Levy

Cuts to education in House budget

The House budget proposal was presented earlier this morning.  A hearing will be held this afternoon and I would expect it to be approved by the House by the end of the week and then sent on to the Senate (I expect the Senate to have their budget out early next week).

Remember, legislators have a roughly $1 billion hole in the budget they have to fill so it is difficult to see any of the following as positive.  There is small consolation in saying “the cuts weren’t as big as we expected in some areas.”

Key points of the budget:
• Higher education – CWU had a 3% cut, WWU – 2.5% cut, WSU – 3% cut.
• State employee insurance funding reduced from $850 to $800 – this doesn’t cut employee benefits since the insurance plan had plenty in reserve to cover this reduction.
• K 12 apportionment for the month of June delayed 1 day to July 1 – temporarily saves $340 million
• Levy equalization – May and June payments delayed until July – temporarily saves $75 million
o August levy equalization rate will be reduced from 14% to 12% – this reduces future payments to all school districts equally
o January 1, 2014, maximum levy percentage will be reduced 4%
• BECCA / Truancy funding eliminated effective April 1, 2012 – saves $8.8 million
• Small high school (high schools with less than 300 students) funding reduced by 2 teachers (from 9 certificated to 7) – saves $11.5 million
• National board bonus for teachers reduced from $5,090 to $4,000 – saves $8.3 million
• There were a few new small revenue streams in the budget amounting to $51 million in additional revenue.

There is no way to say this is a good budget because it continues for the fourth successive year a budget heavily burdened with cuts with very little effort to develop new revenue sources.

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On the record budget testimony

If you are interested in the testimony PSE provided on Governor Gregoire’s supplemental budget, go to this link.

Some of you may wonder if it’s worth the effort to testify when there are so few members of the Senate Ways and Means committee still sticking around to hear what I have to say (after all this hearing had been underway for 2 and 1/2 hours when I finally got a chance to speak). Simply put, we are getting our position on the official record. Yes, we say these things to legislators on an individual basis, but when we say it on TVW, it is heard by State agencies (e.g., Governor’s office) and the general public. I am frequently stopped by people who see the testimony and either express support or opposition to our position.

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House Committee Saves Levy Equalization But Cuts BECCA Funding

The House Ways and Means Committee last night voted to save levy equalization for the remainder of this school year.  Avoiding any cuts to levy equalization in both budgets, the 2011 supplemental budget and the 2011-13 operating budget, is one of PSE’s highest priorities for this legislative session; Governor Gregoire cut this program in both her budgets.

One additional positive note in SHB 1086 is it didn’t cut Western Washington University or Central Washington University.

There were however, some negative notes to this budget.  They were the cuts to BECCA (truancy petitions) and K 4 class size.

BECCA funding, or lack of it, has been an irritant to school districts for years as they complained about it being an “unfunded mandate”.  Well it looks like their arguments are starting to take hold.  This budget cut school district funding $500,000 and juvenile court administrators an additional $2.6 million through the remainder of the school year.  This is likely to awaken Senator Jim Hargrove, 24th District democrat, who has been an obsessive advocate for BECCA since it began.  We’ll see if he can win this fight this year.  Classified employees perform most of the activities involved with processing BECCA truancy petitions.

One final cut to note is the $40 million cut to K 4 class size reduction.  Though this should mean a reduction of teachers, it won’t in this case since all the teachers are on contract.  Either districts dig into their reserve funds or they cut classified employee services.  I have already heard of several PSE bargaining units going back to the table to negotiate further reductions.

Next step for this bill is an expected House floor vote next Monday.

Posted by: Doug Nelson on 1/20/2011 at 11:08:00 PM

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2011 Legislative Session Begins Tomorrow

A RELATIVELY BRIEF PREPARATION FOR THE 2011 SESSION

With the session beginning tomorrow, the general question I have, and I know many others share, is how will we define success when this session ends?  Will we be successful if we are able to reduce cuts to the services we provide?  For instance, if legislators start out with a 10% cut and we end up with a 6% cut, is that success?  It would be hard to say that when we know that hundreds, if not thousands of our members will give up salary increases, suffer salary decreases, give up insurance increases, pay more for less insurance benefits, have their hours cut, or, the worst of all, have their job eliminated.

Despite the uncertainty and the obvious defensive battle we face on the financial front, we also have a few “offensive” efforts we will be working on.

Education Funding Reform

Over the last two sessions, PSE was a leader in advocating for HB 2261 and 2776.  These bills were the blueprints for a new funding system for K 12.  Well, this year is the year they were scheduled to start poring the foundation.  For us that meant putting an additional $160 million into school transportation and $700 million into school maintenance, supplies, and operating costs. While we know that the legislature won’t be funding the full amount, we are asking them for a down payment.  Our fear is that if the legislature doesn’t fund some of this money, the momentum of the last two years will be lost.

Local Revenue

One hope we all share, in Higher Ed and K 12, is our local revenue sources.  For instance, in Higher Ed PSE supports raising student tuition and in K 12 we have an active support program for school district levies.  Both of these revenue sources reduce the impact of the State’s revenue crisis.  While I don’t expect any new legislation on school district levies this year, there has already been considerable discussion about last Monday’s proposal by Governor Gregoire’s Higher Education Funding Task Force to allow Higher Education institutions to raise tuition rates without legislative approval (PSE supports this proposal.)

School Bus Stop Paddle Violations

Soon after the last legislative session, Brennor Beck, a Peninsula School District bus driver, contacted me to complain about the lack of enforcement of violators of the bus stop paddle in his community.  After hearing his complaints, I wanted to find out if this was a local problem or a state-wide problem.  After sending a survey to 1,200 PSE bus drivers, we received 368 responses from 87 school districts.  Their nearly unanimous conclusion is that there is a problem that needs to be fixed.

After talking with local law enforcement and OSPI (Office of the Superintendent of Public Instruction) officials, PSE will be seeking legislation that allows video cameras on the outside of the bus, and, more importantly, permits local law enforcement to ticket the vehicle owner rather than the vehicle operator.  The last change is most critical because bus driver after bus driver described that they are so focused on protecting the students, they seldom have time to identify the vehicle, make, model, year, color and a description of the driver (all necessary for a successful conviction in court).

Paraeducator Education Level

For the last several legislative sessions, PSE has tried and failed to pass a bill to start a career ladder for paraeducators.  The common question we were asked was how many para’s have degrees, two year degrees, etc., and we were unable to answer the question.  During this summer’s discussions about three QEC (Quality Education Council) projects, namely the anlaysis of the LAP (Learning Assistance Program), the TBIP (Transitional Bilingual Instruction Program), and the paraeducator adequacy workgroup, this question arose again.

This issue usually arises when someone points out that there are thousands of para’s working in basic education, LAP and TBIP, in fact some of them have become quasi-teachers, and we don’t know there education level.  This becomes important when you note that at the State level, there is a comment once and awhile that the State should have fully certified teachers, not paraeducators, working in these programs.

So if education level is important to teachers, and paraeducators are teaching students, we should have a better idea of their education level.  We were able to get this information when the No Child Left Behind Act was passed, but that information was just for one point in time (8 years ago) and, it seems, hard to uncover in the OSPI offices.

It should be noted that this information will help, when there isn’t a revenue crisis, to come up with accurate assumptions of what it would cost to create a comprehensive paraeducator career ladder.

New Department of Education

Governor Gregoire’s proposal on Tuesday to consolidate all state agencies (8 of them) responsible for public education into one agency, titled the Department of Education, under her control, has been met with the resistance one would expect.  It is too early to tell how legislators will respond to this,  however it is clear that Randy Dorn and the Higher Ed Coordinate Board don’t like it.

PSE is studying this issue but our early review is that the Governor has not made her case that this will result in better student learning.  Yes it will put her in charge, and take Randy Dorn out of the picture, but it is a distraction that takes away from the overall effort to protect education from harmful budget cuts.

What Can You Expect on Salary and Insurance?

There won’t be any state funded salary or insurance increases in this budget (for the next two years from July 1, 2011, to June 30, 2013).  Governor Gregoire has in fact proposed a 3% pay decrease for State employees (this will affect our Higher Ed members.  This pay decrease comes in the form of reduced hours of work per week.  Will K 12 classified employees face a similar pay decrease?  It’s possible that they could reduce the school year from 180 days (something that has been mentioned over the last several months) or reduce the State salary schedule our salary funding is based upon.

Insurance benefit funding from the State will be frozen at current levels for all of us.  As a result, our members will have to absorb the increased premium costs that are likely to come our way over the next two years.

As you have read through this, if you made it this far, remember that this is my best guess what will come out of a session 105 days from tomorrow.  We’ll see on April 24 how accurate some of my predictions have been.

Posted by: Doug Nelson on 1/7/2011 at 3:13:00 PM

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One week to go in special session – little sense of urgency

Since my last post, I acquired a new laptop and finally am able to post an update to the blog.  So what has happened in the last two weeks??? Not much!

Here is a recap of the slow moving special session.

Governor Signs Education Bills
A week ago, Governor Gregoire returned to her high school alma mater, Auburn High School, to sign four education bills PSE worked on:

  1. PSE’s crosswalk safety bill, SSB 6363
  2. the school levy bill, SHB 2893
  3. the education funding reform bill,  SHB 2776, and,
  4. the race to the top bill, E2SSB  6696.

House and Senate Unable to Reach Agreement on Revenue Package
So far, they have reached agreement that they will pass additional revenue of $800 million.  Of that amount, they agree on the taxes to get $600 million of that amount.  The remaining $200 million is hung up by the Senate’s wish to have a 0.001% increase to the state sales tax, and the House’s complete rejection of any sales tax increase.  There are other disagreements over smaller tax increases but it is hard to see that these disagreements will result in them not reaching a final agreement by April 13 (the last day of the special session).

Operating Budget Negotiations Taking Back Seat to Revenue Negotiations
Though there has been some verbal statements from a variety of House and Senate leaders, it appears that they want to tackle the revenue agreement before moving on to the spending agreements.  PSE’s K 12 priorities for the special session are:
•    fully fund K – 4 class-size
•    continue funding of the classified employee ratio enhancement (58.75:1)
•    continue funding all day kindergarten
•    fund levy equalization, the enhanced levy equalization from  SHB 2893, and the per pupil inflator at 4%.

PSE’s higher education priority is to reduce and/or eliminate the impact of the furlough bill and the House and Senate’s efforts to have state and higher education employees pay more for insurance benefits.

Posted by: Doug Nelson on 4/6/2010 at 5:21:00 PM

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Last day of session ends on positive note

The high stakes game of chicken played by the House and Senate education leaders that involved several critical K 12 education issues was interrupted by Governor Gregoire’s intervention.  Gregoire forced both sides to negotiate a conclusion to the impasse so that her coveted race to the top issue would be resolved.  In the final hours, they were able to reach an agreement good enough that both sides being able to declare victory.  And who were the winners?  K 12 students, families and employees. The agreement they reached far surpassed my expectations, especially considering the wide gulf between the two bodies’ positions at the start of the day.

End of Session
Early on in the session, I thought that the last bills that the legislature would consider would be the levy bill (SHB 2893), the Race to the Top (RTTP) bill (E2SSB 6696), and the Quality Education Council (QEC) bill, (SHB 2776).  My thinking was that with so many bad things going on with the budget, the legislature would most likely want to end the session on a good note.  Nothing is better to end on than doing something good for K 12 education (this is because with 1 million kids going to school, you can’t go wrong doing something positive for it).  Well, I was wrong.  The last bill was an early education bill (which followed the QEC and RTTP bills).

Here’s what the impact of each of the bills starting with the one that passed first, earlier yesterday afternoon, the levy bill.

Levy Bill
The legislature’s response to their responsibility to fund basic education in difficult fiscal times was to give school districts more money for levy equalization (approximately $26 million).  They also gave districts the ability to raise more funds locally by raising the levy lid 4% and giving them the ability to count revenue they would have received (what I call “phantom revenue”) from the state for Initiative 728 and 732 (and they may also count the money they would have received if the legislature cuts K-4 funding in the 2010 supplemental budget – something they haven’t done yet but is still being debated).

  • The levy equalization increase is an across the board increase of 2% for all school districts who receive levy equalization.
  • The 4% levy authority increase allows school districts to ask for more money from their local taxpayer.  A school district who already has a levy in place can take advantage of this by running a separate levy for the additional levy authority.
  • Finally, the “phantom revenue” features that allow districts to count revenue they do not receive so they can establish their levy base at a higher level (and thereby collect more from their local community), was scheduled to expire in 2013 but now is scheduled to expire in 2017.

All these provisions are temporary through  2017.

Race to the Top
The major focus of this bill is helping schools who are chronically failing.  The premise for the bill is that the stronger the provisions in this bill are for helping failing schools the more likely Washington state would qualify a portion of the federal Race to the Top funds.  This bill implements state intervention procedures and improved teacher and principal evaluation procedures.  Though classified employees are not the focus of this bill, there are some features of the intervention model that may affect classified employees (most likely a paraeducator) who work in a “failing” school.

Intervention Models

There are four intervention models that will be used in persistently lowest-performing schools:

  1. Turnaround: A district would be required to replace the principal, rehire no more than 50 percent of the staff, adopt a new governance structure for the school, provide high quality professional development, and use data to identify and implement a research-based instructional program.
  2. Restart: A district must close the school and reopen it either as a charter school or under the management of an external education management organization.
  3. Closure: A district closes the school and enrolls the students in other schools in the district that are higher-performing.
  4. Transformation: In addition to replacing the principal, a variety of required and optional reform activities are outlined in the federal guidelines.

Other features that may affect classified employees are:

  • Each school district is required to have performance criteria and evaluation procedures for classified employees.
  • If the improvement plan identifies something within our contract that is hindering student improvement, the district has the right to request that the parties renegotiate that term of the contract.  Impasses will be handled by PERC and if necessary, Superior Court.  When contracts expire, they must re-negotiate them with the understanding they can be opened by this law.

QEC Bill
Many features of this bill, especially the increased funds, will have a very positive effect on classified employee services.  The first feature to note is for the first time, the basic education act will identify which classified employee positions in a school district are basic education.  And even more important, along with those identified positions will be the FTE that will be funded by the state.

This is what it looks like:

Elementary School Middle School High School
400 Students 432 Students 600 Students
Teaching assistance, including any aspect of education instructional services provided by classified employees 0.936 0.700 0.652
Office support and other noninstructional aides 2.012 2.235 3.269
Custodians 1.657 1.942 2.965
Classified staff providing student and staff safety 0.079 0.092 0.141
Per 1,000 Students
Technology 0.628
Facilities, maintenance, and grounds 1.813
Warehouse, laborers, and mechanics 0.332

One of the most important aspects of the funding formula for classified employees is that we were able to get the 58.75:1 ratio into the basic education act.  What that means is that it can not be taken away from us in future legislative sessions!  What a relief.

Other important aspects of the bill

  • the new transportation funding formula will start implementation in the 2011-13 biennium and will be fully implemented by the 2013-15 biennium (this increases state funding for transportation $125 million per year);
  • all day kindergarten will continue to be implemented until it is fully implemented across the state by the 2017-18 school year;
  • starting with the 2011-13 school year, the K-3 class-size will be reduced to 17:1 by the 2017-18 school year;
  • the new maintenance, supplies, and operating costs (MSOC) formula and enhanced funding will begin in the 2011-13 biennium and will be fully implemented by the 2015-16 school year;
  • the QEC will make recommendations by December 1, 2010, to assure adequate levels of state-funded classified staff to support essential school and district services.

The cost of these enhancements when they are fully implemented in the 2017-18 school year may be close to $1.4 billion per year.  This is why PSE got involved in the education reform effort last year.  We wanted the state to take responsibility for basic education support services.  With this bill, they go a long way to meeting that challenge!

Posted by: Doug Nelson on 3/12/2010 at 11:03:00 AM

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Senate committee passes good levy bill

Yesterday, the Senate Ways and Means committee approved SHB 2893 without amendment.  This measure will not only fund a 2% increase to current levy equalization payments (at a cost of $25 million), it will raise the levy lid 4% (and allow school districts who already have a levy a special opportunity to go back and ask for the additional 4%), and finally, it will allow school districts to consider the “phantom revenue” they would have received from the state for Initiative 728 (class size), Initiative 732 (salary increases), and any reduced K-4 class size funds.

Previous to this vote, there was an effort yesterday to change the way that the 2% additional levy equalization funds would be distributed.  This effort was led by Senator Tom and would have created equalization chaos by taking money from some districts (who would be very unhappy) and giving it to other districts (who would be happy).  Fortunately, Senator Tom did not try this effort yesterday.  Could he bring it up on the Senate floor when they vote on it in the coming days?  He could but I don’t think he will.

Posted by: Doug Nelson on 3/10/2010 at 1:24:00 PM

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19 days left status report

Legislators are taking a slight break from their legislative duties to go back home and check in with constituents.  When they return on Monday, there will be only 17 days left in the session scheduled to adjourn on March 11.  At this stage of the session, it is hard to believe they will put everything together so they can finish on time, but it’s my guess they will.

PSE’s legislative agenda is progressing nicely with one exception: whether the ratio improvements we have made over the last several years will continue.

PSE Bills

First the part of our agenda that is going well; PSE’s bills!  Our higher education bill, E2SHB 1560 is in the Senate now and will be heard on Monday.  There appears to be good support for the bill.  However, a couple of friendly amendments are being considered; however, they will be dropped if they end up causing problems.

Our partial service credit bill, HB 1541, is sitting in the Senate Ways and Means committee.  We expect it to receive their approval sometime in the next week. Finally, PSE’s school crosswalk safety bills, SHB 2739 and SSB 6363, are scheduled for hearings on Thursday and Friday of next week.  We expect either one or both to be approved by the committees.  Since there are two identical bills, one from the House and one from the Senate, the leaders will have to decide which one will get final approval.  We expect that decision to be made some time next week.

Levy Bills

Now onto other big issues that we have been working on.  Two levy bills remain: 2SHB 2670 and SHB 2893.  PSE prefers 2893 because it includes a 4% temporary levy lift, a 2% levy equalization increase, and includes “phantom revenue” (e.g., 728 and 732 funds) in the levy base.  2670 only includes “phantom revenue”.

Tuition Setting Authority

A similar issue in higher education is also still in play.  A tuition setting authority bill, ESSB 6562, is in the House Higher Education committee and faces an uncertain future.  It would allow UW, WSU, and WWU to raise tuition on a temporary basis.

Furlough Bill

The furlough bill, SSB 6503, which would institute cuts in state agencies and higher education institutions, is mired in political struggles and is most likely going to continue in that status until the end of the legislative session.

Cuts/Revenue/Initiative 960

The cuts versus revenue discussions continue with the approval of ESSB 6130 in the House.  6130 temporarily suspends Intitiative 960 and is a precursor to tax increases that will be approved by the legislature.  Which tax increase will be approved?  There are many different suggestions with no clear indication which one is the leading horse in the race.  PSE has been advocating for not only the temporary suspension but also additional revenue in order to avoid even more painful cuts to the education services we provide students.

Sharing Leave

Sharing leave with employees who have run out of sick leave will take on more interest if ESSB 6724 is passed; all indications are that it will.  It would allow state employees to share their sick leave with K 12 employees, and, vice versa.  I have to emphasize that this will be allowed and not required.  Currently, school employees can only share with other school employees in the district, and state employees can only share with state employees.

Another feature of the bill will allow the employee to receive up to 261 days of shared leave if they have less than 10 years of service, 522 days if they have 10 – 19 years of services, and 783 days if they have 20 years or more service.

Education Reform

Now onto the more difficult issues, those that are not going well.  The two remaining education reform bills, SHB2776 and 2SSB6760, leave out the increased funding for classified education support employees that PSE has fought so hard to get over the last several years.  Of the two bills, we much prefer 2776 because it makes commitments to improve the transportation funding formula stating in 2011 as well as enhances many other features of state funding.  Unfortunately, it leaves out the enhancement to classified employees.

Budget

First comes the Senate budget; rumors are that it will be brought out on Monday or Tuesday.  Most guesses are that the Senate will not be kind to education.  The level of cuts will be dependent upon how much federal revenue they will be counting on receiving (the current estimate is around $400 million), and, how much additional State revenue we will receive through increased taxes.  A Senator told me yesterday that they were planning on solving the $2.8 billion problem with 2/3 of additional revenue and 1/3 in cuts.  However, he was quick to note that this could all change by Monday.

Soon after the Senate produces their budget, the House will present their budget.  We expect their budget to be better to education.  But even that budget will include some education cuts so we can’t feel all that good about it.

Posted by: Doug Nelson on 2/20/2010 at 1:04:00 PM

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House passes levy bills

This afternoon, in fact they just finished a lengthy debate of the two levy bills: SHB 2893 and 2SHB 2670.  PSE supports both bills but one of them is much more beneficial than the other.  2893 temporarily increases the levy lid 4%, temporarily increases levy equalization, and allows districts to include in their levy base funding for 728, 732 and K 4 enhancement whether they receive the funding or not (this last feature is what I call the “phantom revenue” levy benefit.)  On the other hand, 2670 only provides for “phantom revenue”.

2893 passed 55 – 41.  The close vote was a result of strong concerns from legislators whose school districts oppose raising the levy lid 4%.  Their concern was overcome by the fact that the 2% levy equalization increase will benefit those districts whether they try to get the additional levy authority or not.

2670 passed 93-3.  Since this bill only covers the “phantom revenue”, it didn’t attract any opposition worth noting.

Posted by: Doug Nelson on 2/13/2010 at 6:21:00 PM

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Levy bill passes Senate fiscal committee

Though there were several levy bills available to consider, the Senate Ways and Means committee approved this afternoon, the bill, SB 6502 I call “levy lite” – I also call it the “phantom revenue” bill.  There were two other bills, SB 6466 (Governor Gregoire’s bill) and SB 6518 (WEA’s bill) that were more comprehensive because they provided, in addition to the “phantom revenue” features in 6502, a temporary levy lid increase and increased levy equalization funds.

I believe they chose the smallest levy bill because they may want to use it as bargaining leverage with the House later in the session.  Don’t forget, it was this issue that tied the House and Senate in knots at the very end of last year’s session. You can expect this to again be one of the last issues to be settled this year (along with Race to the Top and Education Reform / QEC recommendations).

Posted by: Doug Nelson on 2/2/2010 at 8:41:00 PM

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