BILL REQ. #:  H-2424.1 

READ FIRST TIME 03/03/09.   

     AN ACT Relating to education; amending RCW 28A.150.200, 28A.150.220, 28A.150.250, 28A.150.260, 28A.150.390, 28A.150.380, 28A.150.410, 28A.165.005, 28A.165.015, 28A.165.055, 28A.180.010, 28A.180.080, and 28A.225.200; adding new sections to chapter 28A.150 RCW; adding a new section to chapter 28A.500 RCW; adding a new section to chapter 28A.655 RCW; creating new sections; repealing RCW 28A.150.030, 28A.150.060, 28A.150.100, 28A.150.040, 28A.150.370, and 28A.155.180; providing an effective date; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   INTENT. (1) In enacting this legislation, the legislature intends to fulfill its obligation under Article IX of the Washington state Constitution to define and fund a program of basic education for children residing in the state and attending public schools. This act defines the educational opportunities that school districts shall provide and for which the state shall allocate funding.
     (2) The legislature also intends that the policies and allocation formulas in this act fulfill the legislature's obligation under Article IX to establish a general and uniform system of public schools. The legislature finds that in some instances providing general and uniform educational opportunity requires tailoring basic education allocations to reflect certain needs and circumstances of each school district, including district size, certain student characteristics, and regional labor market differences. It is the intent of the legislature that these allocation formulas address these differences in order to promote equity and uniformity of educational opportunity.
     (3) Public education in Washington State has evolved since the enactment of the Washington basic education act of 1977. Student demographics, educational technology, data, and standards-based learning and assessment are only a few examples of factors affecting education that have changed in the last thirty years. Decisions by the courts have played a part in this evolution, as have studies and research about education practices and education funding. The legislature finds ample evidence of a need to redefine the program of basic education that is funded by the state and delivered by school districts to better align with the stated goals of a basic education and to improve the transparency and accountability of how the state meets its constitutional obligation under Article IX.
     (4) For practical and educational reasons, wholesale change of the program of basic education and the funding formulas to support it cannot occur instantaneously. Financial experts must develop the details of the funding formulas. New systems of educator certification, evaluation, mentoring, and compensation must be developed and implemented. Data and accountability systems must be created. Significant increases in resources for staffing and class size reduction will have detrimental impact on student learning if school districts hire unprepared teachers and lack facilities to house them. The legislature intends to adopt a schedule for the concurrent implementation of the redefined program of basic education and the resources necessary to support it, beginning in the 2011-12 school year and phased in over a six-year time period.

NEW SECTION.  Sec. 2   INTENT TO MAKE NECESSARY CORRECTIONS. It is the intent of the legislature that the policies and allocation formulas adopted under this act, including the implementation schedule for these formulas, constitute the legislature's definition of basic education under Article IX of the state Constitution. It is the further intent of the legislature that these policies, formulas, and schedules should not be revised or delayed other than for educational reasons. The legislature intends, however, to continue to review and revise the formulas and schedules and may make revisions for technical purposes and consistency in the event of mathematical or other technical errors.

NEW SECTION.  Sec. 3   STEERING COMMITTEE TO OVERSEE IMPLEMENTATION. (1) The basic education steering committee is established to monitor and oversee implementation of the new definition of basic education. The steering committee shall be composed of the following members:
     (a) Four members of the house of representatives, with two members representing each of the major caucuses and appointed by the speaker of the house of representatives;
     (b) Four members of the senate, with two members representing each of the major caucuses and appointed by the president of the senate; and
     (c) One representative each from the office of the governor, office of the superintendent of public instruction, state board of education, professional educator standards board, and department of early learning.
     (2) The chair or cochairs of the steering committee shall be selected by the members of the committee.
     (3) The steering committee shall monitor and oversee the following technical working groups:
     (a) The program and funding working group under section 109 of this act;
     (b) The early learning working group under section 110 of this act;
     (c) The effective teaching and compensation working group under section 202 of this act;
     (d) The data working group under section 304 of this act; and
     (e) The local funding working group under section 402 of this act.
     (4) Each of the working groups shall submit a preliminary report to the steering committee by November 15, 2009, and a final report by September 1, 2010. The steering committee may also request updates and progress reports from the office of the superintendent of public instruction, the state board of education, the professional educator standards board, and the department of early learning on the implementation of this act.
     (5) The steering committee shall submit an initial report to the governor and the legislature by January 1, 2010, detailing its recommendations based on analysis of reports from the working groups and state agencies, including recommendations for resolving issues or decisions requiring legislative action during the 2010 legislative session, and recommendations for any funding necessary to continue development and implementation of this act. The initial report from the steering committee shall also contain a recommended schedule for the concurrent phase-in of any changes in the instructional program of basic education and the implementation of the funding formulas and allocations to support the instructional program of basic education. The objective of the schedule is to assure that increases in funding allocations occur concurrently with increases in program and instructional requirements.
     (6) The steering committee shall submit subsequent reports to the governor and the legislature by November 15, 2010, and annually thereafter, ending November 15, 2016.
     (7) Staff support for the basic education steering committee shall be provided by the state agencies with representatives on the committee, the senate committee services, and the office of program research of the house of representatives. Legislative members of the steering committee shall be reimbursed for travel expenses in accordance with RCW 44.04.120.
     (8) This section expires June 30, 2017.

Sec. 101   RCW 28A.150.200 and 1990 c 33 s 104 are each amended to read as follows:
     PROGRAM OF EDUCATION. ((This 1977 amendatory act shall be known and may be cited as "The Washington Basic Education Act of 1977." The program evolving from the Basic Education Act shall include (1) the goal of the school system as defined in RCW 28A.150.210, (2) those program requirements enumerated in RCW 28A.150.220, and (3) the determination and distribution of state resources as defined in RCW 28A.150.250 and 28A.150.260.
     The requirements of the Basic Education Act are)) (1) The program of basic education established under this chapter is deemed by the legislature to comply with the requirements of Article IX, section 1 of the state Constitution, which states that "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," and ((are)) is adopted pursuant to Article IX, section 2 of the state Constitution, which states that "The legislature shall provide for a general and uniform system of public schools."
     (2) The legislature defines the program of basic education under this chapter as:
     (a) The instructional program of basic education the minimum components of which are described in RCW 28A.150.220;
     (b) The program of education provided by chapter 28A.190 RCW for students in residential schools as defined by RCW 28A.190.020 and for juveniles in detention facilities as identified by RCW 28A.190.010;
     (c) The program of education provided by chapter 28A.193 RCW for individuals under the age of eighteen who are incarcerated in adult correctional facilities; and
     (d) Transportation and transportation services to and from school for eligible students as provided under RCW 28A.160.150 through 28A.160.180.

NEW SECTION.  Sec. 102   DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Basic education goal" means the student learning goals and the student knowledge and skills described under RCW 28A.150.210.
     (2) "Certificated administrative staff" means all those persons who are chief executive officers, chief administrative officers, confidential employees, supervisors, principals, or assistant principals within the meaning of RCW 41.59.020(4).
     (3) "Certificated employee" as used in this chapter and RCW 28A.195.010, 28A.405.100, 28A.405.210, 28A.405.240, 28A.405.250, 28A.405.300 through 28A.405.380, and chapter 41.59 RCW, means those persons who hold certificates as authorized by rule of the Washington professional educator standards board.
     (4) "Certificated instructional staff" means those persons employed by a school district who are nonsupervisory certificated employees within the meaning of RCW 41.59.020(8).
     (5) "Class size" means an instructional grouping of students where, on average, the ratio of students to teacher is the number specified.
     (6) "Classroom teacher" means a certificated instructional staff person whose primary duty is the daily educational instruction of students. In exceptional cases, people of unusual competence but without certification may teach students so long as a certificated person exercises general supervision, but the hiring of such classified people shall not occur during a labor dispute, and such classified people shall not be hired to replace certificated employees during a labor dispute.
     (7) "Instructional program of basic education" means the minimum program required to be provided by school districts and includes instructional hour requirements and other components under RCW 28A.150.220.
     (8) "Program of basic education" means the overall program under RCW 28A.150.200 and deemed by the legislature to comply with the requirements of Article IX, section 1 of the state Constitution.
     (9) "School day" means each day of the school year on which pupils enrolled in the common schools of a school district are engaged in academic and career and technical instruction planned by and under the direction of the school.
     (10) "School year" includes the minimum number of school days required under RCW 28A.150.220 and begins on the first day of September and ends with the last day of August, except that any school district may elect to commence the annual school term in the month of August of any calendar year and in such case the operation of a school district for such period in August shall be credited by the superintendent of public instruction to the succeeding school year for the purpose of the allocation and distribution of state funds for the support of such school district.
     (11) "Teacher planning period" means a period of a school day as determined by the administration and board of the directors of the district that may be used by teachers for instruction-related activities including but not limited to preparing instructional materials; reviewing student performance; recording student data; consulting with other teachers, instructional aides, mentors, instructional coaches, administrators, and parents; or participating in professional development.

Sec. 103   RCW 28A.150.220 and 1993 c 371 s 2 are each amended to read as follows:
     INSTRUCTIONAL PROGRAM. (1) Satisfaction of the basic education ((program requirements)) goal identified in RCW 28A.150.210 shall be considered to be implemented by the following instructional program:
     (a) Each school district shall make available to students enrolled in kindergarten at least a total instructional offering of four hundred fifty hours. The program shall include instruction in the essential academic learning requirements under RCW ((28A.630.885)) 28A.655.070 and such other subjects and such activities as the school district shall determine to be appropriate for the education of the school district's students enrolled in such program;
     (b) Each school district shall make available to students enrolled in grades one through twelve, at least a district-wide annual average total instructional hour offering of one thousand hours. The state board of education may define alternatives to classroom instructional time for students in grades nine through twelve enrolled in alternative learning experiences. The state board of education shall establish rules to determine annual average instructional hours for districts including fewer than twelve grades. The program shall include the essential academic learning requirements under RCW ((28A.630.885)) 28A.655.070 and such other subjects and such activities as the school district shall determine to be appropriate for the education of the school district's students enrolled in such group;
     (c) If the essential academic learning requirements include a requirement of languages other than English, the requirement may be met by students receiving instruction in one or more American Indian languages;
     (d) Supplemental instruction and services for underachieving students through the learning assistance program under RCW 28A.165.005 through 28A.165.065;
     (e) Supplemental instruction and services for eligible and enrolled students whose primary language is other than English through the transitional bilingual instruction program under RCW 28A.180.010 through 28A.180.080; and
     (f) The opportunity for an appropriate education at public expense as defined by RCW 28A.155.020 for all eligible students with disabilities as defined in RCW 28A.155.020.
     (2) Nothing contained in subsection (1) of this section shall be construed to require individual students to attend school for any particular number of hours per day or to take any particular courses.
     (3) Each school district's kindergarten through twelfth grade basic educational program shall be accessible to all students who are five years of age, as provided by RCW 28A.225.160, and less than twenty-one years of age and shall consist of a minimum of one hundred eighty school days per school year in such grades as are conducted by a school district, and one hundred eighty half-days of instruction, or equivalent, in kindergarten((: PROVIDED, That)). However, effective May 1, 1979, a school district may schedule the last five school days of the one hundred and eighty day school year for noninstructional purposes in the case of students who are graduating from high school, including, but not limited to, the observance of graduation and early release from school upon the request of a student, and all such students may be claimed as a full time equivalent student to the extent they could otherwise have been so claimed for the purposes of RCW 28A.150.250 and 28A.150.260.
     (4) The state board of education shall adopt rules to implement and ensure compliance with the program requirements imposed by this section, RCW 28A.150.250 and 28A.150.260, and such related supplemental program approval requirements as the state board may establish.

Sec. 104   RCW 28A.150.250 and 1990 c 33 s 107 are each amended to read as follows:
     FUNDING OF BASIC EDUCATION INSTRUCTIONAL ALLOCATION. (1) From those funds made available by the legislature for the current use of the common schools, the superintendent of public instruction shall distribute annually as provided in RCW 28A.510.250 to each school district of the state operating a basic education instructional program approved by the state board of education an ((amount which, when combined with an appropriate portion of such locally available revenues, other than)) allocation based on the formulas provided in RCW 28A.150.260, 28A.150.390, and section 107 of this act. The basic education instructional allocation shall be net of receipts from federal forest revenues distributed to school districts pursuant to RCW 28A.520.010 and 28A.520.020((, as the superintendent of public instruction may deem appropriate for consideration in computing state equalization support, excluding excess property tax levies, will constitute a basic education allocation in dollars for each annual average full time equivalent student enrolled, based upon one full school year of one hundred eighty days, except that for kindergartens one full school year shall be one hundred eighty half days of instruction, or the equivalent as provided in RCW 28A.150.220)).
     (2) The instructional program of basic education shall be considered to be fully funded by those amounts of dollars appropriated by the legislature pursuant to RCW ((28A.150.250 and)) 28A.150.260, 28A.150.390, and section 107 of this act to fund those program requirements identified in RCW 28A.150.220 in accordance with the formula and ratios provided in RCW 28A.150.260 and those amounts of dollars appropriated by the legislature to fund the salary requirements of RCW ((28A.150.100 and)) 28A.150.410.
     ((Operation of a program approved by the state board of education, for the purposes of this section, shall include a finding that the ratio of students per classroom teacher in grades kindergarten through three is not greater than the ratio of students per classroom teacher in grades four and above for such district: PROVIDED, That for the purposes of this section, "classroom teacher" shall be defined as an instructional employee possessing at least a provisional certificate, but not necessarily employed as a certificated employee, whose primary duty is the daily educational instruction of students: PROVIDED FURTHER, That the state board of education shall adopt rules and regulations to insure compliance with the student/teacher ratio provisions of this section, and such rules and regulations shall allow for exemptions for those special programs and/or school districts which may be deemed unable to practicably meet the student/teacher ratio requirements of this section by virtue of a small number of students.))
     (3) If a school district's basic education program fails to meet the basic education requirements enumerated in RCW ((28A.150.250,)) 28A.150.260((,)) and 28A.150.220, the state board of education shall require the superintendent of public instruction to withhold state funds in whole or in part for the basic education allocation until program compliance is assured((: PROVIDED, That)). However, the state board of education may waive this requirement in the event of substantial lack of classroom space.

Sec. 105   RCW 28A.150.260 and 2006 c 263 s 322 are each amended to read as follows:
     ALLOCATION FOR INSTRUCTIONAL PROGRAM OF BASIC EDUCATION. ((The basic education allocation for each annual average full time equivalent student shall be determined in accordance with the following procedures)) The purpose of this section is to provide for the allocation of state funding that the legislature deems necessary to support school districts in offering the minimum instructional program of basic education under RCW 28A.150.220. The allocation shall be determined as follows:
     (1) The governor shall and the superintendent of public instruction may recommend to the legislature a formula ((based on a ratio of students to staff)) for the distribution of a basic education instructional allocation for each ((annual average full time equivalent student enrolled in a)) common school district. ((The distribution formula shall have the primary objective of equalizing educational opportunities and shall provide appropriate recognition of the following costs among the various districts within the state:
     (a) Certificated instructional staff and their related costs;
     (b) Certificated administrative staff and their related costs;
     (c) Classified staff and their related costs;
     (d) Nonsalary costs;
     (e) Extraordinary costs, including school facilities, of remote and necessary schools as judged by the superintendent of public instruction, with recommendations from the school facilities citizen advisory panel under RCW 28A.525.025, and small high schools, including costs of additional certificated and classified staff; and
     (f) The attendance of students pursuant to RCW 28A.335.160 and 28A.225.250 who do not reside within the servicing school district.))
     (2)(((a))) The distribution formula under this section shall be for allocation purposes only. Except as may be required under chapter 28A.165, 28A.180, or 28A.155 RCW, or federal laws and regulations, nothing in this section requires school districts to use basic education instructional funds to implement a particular instructional approach or service. Nothing in this section requires school districts to maintain a particular classroom teacher-to-student ratio or other staff-to-student ratio or to use allocated funds to pay for particular types or classifications of staff. Nothing in this section entitles an individual teacher to a particular teacher planning period.
     (3)(a) The distribution formula for the basic education instructional allocation shall be based on minimum staffing and nonstaff costs the legislature deems necessary to support instruction and operations in prototypical schools serving high, middle, and elementary school students as provided in this section. The use of prototypical schools for the distribution formula does not constitute legislative intent that schools should be operated or structured in a similar fashion as the prototypes. Prototypical schools illustrate the level of resources needed to operate a school of a particular size with particular types and grade levels of students using commonly understood terms and inputs, such as class size, hours of instruction, and various categories of school staff. Funding allocations to school districts shall be adjusted from the school prototypes based on the actual number of annual average full-time equivalent students in each grade level at each school in the district and not based on the grade-level configuration of the school. The allocations shall be further adjusted from the school prototypes with minimum allocations for small schools and to reflect other factors identified in the omnibus appropriations act.
     (b) For the purposes of this section, prototypical schools are defined as follows:
     (i) A prototypical high school has six hundred average annual full-time equivalent students in grades nine through twelve;
     (ii) A prototypical middle school has four hundred thirty-two average annual full-time equivalent students in grades seven and eight; and
     (iii) A prototypical elementary school has four hundred average annual full-time equivalent students in grades kindergarten through six.
     (c) The minimum allocation for each level of prototypical school shall be based on the number of full-time equivalent classroom teachers needed to provide instruction over the minimum required annual instructional hours under RCW 28A.150.220 and provide at least one teacher planning period per school day, and based on an average class size as specified in the omnibus appropriations act. The omnibus appropriations act shall specify:
     (i) Basic average class size;
     (ii) Basic average class size in schools where more than fifty percent of the students are eligible for free and reduced-price meals;
     (iii) Average class size for exploratory and preparatory career and technical education, laboratory science, advanced placement, and international baccalaureate courses; and
     (iv) Average class size in grades kindergarten through three.
     (d) The minimum allocation for each level of prototypical school shall include allocations for the following types of staff in addition to classroom teachers:
     (i) Principals, including assistant principals and other certificated building-level administrators;
     (ii) Teacher librarians, a function that includes information literacy, technology, and media to support school library media programs;
     (iii) Student health services, a function that includes school nurses and social workers;
     (iv) Guidance counselors, a function that includes parent outreach and graduation advisor;
     (v) Professional development coaches;
     (vi) Office support and noninstructional aides;
     (vii) Custodians and other maintenance; and
     (viii) Student and staff safety.
     (4)(a) The minimum allocation for each school district shall include allocations per annual average full-time equivalent student for the following materials, supplies, and operating costs: Student technology; utilities; curriculum, textbooks, library materials, and instructional supplies; instructional professional development; other building-level costs including maintenance, custodial, and security; and central office administration.
     (b) The annual average full-time equivalent student amounts in (a) of this subsection shall be enhanced based on full-time equivalent student enrollment in exploratory career and technical education courses for students in grades seven through twelve; laboratory science courses for students in grades nine through twelve; preparatory career and technical education courses for students in grades nine through twelve offered in a high school; and preparatory career and technical education courses for students in grades eleven and twelve offered through a skill center.
     (5) The allocations provided under subsections (3) and (4) of this section shall be enhanced as follows to provide additional allocations for classroom teachers and maintenance, supplies, and operating costs:
     (a) To provide supplemental instruction and services for underachieving students through the learning assistance program under RCW 28A.165.005 through 28A.165.065, allocations shall be based on the percent of students in each school who are eligible for free and reduced-price meals. The minimum allocation for the learning assistance program shall provide an extended school day and extended school year for each level of prototypical school and a per student allocation for maintenance, supplies, and operating costs.
     (b) To provide supplemental instruction and services for students whose primary language is other than English, allocations shall be based on the number of students in each school who are eligible for and enrolled in the transitional bilingual instruction program under RCW 28A.180.010 through 28A.180.080. The minimum allocation for each level of prototypical school shall provide for supplemental instruction based on percent of the school day a student is assumed to receive supplemental instruction and a per student allocation for maintenance, supplies, and operating costs.
     (6) The allocations under subsections (3) through (5) of this section shall be enhanced as provided under RCW 28A.150.390 on an excess cost basis to provide supplemental instructional resources for students with disabilities.
     (7) The distribution formula shall include allocations to school districts to support staffing of central office administration. The minimum allocation shall be calculated as a percentage, identified in the omnibus appropriations act, of the total allocations for staff under subsection (3) of this section for all schools in the district.
     (8)(a) For the purposes of allocations for prototypical high schools and middle schools under subsections (3) and (5) of this section that are based on the percent of students in the school who are eligible for free and reduced-price meals, the actual percent of such students in a school shall be adjusted by a factor identified in the omnibus appropriations act to reflect underreporting of free and reduced-price meal eligibility among middle and high school students.
     (b) Allocations or enhancements provided under subsections (3) and (4) of this section for exploratory and preparatory career and technical education courses shall be provided only for courses approved by the office of the superintendent of public instruction under chapter 28A.700 RCW.
     (9)(a) This formula for distribution of basic education funds shall be reviewed biennially by the superintendent and governor. The recommended formula shall be subject to approval, amendment or rejection by the legislature. ((The formula shall be for allocation purposes only. While the legislature intends that the allocations for additional instructional staff be used to increase the ratio of such staff to students, nothing in this section shall require districts to reduce the number of administrative staff below existing levels.
     (b) The formula adopted by the legislature shall reflect the following ratios at a minimum: (i) Forty-nine certificated instructional staff to one thousand annual average full time equivalent students enrolled in grades kindergarten through three; (ii) forty-six certificated instructional staff to one thousand annual average full time equivalent students in grades four through twelve; (iii) four certificated administrative staff to one thousand annual average full time equivalent students in grades kindergarten through twelve; and (iv) sixteen and sixty-seven one-hundredths classified personnel to one thousand annual average full time equivalent students enrolled in grades kindergarten through twelve.
     (c))) (b) In the event the legislature rejects the distribution formula recommended by the governor, without adopting a new distribution formula, the distribution formula for the previous school year shall remain in effect((: PROVIDED, That the distribution formula developed pursuant to this section shall be for state apportionment and equalization purposes only and shall not be construed as mandating specific operational functions of local school districts other than those program requirements identified in RCW 28A.150.220 and 28A.150.100)).
     (c) The enrollment of any district shall be the annual average number of full-time equivalent students and part-time students as provided in RCW 28A.150.350, enrolled on the first school day of each month ((and shall exclude full time equivalent students with disabilities recognized for the purposes of allocation of state funds for programs under RCW 28A.155.010 through 28A.155.100)), including students who are in attendance pursuant to RCW 28A.335.160 and 28A.225.250 who do not reside within the servicing school district. The definition of full-time equivalent student shall be determined by rules of the superintendent of public instruction((: PROVIDED, That the definition)) and shall be included as part of the superintendent's biennial budget request((: PROVIDED, FURTHER, That)). The definition shall be based on the minimum instructional hour offerings required under RCW 28A.150.220. Any revision of the present definition shall not take effect until approved by the house appropriations committee and the senate ways and means committee((: PROVIDED, FURTHER, That)).
     (d) The office of financial management shall make a monthly review of the superintendent's reported full-time equivalent students in the common schools in conjunction with RCW 43.62.050.
     (((3)(a) Certificated instructional staff shall include those persons employed by a school district who are nonsupervisory employees within the meaning of RCW 41.59.020(8): PROVIDED, That in exceptional cases, people of unusual competence but without certification may teach students so long as a certificated person exercises general supervision: PROVIDED, FURTHER, That the hiring of such classified people shall not occur during a labor dispute and such classified people shall not be hired to replace certificated employees during a labor dispute.
     (b) Certificated administrative staff shall include all those persons who are chief executive officers, chief administrative officers, confidential employees, supervisors, principals, or assistant principals within the meaning of RCW 41.59.020(4).))

Sec. 106   RCW 28A.150.390 and 1995 c 77 s 6 are each amended to read as follows:
     SPECIAL EDUCATION EXCESS COST ALLOCATION. (1) The superintendent of public instruction shall submit to each regular session of the legislature during an odd-numbered year a programmed budget request for special education programs for students with disabilities. Funding for programs operated by local school districts shall be on an excess cost basis from appropriations provided by the legislature for special education programs for students with disabilities and shall take account of state funds accruing through RCW ((28A.150.250,)) 28A.150.260((,)) (3) through (5) and federal medical assistance and private funds accruing under RCW 74.09.5249 through 74.09.5253 and 74.09.5254 through 74.09.5256((, and other state and local funds, excluding special excess levies)).
     (2) The excess cost allocation to school districts shall be based on the following:
     (a) A district's annual average headcount enrollment of students ages birth through four and those five year olds not yet enrolled in kindergarten who are eligible for and enrolled in special education, multiplied by the district's base allocation per full-time equivalent student, multiplied by 1.15; and
     (b) A district's annual average full-time equivalent basic education enrollment, multiplied by the district's funded enrollment percent, multiplied by the district's base allocation per full-time equivalent student, multiplied by 0.9309.
     (3) As used in this section:
     (a) "Base allocation" means the total state allocation to all schools in the district generated by the distribution formula under RCW 28A.150.260 (3) through (5), to be divided by the district's full-time equivalent enrollment.
     (b) "Basic education enrollment" means enrollment of resident students including nonresident students enrolled under RCW 28A.225.225 and students from nonhigh districts enrolled under RCW 28A.225.210 and excluding students residing in another district enrolled as part of an interdistrict cooperative program under RCW 28A.225.250.
     (c) "Enrollment percent" means the district's resident special education annual average enrollment, excluding students ages birth through four and those five year olds not yet enrolled in kindergarten, as a percent of the district's annual average full-time equivalent basic education enrollment.
     (d) "Funded enrollment percent" means the lesser of the district's actual enrollment percent or twelve and seven-tenths percent.

NEW SECTION.  Sec. 107   SPECIAL EDUCATION SAFETY NET. (1) To the extent necessary, funds shall be made available for safety net awards for districts with demonstrated needs for special education funding beyond the amounts provided through the special education funding formula under RCW 28A.150.390. If the federal safety net awards based on the federal eligibility threshold exceed the federal appropriation in any fiscal year, then the superintendent shall expend all available federal discretionary funds necessary to meet this need. Safety net funds shall be awarded by the state safety net oversight committee subject to the following conditions and limitations:
     (a) The committee shall consider additional funds for districts that can convincingly demonstrate that all legitimate expenditures for special education exceed all available revenues from state funding formulas. In the determination of need, the committee shall also consider additional available revenues from federal sources. Differences in program costs attributable to district philosophy, service delivery choice, or accounting practices are not a legitimate basis for safety net awards. In the determination of need, the committee shall require that districts demonstrate that they are maximizing their eligibility for all state and federal revenues related to services for special education students.
     (b) The committee shall then consider the extraordinary high cost needs of one or more individual special education students. Differences in costs attributable to district philosophy, service delivery choice, or accounting practices are not a legitimate basis for safety net awards.
     (c) Using criteria developed by the committee, the committee shall then consider extraordinary costs associated with communities that draw a larger number of families with children in need of special education services. Safety net awards under this subsection (1)(c) shall be adjusted to reflect amounts awarded under (b) of this subsection.
     (d) The maximum allowable indirect cost for calculating safety net eligibility may not exceed the federal restricted indirect cost rate for the district plus one percent.
     (e) Safety net awards shall be adjusted based on the percent of potential medicaid eligible students billed as calculated by the superintendent of public instruction in accordance with chapter 318, Laws of 1999.
     (f) Safety net awards must be adjusted for any audit findings or exceptions related to special education funding.
     (2) The superintendent of public instruction may adopt such rules and procedures as are necessary to administer the special education funding and safety net award process. Before revising any standards, procedures, or rules, the superintendent shall consult with the office of financial management and the fiscal committees of the legislature. In adopting and revising the rules, the superintendent shall ensure the application process to access safety net funding is streamlined, timelines for submission are not in conflict, feedback to school districts is timely and provides sufficient information to allow school districts to understand how to correct any deficiencies in a safety net application, and that there is consistency between awards approved by school district and by application period. The office of the superintendent of public instruction shall also provide technical assistance to school districts in preparing and submitting special education safety net applications.
     (3) On an annual basis, the superintendent shall survey districts regarding their satisfaction with the safety net process and consider feedback from districts to improve the safety net process. Each year by December 1st, the superintendent shall prepare and submit a report to the office of financial management and the appropriate policy and fiscal committees of the legislature that summarizes the survey results and those changes made to the safety net process as a result of the school district feedback.
     (4) The safety net oversight committee appointed by the superintendent of public instruction shall consist of:
     (a) One staff member from the office of the superintendent of public instruction;
     (b) Staff of the office of the state auditor who shall be nonvoting members of the committee; and     
     (c) One or more representatives from school districts or educational service districts knowledgeable of special education programs and funding.

Sec. 108   RCW 28A.150.380 and 2001 c 3 s 10 are each amended to read as follows:
     LEGISLATURE TO APPROPRIATE FUNDS. (1) The state legislature shall, at each regular session in an odd-numbered year, appropriate ((from the state general fund)) for the current use of the common schools such amounts as needed for state support to ((the common schools)) school districts during the ensuing biennium ((as provided in this chapter, RCW 28A.160.150 through 28A.160.210, 28A.300.170, and 28A.500.010)) for the program of basic education under RCW 28A.150.200.
     (2) In addition to those state funds provided to school districts for basic education, the legislature may appropriate funds to be distributed to school districts for other factors and for other special programs to enhance or enrich the program of basic education.
     (3) The state legislature shall also, at each regular session in an odd-numbered year, appropriate from the student achievement fund and education construction fund solely for the purposes of and in accordance with the provisions of the student achievement act during the ensuing biennium.

NEW SECTION.  Sec. 109   PROGRAM AND FUNDING WORKING GROUP. (1) The legislature intends to redefine the instructional program of education under RCW 28A.150.220 that fulfills the obligations and requirements of Article IX of the state Constitution. The funding formulas under RCW 28A.150.260 to support the instructional program shall be implemented beginning in the 2011-12 school year and are intended to be phased in over a six-year period according to an implementation schedule to be adopted by the legislature. The object of the schedule is to assure that increases in funding allocations are timely, predictable, and occur concurrently with any increases in program or instructional requirements.
     (2) The office of financial management and the office of the superintendent of public instruction shall convene a technical working group to recommend a revised program of basic education, the details of the funding formulas, and a concurrent implementation schedule.
     (3) The working group shall include representatives of the legislative evaluation and accountability program committee, school district and educational service district financial managers, the Washington association of school business officers, the Washington education association, the Washington association of school administrators, the association of Washington school principals, the Washington state school directors' association, and other interested stakeholders with expertise in education finance. The working group may convene advisory subgroups on specific topics as necessary to assure participation and input from a broad array of diverse stakeholders.
     (4) The working group shall be monitored and overseen by the basic education steering committee under section 3 of this act.

NEW SECTION.  Sec. 110   BASIC EDUCATION PROGRAM OF EARLY LEARNING. (1) The legislature finds that disadvantaged young children do not have the opportunity to attain the goals or meaningfully participate or reach any reasonable level of achievement within the regular instructional program of basic education without supplemental instruction in preschool to prepare them for kindergarten and beyond. Therefore, the legislature intends to establish a basic education program of early learning for at-risk children that shall become a part of the program of basic education.
     (2) The department of early learning and the office of the superintendent of public instruction shall convene a working group to develop the basic education program of early learning. The early learning working group shall be composed of representatives from head start and early childhood education and assistance program providers, school districts, thrive by five of Washington, and other stakeholders with expertise in early learning. The working group may convene advisory subgroups on specific topics as necessary to assure participation and input from a broad array of diverse stakeholders.
     (3) The early learning working group shall continue the preliminary work of the department of early learning under RCW 43.215.125 to develop a proposal for a statewide Washington head start program. The working group shall develop recommended parameters and minimum standards for the program, student eligibility, and a governance model and delivery system appropriate for a basic education program.
     (4) The early learning working group shall be monitored and overseen by the basic education steering committee under section 3 of this act.

NEW SECTION.  Sec. 201   INTENT. (1) The legislature finds that in order to offer all students the opportunity to achieve the basic education goal, school districts must provide effective teaching and instruction. Teachers should be provided opportunities to gain the knowledge and skills that will enable them to be effective, and should be evaluated and rewarded based on their effectiveness. Designing a system that clearly defines, supports, measures, and rewards effective teaching is one of the most important investments to be made in improving student learning.
     (2) Therefore, the legislature intends to establish a comprehensive system of teacher certification, evaluation, and mentoring that is directly aligned with a revised system of compensation and focused on achievement of effective teaching.

NEW SECTION.  Sec. 202   EFFECTIVE TEACHING AND COMPENSATION. (1) The office of financial management and the superintendent of public instruction shall convene an effective teaching and compensation working group to include representatives of the professional educator standards board, the Washington education association, the Washington association of school administrators, the Washington state school directors' association, the association of Washington school principals, school districts of varying sizes, and other interested stakeholders with expertise in educator compensation.
     (2) The working group shall recommend a compensation system that provides support for effective teaching and recruitment and retention of high quality staff, including any changes to teacher certification and professional development necessary to align with the system.
     (3) The working group shall be monitored and overseen by the basic education steering committee under section 3 of this act.

Sec. 203   RCW 28A.150.410 and 2007 c 403 s 1 are each amended to read as follows:
     SALARY ALLOCATION MODEL. (1) The legislature shall establish for each school year in the appropriations act a statewide salary allocation schedule, for allocation purposes only, to be used to distribute funds for basic education certificated instructional staff salaries under RCW 28A.150.260. For the purposes of this section, beginning in the 2011-12 school year, the staff allocations for classroom teachers, librarians, professional development coaches, student health services staff, and guidance counselors under RCW 28A.150.260 are allocations for certificated instructional staff.
     (2) Salary allocations for state-funded ((basic education)) certificated instructional staff shall be calculated by the superintendent of public instruction by determining the district's average salary for all certificated instructional staff, using the statewide salary allocation schedule and related documents, conditions, and limitations established by the omnibus appropriations act.
     (3) Beginning January 1, 1992, no more than ninety college quarter-hour credits received by any employee after the baccalaureate degree may be used to determine compensation allocations under the state salary allocation schedule and LEAP documents referenced in the omnibus appropriations act, or any replacement schedules and documents, unless:
     (a) The employee has a masters degree; or
     (b) The credits were used in generating state salary allocations before January 1, 1992.
     (4) Beginning in the 2007-08 school year, the calculation of years of service for occupational therapists, physical therapists, speech-language pathologists, audiologists, nurses, social workers, counselors, and psychologists regulated under Title 18 RCW may include experience in schools and other nonschool positions as occupational therapists, physical therapists, speech-language pathologists, audiologists, nurses, social workers, counselors, or psychologists. The calculation shall be that one year of service in a nonschool position counts as one year of service for purposes of this chapter, up to a limit of two years of nonschool service. Nonschool years of service included in calculations under this subsection shall not be applied to service credit totals for purposes of any retirement benefit under chapter 41.32, 41.35, or 41.40 RCW, or any other state retirement system benefits.

NEW SECTION.  Sec. 301   INTENT. (1) The legislature finds that comprehensive education finance reform and the increased investment of public resources necessary to implement that reform must be accompanied by an equally comprehensive and transparent system of school and school district accountability. The focus of the accountability system is on continuous improvement of student achievement in all schools and all school districts.
     (2) The legislature further finds that it is the state's responsibility to provide schools and districts with the tools necessary to be accountable. These tools include the necessary accounting and data reporting systems, assessment systems to monitor student achievement, and a system of general support, targeted assistance, recognition, and, if necessary, intervention.

NEW SECTION.  Sec. 302   SCHOOL AND DISTRICT ACCOUNTABILITY SYSTEM. The state board of education shall submit a proposal for a comprehensive system of school and district accountability to the education committees of the legislature by December 1, 2009, including recommended legislation and recommended resources to implement the system.

NEW SECTION.  Sec. 303   A new section is added to chapter 28A.655 RCW to read as follows:
     EDUCATION DATA ACCOUNTABILITY SYSTEM. (1) It is the legislature's intent to establish comprehensive education data accountability systems for financial, student, and educator data. The objective of the systems is to monitor student progress, assure educator quality, monitor and analyze the costs of programs, provide for financial integrity and accountability, and have the capacity to link across these various data components by student, by school, by district, and statewide. Education data systems must be flexible and able to adapt to evolving needs for information, but there must be an objective and orderly process for determining when changes are needed and how to implement them.
     (2) It is the legislature's intent that the education data accountability systems used by school districts and the state include but not be limited to the following information and functionality:
     (a) Comprehensive educator assignment information, including grade level and courses taught, building or location, program, job assignment, years of experience, and compensation;
     (b) Capacity to link educator assignment information with educator certification information such as certification number, type of certification, route to certification, certification program, and certification assessment or evaluation scores;
     (c) Common coding of secondary courses and major areas of study at the elementary level;
     (d) Complete student information, including but not limited to student characteristics, course and program enrollment, performance on statewide summative and formative assessments, and performance on college readiness tests;
     (e) A subset of student information elements to serve as a dropout early warning system;
     (f) Capacity to link educator information with student information;
     (g) A common, standardized structure for reporting the costs of programs at the school and district level with a focus on financial accountability rather than accounting for expenditure inputs;
     (h) Separate accounting of state, federal, and local revenues and costs;
     (i) Alignment between state funding formulas and school district budgeting and accounting, including procedures for assuring that financial data is accurate and auditable; and
     (j) Capacity to link program cost information with student information to gauge the cost-effectiveness of programs.

NEW SECTION.  Sec. 304   DATA WORKING GROUP. (1) The office of the superintendent of public instruction shall convene a technical working group to propose a design and implementation time frame for the comprehensive data accountability systems for financial, student, and educator data under section 303 of this act.
     (2) The data working group shall include representatives of the office of financial management, the state auditor's office, the legislative evaluation and accountability program committee, the joint legislative audit and review committee, the professional educator standards board, the state board of education, the Washington state information processing cooperative, educational service districts and school districts of varying sizes, the Washington association of school business officers, the Washington education association, the Washington association of school administrators, the Washington state school directors' association, the association of Washington school principals, and other interested stakeholders with expertise in education data. The working group may convene advisory subgroups on specific topics as necessary to assure participation and input from a broad array of diverse stakeholders. The office of the superintendent of public instruction may divide the working group into two subgroups to assure appropriate expertise among the members regarding teacher and student data systems versus financial and accounting data systems.
     (3) The data working group shall:
     (a) Create a comprehensive needs requirement document detailing the specific information and technical capacity needed by school districts and the state to meet the legislature's expectations for comprehensive data accountability systems as described under section 303 of this act;
     (b) Conduct a gap analysis of current and planned information compared to the needs requirement document, including an analysis of the strengths and limitations of education data systems and programs currently used by school districts and the state and the extent to which these systems and programs have the capacity or can be modified to meet the needs requirement document;
     (c) Focus on financial and cost data necessary to support the new financial models and funding formulas, including any necessary changes to school district budgeting and accounting, and on assuring the capacity to link data across financial, student, and educator systems; and
     (d) Develop a proposal for a data governance structure that would be responsible for establishing a standard data dictionary, setting data collection priorities, establishing minimum mandatory standards for school data systems, and overseeing implementation of the comprehensive education data accountability systems.
     (4) The data working group shall be monitored and overseen by the basic education steering committee under section 3 of this act.

NEW SECTION.  Sec. 401   A new section is added to chapter 28A.500 RCW to read as follows:
     NEW LEVY/LEA SYSTEM--INTENT. (1) The legislature finds that while the state has the responsibility to provide for a general and uniform system of public schools, there is also a need for some diversity in the public school system. A successful system of public education must permit some variation among school districts outside the basic education provided for by the state to respond to and reflect the unique desires of local communities. The opportunity for local communities to invest in enriched education programs promotes support for local public schools. Further, the ability of local school districts to experiment with enriched programs can inform the legislature's long-term evolution of the definition of basic education. Therefore, local levy authority remains an important component of the overall finance system in support of the public schools even though it is outside the state's obligation for basic education.
     (2) However, the value of permitting local levies must be balanced with the value of equity and fairness to students and to taxpayers, neither of whom should be unduly disadvantaged due to differences in the tax bases used to support local levies. Equity and fairness require both an equitable basis for supplemental funding outside basic education and a mechanism for property tax-poor school districts to fairly access supplemental funding. As such, local effort assistance, while also outside the state's obligation for basic education, is another important component of school finance.

NEW SECTION.  Sec. 402   LOCAL FUNDING WORKING GROUP. (1) The office of financial management and the superintendent of public instruction shall convene a technical working group to develop options for a new system of supplemental school funding through local school levies and local effort assistance.
     (2) The working group shall consider the impact on overall school district revenues of the new basic education funding system established under this act and shall recommend a phase-in plan that ensures that no school district suffers a decrease in funding from one school year to the next due to implementation of the new system of supplemental funding.
     (3) The working group shall be composed of representatives from the department of revenue, the legislative evaluation and accountability program committee, school district and educational service district financial managers, and representatives of the Washington association of school business officers, the Washington education association, the Washington association of school administrators, the Washington state school directors' association, and other interested stakeholders with expertise in education finance. The working group may convene advisory subgroups on specific topics as necessary to assure participation and input from a broad array of diverse stakeholders.
     (4) The local funding working group shall be monitored and overseen by the basic education steering committee under section 3 of this act.

Sec. 501   RCW 28A.165.005 and 2004 c 20 s 1 are each amended to read as follows:
     LAP ADJUSTMENTS. ((The learning assistance program requirements in)) This chapter ((are)) is designed to: (1) Promote the use of assessment data when developing programs to assist underachieving students; and (2) guide school districts in providing the most effective and efficient practices when implementing ((programs)) supplemental instruction and services to assist underachieving students. ((Further, this chapter provides the means by which a school district becomes eligible for learning assistance program funds and the distribution of those funds.))

Sec. 502   RCW 28A.165.015 and 2004 c 20 s 2 are each amended to read as follows:
     LAP ADJUSTMENTS. Unless the context clearly indicates otherwise the definitions in this section apply throughout this chapter.
     (1) "Approved program" means a program submitted to and approved by the office of the superintendent of public instruction and conducted pursuant to the plan that addresses the required elements as provided for in this chapter.
     (2) "Basic skills areas" means reading, writing, and mathematics as well as readiness associated with these skills.
     (3) "Participating student" means a student in kindergarten through grade ((eleven who scores below standard for his or her grade level on the statewide assessments and who is identified in the approved plan to receive services. Beginning with the 2007-2008 school year, "participating student" means a student in kindergarten through grade)) twelve who scores below standard for his or her grade level on the statewide assessments and who is identified in the approved plan to receive services.
     (4) "Statewide assessments" means one or more of the several basic skills assessments administered as part of the state's student assessment system, and assessments in the basic skills areas administered by local school districts.
     (5) "Underachieving students" means students with the greatest academic deficits in basic skills as identified by the statewide assessments.

Sec. 503   RCW 28A.165.055 and 2008 c 321 s 10 are each amended to read as follows:
     LAP ADJUSTMENTS. (((1))) Each school district with an approved program is eligible for state funds provided for the learning assistance program. The funds shall be appropriated for the learning assistance program in accordance with RCW 28A.150.260 and the ((biennial)) omnibus appropriations act. The distribution formula is for school district allocation purposes only, but funds appropriated for the learning assistance program must be expended for the purposes of RCW 28A.165.005 through 28A.165.065. ((The distribution formula shall be based on one or more family income factors measuring economic need.
     (2) In addition to the funds allocated to eligible school districts on the basis of family income factors, enhanced funds shall be allocated for school districts where more than twenty percent of students are eligible for and enrolled in the transitional bilingual instruction program under chapter 28A.180 RCW as provided in this subsection. The enhanced funding provided in this subsection shall take effect beginning in the 2008-09 school year.
     (a) If, in the prior school year, a district's percent of October headcount student enrollment in grades kindergarten through twelve who are enrolled in the transitional bilingual instruction program, based on an average of the program headcount taken in October and May, exceeds twenty percent, twenty percent shall be subtracted from the district's percent transitional bilingual instruction program enrollment and the resulting percent shall be multiplied by the district's kindergarten through twelve annual average full-time equivalent enrollment for the prior school year.
     (b) The number calculated under (a) of this subsection shall be the number of additional funded students for purposes of this subsection, to be multiplied by the per-funded student allocation rates specified in the omnibus appropriations act.
     (c) School districts are only eligible for the enhanced funds under this subsection if their percentage of October headcount enrollment in grades kindergarten through twelve eligible for free or reduced-price lunch exceeded forty percent in the prior school year.))

Sec. 504   RCW 28A.180.010 and 1990 c 33 s 163 are each amended to read as follows:
     TBIP ADJUSTMENTS. RCW 28A.180.010 through 28A.180.080 shall be known and cited as "the transitional bilingual instruction act." The legislature finds that there are large numbers of children who come from homes where the primary language is other than English. The legislature finds that a transitional bilingual education program can meet the needs of these children. Pursuant to the policy of this state to insure equal educational opportunity to every child in this state, it is the purpose of RCW 28A.180.010 through 28A.180.080 to provide for the implementation of transitional bilingual education programs in the public schools((, and to provide supplemental financial assistance to school districts to meet the extra costs of these programs)).

Sec. 505   RCW 28A.180.080 and 1995 c 335 s 601 are each amended to read as follows:
     TBIP ADJUSTMENTS. ((The superintendent of public instruction shall prepare and submit biennially to the governor and the legislature a budget request for bilingual instruction programs.)) Moneys appropriated by the legislature for the purposes of RCW 28A.180.010 through 28A.180.080 shall be allocated by the superintendent of public instruction to school districts for the sole purpose of operating an approved bilingual instruction program((; priorities for funding shall exist for the early elementary grades. No moneys shall be allocated pursuant to this section to fund more than three school years of bilingual instruction for each eligible pupil within a district: PROVIDED, That such moneys may be allocated to fund more than three school years of bilingual instruction for any pupil who fails to demonstrate improvement in English language skills adequate to remove impairment of learning when taught only in English. The superintendent of public instruction shall set standards and approve a test for the measurement of such English language skills)).

Sec. 506   RCW 28A.225.200 and 1990 c 33 s 234 are each amended to read as follows:
     EDUCATION BY OTHER DISTRICTS. (1) A local district may be authorized by the educational service district superintendent to transport and educate its pupils in other districts for one year, either by payment of a compensation agreed upon by such school districts, or under other terms mutually satisfactory to the districts concerned when this will afford better educational facilities for the pupils and when a saving may be effected in the cost of education((: PROVIDED, That)). Notwithstanding any other provision of law, the amount to be paid by the state to the resident school district for apportionment purposes and otherwise payable pursuant to RCW ((28A.150.100,)) 28A.150.250 through 28A.150.290, 28A.150.350 through 28A.150.410, 28A.160.150 through 28A.160.200, ((28A.160.220)) 28A.300.035, and 28A.300.170((, and 28A.500.010)) shall not be greater than the regular apportionment for each high school student of the receiving district. Such authorization may be extended for an additional year at the discretion of the educational service district superintendent.
     (2) Subsection (1) of this section shall not apply to districts participating in a cooperative project established under RCW 28A.340.030 which exceeds two years in duration.

NEW SECTION.  Sec. 507   The following acts or parts of acts are each repealed:
     (1) RCW 28A.150.030 (School day) and 1971 ex.s. c 161 s 1 & 1969 ex.s. c 223 s 28A.01.010;
     (2) RCW 28A.150.060 (Certificated employee) and 2005 c 497 s 212, 1990 c 33 s 102, 1977 ex.s. c 359 s 17, 1975 1st ex.s. c 288 s 21, & 1973 1st ex.s. c 105 s 1;
     (3) RCW 28A.150.100 (Basic education certificated instructional staff -- Definition -- Ratio to students) and 1990 c 33 s 103 & 1987 1st ex.s. c 2 s 203;
     (4) RCW 28A.150.040 (School year -- Beginning -- End) and 1990 c 33 s 101, 1982 c 158 s 5, 1977 ex.s. c 286 s 1, 1975-'76 2nd ex.s. c 118 s 22, & 1969 ex.s. c 223 s 28A.01.020;
     (5) RCW 28A.150.370 (Additional programs for which legislative appropriations must or may be made) and 1995 c 335 s 102, 1995 c 77 s 5, 1990 c 33 s 114, 1982 1st ex.s. c 24 s 1, & 1977 ex.s. c 359 s 7; and
     (6) RCW 28A.155.180 (Safety net funds--Application--Technical assistance--Annual survey) and 2007 c 400 s 8.

NEW SECTION.  Sec. 601   Part headings and captions used in this act are not any part of the law.

NEW SECTION.  Sec. 602   Sections 3, 102, and 107 of this act are each added to chapter 28A.150 RCW.

NEW SECTION.  Sec. 603   Sections 101 through 108, 203, and 501 through 507 of this act take effect September 1, 2011.

NEW SECTION.  Sec. 604   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.