HOUSE BILL REPORT
SHB 1347
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
As Passed Legislature
Title: An act relating to financial education.
Brief Description: Regarding financial education.
Sponsors: House Committee on Ways & Means (originally sponsored by Representatives Santos, Roach, Morrell, Moeller, Chase and Roberts).
Brief History:
Committee Activity:
Education: 1/27/09, 2/6/09 [DPA];
Ways & Means: 2/24/09, 2/27/09 [DPS(WAYS)].
Floor Activity
Passed House: 3/9/09, 78-19.
Senate Amended.
Passed Senate: 4/17/09, 38-7.
House Concurred.
Passed House: 4/21/09, 78-20.
Passed Legislature.
Brief Summary of Substitute Bill |
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HOUSE COMMITTEE ON EDUCATION |
Majority Report: Do pass as amended. Signed by 11 members: Representatives Quall, Chair; Probst, Vice Chair; Hope, Assistant Ranking Minority Member; Cox, Dammeier, Hunt, Johnson, Liias, Maxwell, Santos and Sullivan.
Staff: Barbara McLain (786-7383)
HOUSE COMMITTEE ON WAYS & MEANS |
Majority Report: The substitute bill by Committee on Ways & Means be substituted therefor and the substitute bill do pass. Signed by 15 members: Representatives Linville, Chair; Ericks, Vice Chair; Cody, Conway, Darneille, Haigh, Hunt, Hunter, Kagi, Kenney, Kessler, Pettigrew, Priest, Seaquist and Sullivan.
Minority Report: Do not pass. Signed by 7 members: Representatives Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Chandler, Hinkle, Ross and Schmick.
Staff: Ben Rarick (786-7349)
Background:
The Financial Literacy Public-Private Partnership (FLPPP) was created in 2004 to adopt a definition of financial literacy and identify strategies to increase financial literacy of public school students. The FLPPP is made up of four legislators, four representatives from the financial services sector, four educators, and one designee from the Office of the Superintendent of Public Instruction (OSPI) and the Department of Financial Institutions. Since 2006 the Legislature has appropriated $50,000 per year to support the FLPPP, which has been matched by private sources from the FLPPP Account established in the custody of the State Treasurer for this purpose.
To date, the FLPPP has focused on adopting a definition of financial literacy, examining financial education curriculum for alignment with Washington's learning standards, examining financial literacy learning standards that have been developed in other states and by national organizations, and providing and encouraging professional development and workshops in financial literacy for educators. As a result of legislation enacted in 2007, "understanding the importance of work and finance...." appears as one of the goals of Basic Education. In 2008 financial literacy was included within Washington's 7th grade Grade Level Expectations for social studies and economics. The State Board of Education adopts high school graduation requirements; financial literacy is not currently specifically required, but might be included in a number of courses such as social studies, career and technical education, mathematics, or other elective courses taken by students.
The JumpStart Coalition is a national organization that promotes financial education and is composed of over 180 public and private partners with state affiliates, including one in Washington. The JumpStart Coalition has adopted personal financial literacy learning standards for grades K-12.
The FLPPP is scheduled to expire June 30, 2009.
Summary of Substitute Bill:
The Financial Education Public-Private Partnership (Partnership) is established, which replaces the Financial Literacy Public-Private Partnership (FLPPP). The Partnership is composed of four members of the Legislature; four representatives from the financial services sector appointed by the Governor; four teachers appointed by the Superintendent of Public Instruction (SPI); one representative from the Department of Financial Institutions; and two representatives from the Office of the Superintendent of Public Instruction (OSPI), one from curriculum development and one from teacher professional development.
Members are to be appointed by August 1, 2009, and the chair is selected from among the legislative members. To the extent funds are available, the Partnership can hire a staff person, who would be housed in the OSPI only for administrative purposes. The FLPPP Account (Account) is renamed and the SPI can authorize expenditures from the Account only at the direction of the Partnership.
The duties of the FLPPP are repealed. The following duties are assigned to the Partnership, to be conducted to the extent funds are available:
communicate financial education standards and strategies for improving financial education to school districts;
review financial education curriculum;
develop evaluation standards and a procedure for endorsing financial education curriculum;
identify assessments and outcome measures that schools can use to determine whether students meet financial education standards;
monitor and provide guidance for professional development;
work with the OSPI and the Professional Educator Standards Board to create professional development that leads to a certification in financial education;
develop guidelines and protocols for classroom volunteers providing financial education; and
submit an annual report by December 1 of each year.
If funds are appropriated, the OSPI and the FEP provide technical assistance and grants to support up to four school districts conducting demonstration projects for district-wide adoption and implementation of the JumpStart Coalition National Standards in K-12 Personal Finance Education. The selected districts must integrate financial education at all grades in all schools in the district, establish local partnerships in the community to promote financial education, and conduct pre- and post-testing of students' financial literacy.
The termination date of the FLPPP is repealed.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony (Education):
(In support) The Basic Education Goal now states specifically that students should have the opportunity to understand the importance of work and finance. We see all too clearly that a little financial education is the equivalent of an ounce of prevention in today's economy. The FLPPP has completed its duties and now can be assigned new duties. The large fiscal note only occurs if the state imposes adoption of the standards and represents the necessary curriculum and professional development to make implementation a reality. In the meantime, school districts are encouraged to adopt the standards. Many studies indicate that the average American is simply not equipped to make even small financial decisions. They are living beyond their means and are not able to manage credit. The FLPPP accomplished much through the strength of the partnership, even with very few resources: a definition, professional development, financial literacy questions on state assessments, a website with a great deal of information, recommendations for curriculum and content standards, and a communication plan. There has been substantial progress and this valuable work should continue.
(Oppose) None.
Staff Summary of Public Testimony (Ways & Means):
(In support) The Financial Literacy Public-Private Partnership is bipartisan in nature and includes representation from a wide cross-section of stakeholders. This is an important program because consumers need to be educated on how to make wise choices with money. The bill includes language making the adoption of the financial literacy standards voluntary if funding is not provided. An amendment by Representative Haigh would establish pilot demonstration projects in different parts of the state to see how effective this approach could be. The Office of the Superintendent of Public Instruction supports this bill. Current economic conditions make this type of education more important. There are some programs in the state that already address financial literacy issues through subjects like vocational and technical education, but more is needed. The basic education goals in statute now include understanding the importance of work and finance. Personal consumer spending over the last few years has increased at a staggering rate, and outpaces personal income substantially. Clearly, education in this area is needed. Teachers don't have the time and resources to teach these principles on their own time.
(Opposed) None.
Persons Testifying (Education): Representative Santos, prime sponsor; Pamela Whalley, Western Washington University; Linda Jekel, Department of Financial Institutions; Kristin Mowat, Washington Bankers Association; Kathleen Lopp, Office of the Superintendent of Public Instruction; and Stacy Augustine, Washington Credit Union League.
Persons Testifying (Ways & Means): Representative Santos, prime sponsor; Kathleen Lopp, Office of the Superintendent of Public Instruction; and Melanie Hess, Junior Achievement JumpStart.
Persons Signed In To Testify But Not Testifying (Education): None.
Persons Signed In To Testify But Not Testifying (Ways & Means): None.