BILL REQ. #:  H-2065.3 

Read first time 04/16/2003.   Referred to Committee on Appropriations.

     AN ACT Relating to cost-of-living increases for educational employees; amending RCW 28A.400.205, 28A.150.250, and 28A.150.260; adding a new section to chapter 28A.400 RCW; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 28A.400 RCW to read as follows:
     The legislature finds that under the state Constitution, making ample provision for basic education is the state's paramount duty. The legislature finds that under the state's current basic education funding formulas, teacher salaries are the key component of basic education funding, and thus the state's basic education funding obligation requires the state to provide districts with an allocation sufficient to hire and retain qualified providers of basic education services. The legislature further finds that requiring predictable cost-of-living increases is the best way to ensure that all educational employees' salaries maintain pace with inflation.
     Therefore, the legislature reaffirms the goal of ensuring that cost-of-living increases are provided to all school district employees. The legislature also intends that the state should be responsible for funding the cost-of-living increase for the educational services for which the state provides funding, and school districts should provide the cost-of-living increase for employees hired by the district with local levy funding or other nonstate sources. Further, for those educational programs that are within the state's definition of basic education, the legislature intends to clarify that these cost-of-living increases are within the state's constitutional basic education funding obligation.

Sec. 2   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, 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)) (i) Each school district's total cost-of-living increase is calculated by applying the rate of the yearly increase in the cost-of-living index to the district's salary base for all employees of the district.
     (ii) The state's portion of the cost-of-living increase is calculated by applying the rate of the yearly increase in the cost-of-living index to the state-funded salary base used in state funding formulas for teachers and other school employees. Beginning with the 2003-04 school year, the superintendent of public instruction shall distribute to each district the amount of the state's portion attributable to that district.
     (iii) Beginning with the 2003-04 school year, from amounts distributed under (a)(ii) of this subsection and from other district resources, each district shall provide a total cost-of-living allocation sufficient to grant the district's 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)) For those programs within the state-funded salary base that are within the program of basic education, the cost-of-living increase in (a)(ii) of this subsection is also within the program of basic education. Beginning with the 2005-06 school year, the state shall fully fund the cost-of-living increase in (a)(ii) of this subsection for programs within the program of basic education as a part of the state's basic education funding obligation under Article IX of the state 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. 3   RCW 28A.150.250 and 1990 c 33 s 107 are each amended to read as follows:
     From those funds made available by the legislature for the current use of the common schools, the superintendent of public instruction shall distribute annually as provided in RCW 28A.510.250 to each school district of the state operating a program approved by the state board of education an amount which, when combined with an appropriate portion of such locally available revenues, other than receipts from federal forest revenues distributed to school districts pursuant to RCW 28A.520.010 and 28A.520.020, as the superintendent of public instruction may deem appropriate for consideration in computing state equalization support, excluding excess property tax levies, will constitute a basic education allocation in dollars for each annual average full time equivalent student enrolled, based upon one full school year of one hundred eighty days, except that for kindergartens one full school year shall be one hundred eighty half days of instruction, or the equivalent as provided in RCW 28A.150.220.
     Basic education shall be considered to be fully funded by those amounts of dollars appropriated by the legislature pursuant to RCW 28A.150.250 and 28A.150.260 to fund those program requirements identified in RCW 28A.150.220 in accordance with the formula and ratios provided in RCW 28A.150.260 and those amounts of dollars appropriated by the legislature to fund the salary requirements of RCW 28A.150.100 ((and)), 28A.150.410, and 28A.400.205(1)(d).
     Operation of a program approved by the state board of education, for the purposes of this section, shall include a finding that the ratio of students per classroom teacher in grades kindergarten through three is not greater than the ratio of students per classroom teacher in grades four and above for such district: PROVIDED, That for the purposes of this section, "classroom teacher" shall be defined as an instructional employee possessing at least a provisional certificate, but not necessarily employed as a certificated employee, whose primary duty is the daily educational instruction of students: PROVIDED FURTHER, That the state board of education shall adopt rules and regulations to insure compliance with the student/teacher ratio provisions of this section, and such rules and regulations shall allow for exemptions for those special programs and/or school districts which may be deemed unable to practicably meet the student/teacher ratio requirements of this section by virtue of a small number of students.
     If a school district's basic education program fails to meet the basic education requirements enumerated in RCW 28A.150.250, 28A.150.260, and 28A.150.220, the state board of education shall require the superintendent of public instruction to withhold state funds in whole or in part for the basic education allocation until program compliance is assured: PROVIDED, That the state board of education may waive this requirement in the event of substantial lack of classroom space.

Sec. 4   RCW 28A.150.260 and 1997 c 13 s 2 are each amended to read as follows:
     The basic education allocation for each annual average full time equivalent student shall be determined in accordance with the following procedures:
     (1) The governor shall and the superintendent of public instruction may recommend to the legislature a formula based on a ratio of students to staff for the distribution of a basic education allocation for each annual average full time equivalent student enrolled in a common school. The distribution formula shall have the primary objective of equalizing educational opportunities and shall provide appropriate recognition of the following costs among the various districts within the state:
     (a) Certificated instructional staff and their related costs;
     (b) Certificated administrative staff and their related costs;
     (c) Classified staff and their related costs;
     (d) Nonsalary costs;
     (e) Extraordinary costs of remote and necessary schools and small high schools, including costs of additional certificated and classified staff; ((and))
     (f) The attendance of students pursuant to RCW 28A.335.160 and 28A.225.250 who do not reside within the servicing school district; and
     (g) Cost-of-living adjustments as required by RCW 28A.400.205(1)(d).
     (2)(a) This formula for distribution of basic education funds shall be reviewed biennially by the superintendent and governor. The recommended formula shall be subject to approval, amendment or rejection by the legislature. The formula shall be for allocation purposes only. While the legislature intends that the allocations for additional instructional staff be used to increase the ratio of such staff to students, nothing in this section shall require districts to reduce the number of administrative staff below existing levels.
     (b) The formula adopted by the legislature shall reflect the following ratios at a minimum: (i) Forty-nine certificated instructional staff to one thousand annual average full time equivalent students enrolled in grades kindergarten through three; (ii) forty-six certificated instructional staff to one thousand annual average full time equivalent students in grades four through twelve; (iii) four certificated administrative staff to one thousand annual average full time equivalent students in grades kindergarten through twelve; and (iv) sixteen and sixty-seven one-hundredths classified personnel to one thousand annual average full time equivalent students enrolled in grades kindergarten through twelve.
     (c) In the event the legislature rejects the distribution formula recommended by the governor, without adopting a new distribution formula, the distribution formula for the previous school year shall remain in effect: PROVIDED, That the distribution formula developed pursuant to this section shall be for state apportionment and equalization purposes only and shall not be construed as mandating specific operational functions of local school districts other than those program requirements identified in RCW 28A.150.220 and 28A.150.100. The enrollment of any district shall be the annual average number of full time equivalent students and part time students as provided in RCW 28A.150.350, enrolled on the first school day of each month and shall exclude full time equivalent students with disabilities recognized for the purposes of allocation of state funds for programs under RCW 28A.155.010 through 28A.155.100. The definition of full time equivalent student shall be determined by rules of the superintendent of public instruction: PROVIDED, That the definition shall be included as part of the superintendent's biennial budget request: PROVIDED, FURTHER, That any revision of the present definition shall not take effect until approved by the house appropriations committee and the senate ways and means committee: PROVIDED, FURTHER, That the office of financial management shall make a monthly review of the superintendent's reported full time equivalent students in the common schools in conjunction with RCW 43.62.050.
     (3)(a) Certificated instructional staff shall include those persons employed by a school district who are nonsupervisory employees within the meaning of RCW 41.59.020(8): PROVIDED, That in exceptional cases, people of unusual competence but without certification may teach students so long as a certificated person exercises general supervision: PROVIDED, FURTHER, That the hiring of such classified people shall not occur during a labor dispute and such classified people shall not be hired to replace certificated employees during a labor dispute.
     (b) Certificated administrative staff shall include all those persons who are chief executive officers, chief administrative officers, confidential employees, supervisors, principals, or assistant principals within the meaning of RCW 41.59.020(4).

NEW SECTION.  Sec. 5   Sections 3 and 4 of this act take effect July 1, 2005.

NEW SECTION.  Sec. 6   Section 2 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.