Legislativepreview 2011

Legislative Preview

2011

WSU Superintendents’ Certification ProgramOlympia , January 7, 2011

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2011 Legislative Session “Lay of the Land”◦ November 2010 Election◦ Budget Outlook◦ Budget Proposals

WASA Legislative Platform

Resources

2011 Legislative Preview

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Democratic Governor, Mid-term

Pre-election party strength:◦ House: 61 Democrats, 37 Republicans◦ Senate: 31 Democrats, 18 Republicans

Post-election party strength:◦ House: 56 Democrats, 42 Republicans◦ Senate: 27 Democrats, 22 Republicans

Setting the Stage for 2011

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New Leaders in Democrat Caucus:◦ Caucus Chair: Karen Fraser (Olympia)◦ Majority Whip: Scott White (Seattle)◦ President Pro Tempore: Margarita Prentice

(Renton)◦ Vice President Pro Tempore: Paull Shin

(Edmonds)◦ Majority Assistant Floor Leader: Phil Rockefeller

(Bainbridge Island)◦ Majority Assistant Whip: Kevin Ranker (San Juan

Island)

Key Legislative Changes - Senate

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New Leaders in Republican Caucus:◦ Minority Whip: Doug Ericksen (Ferndale)◦ Caucus Vice Chair: Dan Swecker (Rochester)

Key Legislative Changes - Senate

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New Committee Chairs:◦ Ways & Means Committee: Ed Murray (Seattle) ◦ Higher Education & Workforce Development:

Rodney Tom (Bellevue)◦ Government Operations, Tribal Relations &

Elections Committee: Craig Pridemore (Vancouver)

◦ Financial Institutions, Housing & Insurance Committee: Steve Hobbs (Lake Stevens)

◦ Natural Resources & Marine Waters Committee: Kevin Ranker (San Juan Island)

Key Legislative Changes - Senate

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New Leaders in Democrat Caucus:◦ Majority Leader: Pat Sullivan (Covington)◦ Caucus Chair: Eric Pettigrew (Seattle)◦ Speaker Pro-Tempore: Jim Moeller (Vancouver)◦ Majority Whip: Kevin Van De Wege (Sequim)◦ Majority Floor Leader: Tami Green (University

Place)

Key Legislative Changes - House

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New Leaders in Republican Caucus:◦ Minority Floor Leader: Charles Ross (Naches)◦ Minority Caucus Vice Chair: Judy Warnick (Moses

Lake)◦ Assistant Minority Floor Leader: Matt Shea

(Spokane Valley)

Key Legislative Changes - House

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New Committee Chairs:◦ Education Committee: Sharon Santos (Seattle)◦ Ways & Means Committee: Ross Hunter (Medina)◦ Higher Education Committee: Larry Seaquist (Gig

Harbor) ◦ General Government Appropriations Committee:

Zack Hudgins (Tukwila)◦ Labor & Workforce Development Committee: Mike

Sells (Everett)◦ Local Government Committee: Dean Takko

(Longview)◦ Health & Human Services Appropriations

Committee: Mary Lou Dickerson (Seattle)

Key Legislative Changes - House

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Ballot Measure Results

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This measure would restate existing statutory requirements that legislative actions raising taxes must be approved by two-thirds legislative majorities or receive voter approval, and that new or increased fees require majority legislative approval.

Initiative Measure 1053 – concerning tax and fee increases imposed by state government

36.25%

63.75%

0% 100%

No

Yes

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This measure would tax “adjusted gross income” above $200,000 (individuals) and $400,000 (joint-filers), reduce state property tax levies, reduce certain business and occupation taxes, and direct any increased revenues to education and health.

Initiative Measure 1098 – concerning establishing a state income tax and reducing other taxes

64.15%

35.85%

0% 100%

No

Yes

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This measure would end sales tax on candy; end temporary sales tax on some bottled water; end temporary excise taxes on carbonated beverages; and reduce tax rates for certain food processors.

Initiative Measure 1107 – concerns reversing certain 2010 amendments to state tax laws

39.56%

60.44%

0% 100%

No

Yes

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This bill would authorize bonds to finance construction and repair projects increasing energy efficiency in public schools and higher education buildings, and continue the sales tax on bottled water otherwise expiring in 2013.

Referendum Bill 52 – Concerning authorizing and funding bonds for energy efficiency projects in schools

53.77%

46.23%

0% 100%

Rejected

Approved

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Odd-year “long” session, limited to 105 days

Major focus: adoption of Biennial Budgets◦ 2011-13 Operating Budget◦ 2011-13 Capital Construction Budget◦ 2011-13 Transportation Budget

Setting the Stage for 2011

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2009-11Budget Problem

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$12 Billion Problem for 2009-11 Budget

Source: Office of the Governor 6/10

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Source: Senate Ways & Means Committee, 12/10

19Source: Senate Ways & Means Committee, 12/10

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Major Education Changes:

Transfer federal “Edujobs” funds to General Fund ($208 million)

Eliminate K-4 Enhancement, Feb. ‘11 ($39.4 million)

Reduce education reform, including assessment savings ($9.17 million)

Reduce OSPI administration and program funding ($3.664 million)

Total Savings = $588 millionTotal Reductions = $490.3 millionK-12 Education Reductions= $257.5 million

2011 “Early Action” Budget

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Major Education Changes:

Eliminate K-4 Enhancement (retroactive) ($42.1 million)

Reduce LEA payments by 6.3% ($18.1 million) Shift June 2011 apportionment payment to July

2011 ($253 million)

Total Savings = $408.7 millionTotal Reductions = $244.1 millionTotal K-12 Reductions = $402.1 million

*Governor’s proposal

2011 Supplemental Budget*

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2011-13 Budget Context

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Costs are IncreasingMandatory “Maintenance Level” expenditures escalating, while . . .

Revenues are DecliningAvailable revenue dropping due to economic situation (compounded by recent election outcomes)

Budget “Double Whammy”

24Source: Caseload Forecast Council, 11/10

State Budget Drivers: K-12 Education Enrollment

25Source: Caseload Forecast Council, 11/10

State Budget Drivers: K-12 Special Education

26Source: Caseload Forecast Council, 11/10

State Budget Drivers: K-12 Bilingual Education

27Source: Caseload Forecast Council, 11/10

State Budget Drivers: Corrections (Adult Inmates)

28Source: Caseload Forecast Council, 11/10

State Budget Drivers: Temporary Assistance to Needy Families

(TANF)

29Source: Caseload Forecast Council, 11/10

State Budget Drivers: Disability Lifeline Caseloads

30Source: Caseload Forecast Council, 11/10

State Budget Drivers: Long-Term Care

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Projected Change in Budget Driver Populations2007-2011

Source: Office of Financial Management, 3/10

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General Fund-State Revenues(Forecast by Fiscal Year)

Source: Economic & Revenue Forecast Council, 12/10

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“The economy is off life-support, but still in intensive care.”

- Arun Raha, Executive Director

Economic and Revenue Forecast CouncilNov. 11, 2010

Economic & Revenue Update

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2011-13 Budget Outlook

35Source: Office of Program Research, 12/10

36Source: Office of Program Research, 12/10

37Source: Office of Financial Management, 9/10

Estimated Six Year Budget Outlook(Dollars in Millions)

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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

1

Full-Day KindergartenMust be fully funded statewide by

2017-18Phase-in based on FRPL

219 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 ReductionMust be fully funded statewide by

2017-18Phase-in based on FRPL

$0More

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

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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

4Basic 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

39Source: Office of Program Research, 12/10

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What restrictions are there in reducing the budget?

Source: Office of Financial Management, 12/10

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Major Education Changes:

Eliminate various OSPI & statewide programs ($268.83 million)

Suspend a series of programs, including I-728 and I-732 ($1.22 billion)

Reduce a series of programs, including the reduction and restructuring of LEA ($56.37 million)

Increase apportionment, due to June 2011 to July 2011 postponement ($225 million)

*Governor’s Proposal

2011-13 Operating Budget*

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Total Spending: $32.12 billion◦ ($3.74 billion below “maintenance level”)

Total K-12 Spending: $13.75 billion◦ ($1.78 below “maintenance level”—not including

$700+ million commitment to basic education enhancement)

*Governor’s Proposal

2011-13 Operating Budget*

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Transforming Washington’s Budget“Ideas to Pursue”

Look at ways to improve ESDs. Consider formula changes to increase pressure to consolidate districts.

Require schools that graduate students needing remedial education to be responsible for the costs of remediation.

Explore benefits of a Governor-appointed SPI. Review base K-12 funding for savings. Reduce school year from 180 days to 175 days.

Other Budget Issues

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Transforming Washington’s Budget“Ideas to Pursue” cont’d

Consider increasing class sizes. Streamline administration. Add all employees to Public Employee Benefits

Board. Develop “standardized” contract for school

construction. Reconsider state assessment system.

http://www.governor.wa.gov/priorities/budget/committee_ideas.pdf

Other Budget Issues

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Governor’s proposal to collapse current education agencies/boards/commissions into one, unified “Department of Education,” headed by an appointed, cabinet-level Secretary of Education

New Department would have “full authority to run entire Washington state education system”

“Department of Education”

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Current Washington State Education Organization

Source: Office of Financial Management, 1/11

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Proposed Washington State Department of Education

Source: Office of Financial Management, 1/11

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2011 Legislative Platform

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It is the paramount duty of the state to make ample provision for the education of all children residing within its borders without distinction or preference on account of race, color, caste, or sex. (§ 1)

The legislature shall provide for a general and uniform system of public schools. (§ 2)

Constitution of the State of WashingtonArticle IX - Education

Constitutional Paramount Duty

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

◦ Comprised of 190+ organizations and school districts committed to improving the quality of public education in Washington

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

McCleary v. State of Washington

http://waschoolexcellence.org/

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State Funding Actual District Costs

0

2

4

6

8

10

12

Statewide Funding – all 295 School Districts2007-08 School Year

State’s “basic educa-tion” funding

Other State funds

School facilities

Classroomteachers

Pupil transportation

Librarians, counselors, safety personnel, health etc.

Principals, etc.

Utilities, insurance, etc.

ExtracurricularFood service

Capital Project Fund ex-penses

ASB Fund expenses

Dolla

rs in B

illio

ns

Source: NEWS, 6/10

52Source: NEWS, 6/10

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Local levy revenue at the same level as before Doran Decision

1978-1979

1979-1980

1980-1981

1981-1982

1982-1983

1983-1984

1984-1985

1985-1986

1986-1987

1987-1988

1988-1989

1989-1990

1990-1991

1991-1992

1992-1993

1993-1994

1994-1995

1995-1996

1996-1997

1997-1998

1998-1999

1999-2000

2000-2001

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-20100.0%

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

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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. “

McCleary v. State of Washington

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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

McCleary v. State of Washington

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Judge Erlick directed the Legislature to:

◦“determine the cost of amply providing for basic education and a basic program of education for all children”

◦“provide stable and dependable funding for such costs of basic education”

http://www.kingcounty.gov/courts/SuperiorCourt/~/media/courts/SuperiorCourt/Docs/McCleary.ashx

McCleary v. State of Washington

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Simple…but Bold:

All actions taken by the 2011 Washington State Legislature must be evaluated in light of Judge John Erlick’s school funding decision in McCleary v. State of Washington.

WASA Legislative Platform

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An educated citizenry is critical to the state’s democracy; a well-educated population is the foundation of our democracy, our economy, and the American dream

Public education plays a critical role in promoting equality, operating as the great equalizer; public education provides unprivileged citizens with the tools they need to compete on a level playing field with citizens born into wealth or privilege

WASA’s Message

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Education plays a critical role in building and maintaining a strong economy; public education builds the well-educated workforce necessary to attract more stable and higher wage jobs to the state’s economy

Washington’s duty to education is constitutionally declared to be its paramount duty

In summary: Public education is a wise “investment” in the future

WASA’s Message

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Resources

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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

Websites

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Questions?

The prophetic oracular sphere from Tyco®

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Daniel P. SteeleAssistant Executive Director,

Government Relations825 Fifth Avenue SEOlympia, WA 98501

360.943.5717

dsteele@wasa-oly.org