BILL REQ. #:  H-0469.1 

Read first time 01/24/2007.   Referred to Committee on Education.

     AN ACT Relating to creating a performance-based compensation system for teachers and other certificated instructional staff in K-12 public schools; amending RCW 28A.150.410, 28A.400.200, 28A.400.205, and 28A.340.040; adding new sections to chapter 28A.400 RCW; adding a new section to chapter 28A.150 RCW; creating new sections; repealing RCW 28A.405.200, 28A.415.020, 28A.415.023, 28A.415.024, and 28A.415.025; providing an effective date; and declaring an emergency.

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

Sec. 1   RCW 28A.150.410 and 2002 c 353 s 1 are each amended to read as follows:
     (1) 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.
     (a) The statewide salary schedule shall be based on performance categories of knowledge, skills, abilities, and levels of effort as defined under section 2 of this act.
     (b) School districts shall assign certificated instructional staff to the appropriate performance category in the statewide salary schedule using the performance evaluation process defined under section 3 of this act.
     (2) 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, district-reported assignments of staff to the schedule, and related documents, conditions, and limitations established by the omnibus appropriations act.
     (((3) Beginning January 1, 1992, 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 masters degree; or
     (b) The credits were used in generating state salary allocations before January 1, 1992.))

NEW SECTION.  Sec. 2   A new section is added to chapter 28A.400 RCW to read as follows:
     (1) The professional educator standards board shall define four performance categories of knowledge, skills, abilities, and levels of effort of certificated instructional staff employed in public schools for purposes of the statewide salary schedule under RCW 28A.150.410. The performance categories shall be entry, professional, lead, and master. The professional educator standards board shall align the state certification and licensing system and the state compensation system for certificated instructional staff through the performance categories of the statewide salary schedule.
     (2) The general attributes of teachers in the four performance categories are as provided in this subsection.
     (a) Entry. Entry level teachers have successfully completed an approved teacher preparation program with a student-teaching experience, but have little additional experience in managing, leading, and instructing in their own classroom. Entry level teachers require mentoring and guidance; are learning to apply concepts of learning and instructional theory to classroom situations and students; tend to focus on classroom management; and use a limited range of instructional strategies.
     (b) Professional. Professional level teachers have successfully completed a performance-based professional certificate program, including demonstrating a positive impact on student learning. Professional level teachers are continually expanding the range and complexity of instructional and assessment strategies; use data to analyze student performance; and adapt instruction to student needs and student learning styles. All teachers are expected to reach a professional level of performance and increase their competencies thereafter.
     (c) Lead. Lead teachers serve as a role model for above-average skill and competency in teaching, although not yet to the level of exemplary performance. Lead teachers regularly assume leadership responsibilities in mentoring, coaching, curriculum development, and other school or district improvement initiatives.
     (d) Master. Master teachers are widely acknowledged by parents, colleagues, administrators, and students as exemplary teachers and leaders due to their knowledge and skills in classroom management, adaptation of instruction, design and use of curriculum and assessments, and parent involvement. Even the most academically and personally challenged students demonstrate improved learning when taught by a master teacher.
     (3) The professional educator standards board shall delineate and describe the attributes of teachers in each of the four performance categories in greater detail than the general descriptions in subsection (2) of this section to provide guidance to school districts in assigning teachers to the appropriate category.
     (4) The professional educator standards board shall also delineate and describe the attributes of other types of certificated instructional staff in each of the four performance categories to reflect the specialized knowledge, skills, abilities, and levels of effort of each staff type and to provide guidance to school districts in assigning other certificated instructional staff to the appropriate category.
     (5) The professional educator standards board shall adopt rules to implement this section no later than July 1, 2008.

NEW SECTION.  Sec. 3   A new section is added to chapter 28A.400 RCW to read as follows:
     (1) The professional educator standards board shall develop an objective, standard performance evaluation process for school districts to determine the appropriate assignment of certificated instructional staff to the performance categories of the statewide salary schedule as defined in section 2 of this act. The evaluation process shall include:
     (a) Required procedures, evidence, documentation, and criteria to be used by all school districts in assessing the knowledge, skills, abilities, and levels of effort of certificated instructional staff for the purposes of the statewide salary schedule;
     (b) Evidence of a positive impact on student learning; and
     (c) Appropriate due process protections for staff and procedures for appeal of an assignment determination to the school district board of directors.
     (2) The evaluation process shall not include proxy indicators of performance such as years of experience, credit hours, or degrees.
     (3) The office of the superintendent of public instruction and educational service districts shall provide regular training to school districts on the performance evaluation process.
     (4) The professional educator standards board shall conduct periodic audits of school districts' use and application of the performance evaluation process to ensure compliance.
     (5) The professional educator standards board shall adopt rules to implement this section no later than July 1, 2008.

NEW SECTION.  Sec. 4   The professional educator standards board shall submit a progress report to the governor and the education and fiscal committees of the legislature on the implementation of sections 2 and 3 of this act by January 10, 2008.

NEW SECTION.  Sec. 5   (1) The legislative evaluation and accountability program committee shall develop a new, performance-based statewide salary schedule to be used beginning in the 2008-09 school year to distribute funds for basic education certificated instructional staff salaries under RCW 28A.150.260 and other state-funded certificated staff salaries.
     (a) The new schedule shall be based on the four performance categories under section 2 of this act and shall include four steps of increasing compensation amounts within each category.
     (b) The first step of the first category in the new schedule shall be an amount no less than the amount for an employee with a baccalaureate degree and zero years of service from the previous statewide salary allocation schedule authorized for the 2008-09 school year in the omnibus appropriations act.
     (c) The amounts of the steps after the first step in the new schedule shall be based on a combination of two criteria:
     (i) The amounts of each successive step shall increase in a logical progression, given the levels of knowledge, skills, abilities, and levels of effort expected from the staff; and
     (ii) If state-funded certificated instructional staff are assigned in the 2008-09 school year to a step on the new schedule at an amount equal to or next highest compared to the step the staff would have been assigned on the previous statewide salary allocation schedule for that school year, the overall fiscal impact to the state of implementing the new schedule is as close as possible to neutral for the 2008-09 school year, based on the funds appropriated in the 2007 omnibus appropriations act for the 2007-09 biennium.
     (d) The committee shall adjust the calculations under this section to reflect assignment to the new schedule of certificated instructional staff in school districts that have historically received salary allocations in excess of the statewide salary allocation schedule, and the phase-out of these excess salary allocations over a four-year period as provided under section 6 of this act. The committee shall include in its calculations the additional funding for compensation resulting from the implementation of section 6 of this act.
     (2) The committee shall present the new statewide salary schedule to the governor and the fiscal committees of the legislature by December 1, 2007, for inclusion in the 2008 supplemental omnibus appropriations act for the 2007-2009 biennium and implementation in the 2008-09 school year. The committee shall also report on the estimated additional state cost, if any, necessary to implement the schedule in the 2008-09 school year.

NEW SECTION.  Sec. 6   A new section is added to chapter 28A.150 RCW to read as follows:
     (1) Beginning with the fiscal year 2008 appropriations for the 2007-08 school year, the legislature shall increase the appropriations for salary allocations to school districts based on the statewide salary allocation schedule in RCW 28A.150.410 by successive amounts over a four-year period so that, by the fiscal year 2011 appropriations for the 2010-11 school year, no school district receives salary allocations for certificated instructional staff in excess of the statewide salary allocation schedule.
     (2) The amount of the annual increase in appropriations under this section shall be calculated as follows:
     (a) For the 2007-08 school year, the difference between the base salary on the statewide salary allocation schedule and the base salary of the school district with the highest historical salary allocation is no more than four and three-fourths percent;
     (b) For the 2008-09 school year, the difference between the base salary on the statewide salary allocation schedule and the base salary of the school district with the highest historical salary allocation is no more than three and two-tenths percent; and
     (c) For the 2009-10 school year, the difference between the base salary on the statewide salary allocation schedule and the base salary of the school district with the highest historical salary allocation is no more than one and six-tenths percent.
     (3) The increases in appropriations required under this section are in addition to any increases required to implement RCW 28A.400.205.

Sec. 7   RCW 28A.400.200 and 2002 c 353 s 2 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) ((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; and
     (b) Salaries for certificated instructional staff with a masters degree shall not be less than the salary provided in the appropriations act in the statewide salary allocation schedule for an employee with a masters degree and zero years of service;)) All certificated instructional staff shall be compensated using the statewide salary schedule under RCW 28A.150.410 and section 2 of this act. A school district board of directors may not adopt a salary schedule that is different from the statewide salary schedule.
     (b) For the 2008-09 school year, certificated instructional staff shall be assigned to a step on the statewide salary schedule under RCW 28A.150.410 that is an amount equal to or next highest compared to the step the staff would have been assigned on the previous statewide salary allocation schedule for that school year.
     (c) For the 2009-10 school year and thereafter, school districts shall assign new and continuing certificated instructional staff to the statewide salary schedule under RCW 28A.150.410 and section 2 of this act based solely on the outcome of the performance evaluation process under section 3 of this act. A change in assignment on the statewide salary schedule shall take effect at the beginning of the school year immediately following the performance evaluation process. Assignment determinations are not subject to the collective bargaining provisions of chapter 41.59 RCW.
     (3)(a) The actual ((average)) salary paid to certificated instructional staff, based on their assignment to the statewide salary schedule, shall not exceed the ((district's average certificated instructional staff salary)) statewide salary schedule used for the state basic education allocations for that school year as determined pursuant to RCW 28A.150.410.
     (b) Fringe benefit contributions for certificated instructional staff shall be included as salary under (a) of this subsection only to the extent that the district's actual average benefit contribution exceeds the amount 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. 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) Salaries and benefits for certificated instructional staff may exceed the limitations in subsection (3) of this section only by separate contract for additional time, additional responsibilities, or incentives. Supplemental contracts shall not cause the state to incur any present or future funding obligation. 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 3 of the state Constitution.
     (5) Employee benefit plans offered by any district shall comply with RCW 28A.400.350 and 28A.400.275 and 28A.400.280.

NEW SECTION.  Sec. 8   A new section is added to chapter 28A.400 RCW to read as follows:
     (1) In addition to and not subject to the limitations of salaries provided under RCW 28A.400.200, certificated instructional staff who meet the eligibility criteria shall receive annual salary bonuses under this section, beginning in the 2007-08 school year. Bonuses under this section are provided on a year-to-year basis; are renewable subject to continued eligibility; are not subject to the collective bargaining provisions of chapter 41.59 RCW; and are not part of basic education. Salary bonuses shall be paid in monthly increments and shall be included in the definition of "earnable compensation" under RCW 41.32.010(10).
     (2) Teachers who hold certification endorsements in mathematics, science, a designated science, middle level math/science, special education, or early childhood special education, and whose duty assignment for the school year is to teach one or more of these subject areas, shall receive a salary bonus of five thousand dollars.
     (3) Teachers who hold a certification endorsement in bilingual education or who are bilingual in a language spoken as a first language by students enrolled in the school district shall receive a salary bonus of five thousand dollars.
     (4)(a) Certificated instructional staff employed in rural and remote school districts shall receive a salary bonus of two thousand dollars. For the purposes of this section, "rural and remote" means a school district whose central administrative office is:
     (i) Located in a county with a population of fewer than one hundred persons per square mile; and
     (ii) Located more than one hour travel time under normal travel conditions from a city or town with a population of ten thousand or more persons.
     (b) The office of the superintendent of public instruction shall identify rural and remote school districts under this section using the most recent state population data collected by the office of financial management and travel information from the department of transportation.
     (5) Teachers who hold a valid certificate from the national board for professional teaching standards shall receive a salary bonus of three thousand five hundred dollars. A teacher who attains certification after the beginning of a school year shall receive the bonus beginning the following school year.
     (6)(a) Teachers who commit to teach in a challenged school for at least three years shall receive a salary bonus of five thousand dollars during each year that their duty assignment is to teach in that challenged school. For the purposes of this section, "challenged school" means:
     (i) At least sixty percent of the students enrolled in the school are eligible for free and reduced price lunch; and
     (ii) The school is in federal "needs improvement" status under P.L. 107-110, the no child left behind act of 2001.
     (b) A teacher who fails to fulfill the three-year commitment to teach in the challenged school shall repay any bonus amounts previously received to the superintendent of public instruction. Years of teaching in a challenged school that occurred before the effective date of this section shall not count toward the three-year commitment. Nothing in this section precludes a teacher from teaching in a challenged school for more than three years and continuing to receive the salary bonus after the three-year commitment has been met.
     (7) The superintendent of public instruction may adopt rules to implement this section.

Sec. 9   RCW 28A.400.205 and 2003 1st sp.s. c 20 s 1 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.
     (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 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)) steps of the statewide salary ((allocation)) schedule established under RCW 28A.150.410 and to any other salary models used to recognize school district personnel costs.
     (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. 10   RCW 28A.340.040 and 1990 c 33 s 369 are each amended to read as follows:
     (((1) School districts participating in a cooperative project pursuant to RCW 28A.340.030 may adopt identical salary schedules following compliance with chapter 41.59 RCW: PROVIDED, That if the districts participating in a cooperative project adopt identical salary schedules, the participating districts shall be considered a single school district for purposes of establishing compliance with the salary limitations of RCW 28A.400.200(3) but not for the purposes of allocation of state funds.
     (2))) For purposes of computing fringe benefit contributions for purposes of establishing compliance with RCW 28A.400.200(3)(b), the districts participating in a cooperative project pursuant to RCW 28A.340.030 may use the greater of: (((a))) (1) The highest amount provided in the 1986-87 school year by a district participating in the cooperative project; or (((b))) (2) the amount authorized for such purposes in the state operating appropriations act in effect at the time.

NEW SECTION.  Sec. 11   The following acts or parts of acts are each repealed:
     (1) RCW 28A.405.200 (Annual salary schedules as basis for salaries of certificated employees) and 1969 ex.s. c 283 s 1;
     (2) RCW 28A.415.020 (Credit on salary schedule for approved in-service training, continuing education, and internship) and 2006 c 263 s 808, 1995 c 284 s 2, 1990 c 33 s 415, & 1987 c 519 s 1;
     (3) RCW 28A.415.023 (Credit on salary schedule for approved in-service training, continuing education, or internship -- Course content--Rules) and 2005 c 497 s 209, 2005 c 393 s 1, & 1997 c 90 s 1;
     (4) RCW 28A.415.024 (Credit on salary schedule -- Accredited institutions -- Verification -- Penalty for submitting credits from unaccredited institutions) and 2006 c 263 s 809 & 2005 c 461 s 1; and
     (5) RCW 28A.415.025 (Internship clock hours -- Rules) and 2006 c 263 s 810 & 1995 c 284 s 3.

NEW SECTION.  Sec. 12   Sections 1, 7, and 9 through 11 of this act take effect September 1, 2008.

NEW SECTION.  Sec. 13   Section 6 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.