6362-S2.E AMH APP H5064.3
E2SSB 6362 - H COMM AMD 
By Committee on Appropriations
NOT ADOPTED 03/08/2018
Strike everything after the enacting clause and insert the following:
"PART I: PROGRAM FUNDING
Sec. 101.  RCW 28A.150.260 and 2017 3rd sp.s. c 13 s 402 are each amended to read as follows:
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 for the distribution of a basic education instructional allocation for each common school district.
(2)(a) The distribution formula under this section shall be for allocation purposes only. Except as may be required under subsections (4)(b) and (c) and (9) of this section, chapter 28A.155, 28A.165, 28A.180, or 28A.185 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.
(b) To promote transparency in state funding allocations, the superintendent of public instruction must report state per-pupil allocations for each school district for the general apportionment, special education, learning assistance, transitional bilingual, highly capable, and career and technical education programs. The superintendent must also report state general apportionment per-pupil allocations by grade for each school district. The superintendent must report this information in a user-friendly format on the main page of the office's web site and on school district apportionment reports. School districts must include a link to the superintendent's per-pupil allocations report on the main page of the school district's web site. In addition, the budget documents published by the legislature for the enacted omnibus operating appropriations act must report statewide average per-pupil allocations for general apportionment and the categorical programs listed in this subsection.
(3)(a) To the extent the technical details of the formula have been adopted by the legislature and except when specifically provided as a school district allocation, 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. It is the intent that the funding allocations to school districts 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 to the extent that data is available. 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.
(4)(a)(i) 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 the following general education average class size of full-time equivalent students per teacher:
General education
average class size
Grades K-3. . . . 17.00
Grade 4. . . .27.00
Grades 5-6. . . .27.00
Grades 7-8. . . .28.53
Grades 9-12. . . .28.74
(ii) The minimum class size allocation for each prototypical high school shall also provide for enhanced funding for class size reduction for two laboratory science classes within grades nine through twelve per full-time equivalent high school student multiplied by a laboratory science course factor of 0.0833, based on the number of full-time equivalent classroom teachers needed to provide instruction over the minimum required annual instructional hours in RCW 28A.150.220, and providing at least one teacher planning period per school day:
Laboratory science
average class size
Grades 9-12. . . .19.98
(b)(i) Beginning September 1, ((2018)) 2019, funding for average K-3 class sizes in this subsection (4) may be provided only to the extent of, and proportionate to, the school district's demonstrated actual class size in grades K-3, up to the funded class sizes.
(ii) The office of the superintendent of public instruction shall develop rules to implement this subsection (4)(b).
(c)(i) The minimum allocation for each prototypical middle and high school shall also provide for full-time equivalent classroom teachers based on the following number of full-time equivalent students per teacher in career and technical education:
Career and technical
education average
class size
Approved career and technical education offered at
the middle school and high school level. . . . 23.00
Skill center programs meeting the standards established
by the office of the superintendent of public
instruction. . . . 20.00
(ii) Funding allocated under this subsection (4)(c) is subject to RCW 28A.150.265.
(d) In addition, the omnibus appropriations act shall at a minimum specify:
(i) A high-poverty average class size in schools where more than fifty percent of the students are eligible for free and reduced-price meals; and
(ii) A specialty average class size for advanced placement and international baccalaureate courses.
(5) The minimum allocation for each level of prototypical school shall include allocations for the following types of staff in addition to classroom teachers:
 
 
 
Elementary School
Middle School
High School
 
 
Principals, assistant principals, and other certificated building-level administrators. . . .
 
1.253
 
1.353
 
1.880
 
 
 
Teacher-librarians, a function that includes information literacy, technology, and media to support school library media programs. . . .
 
0.663
 
0.519
 
0.523
 
Health and social services:
 
 
 
 
School nurses. . . .
0.076
0.060
0.096
 
Social workers. . . .
0.042
0.006
0.015
 
Psychologists. . . .
0.017
0.002
0.007
 
 
Guidance counselors, a function that includes parent outreach and graduation advising. . . .
 
0.493
 
1.216
 
2.539
 
 
Teaching assistance, including any aspect of educational instructional services provided by classified employees. . . .
 
0.936
 
0.700
 
0.652
 
Office support and other noninstructional aides. . . .
2.012
2.325
3.269
 
Custodians. . . .
1.657
1.942
2.965
 
Classified staff providing student and staff safety. . . .
0.079
0.092
0.141
 
Parent involvement coordinators. . . .
0.0825
0.00
0.00
(6)(a) The minimum staffing allocation for each school district to provide district-wide support services shall be allocated per one thousand annual average full-time equivalent students in grades K-12 as follows:
Staff per 1,000
K-12 students
Technology. . . .0.628
Facilities, maintenance, and grounds. . . .1.813
Warehouse, laborers, and mechanics. . . .0.332
(b) The minimum allocation of staff units for each school district to support certificated and classified staffing of central administration shall be 5.30 percent of the staff units generated under subsections (4)(a) and (5) of this section and (a) of this subsection.
(7) The distribution formula shall include staffing allocations to school districts for career and technical education and skill center administrative and other school-level certificated staff, as specified in the omnibus appropriations act.
(8)(a) Except as provided in (b) of this subsection, 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 as provided in the 2017-18 school year, after which the allocations shall be adjusted annually for inflation as specified in the omnibus appropriations act:
Per annual average
full-time equivalent student
in grades K-12
Technology. . . . $130.76
Utilities and insurance. . . . $355.30
Curriculum and textbooks. . . . $140.39
Other supplies ((and library materials)). . . . (($298.05)) $278.05
Library materials. . . .$20.00
Instructional professional development for certificated and
classified staff. . . . $21.71
Facilities maintenance. . . . $176.01
Security and central office administration. . . . $121.94
(b) In addition to the amounts provided in (a) of this subsection, beginning in the 2014-15 school year, the omnibus appropriations act shall provide the following minimum allocation for each annual average full-time equivalent student in grades nine through twelve for the following materials, supplies, and operating costs, to be adjusted annually for inflation:
Per annual average
full-time equivalent student
in grades 9-12
Technology. . . .$36.35
Curriculum and textbooks. . . .$39.02
Other supplies ((and library materials)). . . .(($82.84)) $77.28
Library materials. . . .$5.56
Instructional professional development for certificated and
classified staff. . . .$6.04
(9) In addition to the amounts provided in subsection (8) of this section and subject to RCW 28A.150.265, the omnibus appropriations act shall provide an amount based on full-time equivalent student enrollment in each of the following:
(a) Exploratory career and technical education courses for students in grades seven through twelve;
(b) Preparatory career and technical education courses for students in grades nine through twelve offered in a high school; and
(c) Preparatory career and technical education courses for students in grades eleven and twelve offered through a skill center.
(10) In addition to the allocations otherwise provided under this section, amounts shall be provided to support the following programs and services:
(a)(i) To provide supplemental instruction and services for students who are not meeting academic standards through the learning assistance program under RCW 28A.165.005 through 28A.165.065, allocations shall be based on the district percentage of students in grades K-12 who were eligible for free or reduced-price meals in the prior school year. The minimum allocation for the program shall provide for each level of prototypical school resources to provide, on a statewide average, 2.3975 hours per week in extra instruction with a class size of fifteen learning assistance program students per teacher.
(ii) In addition to funding allocated under (a)(i) of this subsection, to provide supplemental instruction and services for students who are not meeting academic standards in ((schools where at least fifty percent of students are eligible for free and reduced-price meals)) qualifying schools. A qualifying school means a school in which the three-year rolling average of the prior year total annual average enrollment that qualifies for free or reduced-price meals equals or exceeds fifty percent or more of its total annual average enrollment. The minimum allocation for this additional high poverty-based allocation must provide for each level of prototypical school resources to provide, on a statewide average, 1.1 hours per week in extra instruction with a class size of fifteen learning assistance program students per teacher, under RCW 28A.165.055, school districts must distribute the high poverty-based allocation to the schools that generated the funding allocation.
(b)(i) To provide supplemental instruction and services for students whose primary language is other than English, allocations shall be based on the head count 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 resources to provide, on a statewide average, 4.7780 hours per week in extra instruction for students in grades kindergarten through six and 6.7780 hours per week in extra instruction for students in grades seven through twelve, with fifteen transitional bilingual instruction program students per teacher. Notwithstanding other provisions of this subsection (10), the actual per-student allocation may be scaled to provide a larger allocation for students needing more intensive intervention and a commensurate reduced allocation for students needing less intensive intervention, as detailed in the omnibus appropriations act.
(ii) To provide supplemental instruction and services for students who have exited the transitional bilingual program, allocations shall be based on the head count number of students in each school who have exited the transitional bilingual program within the previous two years based on their performance on the English proficiency assessment and are eligible for and enrolled in the transitional bilingual instruction program under RCW 28A.180.040(1)(g). The minimum allocation for each prototypical school shall provide resources to provide, on a statewide average, 3.0 hours per week in extra instruction with fifteen exited students per teacher.
(c) To provide additional allocations to support programs for highly capable students under RCW 28A.185.010 through 28A.185.030, allocations shall be based on 5.0 percent of each school district's full-time equivalent basic education enrollment. The minimum allocation for the programs shall provide resources to provide, on a statewide average, 2.1590 hours per week in extra instruction with fifteen highly capable program students per teacher.
(11) The allocations under subsections (4)(a), (5), (6), and (8) 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.
(12)(a) For the purposes of allocations for prototypical high schools and middle schools under subsections (4) and (10) 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 (4), (7), and (9) 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.
(13)(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.
(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.
(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, 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 and shall be included as part of the superintendent's biennial budget request. 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 ways and means committee and the senate ways and means committee.
(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.
Sec. 102.  RCW 28A.150.390 and 2017 3rd sp.s. c 13 s 406 are each amended to read as follows:
(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.150.260 (4)(a), (5), (6), and (8) and 28A.150.415.
(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)) 0.9609.
(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 (4)(a), (5), (6), and (8) and 28A.150.415, 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 thirteen and five-tenths percent.
NEW SECTION.  Sec. 103.  A new section is added to chapter 28A.160 RCW to read as follows:
(1) Subject to the availability of amounts appropriated for this specific purpose, a transportation alternate funding grant program is created.
(2) As part of the award process for the grants, the superintendent of public instruction must include a review of the school district's efficiency rating, key performance indicators, and local school district characteristics such as unique geographic constraints, low enrollment, geographic density of students, the percentage of students served under the McKinney-Vento homeless assistance act from outside the district, or whether the district is a nonhigh district.
Sec. 104.  RCW 28A.165.055 and 2017 3rd sp.s. c 13 s 405 are each amended to read as follows:
(1) The funds for the learning assistance program shall be appropriated in accordance with RCW 28A.150.260 and the omnibus appropriations act. The distribution formula is for school district allocation purposes only, except as provided in RCW 28A.150.260(10)(a)(ii), but all funds appropriated for the learning assistance program must be expended for the purposes of RCW 28A.165.005 through 28A.165.065.
(2) A district's high poverty-based allocation is generated by its qualifying schools ((buildings)) as defined in RCW 28A.150.260(10) and must be expended by the district for those ((buildings)) schools. This funding must supplement and not supplant the district's expenditures under this chapter for those schools ((buildings)).
NEW SECTION.  Sec. 105.  A new section is added to chapter 28A.300 RCW to read as follows:
(1) The superintendent of public instruction must require school districts to have identification procedures for their highly capable programs that are clearly stated and implemented by school districts using the following criteria:
(a) Districts must use multiple objective criteria to identify students who are among the most highly capable. Multiple pathways for qualifications must be available and no single criterion may disqualify a student from identification;
(b) Highly capable selection decisions must be based on consideration of criteria benchmarked on local norms, but local norms may not be used as a more restrictive criteria than national norms at the same percentile;
(c) Subjective measures such as teacher recommendations or report card grades may not be used to screen out a student from assessment. These data points may be used alongside other criteria during selection to support identification, but may not be used to disqualify a student from being identified; and
(d) To the extent practicable, screening and assessments must be given in the native language of the student. If native language screening and assessments are not available, a nonverbal screening and assessment must be used.
(2) The superintendent of public instruction must disseminate guidance on referral, screening, assessment, selection, and placement best practices for highly capable programs. The guidance must be regularly updated and aligned with evidence-based practices.
Sec. 106.  RCW 28A.150.392 and 2017 3rd sp.s. c 13 s 407 are each amended to read as follows:
(1)(a) 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.
(b) 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.
(2) Safety net funds shall be awarded by the state safety net oversight committee subject to the following conditions and limitations:
(a) The committee shall award additional funds for districts that can convincingly demonstrate that all legitimate expenditures for special education exceed all available revenues from state funding formulas.
(b) In the determination of need, the committee shall consider additional available revenues from federal sources.
(c) Differences in program costs attributable to district philosophy, service delivery choice, or accounting practices are not a legitimate basis for safety net awards.
(d) In the determination of need, the committee shall require that districts demonstrate that they are maximizing their eligibility for all state revenues related to services for special education-eligible students and all federal revenues from federal impact aid, medicaid, and the individuals with disabilities education act-Part B and appropriate special projects. Awards associated with (e) and (f) of this subsection shall not exceed the total of a district's specific determination of need.
(e) 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.
(f) 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, which may include consideration of proximity to group homes, military bases, and regional hospitals. Safety net awards under this subsection (2)(f) shall be adjusted to reflect amounts awarded under (e) of this subsection.
(g) The committee shall then consider the extraordinary high cost needs of one or more individual special education students served in residential schools as defined in RCW 28A.190.020, programs for juveniles under the department of corrections, and programs for juveniles operated by city and county jails to the extent they are providing a program of education for students enrolled in special education.
(h) 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.
(((h))) (i) 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.
(((i))) (j) Safety net awards must be adjusted for any audit findings or exceptions related to special education funding.
(3) The superintendent of public instruction shall adopt such rules and procedures as are necessary to administer the special education funding and safety net award process. By September 1, 2019, the superintendent shall review and revise the rules to achieve full and complete implementation of the requirements of this subsection and subsection (4) of this section. 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.
(4) 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.
(5) 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.
PART II: COMPENSATION
NEW SECTION.  Sec. 201.  The legislature recognizes that Initiative Measure No. 1433 was approved by the voters of the state of Washington in 2016 requiring employers to provide paid sick leave to each of its employees. The legislature acknowledges that the enactment of this initiative contributes to the costs of operations of the state's public schools and intends to provide funding in the omnibus appropriations act to support school districts with these additional costs.
Sec. 202.  RCW 28A.150.410 and 2017 3rd sp.s. c 13 s 101 are each amended to read as follows:
(1) Through the 2017-18 school year, 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, the staff allocations for classroom teachers, teacher-librarians, guidance counselors, and student health services staff under RCW 28A.150.260 are considered allocations for certificated instructional staff.
(2) Through the 2017-18 school year, 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 certificated instructional staff, using the statewide salary allocation schedule and related documents, conditions, and limitations established by the omnibus appropriations act.
(3) Through the 2017-18 school year, 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 master's degree; or
(b) The credits were used in generating state salary allocations before January 1, 1992.
(4) Beginning in the 2007-08 school year and through the 2017-18 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.
(5) By the ((2019-20)) 2018-19 school year, the minimum state allocation for salaries for certificated instructional staff in the basic education program must be increased ((beginning in the 2018-19 school year)) to provide a statewide average allocation of sixty-four thousand dollars adjusted for inflation from the 2017-18 school year.
(6) By the ((2019-20)) 2018-19 school year, the minimum state allocation for salaries for certificated administrative staff in the basic education program must be increased ((beginning in the 2018-19 school year)) to provide a statewide average allocation of ninety-five thousand dollars adjusted for inflation from the 2017-18 school year.
(7) By the ((2019-20)) 2018-19 school year, the minimum state allocation for salaries for classified staff in the basic education program must be increased ((beginning in the 2018-19 school year)) to provide a statewide average allocation of forty-five thousand nine hundred twelve dollars adjusted by inflation from the 2017-18 school year.
(8) ((To implement the new minimum salary allocations in subsections (5) through (7) of this section, the legislature must fund fifty percent of the increased salary allocation in the 2018-19 school year and the entire increased salary allocation in the 2019-20 school year.)) For school year 2018-19, a district's minimum state allocation for salaries is the greater of the district's 2017-18 state salary allocation, adjusted for inflation, or the district's allocation based on the state salary level specified in subsections (5) through (7) of this section, and as further specified in the omnibus appropriations act.
(9) Beginning with the 2018-19 school year, state allocations for salaries for certificated instructional staff, certificated administrative staff, and classified staff must be adjusted for regional differences in the cost of hiring staff. Adjustments for regional differences must be specified in the omnibus appropriations act for each school year through at least school year 2022-23. For school years 2018-19 through school year 2022-23, the school district regionalization factors are based on the median single-family residential value of each school district and proximate school district median single-family residential value as described in RCW 28A.150.412.
(10) Beginning with the 2023-24 school year and every six years thereafter, the minimum state salary allocations and school district regionalization factors for certificated instructional staff, certificated ((administration [administrative])) administrative staff, and classified staff must be reviewed and rebased, as provided under RCW 28A.150.412, to ensure that state salary allocations continue to align with staffing costs for the state's program of basic education.
(11) For the purposes of this section, "inflation" has the meaning provided in RCW 28A.400.205 for "inflationary adjustment index."
Sec. 203.  RCW 28A.150.412 and 2017 3rd sp.s. c 13 s 104 are each amended to read as follows:
(1) Beginning with the 2023 regular legislative session, and every six years thereafter, the legislature shall review and rebase state basic education compensation allocations compared to school district compensation data, regionalization factors, what inflationary measure is the most representative of actual market experience for school districts, and other economic information. The legislature shall revise the minimum allocations ((and)), regionalization factors, and inflationary measure if necessary to ensure that state basic education allocations continue to provide market-rate salaries and that regionalization adjustments reflect actual economic differences between school districts.
(2)(a) For school districts with single-family residential values above the statewide median residential value, regionalization factors for school years 2018-19 through school year 2022-23 are as follows:
(i) For school districts in tercile 1, state salary allocations for school district employees are regionalized by six percent;
(ii) For school districts in tercile 2, state salary allocations for school district employees are regionalized by twelve percent; and
(iii) For school districts in tercile 3, state salary allocations for school district employees are regionalized by eighteen percent.
(b) In addition to the regionalization factors specified in (a) of this subsection, school districts located west of the crest of the Cascade mountains and sharing a boundary with any school district with a regionalization factor more than one tercile higher, are regionalized by six additional percentage points.
(c) In addition to the regionalization factors specified in this subsection, for school districts that have certificated instructional staff median years of experience that exceed the statewide average certificated instructional staff years of experience and a ratio of certificated instructional staff advanced degrees to bachelor degrees above the statewide ratio, an experience factor of four percentage points is added to the regionalization factor.
(d) Additional school district adjustments are identified in the omnibus appropriations act, and these adjustments are partially reduced or eliminated by the 2022-23 school year as follows:
(i) Adjustments that increase the regionalization factor to a value that is greater than the tercile 3 regionalization factor must be reduced by two percentage points each school year beginning with school year 2020-21, through 2022-23.
(ii) Adjustments that increase the regionalization factor to a value that is less than or equal to the tercile 3 regionalization factor must be reduced by one percentage point each school year beginning with school year 2020-21, through 2022-23.
(3) To aid the legislature in reviewing and rebasing regionalization factors, the department of revenue shall, by November 1, 2022, and by November 1st every six years thereafter, determine the median single-family residential value of each school district as well as the median value of proximate districts within fifteen miles of the boundary of the school district for which the median residential value is being calculated.
(4) No district may receive less state funding for the minimum state salary allocation as compared to its prior school year salary allocation as a result of adjustments that reflect updated regionalized salaries.
(5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Median residential value of each school district" means the median value of all single-family residential parcels included within a school district and any other school district that is proximate to the school district.
(b) "Proximate to the school district" means within fifteen miles of the boundary of the school district for which the median residential value is being calculated.
(c) "School district employees" means state-funded certificated instructional staff, certificated administrative staff, and classified staff.
(d) "School districts in tercile 1" means school districts with median single-family residential values in the first tercile of districts with single-family residential values above the statewide median residential value.
(e) "School districts in tercile 2" means school districts with median single-family residential values in the second tercile of districts with single-family residential values above the statewide median residential value.
(f) "School districts in tercile 3" means school districts with median single-family residential values in the third tercile of districts with single-family residential values above the statewide median residential value.
(g) "Statewide median residential value" means the median value of single-family residential parcels located within all school districts, reduced by five percent.
Sec. 204.  RCW 28A.400.006 and 2017 3rd sp.s. c 13 s 703 are each amended to read as follows:
(1) A school district may not ((provide any)) increase average total school district expenditures for certificated administrative staff ((with a percentage increase to total salary)) for the 2018-19 school year((, including supplemental contracts, that exceeds the previous calendar year's annual average consumer price index, using the official current base compiled by the bureau of labor statistics, United States department of labor, for the city of Seattle. However, if a district's average certificated administrative staff salary is less than the average certificated administrative salary allocated by the state for that year, the district may increase salaries not to exceed the point where the district's average certificated administrative staff salary equals the average certificated administrative staff salary allocated by the state)) in excess of the following:
(a) Annual salary inflationary adjustments based on the rate of the yearly increase of the previous calendar year's annual average consumer price index, using the official current base compiled by the bureau of labor statistics, United States department of labor, for the city of Seattle;
(b) Annual experience and education salary step increases according to what was the prior year's practice within the school district; or
(c) School districts with an average total certificated administrative staff salary less than the statewide average certificated administrative staff salary allocation used to distribute funds for basic education as estimated by the office of the superintendent of public instruction for the 2018-19 school year may provide salary increases up to the statewide average allocation.
(2) Changes to any terms of an employment contract for nonrepresented employees must comply with the same requirements established in this section.
(3) This section expires August 31, 2019.
Sec. 205.  RCW 28A.400.200 and 2017 3rd sp.s. c 13 s 103 are each amended to read as follows:
(1) Every school district board of directors shall fix, alter, allow, and order paid salaries and compensation for all district employees in conformance with this section.
(2)(a) Through the 2017-18 school year, salaries for certificated instructional staff shall not be less than the salary provided in the appropriations act in the statewide salary allocation schedule for an employee with a baccalaureate degree and zero years of service;
(b) Salaries for certificated instructional staff with a master's degree shall not be less than the salary provided in the appropriations act in the statewide salary allocation schedule for an employee with a master's degree and zero years of service; and
(c) Beginning with the ((2019-20)) 2018-19 school year:
(i) Salaries for full-time certificated instructional staff must not be less than forty thousand dollars, to be adjusted for regional differences in the cost of hiring staff as specified in RCW 28A.150.410, and to be adjusted annually by the same inflationary measure as provided in RCW 28A.400.205;
(ii) Salaries for full-time certificated instructional staff with at least five years of experience must exceed by at least ten percent the value specified in (c)(i) of this subsection;
(iii) A district may not pay full-time certificated instructional staff a salary that exceeds ninety thousand dollars, subject to adjustment for regional differences in the cost of hiring staff as specified in RCW 28A.150.410. This maximum salary is adjusted annually by the inflationary measure in RCW 28A.400.205;
(iv) These minimum and maximum salaries apply to the services provided as part of the state's statutory program of basic education and exclude supplemental contracts for additional time, responsibility, or incentive pursuant to this section or for enrichment pursuant to RCW 28A.150.276;
(v) A district may pay a salary that exceeds this maximum salary by up to ten percent for full-time certificated instructional staff: Who are educational staff associates; who teach in the subjects of science, technology, engineering, or math; or who teach in the transitional bilingual instruction or special education programs.
(3)(a)(i) Through the 2017-18 school year the actual average salary paid to certificated instructional staff shall not exceed the district's average certificated instructional staff salary used for the state basic education allocations for that school year as determined pursuant to RCW 28A.150.410.
(ii) For the 2018-19 school year, salaries for certificated instructional staff are subject to the limitations in RCW 41.59.800.
(iii) Beginning with the 2019-20 school year, for purposes of subsection (4) of this section, RCW 28A.150.276, and 28A.505.100, each school district must annually identify the actual salary paid to each certificated instructional staff for services rendered as part of the state's program of basic education.
(b) Through the 2018-19 school year, fringe benefit contributions for certificated instructional staff shall be included as salary under (a)(i) of this subsection only to the extent that the district's actual average benefit contribution exceeds the amount of the insurance benefits allocation, less the amount remitted by districts to the health care authority for retiree subsidies, provided per certificated instructional staff unit in the state operating appropriations act in effect at the time the compensation is payable. For purposes of this section, fringe benefits shall not include payment for unused leave for illness or injury under RCW 28A.400.210; employer contributions for old age survivors insurance, workers' compensation, unemployment compensation, and retirement benefits under the Washington state retirement system; or employer contributions for health benefits in excess of the insurance benefits allocation provided per certificated instructional staff unit in the state operating appropriations act in effect at the time the compensation is payable. A school district may not use state funds to provide employer contributions for such excess health benefits.
(c) Salary and benefits for certificated instructional staff in programs other than basic education shall be consistent with the salary and benefits paid to certificated instructional staff in the basic education program.
(4)(a) Salaries and benefits for certificated instructional staff may exceed the limitations in subsection (3) of this section only by separate contract for additional time, for additional responsibilities, or for incentives. Supplemental contracts shall not cause the state to incur any present or future funding obligation. Supplemental contracts must be accounted for by a school district when the district is developing its four-year budget plan under RCW 28A.505.040.
(b) Supplemental contracts shall be subject to the collective bargaining provisions of chapter 41.59 RCW and the provisions of RCW 28A.405.240, shall not exceed one year, and if not renewed shall not constitute adverse change in accordance with RCW 28A.405.300 through 28A.405.380. No district may enter into a supplemental contract under this subsection for the provision of services which are a part of the basic education program required by Article IX, section 1 of the state Constitution and RCW 28A.150.220. Beginning September 1, 2019, supplemental contracts for certificated instructional staff are subject to the following additional restrictions: School districts may enter into supplemental contracts only for enrichment activities as defined in and subject to the limitations of RCW 28A.150.276. The rate the district pays under a supplemental contract may not exceed the hourly rate provided to that same instructional staff for services under the basic education salary identified pursuant to subsection (3)(a)(iii) of this section.
(5) Employee benefit plans offered by any district shall comply with RCW 28A.400.350, 28A.400.275, and 28A.400.280.
Sec. 206.  RCW 28A.400.205 and 2017 3rd sp.s. c 13 s 102 are each amended to read as follows:
(1) School district employees shall be provided an annual salary inflationary increase in accordance with this section.
(a) The inflationary increase shall be calculated by applying the rate of the yearly increase in the inflationary adjustment index to any state-funded salary base used in state funding formulas for teachers and other school district employees. Beginning with the ((2020-21)) 2019-20 school year, each school district shall be provided an inflationary adjustment allocation sufficient to grant this inflationary increase.
(b) A school district shall distribute its inflationary adjustment allocation for salaries and salary-related benefits in accordance with the district's collective bargaining agreements and compensation policies. No later than the end of the school year, each school district shall certify to the superintendent of public instruction that it has spent funds provided for inflationary increases on salaries and salary-related benefits.
(c) Any funded inflationary increase shall be included in the salary base used to determine inflationary increases for school employees in subsequent years. For teachers and other certificated instructional staff, the rate of the annual inflationary increase funded for certificated instructional staff shall be applied to the base salary used with the statewide salary allocation methodology established under RCW 28A.150.410 and to any other salary allocation methodologies used to recognize school district personnel costs.
(2) For the purposes of this section, "inflationary adjustment index" means, for any school year, the implicit price deflator for that fiscal year, using the official current base, compiled by the bureau of ((labor statistics, United States department of labor for the state of Washington)) economic analysis, United States department of commerce.
Sec. 207.  RCW 41.56.800 and 2017 3rd sp.s. c 13 s 701 are each amended to read as follows:
(1) A school district collective bargaining agreement for classified staff that is executed or modified after July 6, 2017, and that is in effect for the 2018-19 school year may not ((provide school district classified staff with a percentage)) increase ((to)) average total salary for the 2018-19 school year, including supplemental contracts, ((that exceeds the previous calendar year's annual average consumer price index, using the official current base compiled by the bureau of labor statistics, United States department of labor, for the city of Seattle. However, if a district's average classified staff salary is less than the average classified salary allocated by the state for that year, the district may increase salaries not to exceed the point where the district's average classified staff salary equals the average classified staff salary allocated by the state)) in excess of the following:
(a) Annual salary inflationary adjustments based on the rate of the yearly increase of the previous calendar year's annual average consumer price index, using the official current base compiled by the bureau of labor statistics, United States department of labor, for the city of Seattle;
(b) Annual experience and education salary step increases according to the salary schedule specified in the agreement;
(c) Salary changes for staffing increases due to enrollment growth or state-funded increases under RCW 28A.150.260; or
(d) School districts with an average total classified staff salary less than the statewide average classified salary allocation used to distribute funds for basic education as estimated by the office of the superintendent of public instruction for the 2018-19 school year may provide salary increases up to the statewide average allocation.
(2) Changes to any terms of an employment contract for nonrepresented employees must comply with the same requirements established in this section.
(3) This section expires August 31, 2019.
Sec. 208.  RCW 41.59.800 and 2017 3rd sp.s. c 13 s 702 are each amended to read as follows:
(1) A school district collective bargaining agreement for certificated instructional staff that is executed or modified after July 6, 2017, and that is in effect for the 2018-19 school year may not ((provide school district certificated instructional staff with a percentage)) increase ((to)) average total salary for the 2018-19 school year, including supplemental contracts, ((that exceeds the previous calendar year's annual average consumer price index, using the official current base compiled by the bureau of labor statistics, United States department of labor, for the city of Seattle. However, if a district's average certificated instructional staff salary is less than the average certificated instructional staff salary allocated by the state for that year, the district may increase salaries not to exceed the point where the district's average certificated instructional staff salary equals the average certificated instructional staff salary allocated by the state)) in excess of the following:
(a) Annual salary inflationary adjustments based on the rate of the yearly increase of the previous calendar year's annual average consumer price index, using the official current base compiled by the bureau of labor statistics, United States department of labor, for the city of Seattle;
(b) Annual experience and education salary step increases according to the salary schedule specified in the agreement;
(c) Salary changes for staffing increases due to enrollment growth or state-funded increases under RCW 28A.150.260;
(d) Salary changes to provide professional learning under RCW 28A.415.430;
(e) Increases related to bonuses for attaining certification from the national board for professional teaching standards;
(f) School districts with an average total certificated instructional staff salary less than the statewide average certificated instructional staff salary allocation used to distribute funds for basic education as estimated by the office of the superintendent of public instruction for the 2018-19 school year may provide salary increases up to the statewide average allocation; or
(g) Salaries for new certificated instructional staff hired in the 2018-19 school year.
(2) Changes to any terms of an employment contract for nonrepresented employees must comply with the same requirements established in this section.
(3) This section expires August 31, 2019.
PART III: LEVIES
Sec. 301.  RCW 28A.150.276 and 2017 3rd sp.s. c 13 s 501 are each amended to read as follows:
(1)(a) Beginning September 1, ((2019)) 2018, school districts may use local revenues only for documented and demonstrated enrichment of the state's statutory program of basic education as authorized in subsection (2) of this section.
(b) Nothing in this section revises the definition or the state funding of the program of basic education under RCW 28A.150.220 and 28A.150.260.
(c) For purposes of this section, "local revenues" means enrichment levies collected under RCW 84.52.053, ((transportation vehicle enrichment levies,)) local effort assistance funding received under chapter 28A.500 RCW, and other school district local revenues including, but not limited to, grants, donations, and state and federal payments in lieu of taxes, except that "local revenues" does not include other federal revenues, or local revenues that operate as an offset to the district's basic education allocation under RCW 28A.150.250.
(2)(a) Enrichment activities are permitted under this section if they provide supplementation beyond the state:
(i) Minimum instructional offerings of RCW 28A.150.220 or 28A.150.260;
(ii) Staffing ratios or program components of RCW 28A.150.260, including providing additional staff for class size reduction beyond class sizes allocated in the prototypical school model and additional staff beyond the staffing ratios allocated in the prototypical school formula;
(iii) Program components of RCW 28A.150.200, 28A.150.220, or 28A.150.260; or
(iv) Program of professional learning as defined by RCW 28A.415.430 beyond that allocated pursuant to RCW 28A.150.415.
(b) Permitted enrichment activities consist of:
(i) Extracurricular activities, extended school days, or an extended school year;
(ii) Additional course offerings beyond the minimum instructional program established in the state's statutory program of basic education;
(iii) Activities associated with early learning programs;
(iv) Any additional salary costs attributable to the provision or administration of the enrichment activities allowed under this subsection; and
(v) Additional activities or enhancements that the office of the superintendent of public instruction determines to be a documented and demonstrated enrichment of the state's statutory program of basic education under (a) of this subsection and for which the superintendent approves proposed expenditures during the preballot approval process required by RCW 84.52.053 and 28A.505.240.
(3) In addition to the limitations of subsections (1) and (2) of this section and of RCW 28A.400.200, permitted enrichment activities are subject to the following conditions and limitations:
(a) If a school district spends local revenues for salary costs attributable to the administration of enrichment programs, the portion of administrator salaries attributable to that purpose may not exceed ((the proportion)) twenty-five percent of the ((district's local revenues to its other revenues)) total district expenditures for administrator salaries; and
(b) Supplemental contracts under RCW 28A.400.200 are subject to the limitations of this section.
(4) The superintendent of public instruction must adopt rules to implement this section.
Sec. 302.  RCW 28A.500.015 and 2017 3rd sp.s. c 13 s 206 are each amended to read as follows:
(1) Beginning in calendar year 2019 and each calendar year thereafter, the state must provide state local effort assistance funding to supplement school district enrichment levies as provided in this section.
(2) For an eligible school district, annual local effort assistance funding is equal to the school district's maximum local effort assistance multiplied by a fraction equal to the school district's actual enrichment levy divided by the school district's maximum allowable enrichment levy.
(3) The state local effort assistance funding provided under this section is not part of the state's program of basic education deemed by the legislature to comply with the requirements of Article IX, section 1 of the state Constitution.
(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Eligible school district" means a school district whose maximum allowable enrichment levy divided by the school district's total student enrollment in the prior school year is less than the state local effort assistance threshold.
(b) For the purpose of this section, "inflation" means ((inflation as defined in RCW 84.55.005)), for any school year, the rate of the yearly increase of the previous calendar year's annual average consumer price index for all urban consumers, Seattle area, using the official current base compiled by the bureau of labor statistics, United States department of labor.
(c) "Maximum allowable enrichment levy" means the maximum levy permitted by RCW 84.52.0531.
(d) "Maximum local effort assistance" means ((the school district's student enrollment in the prior school year multiplied by)) the difference ((of)) between the following:
(i) The school district's actual prior school year enrollment multiplied by the state local effort assistance threshold; and ((a))
(ii) The school district's maximum allowable enrichment levy ((divided by the school district's student enrollment in the prior school year)).
(e) "Prior school year" means the most recent school year completed prior to the year in which the state local effort assistance funding is to be distributed.
(f) "State local effort assistance threshold" means one thousand five hundred dollars per student, ((adjusted)) increased for inflation beginning in calendar year 2020.
(g) "Student enrollment" means the average annual ((resident)) full-time equivalent student enrollment.
(5) For districts in a high/nonhigh relationship, the enrollments of the nonhigh students attending the high school shall only be counted by the nonhigh school districts for purposes of funding under this section.
(6) For school districts participating in an innovation academy cooperative established under RCW 28A.340.080, enrollments of students attending the academy shall be adjusted so that each participant district receives its proportional share of student enrollments for purposes of funding under this section.
Sec. 303.  RCW 28A.505.240 and 2017 3rd sp.s. c 13 s 204 are each amended to read as follows:
(1) As required by RCW 84.52.053(4), before a school district may submit an enrichment levy((, including a transportation vehicle enrichment levy,)) under RCW 84.52.053 to the voters, it must have received approval from the office of the superintendent of public instruction of an expenditure plan for the district's enrichment levy and other local revenues as defined in RCW 28A.150.276. Within thirty days after receiving the plan the office of the superintendent of public instruction must notify the school district whether the spending plan is approved. If the office of the superintendent of public instruction rejects a district's proposed spending plan, then the district may submit a revised spending plan, and the superintendent must approve or reject the revised submission within thirty days. The office of the superintendent of public instruction may approve a spending plan only if it determines that the enrichment levy and other local revenues as defined in RCW 28A.150.276(1) will be used solely for permitted enrichment activities as provided in RCW 28A.150.276(2).
(2)(a) Except as provided in (b) of this subsection, after a school district has received voter approval for a levy for an enrichment levy under RCW 84.52.053, a school district may change its spending plan for the voter-approved levy by submitting a revised spending plan to the office of the superintendent of public instruction for review and approval. To revise a previously approved spending plan, the district must provide notice and an opportunity for review and comment at an open meeting of the school board, and the board must adopt the revised spending plan by resolution. The board must then submit the plan to the office of the superintendent of public instruction. Within thirty days after receiving the revised spending plan the office must notify the school district whether the revised spending plan is approved. The office of the superintendent of public instruction may approve a revised spending plan only if it determines that the enrichment levy and other local revenues as defined in RCW 28A.150.276(1) will be used solely for permitted enrichment activities as provided in RCW 28A.150.276(2).
(b) If the superintendent has approved expenditures for specific purposes under (a) of this subsection, a district may change the relative amounts to be spent for those respective purposes for the same levy in subsequent years without having to first receive approval for the change from the office of the superintendent of public instruction if the district adopts the change as part of its annual budget proposal after a public hearing under RCW 28A.505.060.
(3) This section applies to taxes levied for collection beginning in calendar year 2020 and thereafter.
NEW SECTION.  Sec. 304.  A new section is added to chapter 84.52 RCW to read as follows:
For districts in a high/nonhigh relationship, if the high school district is subject to the maximum per pupil limit under RCW 84.52.0531, the high school district's maximum levy amount must be reduced by an amount equal to the estimated amount of the nonhigh payment due to the high school district under RCW 28A.545.030(3) and 28A.545.050 for the school year commencing the year of the levy.
Sec. 305.  RCW 84.52.053 and 2017 3rd sp.s. c 13 s 201 are each amended to read as follows:
(1) The limitations imposed by RCW 84.52.050 through 84.52.056, and 84.52.043 shall not prevent the levy of taxes by school districts, when authorized so to do by the voters of such school district in the manner and for the purposes and number of years allowable under Article VII, section 2(a) and Article IX, section 1 of the Constitution of this state. Elections for such taxes shall be held in the year in which the levy is made or, in the case of propositions authorizing two-year through four-year levies for enrichment funding for a school district, authorizing two-year levies for transportation vehicle funds established in RCW 28A.160.130 ((through calendar year 2019, authorizing two-year levies for transportation vehicle enrichment beginning with calendar year 2020,)) or authorizing two-year through six-year levies to support the construction, modernization, or remodeling of school facilities, which includes the purposes of RCW 28A.320.330(2) (f) and (g), in the year in which the first annual levy is made.
(2)(a) Once additional tax levies have been authorized for enrichment funding for a school district for a two-year through four-year period as provided under subsection (1) of this section, no further additional tax levies for enrichment funding for the district for that period may be authorized, except for additional levies to provide for subsequently enacted increases affecting the district's maximum levy.
(b) Notwithstanding (a) of this subsection, any school district that is required to annex or receive territory pursuant to a dissolution of a financially insolvent school district pursuant to RCW 28A.315.225 may call either a replacement or supplemental levy election within the school district, including the territory annexed or transferred, as follows:
(i) An election for a proposition authorizing two-year through four-year levies for enrichment funding for a school district may be called and held before the effective date of dissolution to replace existing enrichment levies and to provide for increases due to the dissolution.
(ii) An election for a proposition authorizing additional tax levies may be called and held before the effective date of dissolution to provide for increases due to the dissolution.
(iii) In the event a replacement levy election under (b)(i) of this subsection is held but does not pass, the affected school district may subsequently hold a supplemental levy election pursuant to (b)(ii) of this subsection if the supplemental levy election is held before the effective date of dissolution. In the event a supplemental levy election is held under (b)(ii) of this subsection but does not pass, the affected school district may subsequently hold a replacement levy election pursuant to (b)(i) of this subsection if the replacement levy election is held before the effective date of dissolution. Failure of a replacement levy or supplemental levy election does not affect any previously approved and existing enrichment levy within the affected school district or districts.
(c) For the purpose of applying the limitation of this subsection (2), a two-year through six-year levy to support the construction, modernization, or remodeling of school facilities shall not be deemed to be a tax levy for enrichment funding for a school district.
(3) A special election may be called and the time therefor fixed by the board of school directors, by giving notice thereof by publication in the manner provided by law for giving notices of general elections, at which special election the proposition authorizing such excess levy shall be submitted in such form as to enable the voters favoring the proposition to vote "yes" and those opposed thereto to vote "no."
(4)(a) Beginning September 1, ((2019)) 2018, school districts may use enrichment levies ((and transportation vehicle enrichment levies)) solely to enrich the state's statutory program of basic education as authorized under RCW 28A.150.276.
(b) Beginning with propositions for enrichment levies ((and transportation vehicle enrichment levies)) for collection in calendar year 2020 and thereafter, a district must receive approval of an enrichment levy expenditure plan from the superintendent of public instruction under RCW 28A.505.240 before submission of the proposition to the voters.
Sec. 306.  RCW 84.52.0531 and 2017 3rd sp.s. c 13 s 203 are each amended to read as follows:
(1)(a) Beginning with taxes levied for collection in 2019, the maximum dollar amount which may be levied by or for any school district for enrichment levies under RCW 84.52.053 is equal to the lesser of one dollar and fifty cents per thousand dollars of the assessed value of property in the school district or the maximum per-pupil limit, except as provided in (b) of this subsection.
(b) A school district may levy a maximum dollar amount equal to the greater of the maximum per-pupil limit or one dollar fifty cents per thousand dollars of the assessed value of property in the school district, if the sum of the school district's enrichment levy under (a) of this subsection and local effort assistance under RCW 28A.500.015 is less than half of the sum of the maintenance and operations levy and local effort assistance provided under law as it existed on January 1, 2017. For purposes of the calculation in this subsection (1)(b), the maintenance of operations levy is limited to the lesser of the voter-approved levy as of January 1, 2017, or the maximum levy under law as of January 1, 2017.
(2) The definitions in this subsection apply to this section unless the context clearly requires otherwise.
(a) For the purpose of this section, "inflation" means ((inflation as defined in RCW 84.55.005)), for any school year, the rate of the yearly increase of the previous calendar year's annual average consumer price index for all urban consumers, Seattle area, using the official current base compiled by the bureau of labor statistics, United States department of labor.
(b) "Maximum per-pupil limit" means two thousand five hundred dollars, multiplied by the number of average annual ((resident)) full-time equivalent students enrolled in the school district in the prior school year. Beginning with property taxes levied for collection in 2020, the maximum per-pupil limit shall be increased by inflation.
(c) "Prior school year" means the most recent school year completed prior to the year in which the levies are to be collected.
(3) For districts in a high/nonhigh relationship, the enrollments of the nonhigh students attending the high school shall only be counted by the nonhigh school districts for purposes of funding under this section.
(4) For school districts participating in an innovation academy cooperative established under RCW 28A.340.080, enrollments of students attending the academy shall be adjusted so that each participant district receives its proportional share of student enrollments for purposes of funding under this section.
(5) Beginning with propositions for enrichment levies for collection in calendar year 2020 and thereafter, a district must receive approval of an enrichment levy expenditure plan under RCW 28A.505.240 before submission of the proposition to the voters.
(((4))) (6) The superintendent of public instruction shall develop rules and regulations and inform school districts of the pertinent data necessary to carry out the provisions of this section.
(((5))) (7) Beginning with taxes levied for collection in ((2020)) 2018, enrichment levy revenues must be deposited in a separate subfund of the school district's general fund pursuant to RCW 28A.320.330, and are subject to the restrictions of RCW 28A.150.276 and the audit requirements of RCW 43.09.2856.
(((6))) (8) Funds collected from ((transportation vehicle enrichment levies shall not be subject to the levy limitations in)) levies for transportation vehicles, construction, modernization, or remodeling of school facilities as established in RCW 84.52.053 are not subject to the levy limitations in subsections (1) through (5) of this section.
Sec. 307.  RCW 84.52.054 and 2007 c 54 s 27 are each amended to read as follows:
(1) The additional tax provided for in Article VII, section 2 of the state Constitution, and specifically authorized by RCW 84.52.052, 84.52.053, 84.52.0531, and 84.52.130, shall be set forth in terms of dollars on the ballot of the proposition to be submitted to the voters except as provided in subsection (2) of this section, together with an estimate of the dollar rate of tax levy that will be required to produce the dollar amount; and the county assessor, in spreading this tax upon the rolls, shall determine the eventual dollar rate required to produce the amount of dollars so voted upon, regardless of the estimate of dollar rate of tax levy carried in said proposition. In the case of a school district or fire protection district proposition for a particular period, the dollar amount and the corresponding estimate of the dollar rate of tax levy shall be set forth for each of the years in that period. The dollar amount for each annual levy in the particular period may be equal or in different amounts.
(2) For school districts levying the maximum enrichment funding levy rate of one dollar and fifty cents as authorized by RCW 84.52.053 and 84.52.0531, the additional tax shall be set forth in terms of the dollar rate of tax levy on the ballot of the proposition to be submitted to the voters.
PART IV: OTHER POLICIES
NEW SECTION.  Sec. 401.  (1) For the 2018-19 and 2019-20 school years, the office of the superintendent of public instruction shall allocate a hold-harmless payment to school districts if the sum of (b) of this subsection is greater than the sum of (a) of this subsection for either of the respective school years.
(a) The current school year is calculated as the sum of (a)(i) through (iii) of this subsection using the enrollments and values in effect for that school year for the school district's:
(i) Formula-driven state allocations in part V of the state omnibus appropriations act for these programs: General apportionment, employee compensation adjustments, pupil transportation, special education programs, institutional education programs, transitional bilingual programs, highly capable, and learning assistance programs;
(ii) Local effort assistance funding received under chapter 28A.500 RCW; and
(iii) The lesser of the school district's voter-approved enrichment levy collection or the maximum levy authority provided under RCW 84.52.0531 for the previous calendar year.
(b) The baseline school year is calculated as the sum of (b)(i) through (iii) of this subsection using the current school year enrollments and the values in effect during the 2017-18 school year for the school district's:
(i) Formula-driven state allocations in part V of the state omnibus appropriations act for these programs: General apportionment, employee compensation adjustments, pupil transportation, special education programs, institutional education programs, transitional bilingual programs, highly capable, and learning assistance programs;
(ii) Local effort assistance funding received under chapter 28A.500 RCW; and
(iii) Maintenance and operation levy collection under RCW 84.52.0531 in the 2017 calendar year.
(2) Districts eligible for hold-harmless payments under subsection (1) of this section shall receive the difference between subsection (1)(b) and (a) of this section through the apportionment payment process in RCW 28A.510.250.
(3) The voters of the school district must approve an enrichment levy under RCW 84.52.0531 to be eligible for a hold-harmless payment under this section.
(4) This section expires December 31, 2020.
Sec. 402.  RCW 28A.150.415 and 2017 3rd sp.s. c 13 s 105 are each amended to read as follows:
(1) Beginning with the ((2018-19)) 2019-20 school year, the legislature shall begin phasing in funding for professional learning days for certificated instructional staff. The state allocation must be used solely for the purpose of providing professional learning. At a minimum, the state must allocate funding for:
(a) One professional learning day in the ((2018-19)) 2019-20 school year;
(b) Two professional learning days in the ((2019-20)) 2020-21 school year; and
(c) Three professional learning days in the ((2020-21)) 2021-22 school year.
(2) The office of the superintendent of public instruction shall calculate each school district's professional learning allocation as provided in subsection (1) of this section separate from the minimum state allocation for salaries as specified in RCW 28A.150.410 and associated fringe benefits on the apportionment reports provided to each local educational agency. The professional learning allocation shall be equal to the proportional increase resulting from adding the professional learning days provided in subsection (1) of this section to the required minimum number of school days in RCW 28A.150.220(5)(a) applied to the school district's minimum state allocation for salaries and associated fringe benefits for certificated instructional staff as specified in the omnibus appropriations act. Professional learning allocations shall be included in per-pupil calculations for programs funded on a per student rate calculation.
(3) Nothing in this section entitles an individual certificated instructional staff to any particular number of professional learning days.
(((3))) (4) The professional learning days must meet the definitions and standards provided in RCW 28A.415.430, 28A.415.432, and 28A.415.434.
(5) As the legislature phases in the funding for professional learning days under this section, the number of late start or early release of students resulting in partial days of instruction shall be phased down in the following manner:
(a) In the school years when one professional learning day is funded, each school district shall limit the number of partial days of instruction to no more than thirteen during the school years.
(b) In the school years when two professional learning days are funded, each school district shall limit the number of partial days of instruction to no more than ten during the school years.
(c) In the school years when three professional learning days are funded, each school district shall limit the number of partial days of instruction to no more than seven during the school years.
(6) The use of the funding provided under this section must be audited as part of the regular financial audits of school districts by the state auditor's office to ensure compliance with the limitations and conditions of this section.
Sec. 403.  RCW 28A.710.280 and 2016 c 241 s 128 are each amended to read as follows:
(1) The legislature intends that state funding for charter schools be distributed equitably with state funding provided for other public schools.
(2) For eligible students enrolled in a charter school established and operating in accordance with this chapter, the superintendent of public instruction shall transmit to each charter school an amount calculated as provided in this section and based on the statewide average ((staff mix factor)) salaries set forth in RCW 28A.150.410 for certificated instructional staff adjusted by the regionalization factor that applies to the school district in which the charter school is geographically located, including any enrichment to those statutory formulae that is specified in the omnibus appropriations act. The amount must be the sum of (a) and (b) of this subsection((, as applicable)).
(a) The superintendent shall, for purposes of making distributions under this section, separately calculate and distribute to charter schools moneys appropriated for general apportionment under the same ratios as in RCW 28A.150.260.
(b) The superintendent also shall, for purposes of making distributions under this section, and in accordance with the applicable formulae for categorical programs specified in (b)(i) through (v) of this subsection (2) and any enrichment to those statutory formulae that is specified in the omnibus appropriations act, separately calculate and distribute moneys appropriated by the legislature to charter schools for:
(i) Supplemental instruction and services for underachieving students through the learning assistance program under RCW 28A.165.005 through 28A.165.065;
(ii) Supplemental instruction and services for eligible and enrolled students and exited students whose primary language is other than English through the transitional bilingual instruction program under RCW 28A.180.010 through 28A.180.080;
(iii) 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;
(iv) Programs for highly capable students under RCW 28A.185.010 through 28A.185.030; and
(v) Pupil transportation services to and from school in accordance with RCW 28A.160.150 through 28A.160.180. Distributions for pupil transportation must be calculated on a per eligible student basis based on the allocation for the previous school year to the school district in which the charter school is located.
(3) The superintendent of public instruction must adopt rules necessary for the distribution of funding required by this section and to comply with federal reporting requirements.
Sec. 404.  RCW 28A.715.040 and 2013 c 242 s 5 are each amended to read as follows:
(1) A school that is the subject of a state-tribal education compact must report student enrollment. Reporting must be done in the same manner and use the same definitions of enrolled students and annual average full-time equivalent enrollment as is required of school districts. The reporting requirements in this subsection are required for a school to receive state or federal funding that is allocated based on student characteristics.
(2) Funding for a school that is the subject of a state-tribal education compact shall be apportioned by the superintendent of public instruction according to the schedule established under RCW 28A.510.250, including general apportionment, special education, categorical, and other nonbasic education moneys. Allocations for certificated instructional staff must be based on the statewide average ((staff mix ratio of the school, as calculated by the superintendent of public instruction using the statewide salary allocation schedule and related documents, conditions, and limitations established by the omnibus appropriations act)) salary set forth in RCW 28A.150.410, adjusted by the regionalization factor that applies to the school district in which the school is located. Allocations for classified staff and certificated administrative staff must be based on the salary allocations of the school district in which the school is located((, subject to conditions and limitations established by the omnibus appropriations act)) as set forth in RCW 28A.150.410, adjusted by the regionalization factor that applies to the school district in which the school is located. Nothing in this section requires a school that is the subject of a state-tribal education compact to use the statewide salary allocation schedule. Such a school is eligible to apply for state grants on the same basis as a school district.
(3) Any moneys received by a school that is the subject of a state-tribal education compact from any source that remain in the school's accounts at the end of any budget year must remain in the school's accounts for use by the school during subsequent budget years.
Sec. 405.  RCW 72.40.028 and 2009 c 381 s 7 are each amended to read as follows:
All teachers employed by the Washington state center for childhood deafness and hearing loss and the state school for the blind shall meet all certification requirements and the programs shall meet all accreditation requirements and conform to the standards defined by law or by rule of the Washington professional educator standards board or the office of the state superintendent of public instruction. The superintendent and the director, by rule, may adopt additional educational standards for their respective facilities. Salaries of all certificated employees shall be ((set so as to conform to and be contemporary with salaries paid to other certificated employees of similar background and experience in)) based on the statewide average salary set forth in RCW 28A.150.410, adjusted by the regionalization factor that applies to the school district in which the program or facility is located. The superintendent and the director may provide for provisional certification for teachers in their respective facilities including certification for emergency, temporary, substitute, or provisional duty.
Sec. 406.  RCW 43.09.2856 and 2017 3rd sp.s. c 13 s 503 are each amended to read as follows:
(1) Beginning with the 2019-20 school year, to ensure that school district local revenues are used solely for purposes of enriching the state's statutory program of basic education, the state auditor's regular financial audits of school districts must include a review of the expenditure of school district local revenues for compliance with RCW 28A.150.276, including the spending plan approved by the superintendent of public instruction under RCW 28A.505.240 and its implementation, and any supplemental contracts entered into under RCW 28A.400.200.
(2) If an audit under subsection (1) of this section results in findings that a school district has failed to comply with these requirements, then within ninety days of completing the audit the auditor must report the findings to the superintendent of public instruction, the office of financial management, and the education and operating budget committees of the legislature.
(3) The use of the state allocation provided for professional learning under RCW 28A.150.415 must be audited as part of the regular financial audits of school districts by the state auditor's office to ensure compliance with the limitations and conditions of RCW 28A.150.415.
Sec. 407.  RCW 28A.510.250 and 2017 3rd sp.s. c 13 s 1004 are each amended to read as follows:
(1) On or before the last business day of September 1969 and each month thereafter, the superintendent of public instruction shall apportion from the state general fund to the several educational service districts of the state the proportional share of the total annual amount due and apportionable to such educational service districts for the school districts thereof as follows:
 
 
September
. . . . 
9%
 
 
October
. . . . 
8%
 
 
 
November
. . . . 
5%
 
 
 
December
. . . . 
9%
 
 
January
. . . . 
8.5%
 
 
 
February
. . . . 
((9%)) 8%
 
 
 
March
. . . . 
((9%)) 8%
 
 
 
April
. . . . 
((9%)) 8.5%
 
 
May
. . . . 
5%
 
 
June
. . . . 
6.0%
 
 
July
. . . . 
12.5%
 
 
 
August
. . . . 
((10.0%)) 12.5%
 
The annual amount due and apportionable shall be the amount apportionable for all apportionment credits estimated to accrue to the schools during the apportionment year beginning September 1st and continuing through August 31st. Appropriations made for school districts for each year of a biennium shall be apportioned according to the schedule set forth in this section for the fiscal year starting September 1st of the then calendar year and ending August 31st of the next calendar year, except as provided in subsection (2) of this section. The apportionment from the state general fund for each month shall be an amount which will equal the amount due and apportionable to the several educational service districts during such month: PROVIDED, That any school district may petition the superintendent of public instruction for an emergency advance of funds which may become apportionable to it but not to exceed ten percent of the total amount to become due and apportionable during the school districts apportionment year. The superintendent of public instruction shall determine if the emergency warrants such advance and if the funds are available therefor. If the superintendent determines in the affirmative, he or she may approve such advance and, at the same time, add such an amount to the apportionment for the educational service district in which the school district is located: PROVIDED, That the emergency advance of funds and the interest earned by school districts on the investment of temporary cash surpluses resulting from obtaining such advance of state funds shall be deducted by the superintendent of public instruction from the remaining amount apportionable to said districts during that apportionment year in which the funds are advanced.
(2) In the 2010-11 school year, the June apportionment payment to school districts shall be reduced by one hundred twenty-eight million dollars, and an additional apportionment payment shall be made on July 1, 2011, in the amount of one hundred twenty-eight million dollars. This July 1st payment shall be in addition to the regularly calculated July apportionment payment.
Sec. 408.  RCW 41.05.740 and 2017 3rd sp.s. c 13 s 801 are each amended to read as follows:
(1) The school employees' benefits board is created within the authority. The function of the board is to design and approve insurance benefit plans for school employees and to establish eligibility criteria for participation in insurance benefit plans.
(2) By September 30, 2017, the governor shall appoint the following voting members to the board as follows:
(a) Two members from associations representing certificated employees;
(b) Two members from associations representing classified employees;
(c) Four members with expertise in employee health benefits policy and administration, one of which is nominated by an association representing school business officials; and
(d) The director of the authority or his or her designee.
(3) Initial members of the board shall serve staggered terms not to exceed four years. Members appointed thereafter shall serve two-year terms.
(4) Members of the board must be compensated in accordance with RCW 43.03.250 and must be reimbursed for their travel expenses while on official business in accordance with RCW 43.03.050 and 43.03.060.
(5) The director of the authority or his or her designee shall be the chair and another member shall be selected by the board as vice chair. The chair shall conduct meetings of the board. The vice chair shall preside over meetings in the absence of the chair. The board shall develop bylaws for the conduct of its business.
(6) The board shall:
(a) Study all matters connected with the provision of health care coverage, life insurance, liability insurance, accidental death and dismemberment, and disability insurance, or any of, or combination of, the enumerated types of insurance for eligible employees and their dependents on the best basis possible with relation both to the welfare of the employees and the state. However, liability insurance should not be made available to dependents;
(b) Develop employee benefit plans that include comprehensive, evidence-based health care benefits for employees. In developing these plans, the board shall consider the following elements:
(i) Methods of maximizing cost containment while ensuring access to quality health care;
(ii) Development of provider arrangements that encourage cost containment and ensure access to quality care including, but not limited to, prepaid delivery systems and prospective payment methods;
(iii) Wellness, preventive care, chronic disease management, and other incentives that focus on proven strategies;
(iv) Utilization review procedures to support cost-effective benefits delivery;
(v) Ways to leverage efficient purchasing by coordinating with the public employees' benefits board;
(vi) Effective coordination of benefits; and
(vii) Minimum standards for insuring entities;
(c) Authorize premium contributions for an employee and the employee's dependents in a manner that encourages the use of cost-efficient health care systems. For participating employees, the required employee share of the cost for family coverage under a plan may not exceed three times the required employee share of the cost for employee-only coverage;
(d) Determine the terms and conditions of employee and dependent eligibility criteria, enrollment policies, and scope of coverage. At a minimum, the eligibility criteria established by the board shall address the following:
(i) The effective date of coverage following hire;
(ii) An employee must work at least six hundred thirty hours per year to qualify for coverage; and
(iii) Coverage for dependents, including criteria for legal spouses; children up to age twenty-six; children of any age with disabilities, mental illness, or intellectual or other developmental disabilities; and state registered domestic partners, as defined in RCW 26.60.020, and others authorized by the legislature;
(e) Determine the terms and conditions of purchasing system participation, consistent with chapter 13, Laws of 2017 3rd sp. sess., including establishment of criteria for employing districts and individual employees;
(f) Establish penalties to be imposed when the employing district fails to comply with established participation criteria; and
(g) Participate with the authority in the preparation of specifications and selection of carriers contracted for employee benefit plan coverage of eligible employees in accordance with the criteria set forth in rules. To the extent possible, the board shall leverage efficient purchasing by coordinating with the public employees' benefits board.
(7) By November 30, 2021, the authority shall review the benefit plans provided through the school employees' benefits board, complete an analysis of the benefits provided and the administration of the benefits plans, and determine whether provisions in chapter 13, Laws of 2017 3rd sp. sess. have resulted in cost savings to the state. The authority shall submit a report to the relevant legislative policy and fiscal committees summarizing the results of the review and analysis.
Sec. 409.  2017 3rd sp.s. c 13 s 1005 (uncodified) is amended to read as follows:
Section 1004 of this act takes effect September 1, ((2019)) 2018.
NEW SECTION.  Sec. 410.  The following acts or parts of acts are each repealed:
(1) RCW 28A.415.020 (Credit on salary schedule for approved in-service training, continuing education, and internship) and 2011 1st sp.s. c 18 s 5, 2007 c 319 s 3, 2006 c 263 s 808, 1995 c 284 s 2, 1990 c 33 s 415, & 1987 c 519 s 1;
(2) RCW 28A.415.023 (Credit on salary schedule for approved in-service training, continuing education, or internshipCourse contentRules) and 2012 c 35 s 6 & 2011 1st sp.s. c 18 s 6; and
(3) RCW 28A.415.024 (Credit on salary scheduleAccredited institutionsVerificationPenalty for submitting credits from unaccredited institutions) and 2006 c 263 s 809 & 2005 c 461 s 1.
NEW SECTION.  Sec. 411.  (1) Section 407 of this act takes effect September 1, 2018.
(2) Sections 302 and 306 of this act take effect January 1, 2019."
Correct the title.
EFFECT: (1) Delays requirement to meet 17:1 class size ratio for kindergarten through 3rd grade to receive funding at that ratio until September 1, 2019.
(2) Reverts to rebasing school salaries every six years rather than every four years beginning in 2023.
(3) Revises language related to increasing regionalization for districts west of the crest of the Cascade Mountains and adds language describing experience factor increases to regionalization.
(4) Removes the section creating the Salary Safety Net grant program.
(5) Restores the $90,000 salary limit for Certificated Instructional Staff (CIS), subject to regional adjustments, in current law.
(6) Reverts to current statutory language relating to salaries that may exceed the maximum CIS salary by ten percent.
(7) Adds salary increases to hire new CIS staff in the 2018-19 school year to the list of allowable increases for the 2018-19 school year.
(8) Removes references to "resident" students in sections related to local enrichment levies and Local Effort Assistance.
(9) Removes language related to "enrichment beyond the state provided funding" from the statute authorizing school district levies.
(10) Removes the section revising criteria for special education safety net funding and requiring revisions to safety net rules.
(11) Adds a section requiring salaries for the State School for the Blind and the Washington State Center for Childhood Deafness and Hearing Loss to be based on salaries and regionalization factors of the school district in which the facilities are located (currently the Vancouver School District).
(12) Revises hold-harmless language to be based on local levies collected in 2017, rather than based on current law as of January 1, 2017.
(13) Removes requirements that school districts convert accounting and budget systems by the 2018-19 school year, keeping the current deadline of the 2019-20 school year.
(14) Requires that under the School Employees' Benefits Board the employee share of the premium for family health benefits not exceed three times the employee share for individual coverage.
(15) Removes the section changing fees paid to higher education institutions for Running Start students.
(16) Splits the allocation for "library materials" out from "other supplies and library materials" in the prototypical school funding formula.
(17) Adds the percentage of homeless students served under the McKinney-Vento Homeless Assistance Act from outside the district as a local school district characteristic reviewed for Transportation Alternate Funding Grant awards.
(18) Adds a section requiring the special education Safety Net Oversight Committee to consider the extraordinary high-cost needs of special education students served in institutional settings for safety net awards.
(19) Adds a section requiring school districts to have identification procedures for highly capable students based on specified criteria. The section also requires the Superintendent of Public Instruction to disseminate guidance for highly capable programs.
(20) Allows school districts to levy a maximum of either $2,500 per pupil or $1.50 per $1,000 of assessed property value, if the district would receive less than half in local levies and Local Effort Assistance (based on the lesser of $2,500 per pupil or $1.50 per $1,000 of assessed property value) than it would have received under law as it existed on January 1, 2017.
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