McCleary v. State of Washington heard in King County Superior Court

2010: Judge John Erlick rules for the plaintiffs, declaring the State’s failure to fully fund public schools is unconstitutional:

◦ “This court is left with no doubt that under the State’s current financing system, the state is failing in its constitutional duty. “

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“State funding is not ample, it is not stable, and it is not dependable…local school districts continue to rely on local levies and other non-state resources to supplement state funding for a basic education.”

“Paramount means preeminent, supreme, and more important than others. Funding K-12 education…is the state’s first and highest priority before any other state programs or operations.”

- Judge John Erlick

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ESHB 2261 – Program Changes Required

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SHB 2776 – Funding Changes Required

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SHB 2776 Resource Phase-in

School Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

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Full-Day Kindergarten

Must be fully funded statewide by

2017-18

Phase-in based on FRPL

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Schools

More

funding

can begin

More

funding

must

begin

Continues

to ramp

up

Continues

to ramp

up

Continues

to ramp

up

Continues

to ramp

up

Fully

Funded

2

K-3 Class Size Reduction

Must be fully funded statewide by

2017-18

Phase-in based on FRPL

$0

More

funding

can begin

More

funding

must

begin

Continues

to ramp

up

Continues

to ramp

up

Continues

to ramp

up

Continues

to ramp

up

Fully

Funded

3

Materials, Supplies,

Operation Costs (MSOC)

Must be fully funded by 2015-16

$ per student basis

More

funding

can begin

More

funding

must

begin

Continues

to ramp

up

Continues

to ramp

up

Funded at

new level

Funded at

new level

Funded at

new level

4

Basic Transportation

Must be fully funded by 2014-15

% of formula funded basis

More

funding

can begin

More

funding

must

begin

Continues

to ramp

up

Fully

Funded

Fully

Funded

Fully

Funded

Fully

Funded

Source: OSPI, 5/10

Supreme Court rules (January 2012):◦ The State “has consistently failed” to provide the

ample funding required by the Constitution.

◦ “Reliance on levy funding to finance basic education was unconstitutional 30 years ago in Seattle School District, and it is unconstitutional now.”

Supreme Court Orders State to:◦ “demonstrate steady progress” under ESHB 2261;

and

◦ “show real and measurable progress” towards full Article IX, Section 1 compliance by 2018.

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2015-17 Operating

Budget Overview

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2015-17 Operating Budget(as adopted, June 2015)

Total Spending $38.22 billion

K-12 Education 2013-15 $15.27 billion

K-12 Education 2015-17 $18.16 billion (47.5% share of GF-S)

Total K-12 increase $2.89 billion (18.9% increase)

Basic Education Enhancement $1.27 billion

MSOC 741.5

K-3 Class Size Reduction 350.2

Full-Day Kindergarten 179.8

BASIC EDUCATION (HB 2776) 1,271.5

COLAs 383.3

Health Benefit Rate Adjustment 24.4

I-1351 Class Size (2,042.7)

Staff Mix (35.7)

Levy Equalization (20.5)

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K-12 Budget Proposals – Major Highlights(dollars in millions)

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Education Funding Task ForceAdopted Spending Plan

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

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$0.0

$1.4

$3.3

$4.5

$0.0

$1.0

$2.3

$0

$1

$2

$3

$4

$5

2013-15 2015-17 2017-19

Task Force

Proposal

Legislative

Investment

McCleary Basic Education Investments2013-15 & 2015-17 Operating Budgets

$5

$4

$3

$2

$1

$0

Billions

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

(Per Pupil State Funding)

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

Real and Steady Progress Towards Full Funding

— State Testimony vs. Actual /Proposed Funding—(Per Pupil State Funding)

Source: Network for Excellence in Washington Schools, 4/15

2016…and beyond

Next Steps

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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 Legislature & Compensation

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“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

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“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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The Court & Compensation

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“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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The Court & Compensation

Note: Salaries are for all programs and do not include benefitsSource: OSPI, 9/14

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

99.2%

90.8%

85.7%

79.7% 78.9%77.2%

0.8%

9.2%

14.3%

20.3% 21.1%22.8%

$(1,400)

$(1,200)

$(1,000)

$(800)

$(600)

$(400)

$(200)

$-0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

1987-88 1992-93 1997-98 2002-03 2007-08 2012-13

Millions

Total $ Underfunded % of Average Salary Paid by State % of Average Salary paid by 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

School Superintendent Advocacy

— What You Can Do —

Establish an ongoing, personal relationship with your legislators (and their staff)

Remember you are the education “expert” and a valuable resource to legislators

Personalize issues with names of students, teachers, school buildings, etc.

Collaborate with community groups

Keep colleagues and WASA informed

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WASA: www.wasa-oly.org

Education Associations:◦ WSSDA: www.wssda.org◦ AWSP: www.awsp.org◦ WEA: www.washingtonea.org◦ PTA: www.wastatepta.org

Education Agencies:◦ OSPI: www.k12.wa.us◦ SBE: www.sbe.wa.gov◦ PESB: www.pesb.wa.gov

Legislative-related:◦ Legislature Homepage: www.leg.wa.gov◦ Governor’s Homepage: www.governor.wa.gov◦ LEAP (Budget info): http://leap.leg.wa.gov/leap/default.asp

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Daniel P. SteeleAssistant Executive Director,

Government Relations825 Fifth Avenue SEOlympia, WA 98501

360.489.3642

dsteele@wasa-oly.org

2015 New Superintendent Workshop