"NEW SECTION.  Sec. 1   (1) It is the legislature's intent to continue implementation of chapter 548, Laws of 2009, by adopting the technical details of a new distribution formula for the instructional program of basic education and authorizing a phase-in of implementation of a new distribution formula for pupil transportation, both to take effect September 1, 2011. Unless otherwise stated, the numeric values adopted in section 3 of this act represent the translation of 2009-2010 state funding levels for the basic education act into the funding factors of the prototypical school funding formula, based on the expert advice and extensive work of the funding formula technical working group established by the legislature for this purpose. The legislature intends to continue to review and revise the formulas and may make revisions as necessary for technical purposes and consistency in the event of mathematical or other technical errors.
     (2) It is also the legislature's intent to adopt an implementation schedule for phasing-in enhancements to the baseline funding levels of 2009-10 beginning in the 2011-12 school year for pupil transportation, class size allocations for grades kindergarten through three, full-day kindergarten, and allocations for maintenance, supplies, and operating costs.
     (3) Finally, it is the legislature's intent to adjust the timelines for other working groups so that their expertise and advice can be received as soon as possible and to make technical adjustments to certain provisions of chapter 548, Laws of 2009.

NEW SECTION.  Sec. 2   The legislature finds that:
     (1) The Washington supreme court has determined that the state must rely on dependable and regular tax sources to support basic education;
     (2) Washington, like most states across the country, relies on the property tax to provide financial support for public schools;
     (3) Property tax support for public schools has been shifting from the statewide, uniform tax to increasing reliance on excess property tax levies that are not dependable and vary widely from school district to school district;
     (4) A dependable and regular source of financing for K-12 capital facilities has not been identified; and
     (5) Individual citizens have proposed innovative, comprehensive solutions to provide ongoing, substantial financial support for K-12 public schools, and these solutions should be thoughtfully considered for their possible adoption as a new state education finance policy.

Sec. 3   RCW 28A.150.260 and 2009 c 548 s 106 are each amended to read as follows:
     The purpose of this section is to provide for the allocation of state funding that the legislature deems necessary to support school districts in offering the minimum instructional program of basic education under RCW 28A.150.220. The allocation shall be determined as follows:
     (1) The governor shall and the superintendent of public instruction may recommend to the legislature a formula for the distribution of a basic education instructional allocation for each common school district.
     (2) The distribution formula under this section shall be for allocation purposes only. Except as may be required under chapter 28A.165, 28A.180, 28A.185, or 28A.155 RCW, or federal laws and regulations, nothing in this section requires school districts to use basic education instructional funds to implement a particular instructional approach or service. Nothing in this section requires school districts to maintain a particular classroom teacher-to-student ratio or other staff-to-student ratio or to use allocated funds to pay for particular types or classifications of staff. Nothing in this section entitles an individual teacher to a particular teacher planning period.
     (3)(a) To the extent the technical details of the formula have been adopted by the legislature, the distribution formula for the basic education instructional allocation shall be based on minimum staffing and nonstaff costs the legislature deems necessary to support instruction and operations in prototypical schools serving high, middle, and elementary school students as provided in this section. The use of prototypical schools for the distribution formula does not constitute legislative intent that schools should be operated or structured in a similar fashion as the prototypes. Prototypical schools illustrate the level of resources needed to operate a school of a particular size with particular types and grade levels of students using commonly understood terms and inputs, such as class size, hours of instruction, and various categories of school staff. It is the intent that the funding allocations to school districts be adjusted from the school prototypes based on the actual number of annual average full-time equivalent students in each grade level at each school in the district and not based on the grade-level configuration of the school to the extent that data is available. The allocations shall be further adjusted from the school prototypes with minimum allocations for small schools and to reflect other factors identified in the omnibus appropriations act.
     (b) For the purposes of this section, prototypical schools are defined as follows:
     (i) A prototypical high school has six hundred average annual full-time equivalent students in grades nine through twelve;
     (ii) A prototypical middle school has four hundred thirty-two average annual full-time equivalent students in grades seven and eight; and
     (iii) A prototypical elementary school has four hundred average annual full-time equivalent students in grades kindergarten through six.
     (c) The minimum allocation for each level of prototypical school shall be based on the number of full-time equivalent classroom teachers needed to provide instruction over the minimum required annual instructional hours under RCW 28A.150.220 and provide at least one teacher planning period per school day, and based on an average class size as specified in the omnibus appropriations act. The omnibus appropriations act shall at a minimum specify the following:
     (i) Basic average class size((;)) for:
     (A) Grades kindergarten through three . . . . . . . . . . . . 25.23
     (B) Grade four . . . . . . . . . . . . 27.00
     (C) Grades five and six . . . . . . . . . . . . 27.00
     (D) Grades seven and eight . . . . . . . . . . . . 28.53
     (E) Grades nine through twelve . . . . . . . . . . . . 28.74
     (ii) Basic average class size for grades kindergarten through three shall be reduced each year beginning in the 2011-12 school year and beginning with schools with the highest percent of students eligible for free and reduced-price meals in the prior school year until the following basic average class size is specified beginning in the 2015-16 school year. . . . . . . . . . . . . 15.00
     (iii) Average class size in schools where more than fifty percent of the students are eligible for free and reduced-price meals, which shall not exceed the average class sizes specified in (c)(i) and (ii) of this subsection;
     (((iii))) (iv) Average class size for:
     (A) Exploratory and preparatory career and technical education((,)) in middle and high schools . . . . . . . . . . . . 26.57
     (B) Preparatory career and technical education in skill
centers . . . . . . . . . . . . 22.76
     (C) Laboratory science((,)) . . . . . . . . . . . . 28.74
     (D) Advanced placement((,)) and international baccalaureate courses((; and
     (iv) Average class size in grades kindergarten through
three.)) . . . . . . . . . . . . 28.74
     (d) The minimum allocation for each level of prototypical school shall include allocations for the following types of staff in addition to classroom teachers:
                                        Elementary     Middle     High
                                        School          School     School
     (i) Principals, including
assistant principals, and
other certificated building-level
administrators((;)) . . . . . . . . 1.253          1.353     1.880
     (ii) Teacher librarians,
performing functions including
information literacy, technology,
and media to support school
library media programs((;)) . . . . 0.663          0.519     0.523
     (iii) Student health services,
a function that includes
school nurses, whether
certificated instructional
or classified employee, and
social workers((;)) . . . . . . . . 0.135          0.068     0.118
     (iv) Guidance counselors,
performing functions including
parent outreach and graduation
advisor((;)) . . . . . . . . . . . . 0.493          1.116     1.909
     (v) ((Professional development coaches;
     (vi))) Teaching assistance,
which includes any aspect of
educational instructional
services provided by classified
employees((;)) . . . . . . . . . . . 0.936          0.700     0.652
     (((vii))) (vi) Office support((, technology support,))
and other noninstructional
aides((;)) . . . . . . . . . . . . . 2.012          2.325     3.269
     (((viii))) (vii) Custodians((, warehouse,
maintenance, laborer, and professional
and technical education support
employees; and)) . . . . . . . . . . 1.657          1.942     2.965
     (((ix))) (viii) Classified
staff providing student and staff
safety . . . . . . . . . . . . . . . 0.079          0.092     0.141
     (e) The distribution formula shall include staffing allocations to school districts for career and technical education and skill center administrative staff, as specified in the omnibus appropriations act.
     (4)(a) The minimum allocation for each school district shall include allocations per annual average full-time equivalent student for the following materials, supplies, and operating costs, which shall be adjusted annually for inflation from the following 2008-09 school year funding values as specified in the omnibus appropriations act: ((Student))
     (i) Technology((;)) . . . . . . . . . . . . $54.43
     (ii) Utilities((;)) and insurance . . . . . . . . . . . . $147.90
     (iii) Curriculum((,)) and textbooks((,)) . . . . . . . . . . . . $58.44
     (iv) Other supplies and library
materials((, and instructional supplies;)) . . . . . . . . . . . . $124.07
     (v) Instructional professional development
for both certificated and classified
staff((; other building-level costs
including)) . . . . . . . . . . . . $9.04
     (vi) Facilities maintenance((, custodial, and)) . . . . . . . . . . . . $73.27
     (vii) Security((;)) and central office
administration((.)) . . . . . . . . . . . . $50.76
     (b) Beginning in the 2011-12 school year, the allocations based on the funding values in (a) of this subsection shall be increased annually after being adjusted for inflation until the following 2007-08 school year funding values, adjusted for inflation, are provided in the 2013-14 school year, after which the funding values shall be adjusted annually for inflation as specified in the omnibus appropriations act:
     (i) Technology . . . . . . . . . . . . $113.80
     (ii) Utilities and insurance . . . . . . . . . . . . $309.21
     (iii) Curriculum and textbooks . . . . . . . . . . . . $122.17
     (iv) Other supplies and library materials . . . . . . . . . . . . $259.39
     (v) Instructional professional development for both
certificated and classified staff . . . . . . . . . . . . $18.89
     (vi) Facilities maintenance . . . . . . . . . . . . $153.18
     (vii) Security and central office administration . . . . . . . . . . . . $106.12
     (c) The annual average full-time equivalent student amounts in (a) and (b) of this subsection shall be ((enhanced)) multiplied by the following minimum percentages based on full-time equivalent student enrollment in the following courses:
     (i) Exploratory career and technical education courses for students in grades seven through twelve((; laboratory science courses for students in grades nine through twelve;)) . . . . . . . . . . . . 247.54%
     (ii) Preparatory career and technical education courses for students in grades nine through twelve offered in a high school((; and)) . . . . . . . . . . . . 247.54%
     (iii) Preparatory career and technical education courses for students in grades eleven and twelve offered through a skill center((.)) . . . . . . . . . . . . 224.65%
     (5) The allocations provided under subsections (3) and (4) of this section shall be enhanced as follows to provide additional allocations for classroom teachers and maintenance, supplies, and operating costs:
     (a) To provide supplemental instruction and services for underachieving students through the learning assistance program under RCW 28A.165.005 through 28A.165.065, allocations shall be based on the prior year enrollment and prior year percent of students in each school who are eligible for free and reduced-price meals. The minimum allocation for the learning assistance program shall provide ((an extended school day and extended school year)) the following resources for each level of prototypical school ((and a per student allocation for maintenance, supplies, and operating costs.)), on a statewide average:
Instructional hours per week in a
class size of fifteen . . . . . . . . . . . . 1.5156
     (b) To provide supplemental instruction and services for students whose primary language is other than English, allocations shall be based on the number of students in each school who are eligible for and enrolled in the transitional bilingual instruction program under RCW 28A.180.010 through 28A.180.080. The minimum allocation for each level of prototypical school shall provide ((for supplemental instruction based on percent of the school day a student is assumed to receive supplemental instruction and a per student allocation for maintenance, supplies, and operating costs.)), on a statewide average, the following resources:
Instructional hours per week in a
class size of fifteen . . . . . . . . . . . . 4.778
     (6) The allocations provided under subsections (3) and (4) of this section shall be enhanced to provide additional allocations to support programs for highly capable students under RCW 28A.185.010 through 28A.185.030, based on two and three hundred fourteen one-thousandths percent of each school district's full-time equivalent enrollment. The minimum allocation for the programs shall provide ((an extended school day and extended school year)) the following resources for each level of prototypical school ((and a per student allocation for maintenance, supplies, and operating costs.)), on a statewide average:
Instructional hours per week in a
class size of fifteen . . . . . . . . . . . . 2.159
     (7) The allocations under subsections (3)(b), (c)(i) and (ii), and (d), (4)(a) and (b), ((and)) (8), and (9) of this section shall be enhanced as provided under RCW 28A.150.390 on an excess cost basis to provide supplemental instructional resources for students with disabilities.
     (8) The distribution formula shall include minimum staffing allocations per one thousand annual average full-time equivalent students enrolled in grades kindergarten through twelve in the district for the following district-wide support activities:
     (a) Technology support . . . . . . . . . . . . 0.628
     (b) Facilities maintenance and grounds . . . . . . . . . . . . 1.813
     (c) Warehouse, laborers, and mechanics . . . . . . . . . . . . 0.332
     (9) The distribution formula shall include allocations to school districts to support certificated and classified staffing of central office administration. The minimum staffing units allocation shall be calculated as ((a percentage, identified in the omnibus appropriations act,)) five and three-tenths percent of the total staffing units allocations ((for staff)) under subsections (3)(c)(i) and (ii) and (d) and (((6))) (8) of this section for all schools in the district.
     (((9))) (10)(a) For the purposes of allocations for prototypical high schools and middle schools under subsections (3) and (5) of this section that are based on the percent of students in the school who are eligible for free and reduced-price meals, the actual percent of such students in a school shall be adjusted by a factor identified in the omnibus appropriations act to reflect underreporting of free and reduced-price meal eligibility among middle and high school students.
     (b) Allocations or enhancements provided under subsections (3) and (4) of this section for exploratory and preparatory career and technical education courses shall be provided only for courses approved by the office of the superintendent of public instruction under chapter 28A.700 RCW.
     (((10))) (11)(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.
     (b) 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.
     (c) 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, including students who are in attendance pursuant to RCW 28A.335.160 and 28A.225.250 who do not reside within the servicing school district. The definition of full-time equivalent student shall be determined by rules of the superintendent of public instruction and shall be included as part of the superintendent's biennial budget request. The definition shall be based on the minimum instructional hour offerings required under RCW 28A.150.220. Any revision of the present definition shall not take effect until approved by the house ways and means committee and the senate ways and means committee.
     (d) 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.

Sec. 4   RCW 28A.150.390 and 2009 c 548 s 108 are each amended to read as follows:
     (1) The superintendent of public instruction shall submit to each regular session of the legislature during an odd-numbered year a programmed budget request for special education programs for students with disabilities. Funding for programs operated by local school districts shall be on an excess cost basis from appropriations provided by the legislature for special education programs for students with disabilities and shall take account of state funds accruing through RCW 28A.150.260 (3)(b), (c)(i) and (ii), and (d), (4)(a) and (b), ((and)) (8) ((and federal medical assistance and private funds accruing under RCW 74.09.5249 through 74.09.5253 and 74.09.5254 through 74.09.5256)), and (9).
     (2) The excess cost allocation to school districts shall be based on the following:
     (a) A district's annual average headcount enrollment of students ages birth through four and those five year olds not yet enrolled in kindergarten who are eligible for and enrolled in special education, multiplied by the district's base allocation per full-time equivalent student, multiplied by 1.15; and
     (b) A district's annual average full-time equivalent basic education enrollment, multiplied by the district's funded enrollment percent, multiplied by the district's base allocation per full-time equivalent student, multiplied by 0.9309.
     (3) As used in this section:
     (a) "Base allocation" means the total state allocation to all schools in the district generated by the distribution formula under RCW 28A.150.260 (3)(b), (c)(i) and (ii), and (d), (4)(a) and (b), ((and)) (8), and (9), to be divided by the district's full-time equivalent enrollment.
     (b) "Basic education enrollment" means enrollment of resident students including nonresident students enrolled under RCW 28A.225.225 and students from nonhigh districts enrolled under RCW 28A.225.210 and excluding students residing in another district enrolled as part of an interdistrict cooperative program under RCW 28A.225.250.
     (c) "Enrollment percent" means the district's resident special education annual average enrollment, excluding students ages birth through four and those five year olds not yet enrolled in kindergarten, as a percent of the district's annual average full-time equivalent basic education enrollment.
     (d) "Funded enrollment percent" means the lesser of the district's actual enrollment percent or twelve and seven-tenths percent.

Sec. 5   RCW 28A.150.315 and 2009 c 548 s 107 are each amended to read as follows:
     (1) Beginning with the 2007-08 school year, funding for voluntary all-day kindergarten programs shall be phased-in beginning with schools with the highest poverty levels, defined as those schools with the highest percentages of students qualifying for free and reduced-price lunch support in the prior school year. Beginning with the 2011-12 school year, funding shall continue to be phased-in incrementally each year until full statewide implementation of all-day kindergarten is achieved in the 2017-18 school year. Once a school receives funding for the all-day kindergarten program, that school shall remain eligible for funding in subsequent school years regardless of changes in the school's percentage of students eligible for free and reduced-price lunches as long as other program requirements are fulfilled. Additionally, schools receiving all-day kindergarten program support shall agree to the following conditions:
     (a) Provide at least a one thousand-hour instructional program;
     (b) Provide a curriculum that offers a rich, varied set of experiences that assist students in:
     (i) Developing initial skills in the academic areas of reading, mathematics, and writing;
     (ii) Developing a variety of communication skills;
     (iii) Providing experiences in science, social studies, arts, health and physical education, and a world language other than English;
     (iv) Acquiring large and small motor skills;
     (v) Acquiring social and emotional skills including successful participation in learning activities as an individual and as part of a group; and
     (vi) Learning through hands-on experiences;
     (c) Establish learning environments that are developmentally appropriate and promote creativity;
     (d) Demonstrate strong connections and communication with early learning community providers; and
     (e) Participate in kindergarten program readiness activities with early learning providers and parents.
     (2) Subject to funds appropriated for this purpose, the superintendent of public instruction shall designate one or more school districts to serve as resources and examples of best practices in designing and operating a high-quality all-day kindergarten program. Designated school districts shall serve as lighthouse programs and provide technical assistance to other school districts in the initial stages of implementing an all-day kindergarten program. Examples of topics addressed by the technical assistance include strategic planning, developing the instructional program and curriculum, working with early learning providers to identify students and communicate with parents, and developing kindergarten program readiness activities.

Sec. 6   2009 c 548 s 112 (uncodified) is amended to read as follows:
     (1) The legislature intends to continue to redefine the instructional program of education under RCW 28A.150.220 that fulfills the obligations and requirements of Article IX of the state Constitution. The funding formulas under RCW 28A.150.260 to support the instructional program shall be implemented to the extent the technical details of the formula have been established and according to an implementation schedule to be adopted by the legislature. The object of the schedule is to assure that any increases in funding allocations are timely, predictable, and occur concurrently with any increases in program or instructional requirements. It is the intent of the legislature that no increased programmatic or instructional expectations be imposed upon schools or school districts without an accompanying increase in resources as necessary to support those increased expectations.
     (2) The office of financial management, with assistance and support from the office of the superintendent of public instruction, shall convene a technical working group to:
     (a) Develop the details of the funding formulas under RCW 28A.150.260;
     (b) Recommend to the legislature an implementation schedule for phasing-in any increased program or instructional requirements concurrently with increases in funding for adoption by the legislature; and
     (c) Examine possible sources of revenue to support increases in funding allocations and present options to the legislature and the quality education council created in ((section 114 of this act)) RCW 28A.290.010 for consideration.
     (3) The working group shall include representatives of the legislative evaluation and accountability program committee, school district and educational service district financial managers, the Washington association of school business officers, the Washington education association, the Washington association of school administrators, the association of Washington school principals, the Washington state school directors' association, the public school employees of Washington, and other interested stakeholders with expertise in education finance. The working group may convene advisory subgroups on specific topics as necessary to assure participation and input from a broad array of diverse stakeholders.
     (4) The working group shall be monitored and overseen by the legislature and the quality education council established in ((section 114 of this act)) RCW 28A.290.010. The working group shall submit its recommendations to the legislature by December 1, 2009.
     (5) After the 2009 report to the legislature, the office of financial management and the office of the superintendent of public instruction shall periodically reconvene the working group to monitor and provide advice on further development and implementation of the funding formulas under RCW 28A.150.260 and provide technical assistance to the ongoing work of the quality education council.

Sec. 7   2009 c 548 s 302 (uncodified) is amended to read as follows:
     (1) Beginning ((July)) April 1, 2010, the office of financial management, with assistance and support from the office of the superintendent of public instruction, shall convene a technical working group to develop options for a new system of supplemental school funding through local school levies and local effort assistance.
     (2) The working group shall consider the impact on overall school district revenues of the new basic education funding system established under ((this act)) chapter 548, Laws of 2009 and shall recommend a phase-in plan that ensures that no school district suffers a decrease in funding from one school year to the next due to implementation of the new system of supplemental funding.
     (3)(a) The working group shall also examine options for a comprehensive K-12 finance policy based on the following principles:
     (i) Increasing support for public schools through the statewide property tax;
     (ii) Reducing reliance on property taxes from voter-approved excess levies;
     (iii) Removing historical inequities caused by grandfathering of levy lids in certain school districts;
     (iv) Providing a consistent source of financing to support K-12 capital facilities; and
     (v) Providing a fair and equitable means of adjusting tax burden for property-poor school districts.
     (b) The working group shall consider innovative proposals that have previously been developed, identify possible alternatives, analyze their strengths and weaknesses, and examine the impact on taxpayers in various regions of the state. The working group shall report to the quality education council and the legislature on its findings and analysis of options under this subsection (3) by November 30, 2010.
     (4) The working group shall also:
     (a) Examine local school district capacity to address facility needs associated with phasing-in full-day kindergarten across the state and reducing class size in kindergarten through third grade; and
     (b) Provide the quality education council with analysis on the potential use of local funds that may become available for redeployment and redirection as a result of increased state funding allocations for pupil transportation and maintenance, supplies, and operating costs.
     (5) The working group shall be composed of representatives from the department of revenue, the legislative evaluation and accountability program committee, school district and educational service district financial managers, and representatives of the Washington association of school business officers, the Washington education association, the Washington association of school administrators, the association of Washington school principals, the Washington state school directors' association, the public school employees of Washington, and other interested stakeholders with expertise in education finance. The working group may convene advisory subgroups on specific topics as necessary to assure participation and input from a broad array of diverse stakeholders. In addition to the staff support provided by the office of financial management and the office of the superintendent of public instruction, the department of revenue shall provide technical assistance, including financial and legal analysis, to support the working group's findings and analysis under subsection (3) of this section.
     (((4))) (6) The local funding working group shall be monitored and overseen by the legislature and by the quality education council created in ((section 114 of this act)) RCW 28A.290.010. The working group shall report to the legislature ((December 1)) June 30, 2011.

Sec. 8   RCW 43.41.398 and 2009 c 548 s 601 are each amended to read as follows:
     (1) The legislature recognizes that providing students with the opportunity to access a world-class educational system depends on our continuing ability to provide students with access to world-class educators. The legislature also understands that continuing to attract and retain the highest quality educators will require increased investments. The legislature intends to enhance the current salary allocation model and recognizes that changes to the current model cannot be imposed without great deliberation and input from teachers, administrators, and classified employees. Therefore, it is the intent of the legislature to begin the process of developing an enhanced salary allocation model that is collaboratively designed to ensure the rationality of any conclusions regarding what constitutes adequate compensation.
     (2) Beginning July 1, 2011, the office of the superintendent of public instruction, in collaboration with the office of financial management, shall convene a technical working group to recommend the details of an enhanced salary allocation model that aligns state expectations for educator development and certification with the compensation system and establishes recommendations for a concurrent implementation schedule. In addition to any other details the technical working group deems necessary, the technical working group shall make recommendations on the following:
     (a) How to reduce the number of tiers within the existing salary allocation model;
     (b) How to account for labor market adjustments;
     (c) How to account for different geographic regions of the state where districts may encounter difficulty recruiting and retaining teachers;
     (d) The role of and types of bonuses available;
     (e) Ways to accomplish salary equalization over a set number of years; and
     (f) Initial fiscal estimates for implementing the recommendations including a recognition that staff on the existing salary allocation model would have the option to grandfather in permanently to the existing schedule.
     (3) As part of its work, the technical working group shall conduct or contract for a preliminary comparative labor market analysis of salaries and other compensation for school district employees to be conducted and shall include the results in any reports to the legislature. For the purposes of this subsection, "salaries and other compensation" includes average base salaries, average total salaries, average employee basic benefits, and retirement benefits.
     (4) The analysis required under subsection (1) of this section must:
     (a) Examine salaries and other compensation for teachers, other certificated instructional staff, principals, and other building-level certificated administrators, and the types of classified employees for whom salaries are allocated;
     (b) Be calculated at a statewide level that identifies labor markets in Washington through the use of data from the United States bureau of the census and the bureau of labor statistics; and
     (c) Include a comparison of salaries and other compensation to the appropriate labor market for at least the following subgroups of educators: Beginning teachers and types of educational staff associates.
     (5) The working group shall include representatives of the department of personnel, the professional educator standards board, the office of the superintendent of public instruction, the Washington education association, the Washington association of school administrators, the association of Washington school principals, the Washington state school directors' association, the public school employees of Washington, and other interested stakeholders with appropriate expertise in compensation related matters. The working group may convene advisory subgroups on specific topics as necessary to assure participation and input from a broad array of diverse stakeholders.
     (6) The working group shall be monitored and overseen by the legislature and the quality education council created in RCW 28A.290.010. The working group shall make an initial report to the legislature by ((December 1)) June 30, 2012, and shall include in its report recommendations for whether additional further work of the group is necessary.

Sec. 9   RCW 28A.160.192 and 2009 c 548 s 311 are each amended to read as follows:
     (1) The superintendent of public instruction shall phase-in the implementation of the distribution formula under this chapter for allocating state funds to school districts for the transportation of students to and from school. The phase-in shall ((be according to the implementation schedule adopted by the legislature and shall)) begin no later than the ((2013-14)) 2011-12 school year and be fully implemented by the 2013-14 school year.
     (a) The formula must be developed and revised on an ongoing basis using the major cost factors in student transportation, including basic and special student loads, school district land area, average distance to school, roadway miles, and number of locations served. Factors must include all those site characteristics that are statistically significant after analysis of the data required by the revised reporting process.
     (b) The formula must allocate funds to school districts based on the average predicted costs of transporting students to and from school, using a regression analysis.
     (2) During the phase-in period, funding provided to school districts for student transportation operations shall be distributed on the following basis:
     (a) Annually, each school district shall receive the lesser of the previous school year's pupil transportation operations allocation, or the total of allowable pupil transportation expenditures identified on the previous school year's final expenditure report to the state plus district indirect expenses using the state recovery rate identified by the superintendent; and
     (b) Annually, any funds appropriated by the legislature in excess of the maintenance level funding amount for student transportation shall be distributed among school districts on a prorated basis using the difference between the amount identified in (a) of this subsection and the amount determined under the formula in RCW 28A.160.180.
     (((3) The superintendent shall develop, implement, and provide a copy of the rules specifying the student transportation reporting requirements to the legislature and school districts no later than December 1, 2009.
     (4) Beginning in December 2009, and continuing until December 2014, the superintendent shall provide quarterly updates and progress reports to the fiscal committees of the legislature on the implementation and testing of the distribution formula.))

NEW SECTION.  Sec. 10   A new section is added to chapter 28A.160 RCW to read as follows:
     (1) The superintendent of public instruction shall develop, implement, and provide a copy of the rules specifying the student transportation reporting requirements to the legislature and school districts no later than December 1, 2010.
     (2) Beginning in December 2010, and continuing until December 2014, the superintendent shall provide quarterly updates and progress reports to the fiscal committees of the legislature on the implementation and testing of the distribution formula.
     (3) This section expires June 30, 2015.

Sec. 11   RCW 28A.150.410 and 2007 c 403 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. For the purposes of this section, the staff allocations for classroom teachers, teacher librarians, guidance counselors, and student health services staff under RCW 28A.150.260 are considered allocations for certificated instructional staff.
     (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 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 master's degree; or
     (b) The credits were used in generating state salary allocations before January 1, 1992.
     (4) Beginning in the 2007-08 school year, the calculation of years of service for occupational therapists, physical therapists, speech-language pathologists, audiologists, nurses, social workers, counselors, and psychologists regulated under Title 18 RCW may include experience in schools and other nonschool positions as occupational therapists, physical therapists, speech-language pathologists, audiologists, nurses, social workers, counselors, or psychologists. The calculation shall be that one year of service in a nonschool position counts as one year of service for purposes of this chapter, up to a limit of two years of nonschool service. Nonschool years of service included in calculations under this subsection shall not be applied to service credit totals for purposes of any retirement benefit under chapter 41.32, 41.35, or 41.40 RCW, or any other state retirement system benefits.

Sec. 12   RCW 28A.175.010 and 2005 c 207 s 3 are each amended to read as follows:
     Each school district shall account for the educational progress of each of its students. To achieve this, school districts shall be required to report annually to the superintendent of public instruction:
     (1) For students enrolled in each of a school district's high school programs:
     (a) The number of students who graduate in fewer than four years;
     (b) The number of students who graduate in four years;
     (c) The number of students who remain in school for more than four years but who eventually graduate and the number of students who remain in school for more than four years but do not graduate;
     (d) The number of students who transfer to other schools;
     (e) The number of students in the ninth through twelfth grade who drop out of school over a four-year period; and
     (f) The number of students whose status is unknown.
     (2) Dropout rates of students in each of the grades seven through twelve.
     (3) Dropout rates for student populations in each of the grades seven through twelve by:
     (a) Ethnicity;
     (b) Gender;
     (c) Socioeconomic status; and
     (d) Disability status.
     (4) The causes or reasons, or both, attributed to students for having dropped out of school in grades seven through twelve.
     (5) The superintendent of public instruction shall adopt rules under chapter 34.05 RCW to assure uniformity in the information districts are required to report under subsections (1) through (4) of this section. In developing rules, the superintendent of public instruction shall consult with school districts, including administrative and counseling personnel, with regard to the methods through which information is to be collected and reported.
     (6) In reporting on the causes or reasons, or both, attributed to students for having dropped out of school, school building officials shall, to the extent reasonably practical, obtain such information directly from students. In lieu of obtaining such information directly from students, building principals and counselors shall identify the causes or reasons, or both, based on their professional judgment.
     (7) The superintendent of public instruction shall report annually to the legislature the information collected under subsections (1) through (4) of this section.
     (8) The Washington state institute for public policy shall calculate an annual estimate of the savings to taxpayers resulting from any improvement compared to the prior school year in the extended graduation rate, as calculated by the superintendent of public instruction. The superintendent shall include the estimate from the institute in an appendix of the report required under subsection (7) of this section, beginning with the 2010 report.

NEW SECTION.  Sec. 13   A new section is added to chapter 28A.300 RCW to read as follows:
     The office of the superintendent of public instruction shall implement and maintain an internet-based portal that provides ready public access to the state's prototypical school funding model for basic education under RCW 28A.150.260. The portal must provide citizens the opportunity to view, for each local school building, the staffing levels and other prototypical school funding elements that are assumed under the state funding formula. The portal must also provide a matrix displaying how individual school districts are deploying those same state resources through their allocation of staff and other resources to school buildings, so that citizens are able to compare the state assumptions to district allocation decisions for each local school building.

Sec. 14   2009 c 548 s 805 (uncodified) is amended to read as follows:
     Sections 304 through 311 of this act take effect September 1, ((2013)) 2011.

NEW SECTION.  Sec. 15   2009 c 548 s 112, as amended by section 6 of this act, is codified as a section in chapter 28A.290 RCW.

NEW SECTION.  Sec. 16   RCW 43.41.398 is recodified as a section in chapter 28A.400 RCW.

NEW SECTION.  Sec. 17   Sections 3, 4, 5, 9, and 11 of this act take effect September 1, 2011.

NEW SECTION.  Sec. 18   Section 7 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."