[atlas:bill]

AN ACT Relating to the creation of a commission on school funding review; and creating a new section.

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

NEW SECTION. Sec. 1. (1)(a) The legislature finds that the common schools of Washington began to implement comprehensive performance-based education reforms in 1993 as provided in House Bill No. 1209 and subsequent legislation. The principal features of the present system for funding the operation of the common schools were enacted in 1977. The more fully schools and school districts implement performance-based educational programs, the less well aligned Washington's school funding and school program delivery systems become. The governor's council on education reform and funding, created by executive order in 1991, did not adopt recommendations on how to redesign the funding system to align with the performance-based instructional program model.

(b) The legislature further finds that many schools and school districts in Washington have developed creative approaches to helping students achieve the essential academic learning requirements and the goals of the basic education act as codified in RCW 28A.150.210. The successes already achieved by schools and school districts on the Washington assessment of student learning constitute evidence that the experiences of schools and school districts in Washington may suggest viable strategies for designing performance-based funding programs.

(c) The legislature recognizes that as statewide accountability systems are developed and implemented to hold students, schools, and school districts accountable for improving student performance, it is appropriate and necessary to concurrently conduct a fundamental reexamination of the educational funding system and explore possible education finance system reform.

(2) For the purposes of this section, "commission" means the commission on school funding review.

(3) The commission on school funding review is created.

(4)(a) The commission shall consist of thirteen citizen members, appointed by the governor, each of whom shall apply for membership and demonstrate his or her concern and interest in education financing, one member appointed by each co-speaker of the house of representatives, and one member from each major political party appointed by the president of the senate. In appointing members of the commission, the governor shall consider the expertise in educational finance of applicants, and attempt to include parents, business and community leaders, and individuals with experience as principals, superintendents, school business managers, school auditors, teachers, and school directors, and with experience in postsecondary education.

(b) The governor shall appoint a representative of the office of the governor or the office of financial management. The commission membership shall include members with expertise in special education and expertise in programs designed to meet the need of students with limited English proficiency. The co-speakers of the house of representatives shall each appoint one member of their respective caucuses. The president of the senate shall appoint one member of the senate from each major political party. The governor shall appoint the chair of the commission.

(5)(a) The commission shall identify at least fifteen but not more than twenty-five successful comprehensive school or school district program models from within the school districts of Washington. In identifying successful comprehensive program models, the commission shall place special emphasis on results on the Washington assessment of student learning.

(b) After reviewing the structure and operation of the successful comprehensive school or school district program models, the commission shall approve pilot performance-based funding programs that could be used in these schools and school districts. The pilot performance-based funding programs shall be designed to implement either school-based or districtwide performance-based education funding systems.

(c) Pilot performance-based funding programs may include, but are not limited to, weighted student formulas and systems allowing for more flexible expenditure of funding formula allocations, and categorical program appropriations from state and federal sources.

(d) In designing pilot performance-based funding programs, the commission shall consider the actual cost of providing for both the immediate and future needs of students to be served by the school or school district.

(6) The commission shall report its findings and recommendations to the governor and the legislature by January 1, 2003. In its final report, the commission shall recommend steps for implementing statewide a system of performance-based common school financing.

(7) Schools and school districts choosing to participate with the commission in developing pilot performance-based funding program designs shall receive compensation for expenses incurred through such participation. The amount of compensation shall be determined by the commission, subject to available funding.

(8) The commission shall employ such staff as may be necessary to fulfill its duties under this section. The commission is authorized to enter into contracts for services which may be necessary to fulfill its duties under this section. The commission shall create technical advisory committees as needed in order to fulfill its duties under this section.

(9) The commission expires January 1, 2003.