BILL REQ. #:  Z-0533.1 

Read first time 01/27/2003.   Referred to Committee on Appropriations.

     AN ACT Relating to the education-related statutory changes necessary to implement the 2003-2005 omnibus operating appropriations bill; amending RCW 28A.165.070, 28B.10.782, 28A.500.020, 28A.500.030, 28A.660.020, 28A.660.030, 28A.660.050, 28A.400.205, 28A.400.206, 28B.50.465, 28B.50.468, and 84.52.068; and providing an expiration date.

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

Sec. 1   RCW 28A.165.070 and 1995 1st sp.s. c 13 s 1 are each amended to read as follows:
     Each school district which has established an approved program shall be eligible, as determined by the superintendent of public instruction, for state funds made available for the purposes of such programs.
     (1) For the 1995-96 school year and thereafter, the superintendent of public instruction shall distribute funds appropriated for the learning assistance program in accordance with the biennial appropriations act. ((The distribution formula shall be based upon an assessment of students and a poverty factor.))
     (2) The distribution of funds is for allocation purposes only.
     (3) The superintendent of public instruction shall recommend to the legislature a new allocation formula that uses additional elements consistent with performance-based education and the new assessment system developed by the commission on student learning. The superintendent of public instruction shall develop the recommendations for a new allocation formula not later than the 1997-98 school year, based upon the initial implementation of the assessment system for reading, writing, communication, and mathematics.

Sec. 2   RCW 28B.10.782 and 1993 sp.s. c 15 s 5 are each amended to read as follows:
     It is the policy of the state of Washington that higher education enrollments be increased in increments each biennium in order to achieve, by the year 2010, the goals, by educational sector, adopted by the higher education coordinating board in its enrollment plan entitled "Design for the 21st Century: Expanding Higher Education Opportunities in Washington," or subsequent revisions adopted by the board.
     Per student costs for additional students to achieve this policy shall be at the same rate per student as enrollments mandated in RCW 28B.10.776.
     ((For each public college and university, and for the community and technical college system, budget documents generated by the governor and the legislature in the development and consideration of the biennial omnibus appropriations act shall display an enrollment target level. The enrollment target level is the biennial state-funded enrollment increase necessary to fulfill the state policy set forth in this section. The budget documents shall compare the enrollment target level with the state-funded enrollment increases contained in the biennial budget proposals of the governor and each house of the legislature. The information required by this section shall be set forth in the budget documents so that enrollment and cost information concerning the number of students and additional funds needed to reach the enrollment goals are prominently displayed and easily understood.
     For the governor's budget request, the information required by this section shall be made available in the document entitled "Operating Budget Supporting Data" or its successor document.))

Sec. 3   RCW 28A.500.020 and 1999 c 317 s 2 are each amended to read as follows:
     (1) Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (a) "Prior tax collection year" means the year immediately preceding the year in which the local effort assistance shall be allocated.
     (b) "Statewide average twelve percent levy rate" means twelve percent of the total levy bases as defined in RCW 84.52.0531(3) summed for all school districts, and divided by the total assessed valuation for excess levy purposes in the prior tax collection year for all districts as adjusted to one hundred percent by the county indicated ratio established in RCW 84.48.075.
     (c) "Statewide average ten percent levy rate" means ten percent of the total levy bases as defined in RCW 84.52.0531(3) summed for all school districts, and divided by the total assessed valuation for excess levy purposes in the prior tax collection year for all districts as adjusted to one hundred percent by the county indicated ratio established in RCW 84.48.075.
     (d) The "district's twelve percent levy amount" means the school district's maximum levy authority after transfers determined under RCW 84.52.0531(2) (a) through (c) divided by the district's maximum levy percentage determined under RCW 84.52.0531(4) multiplied by twelve percent.
     (((d))) (e) The "district's twelve percent levy rate" means the district's twelve percent levy amount divided by the district's assessed valuation for excess levy purposes for the prior tax collection year as adjusted to one hundred percent by the county indicated ratio.
     (((e))) (f) The "district's ten percent levy amount" means the school district's maximum levy authority after transfers determined under RCW 84.52.0531(2) (a) through (c) divided by the district's maximum levy percentage determined under RCW 84.52.0531(4) multiplied by ten percent.
     (g) The "district's ten percent levy rate" means the district's ten percent levy amount divided by the district's assessed valuation for excess levy purposes for the prior tax collection year as adjusted to one hundred percent by the county indicated ratio.
     (h) "Districts eligible for twelve percent local effort assistance" means:
     (i) Before the 2004 calendar year, those districts with a twelve percent levy rate that exceeds the statewide average twelve percent levy rate.
     (ii) In the 2004 calendar year and thereafter, those districts with a twelve percent levy rate that exceeds the statewide average twelve percent levy rate and are in the top quartile of all district rates for a ten percent levy rate ranked from highest to lowest.
     (i) "Districts eligible for ten percent local effort assistance" means those districts with a ten percent levy rate that exceeds the statewide average ten percent levy rate, but that is not in the top quartile of all district rates for a ten percent levy rate ranked from highest to lowest for the 2004 calendar year and thereafter.
     (2) Unless otherwise stated all rates, percents, and amounts are for the calendar year for which local effort assistance is being calculated under this chapter.

Sec. 4   RCW 28A.500.030 and 2002 c 317 s 4 are each amended to read as follows:
     Allocation of state matching funds to eligible districts for local effort assistance shall be determined as follows:
     (1) Funds raised by the district through maintenance and operation levies shall be matched with state funds using the following ratio of state funds to levy funds:
     (a) For districts eligible for twelve percent local effort assistance pursuant to RCW 28A.500.020:
     (i) The difference between the district's twelve percent levy rate and the statewide average twelve percent levy rate; to
     (((b))) (ii) The statewide average twelve percent levy rate.
     (b) For districts eligible for ten percent local effort assistance pursuant to RCW 28A.500.020:
     (i) The difference between the district's ten percent levy rate and the statewide average ten percent levy rate; to
     (ii) The statewide average ten percent levy rate.
     (2) The maximum amount of state matching funds for districts eligible for twelve percent local effort assistance shall be the district's twelve percent levy amount, multiplied by the following percentage:
     (a) The difference between the district's twelve percent levy rate and the statewide average twelve percent levy rate; divided by
     (b) The district's twelve percent levy rate.
     (3) The maximum amount of state matching funds for districts eligible for ten percent local effort assistance shall be the district's ten percent levy amount, multiplied by the following percentage:
     (a) The difference between the district's ten percent levy rate and the statewide average ten percent levy rate; divided by
     (b) The district's ten percent levy rate.
     (4) Calendar year 2003 allocations and maximum eligibility under this chapter shall be multiplied by 0.99.

Sec. 5   RCW 28A.660.020 and 2001 c 158 s 3 are each amended to read as follows:
     (((1))) Each district or consortia of school districts applying for ((state funds through this)) the alternative route certification program shall submit a proposal to the Washington professional educator standards board specifying:
     (((a))) (1) The route or routes the partnership program intends to offer and a detailed description of how the routes will be structured and operated by the partnership;
     (((b))) (2) The number of candidates that will be enrolled per route;
     (((c))) (3) An identification, indication of commitment, and description of the role of approved teacher preparation programs that are partnering with the district or consortia of districts;
     (((d))) (4) An assurance of district provision of adequate training for mentor teachers either through participation in a state mentor training academy or district-provided training that meets state-established mentor-training standards specific to the mentoring of alternative route candidates;
     (((e))) (5) An assurance that significant time will be provided for mentor teachers to spend with the alternative route teacher candidates throughout the internship. Partnerships must provide each candidate with intensive classroom mentoring until such time as the candidate demonstrates the competency necessary to manage the classroom with less intensive supervision and guidance from a mentor;
     (((f))) (6) A description of the rigorous screening process for applicants to alternative route programs, including entry requirements specific to each route, as provided in RCW 28A.660.040; and
     (((g))) (7) The design and use of a teacher development plan for each candidate. The plan shall specify the alternative route coursework and training required of each candidate and shall be developed by comparing the candidate's prior experience and coursework with the state's new performance-based standards for residency certification and adjusting any requirements accordingly. The plan may include the following components:
     (((i))) (a) A minimum of one-half of a school year, and an additional significant amount of time if necessary, of intensive mentorship, starting with full-time mentoring and progressing to increasingly less intensive monitoring and assistance as the intern demonstrates the skills necessary to take over the classroom with less intensive support. For route one and two candidates, before the supervision is diminished, the mentor of the teacher candidate at the school and the supervisor of the teacher candidate from the higher education teacher preparation program must both agree that the teacher candidate is ready to manage the classroom with less intensive supervision. For route three candidates, the mentor of the teacher candidate shall make the decision;
     (((ii))) (b) Identification of performance indicators based on the knowledge and skills standards required for residency certification by the state board of education;
     (((iii))) (c) Identification of benchmarks that will indicate when the standard is met for all performance indicators;
     (((iv))) (d) A description of strategies for assessing candidate performance on the benchmarks;
     (((v))) (e) Identification of one or more tools to be used to assess a candidate's performance once the candidate has been in the classroom for about one-half of a school year; and
     (((vi))) (f) A description of the criteria that would result in residency certification after about one-half of a school year but before the end of the program.
     (((2) Districts may apply for program funds to pay stipends to both mentor teachers and interns during their mentored internship. For both intern stipends and accompanying mentor stipends, the per intern district request for funds may not exceed the amount designated by the BA+0 cell on the statewide teacher salary allocation schedule. This amount shall be prorated for internships and mentorships that last less than a full school year. Interns in the program for a full year shall be provided a stipend of at least eighty percent of the amount generated by the BA+0 cell on the statewide teacher salary allocation schedule. This amount shall be prorated for internships that last less than a full school year.))

Sec. 6   RCW 28A.660.030 and 2001 c 158 s 4 are each amended to read as follows:
     (1) The professional educator standards board, with support from the office of the superintendent of public instruction, shall select school districts and consortia of school districts to receive partnership grants from funds appropriated by the legislature ((for this purpose)) to administer alternative route certification programs. Factors to be considered in selecting proposals include, but are not limited to:
     (a) The degree to which the district, or consortia of districts in partnership, are currently experiencing teacher shortages;
     (b) The degree to which the proposal addresses criteria specified in RCW 28A.660.020 and is in keeping with specifications of program routes in RCW 28A.660.040;
     (c) The cost-effectiveness of the proposed program; and
     (d) Any demonstrated district and in-kind contributions to the program.
     (2) Selection of proposals shall also take into consideration the need to ensure an adequate number of candidates for each type of route in order to evaluate their success.
     (3) Funds appropriated for the partnership grant program in this chapter shall be administered by the office of the superintendent of public instruction.

Sec. 7   RCW 28A.660.050 and 2001 c 158 s 6 are each amended to read as follows:
     The alternative route conditional scholarship program is created under the following guidelines:
     (1) The program shall be administered by the higher education coordinating board. In administering the program, the higher education coordinating board has the following powers and duties:
     (a) To adopt necessary rules and develop guidelines to administer the program;
     (b) To collect and manage repayments from participants who do not meet their service obligations; and
     (c) To accept grants and donations from public and private sources for the program.
     (2) Participation in the alternative route conditional scholarship program is limited to classified staff in routes one and two of the partnership grant programs under RCW 28A.660.040. The Washington professional educator standards board shall select classified staff to receive conditional scholarships.
     (3) In order to receive conditional scholarship awards, recipients shall be accepted and maintain enrollment in alternative certification routes through the partnership grant program, as provided in RCW 28A.660.040. Recipients must continue to make satisfactory progress towards completion of the alternative route certification program and receipt of a residency teaching certificate.
     (4) For the purpose of this chapter, a conditional scholarship is a loan that is forgiven in whole or in part in exchange for service as a certificated teacher employed in a Washington state K-12 public school. The state shall forgive one year of loan obligation for every two years a recipient teaches in a public school. Recipients that fail to continue a course of study leading to residency teacher certification or cease to teach in a public school in the state of Washington in their endorsement area are required to repay the remaining loan principal with interest.
     (5) Recipients who fail to fulfill the required teaching obligation are required to repay the remaining loan principal with interest and any other applicable fees. The higher education coordinating board shall adopt rules to define the terms for repayment, including applicable interest rates, fees, and deferments.
     (6) To the extent funds are appropriated for this specific purpose, the annual amount of the scholarship is the annual cost of tuition for the alternative route certification program in which the recipient is enrolled, not to exceed ((four)) eight thousand dollars. The board may adjust the annual award by the average rate of resident undergraduate tuition and fee increases at the state universities as defined in RCW 28B.10.016.
     (7) The higher education coordinating board may deposit all appropriations, collections, and any other funds received for the program in this chapter in the student loan account authorized in RCW 28B.102.060.

Sec. 8   RCW 28A.400.205 and 2001 c 4 s 2 are each amended to read as follows:
     (1) School district employees shall be provided an annual salary cost-of-living increase in accordance with this section.
     (a) The cost-of-living increase shall be calculated by applying the rate of the yearly increase in the cost-of-living index to any state-funded salary base used in state funding formulas for teachers and other school district employees. Beginning with the 2001-02 school year, and for each subsequent school year, except for the 2003-04 and 2004-05 school years, each school district shall be provided a cost-of-living allocation sufficient to grant this cost-of-living increase ((for the salaries, including mandatory salary-related benefits, of all employees of the district)).
     (b) A school district shall distribute its cost-of-living allocation for salaries and salary-related benefits in accordance with the district's salary schedules, 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 cost-of-living increases on salaries and salary-related benefits.
     (c) Any funded cost-of-living increase shall be included in the salary base used to determine cost-of-living increases for ((all)) school employees in subsequent years. For teachers and other certificated instructional staff, the rate of the annual cost-of-living increase funded for certificated instructional staff shall be applied to the base salary used with the statewide salary allocation schedule established under RCW 28A.150.410 and to any other salary models used to recognize school district personnel costs.
     (((d) Beginning with the 2001-02 school year, the state shall fully fund the cost-of-living increase in this section as part of its obligation to meet the basic education requirements under Article IX of the Washington Constitution.))
     (2) For the purposes of this section, "cost-of-living index" means, for any school year, 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 state of Washington. If the bureau of labor statistics develops more than one consumer price index for areas within the state, the index covering the greatest number of people, covering areas exclusively within the boundaries of the state, and including all items shall be used for the cost-of-living index in this section.

Sec. 9   RCW 28A.400.206 and 2001 c 4 s 1 are each amended to read as follows:
     The Washington Constitution establishes "the paramount duty of the state to make ample provision for the education of all children." Providing quality education for all children in Washington requires well-qualified and experienced teachers and other school employees. However, salaries for educators have not kept up with the increased cost-of-living in the state. The failure to keep up with inflation threatens Washington's ability to compete with other states to attract first-rate teachers to Washington classrooms and to keep well-qualified educators from leaving for other professions. The state must provide a fair and reasonable cost-of-living increase, as provided in this act, to help ensure that the state attracts and keeps the best teachers and school employees for the children of Washington.

Sec. 10   RCW 28B.50.465 and 2001 c 4 s 3 are each amended to read as follows:
     (1) Academic employees of community and technical college districts shall be provided an annual salary cost-of-living increase in accordance with this section. For purposes of this section, "academic employee" has the same meaning as defined in RCW 28B.52.020.
     (a) Beginning with the 2001-2002 fiscal year, and for each subsequent fiscal year, except as provided in (d) of this subsection, each college district shall receive a cost-of-living allocation sufficient to increase academic employee salaries, including mandatory salary-related benefits, by the rate of the yearly increase in the cost-of-living index.
     (b) A college district shall distribute its cost-of-living allocation for salaries and salary-related benefits in accordance with the district's salary schedules, collective bargaining agreements, and other compensation policies. No later than the end of the fiscal year, each college district shall certify to the college board that it has spent funds provided for cost-of-living increases on salaries and salary-related benefits.
     (c) The college board shall include any funded cost-of-living increase in the salary base used to determine cost-of-living increases for academic employees in subsequent years.
     (d) Beginning with the 2001-2002 fiscal year, and for each subsequent fiscal year except for the 2003-04 and 2004-05 fiscal years, the state shall fully fund the cost-of-living increase set forth in this section.
     (2) For the purposes of this section, "cost-of-living index" means, for any fiscal year, 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 state of Washington. If the bureau of labor statistics develops more than one consumer price index for areas within the state, the index covering the greatest number of people, covering areas exclusively within the boundaries of the state, and including all items shall be used for the cost-of-living index in this section.

Sec. 11   RCW 28B.50.468 and 2001 c 4 s 4 are each amended to read as follows:
     (1) Classified employees of technical colleges shall be provided an annual salary cost-of-living increase in accordance with this section. For purposes of this section, "technical college" has the same meaning as defined in RCW 28B.50.030. This section applies to only those classified employees under the jurisdiction of chapter 41.56 RCW.
     (a) Beginning with the 2001-2002 fiscal year, and for each subsequent fiscal year, except as provided in (d) of this subsection, each technical college board of trustees shall receive a cost-of-living allocation sufficient to increase classified employee salaries, including mandatory salary-related benefits, by the rate of the yearly increase in the cost-of-living index.
     (b) A technical college board of trustees shall distribute its cost-of-living allocation for salaries and salary-related benefits in accordance with the technical college's salary schedules, collective bargaining agreements, and other compensation policies. No later than the end of the fiscal year, each technical college shall certify to the college board that it has spent funds provided for cost-of-living increases on salaries and salary-related benefits.
     (c) The college board shall include any funded cost-of-living increase in the salary base used to determine cost-of-living increases for technical college classified employees in subsequent years.
     (d) Beginning with the 2001-2002 fiscal year, and for each subsequent fiscal year except for the 2003-2004 and 2004-2005 fiscal years, the state shall fully fund the cost-of-living increase set forth in this section.
     (2) For the purposes of this section, "cost-of-living index" means, for any fiscal year, 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 state of Washington. If the bureau of labor statistics develops more than one consumer price index for areas within the state, the index covering the greatest number of people, covering areas exclusively within the boundaries of the state, and including all items shall be used for the cost-of-living index in this section.

Sec. 12   RCW 84.52.068 and 2001 c 3 s 5 are each amended to read as follows:
     (1) A portion of the proceeds of the state property tax levy shall be distributed to school districts in the amounts and in the manner provided in this section.
     (2) The amount of the distribution to each school district shall be based upon the average number of full-time equivalent students in the school district during the previous school year, and shall be calculated as follows:
     (a) Out of taxes collected in calendar years 2001 through and including 2003, an annual amount equal to one hundred forty dollars per each full-time equivalent student in all school districts shall be deposited in the student achievement fund to be distributed to each school district based on one hundred forty dollars per full-time equivalent student in the school district for each year beginning with the school year 2001-2002.
     (b) Out of taxes collected in calendar year 2004, an annual amount equal to ((four hundred fifty)) two hundred twenty dollars per full-time equivalent student in all school districts shall be deposited in the student achievement fund to be distributed to each school district based on ((four hundred fifty)) two hundred twenty dollars per full-time equivalent student for ((each year beginning with the)) school year 2004-2005.
     (c) Out of taxes collected in calendar year 2005, an annual amount equal to three hundred dollars per full-time equivalent student in all school districts shall be deposited in the student achievement fund to be distributed to each school district based on three hundred dollars per full-time equivalent student for school year 2005-2006.
     (d) Out of taxes collected in calendar year 2006, an annual amount equal to three hundred seventy-five dollars per full-time equivalent student in all school districts shall be deposited in the student achievement fund to be distributed to each school district based on three hundred seventy-five dollars per full-time equivalent student for school year 2006-2007.
     (e) Out of taxes collected in calendar year 2007, an annual amount equal to four hundred fifty dollars per full-time equivalent student in all school districts shall be deposited in the student achievement fund to be distributed to each school district based on four hundred fifty dollars per full-time equivalent student for school year 2007-2008. Each subsequent year following the 2007-2008 school year, the amount deposited and distributed shall be adjusted for inflation as defined in RCW 43.135.025(((7))) (8).
     (3) The office of the superintendent of public instruction shall verify the average number of full-time equivalent students in each school district from the previous school year to the state treasurer by August 1st of each year.

NEW SECTION.  Sec. 13   Sections 5 through 7 of this act expire June 30, 2005.