[Filed December 17, 2018, 8:38 a.m.]

Preproposal statement of inquiry was filed as WSR 18-06-042.

Title of Rule and Other Identifying Information: WAC 392-122-605 Apportionment of state moneys for state learning assistance program, 392-140-915 High poverty funding—Process and definition of eligible schools, 392-140-916 K-3 class size funding, 392-140-923 K-3 class size—Enrollment, 392-140-932 K-3 class size—Teachers, 392-140-934 K-3 class size—Supplemental FTE teachers, 392-140-936 K-3 demonstrated class size—High poverty schools, 392-140-939 K-3 demonstrated class size—Nonhigh poverty schools, 392-140-942 Weighted average class size—High poverty schools, 392-140-945 Weighted average class size—Nonhigh poverty schools.

Hearing Location(s): On January 29, 2019, at 1:00 p.m., at the Office of Superintendent of Public Instruction (OSPI), Old Capitol Building, 600 South Washington Street, Brouillet Conference Room, Olympia, WA 98501. Hearing will begin at 1:00 p.m., those planning to testify should arrive by 1:00 p.m.

Date of Intended Adoption: February 1, 2019.

Submit Written Comments to: Becky McLean, OSPI, P.O. Box 47200, Olympia, WA 98504-7200, email becky.mclean@k12.wa.us, fax 360-664-3683, by January 29, 2019.

Assistance for Persons with Disabilities: Contact Kristin Murphy, phone 360-725-6133, fax 360-754-4201, TTY 360-664-3631, email Kristin.murphy@k12.wa.us, by January 22, 2019.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: These proposed rules modify OSPI's processes related to the apportionment of state funding to high poverty schools. First, the proposal would amend the process OSPI uses to calculate the state learning assistance program (LAP) allocations under WAC 392-122-605 by specifying that LAP funding is calculated based on a school district's prior school year's October head-count enrollment for free and reduced price lunch as reported in CEDARS as of March 31 of the prior school year. Second, the proposed rule making is intended to clarify the process that OSPI uses to determine school district compliance with new K-3 class size requirements under the law. Third, the proposal aligns OSPI's K-3 class size rules in chapter 392-140 WAC with the 2017-19 biennial budget by striking language related to enhanced funding for K-3 high poverty schools.

Reasons Supporting Proposal: Without these WAC changes, districts, charter schools, and tribal compact schools will not receive the appropriate state funding per the biennial operating budget.

Statutory Authority for Adoption: RCW 28A.150.290 and 28A.155.075.

Rule is not necessitated by federal law, federal or state court decision.

Name of Agency Personnel Responsible for Drafting: Becky McLean, OSPI, P.O. Box 47200, Olympia, WA 98504, 360-725-6306; Implementation: T. J. Kelly, OSPI, P.O. Box 47200, Olympia, WA 98504, 360-725-6301.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328.

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.85.030.

Explanation of exemptions: No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed amendment does not have an impact on small business and therefore does not meet the requirements for a statement under RCW 19.85.030 (1) or (2).

State Superintendent

of Public Instruction

AMENDATORY SECTION(Amending WSR 18-02-082, filed 1/2/18, effective 2/2/18)

WAC 392-122-605Apportionment of state moneys for the state learning assistance program.

(1) State learning assistance program moneys shall be allocated as provided in the state Operating Appropriations Act in effect at the time the apportionment is due. The superintendent of public instruction may withhold the monthly learning assistance program apportionment payment to a school district, public charter school, or school operated pursuant to a state-tribe education compact if the school district, charter school, or compact school fails to submit its annual report for the prior school year to the superintendent of public instruction by the established due date. The first learning assistance program apportionment payment of the school year and subsequent allocations may be withheld until the annual reports are completed in approvable form.

(2) Learning assistance program moneys include two allocations: A district learning assistance program base allocation and a learning assistance program high-poverty based school allocation for eligible schools.

(a) A school district's funded students for the learning assistance program base allocation shall be the sum of the district's annual average full-time equivalent enrollment in grades K-12 for the prior school year multiplied by the district's percentage of October headcount enrollment in grades K-12 eligible for free or reduced-price lunch in the prior school year. The prior school year's October headcount enrollment for free and reduced-price lunch shall be as reported in the comprehensive education data and research system as of March 31st of the prior school year.

(b)(i) A school is eligible for the learning assistance program high-poverty based school allocation if it is funded through the prototypical model and has at least fifty percent of its students eligible for free and reduced-price meals in the prior school year. The percentage is determined by the school's percentage of October headcount enrollment in grades K-12 for free and reduced-price lunch((. The prior school year's October headcount enrollment for free and reduced-price lunch shall be)) as reported in the comprehensive education data and research system as of March 31st of the prior school year.

(ii) An eligible school's funded students for the learning assistance high-poverty based allocation shall be the sum of the school's annual average full-time enrollment in grades K-12 for the prior year.

AMENDATORY SECTION(Amending WSR 16-10-117, filed 5/4/16, effective 6/4/16)

WAC 392-140-916K-3 class size funding.

Elementary teacher allocations based on the prototypical schools formula provided in RCW 28A.150.260 and the Omnibus Appropriations Act for grades K-3 ((at nonhigh poverty and high poverty schools)) will be based upon budgeted K-3 enrollment ((at both nonhigh poverty and high poverty schools)) as stated in the ((district's)) F-203 revenue estimate from September through December for the year budgeted. Districts, charter schools, and tribal compact schools will also input their estimated K-3 ((and K-3 high poverty weighted average)) class size for purposes of funding from September through December. K-3 enrollment will not include student full-time equivalent (FTE) enrolled in alternative learning experience programs((. Funding based on actual average annual FTE enrollment reported in the P-223 will begin in January and will continue through August))that meet the requirements of WAC 392-121-182. Funded class size starting with January apportionment will be based on the actual average annual FTE enrollment reported in the P-223. Districts, charter schools, and tribal compact schools must meet the legislative compliance requirements of ((both K-3 and K-3 high poverty))K-3 class size funding in order to generate the full allotment.

AMENDATORY SECTION(Amending WSR 16-10-117, filed 5/4/16, effective 6/4/16)

WAC 392-140-923K-3 class size compliance—Enrollment.

Grade level K-3 ((high poverty and nonhigh poverty enrollment from a district's P-223 reporting))enrollment reported on the P-223 will be considered in the compliance calculations for the months of January, March, and June. All students in ALE programs that meet the requirements of WAC 392-121-182 will be excluded from the compliance calculation.

AMENDATORY SECTION(Amending WSR 16-10-117, filed 5/4/16, effective 6/4/16)

WAC 392-140-932K-3 class size compliance—Teachers.

The superintendent of public instruction shall include in the calculation of ((high poverty))K-3 class size compliance those teachers reported on the S-275 ((at the eligible schools)) that are coded in programs 01 to grade group K, 1, 2, or 3, and are reported in one of the following duty roots:

• Duty Root 31 - Elementary homeroom teacher;

• Duty Root 33 - Other teacher;

• Duty Root 34 - Elementary specialist teacher;

• Duty Root 52 - Substitute teacher;

• Duty Root 63 - Contractor teacher.

S-275 data as of the published apportionment cutoff dates in January, March, and June will be considered in the calculation.

Program 21 special education teachers coded to grade K, 1, 2, or 3 multiplied by the annual percentage of students in special education instruction used in determination of a district's, tribal compact school's, or charter school's 3121 revenue will be included.

Teachers coded to program 02 alternative learning experience shall be excluded.

AMENDATORY SECTION(Amending WSR 16-10-117, filed 5/4/16, effective 6/4/16)

WAC 392-140-934K-3 class size compliance—Supplemental FTE teachers.

As used in this chapter, "supplemental full-time equivalent teachers" means the net change in full-time equivalent teachers after October 1st of the school year not reflected in report S-275. Teachers, for the purpose of this section, are defined in WAC 392-140-932. Supplemental full-time equivalent teachers are determined as follows:

(1) Determine the teacher FTE that would be reported for each employee for the school year on report S-275 if the current data were submitted for the October 1st snapshot as required in the S-275 instructions and subtract the teacher FTE as of October 1st actually reported for the employee on the ((school district's)) most current report S-275.

(2) Include decreases as well as increases in staff after October 1st and not reflected in report S-275. Decreases include terminations, retirements, unpaid leave, and reassignment of staff.

Supplemental teacher FTE must be reported to the office of superintendent of public instruction prior to the published S-275 apportionment cutoff dates in January, March, and June to be considered. Supplemental teacher FTE must be reported by individual grade level K, 1, 2, and 3((, as well as separately for nonhigh poverty and high poverty schools)).

AMENDATORY SECTION(Amending WSR 16-10-117, filed 5/4/16, effective 6/4/16)

WAC 392-140-939K-3 ((demonstrated))funded class size((—Nonhigh poverty schools)).

((Demonstrated))Funded class size ((across all nonhigh poverty eligible schools)) will be calculated by dividing the total teachers and supplemental teacher FTE ((for the individual grade levels of K, 1, 2, or 3,))across all grades K-3 collectively, as described in WAC 392-140-932 into the calculated combined total enrollment ((across all nonhigh poverty schools in the individual))in grade levels of K, 1, 2, or 3.

The following sections of the Washington Administrative Code are repealed:

High poverty funding—Process and definition of eligible schools.

K-3 demonstrated class size—High poverty schools.

Weighted average class size—High poverty schools.

Weighted average class size—Nonhigh poverty schools.

WAC 392-140-915	High poverty funding—Process and definition of eligible schools.
WAC 392-140-936	K-3 demonstrated class size—High poverty schools.
WAC 392-140-942	Weighted average class size—High poverty schools.
WAC 392-140-945	Weighted average class size—Nonhigh poverty schools.