2015 Legislative

ConferenceJANUARY 18, 2015

2015 Election

House

51 Democrats

47 Republicans

Senate

23 Democrats

25 Republicans plus 1 quasi-Democrat

Who did PSE contribute to?

Party Lost Won Grand Total

Democrat 10 39 49

Republican 23 23

Grand Total 10 62 72

How much did PSE contribute?

Party Lost Won Grand Total

Democrat $14,350 $46,650 $61,000 (66%)

Republican $30,950 $30,950

Grand Total $14,350 $77,600 $91,950

84(%)

2015 Session

Unfinished Business

Supreme Court threat to sanction the legislature if they are not provided a plan to fully fund K 12 as required by HB 2261 & HB 2776 by 2018

Fund lawsuits (e.g., boarding mentally ill citizens in hospitals) - $135 million

Transportation

Needs require funding

Fires and Disasters

Costs far exceeded budget ($00 million)

Funding State employee collective bargaining agreements

Initiative 1351 implementation

Primary purpose of session

105 Day session ending on April 26, 2015

Spend $37.2 billion, $3 billion increase over previous budget

Address myriad issues facing Washington

60 day session only a few, most important issues are addressed

Spending needs overwhelm

budget

Governor’s Budget

$1.3 billion for McCleary

$440 million for State employee contracts

$386 million for K 12 salary increase

$361 for debt service

$285 million for pensions

$151 million early childhood education

$125 million to freeze tuition and increase financial aid

State Revenue (taxes)

Tax system hits middle class and

working poor the most

Non-elderly residents pay 16.9% of income in taxes

Highest income residents pay less than 2.8%

Governor Inslee proposed revenue

increases amounting to $1.4 billion

Update tax structure to promote fairness and recognize our

changing economy

Capital Gains - $798 million

Carbon tax - $380 million

Close Tax Loopholes - $282 million

Sales tax exemption for trade-ins - $105 million

Cigarette and e-cigarette tax increases - $56 million

Extracted fuel tax - $51 million

Bottled water tax - $44 million

B&O tax on royalties - $30 million

Right to work legislation

5045 – Sponsored by Jan Angel & Mike Hewitt

30% of members sign petition requesting that the requirement to pay

union dues be stopped; signatures may be collected over a 12 month

period

Petition submitted to PERC (Public Employment Relations Commission)

PERC conducts an election. If majority vote to cease requirement to

pay union dues, it goes into effect within 30 days

A petition from employees who want to reinstate the requirement to

pay union dues can be filed after 12 months

Positive legislation

HB 1120 – PSE’s bus driver protection

HB 1293 & SB 5179 - PSE’s paraeducator bill

SB 5063 – 2/3 of new State revenue going to education

Early education

K 12

Higher education

Outlook

Special Session(s?)

PSE challenges:

Seeking K 12 funding increases focused on classified employees,

including COLA and insurance inflation

Higher education contracts funded

Passing PSE bills

Workshop topics

1.Support classified employee

services

Market Based Salary

Recommendations

Compensation Workgroup 2012 Report

HB 2261Requirement

QEC received report

Classified salary recommendation19

Position

Current State

Funding

Current Local

Funding

Total Current Funding

New State Funded

Amount

Teaching Assistance (InstructionalAides/Paraeducators) $31,699 $1,197 $32,896 $45,386

Office Support and other Non-instructional Aides $31,699 $6,037 $37,736 $40,949

Custodians $31,699 $5,070 $36,769 $39,454

Classified staff providing student and staff safety $31,699 $5,651 $37,350 $44,040

Family Involvement Coordinator $45,386

Technology $31,699 $23,249 $54,948 $83,253

Facilities, maintenance and grounds $31,699 $15,616 $47,315 $50,057

Warehouse, laborers, and mechanics $31,699 $10,743 $42,442 $36,522

Central Office, Classified $31,699 $22,872 $54,571 $56,374

Cost of salary

recommendation $277 million

2014 - House appropriations committee passed HB 2792 to fully fund

2013 – House passed budget funded 50% of the increase

20

Staffing adequacy

recommendations“(B) RECOMMENDATIONS FOR ASSURING ADEQUATE LEVELS OF STATE-FUNDED

CLASSIFIED STAFF TO SUPPORT ESSENTIAL SCHOOL AND DISTRICT SERVICES.”

PSE ADDED THIS TO HB 2776

Staffing adequacy report

Workgroups developed classification recommendations

“The QEC provisionally adopts the recommendations of the

Classified Staffing Adequacy Working Group for essential staffing levels” - QEC 2011 Report to the Legislature

Placed into Initiative 1351 (with small changes)

Paraeducators

Elementary School – 400 students

1.164 FTE increase

Middle School – 432 students

.3 FTE Increase

High School – 600 students

.35 FTE Increase

23

Secretaries

Elementary School – 400 students

1 FTE increase

Middle School – 432 students

1.3 FTE Increase

High School – 600 students

.25 FTE Increase

24

Student safety

Elementary School – 400 students

.08 FTE decrease

Middle School – 432 students

.61 FTE Increase

High School – 600 students

1.16 FTE Increase

25

Parent involvement

coordinator Elementary School – 400 students

.92 FTE increase

Middle School – 432 students

1 FTE Increase

High School – 600 students

1 FTE Increase

26

Technology

For every 1,000 students

2.2 FTE Increase

27

Facilities, Maintenance,

Grounds For every 1,000 students

2.2 FTE Increase

28

Warehouse, Laborers,

Mechanics For every 1,000 students

1.6 FTE Increase

29

Increased state cost - $680 Million

Teaching Assistants (Elementary / Middle / High) 94,913,779

Office Support (Elementary / Middle / High) 103,741,723

Custodians (Elementary / Middle / High) 5,346,783

Student Safety (Elementary / Middle / High) 38,483,136

Parent Involvement Coordinators (E / M /H) 111,130,003

Districtwide Technology Staff 119,730,144

Districtwide Facilities, Maintenance, Grounds Staff 120,560,606

Districtwide Warehouse Staff, Laborers, Mechanics 86,432,305

Total 680,338,479

2. State funding for affordable,

quality health insuranceHOW DO WE KEEP UP WITH RISING COSTS?

Insurance Premium Increases

2013-14 School Year

WEA/Premera rates up 17%

WEA/Premera has 60% of K 12 covered lives

2014 PEBB

On average, no rate increase

Some went up a little, some went down a little

2014-15 School Year

WEA/Premera rates up 8%

2015 PEBB

On average, rates went up 4%

Some went up, some went down

State Funding for K 12 Insurance

Inflation

Last inflation funding for K 12 was September 2010

2010-2011 $768.00 3.09%

2011-2012 $768.00 0.00%

2012-2013 $768.00 0.00%

2013-2014 $768.00 0.00%

2014-2015 $768.00 0.00%

2015-16 & 2016-17 Inflation Funding

$308 Million

3. Cost of living adjustmentsINITIATIVE 732 REQUIRED THEM FOR THE LAST 6 YEARS

4.0%

4.0%

3.0%

0.0%

0.0%

4.0%

0.0%

3.0%

0.0%

3.0%

3.0%

3.7%

3.1%

0.0%

1.0%

1.2%

3.3%

3.7%

4.4%

0.0%

0.0%

-1.9%

0.0%

1.9%

0.0%

-3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

Classified Staff State Funded COLAs

Initiative 732 COLA – Seattle CPI

School Year State Funded Seattle CPI

2009-10 0.0% 4.2%

2010-11 0.0% 0.6%

2011-12 -1.9% 0.3%

2012-13 0.0% 2.7%

2013-14 1.9% 2.5%

2014-15 0.0% 1.3%

2015-16 2.2%

2016-17 1.9%

Cost of I 732 COLA

Initiative 732 Salary Increase - $386 million

3.0% 9-1-15

1.8% 9-1-16

9. Fully fund pension plans

PERS 1 / TRS 1 unfunded liability

Cost of living longer

Cost of living longer

Mortality rate assumption updated

Implement $1.2 billion cost over next 6 years

Employee cost $400 million

2015 – 17 Budget Cost - $432 Million

Unfunded liability - $4.370 Billion

PERS 1 - $4.831 Billion

TRS 1 - $2.732 Billion

PERS 2/3 – (-$537 Million)

TRS 2/3 – (-$390 Million)

SERS 2/3 – (-$62 Million)

PSERS/LEOFF/WSPRS – (-$2.204 Billion)

Paid off by 2027 (assuming legislature makes annual payments)

11. PSE ideas for funding education

Property tax swap

Raise State Property Tax to the Maximum Allowed - $3.60 per thousand

Calendar Year 2014 is $2.30 per thousand

Allows school districts to reduce local levy reliance

Increase percentage of new revenue for education funding – SB 5063

2013-15 Operating Budget - 45.2% to K 12, 9.1% to Higher Education

Extend full implementation year of McCleary funding

Current full funding year is the 2017-2018 School Year

Extend full implementation year of Initiative 1351

Current full funding year is the 2018-2019 school year

5. Implement Initiative 1351

Won with 50.96% (in a Republican election cycle)

School support personnel are the most significant beneficiaries

Not enough space, must hire “school-based personnel”

New formulas provide funding for 21,000 classified employees

Work with the legislature to implement

Support spreading out implementation over longer period (more than 4

years)

6. Implement Paraeducator reforms

HB 1293 & SB 5179 - PSE’s paraeducator bill

Impacts paraeducators in ELL & LAP

Minimum employment standard – meet NCLBA standard

Must become a certificated paraeducator

2 school years to test certification process

Starting 9-1-17: 3 years to become certificated

Additional process to earn a required ELL endorsement

Establish a paraeducator board to implement program

Career ladder - Advanced paraeducator position

Community and technical college programs updated

Teachers trained how to effectively manage a paraeducator

Opportunity Gap Students

13,000 Ell / TBIP Eligible Students

456,000 LAP Eligible Students

122,000 Special Education Students

10. Protect school transportation

staff

HB 1120

Assist and protect drivers who witness or intervene in volatile or

threatening situations

Especially drivers in remote or isolated areas

4. Honor Higher Ed Contracts

Negotiated agreements dependent upon legislative approval

WWU

CWU

EWU

WSU

“Financially feasible” – Office of Financial Management on

December 5, 2015

$440 million

7. Increase funding for Compass to

Campus

Focus on low income schools and students

Infect 3rd to 5th graders with the college bug

Student mentors go to schools and assist students

College sponsorship

Started at WWU, expanding to CWU

HB 2400 passed 2014 house higher education committee

8. Report on 4 year universities

Disparate treatment of classified employees performing same or

similar work as exempt employees

HB 2788 introduced in 2014