SENATE BILL REPORT

SHB 2363

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Ways & Means, April 26, 2009

Title: An act relating to temporary suspension of cost-of-living increases for educational employees.

Brief Description: Temporarily suspending cost-of-living increases for educational employees.

Sponsors: House Committee on Ways & Means (originally sponsored by Representative Linville).

Brief History: Passed House: 4/21/09, 84-12.

Committee Activity: Ways & Means: 4/26/09 [DPA, DNP, w/oRec].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report: Do pass as amended.

Signed by Senators Prentice, Chair; Fraser, Vice Chair, Capital Budget Chair; Tom, Vice Chair, Operating Budget; Fairley, Hobbs, Keiser, Kline, Kohl-Welles, McDermott, Oemig, Regala and Rockefeller.

Minority Report: Do not pass.

Signed by Senators Zarelli, Ranking Minority Member; Honeyford and Schoesler.

Minority Report: That it be referred without recommendation.

Signed by Senators Parlette and Pflug.

Staff: Elise Greef (786-7708)

Background: Initiative 732, adopted by voters in November 2000, provides that an annual cost-of-living adjustment (COLA) is granted to K-12 teachers and other public-school employees, as well as to academic employees of community and technical college districts and classified employees of technical colleges. The COLA is based on the Seattle consumer price index (CPI) compiled by the United States Department of Labor, Bureau of Labor Statistics.

The 2009-11 Operating Budget passed by the House and the Senate assumes savings of $353 million in K-12 and of $35 million in higher education through the temporary suspension of Initiative 732.

Summary of Bill: The bill as referred to committee not considered.

Summary of Bill (Recommended Amendments): Existing statute is amended to allow for the temporary suspension of cost-of-living increases for school-district employees during school years 2009-10 and 2010-11, and of academic employees of community and technical college districts and classified employees of technical colleges during fiscal years 2010 and 2011. Beginning in the 2011-13 biennium and thereafter, the Legislature must provide, on an expedited basis and to the extent financially feasible, additional cost-of-living allocations necessary to regain the level of funding that would have been achieved without the suspension.

Appropriation: None. However, savings associated with the bill are assumed in the 2009-11 operating budget enacted by the Legislature.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: None.

Effective Date: The bill contains an emergency clause and takes effect on July 1, 2009.

Staff Summary of Public Testimony: No public hearing was held.

Persons Testifying: N/A.