SENATE BILL REPORT

SB 5379

As Reported by Senate Committee On:

Early Learning & K-12 Education, February 12, 2009

Title: An act relating to equalizing school district salary allocations.

Brief Description: Equalizing school district salary allocations. [Revised for 1st Substitute: Equity in school district salary allocations.]

Sponsors: Senators Eide, McAuliffe and Hobbs.

Brief History:

Committee Activity: Early Learning & K-12 Education: 2/02/09, 2/12/09 [DPS-WM, w/oRec].

Majority Report: That Substitute Senate Bill No. 5379 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

Signed by Senators McAuliffe, Chair; Kauffman, Vice Chair, Early Learning; Oemig, Vice Chair, K-12; Hobbs, Jarrett, McDermott and Roach.

Minority Report: That it be referred without recommendation.

Signed by Senators King, Ranking Minority Member; Brandland, Holmquist and Tom.

Staff: Brandon Roche (786-7405)

Background: Salary Allocations. Included in state basic education allocations to school districts are amounts for salaries for Certificated Instructional Staff (CIS), which includes teachers, counselors, and librarians; Certificated Administrative Staff (CAS); and classified staff. The allocations for CIS are based on a salary allocation schedule, or grid, that recognizes experience and education. The first cell in the grid, for those with a bachelor's degree and in their first year of teaching, is referred to as the base salary. Most school districts receive CIS salary allocations based on the statewide salary allocation schedule. However, 13 of the state's 295 school districts receive higher salary allocations for CIS.

In the case of CAS and classified staff (such as bus drivers, food service workers, custodial staff, classroom aides), there is not a state base salary allocation schedule. However, each district receives an allocation for these staff based on historical salary allocations adjusted for cost-of-living increases. This means that there are variations in the salary levels used for allocating administrator and classified staff positions from district to district.

Levy Lids. In 1977 when the state assumed full responsibility for funding schools, the Legislature limited school district maintenance and operation levy authority by enacting the levy lid law. This law determines the maximum amounts school districts can collect through local maintenance and operation levies. Under current law, most districts may ask the voters to approve an amount equal to 24 percent of the district's levy base. There are 90 school districts that are grandfathered at higher percentages ranging from 24.01 percent to 33.9 percent. A district's levy base includes most state and federal revenues received by the district in the prior school year. The levy lid formula increases the base by multiplying the district's state and federal revenues by the percentage change in per student state expenditures between the prior and current school years, divided by 55 percent.

Summary of Bill: The bill as referred to committee not considered.

Summary of Bill (Recommended Substitute): In the 2009-10 school year, each school district that received a base salary allocation for CIS, CAS, or classified staff that was below the highest base salary allocation for all school districts in the 2008-09 school year, according to LEAP Document 2 referenced in the biennial budget, will receive an additional allocation sufficient to make up one-sixth of the district's salary allocation level and the highest salary allocation level for each of the three staffing groups. In each school year after that, an additional one-sixth of the difference will continue to be added to the salary allocations until all school districts reach the highest allocation in all three salary allocation categories in 2014-15.

For purposes of calculating levy authority in calendar years 2010 through 2015, a school district's levy base will also include the difference between the salary allocations received in the prior school year and salary allocation amounts that would have been received had the district's basic education allocations been based on the highest salaries for state allocation purposes for CIS, CAS, and classified staff.

Every school district, on an annual basis, must provide the Office of the Superintendent of Public Instruction with a report outlining the total compensation and taxable benefits it pays to each individual staff member it employs. This includes the total salary and compensation from supplemental contracts, and any additional salary compensation, including, but not limited to payment for coaching, payment for helping with extracurricular activities, or payment for working with before or after school programs, paid to each individual staff member by the school district and reported on the employee's federal W2 forms.

Appropriation: None.

Fiscal Note: Requested on January 27, 2009.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: This is an equity issue. Federal Way and other school districts have been left out for years and the inequities in salary allocation persist today. We fully support this bill. We support the timeline. The equalization is in line with the Office of the Superintendent of Public Instruction's goals. This has been a major priority for a while; the current system is irrational. We agree with ending the grandfathering of districts at unequal levels.

Persons Testifying: PRO: Senator Eide, prime sponsor; Tom Murphy, Sally McLean, Federal Way Public Schools; Ken Kanikberg, Office of Superintendent of Public Instruction; Dan Steele, Washington State School Directors Association; Barbara Mertens, Washington Association of School Administrators; Doug Nelson, Public School Employees SEIU 1948; Jim Kainber, Stand for Children; Jerry Bender, Association of Washington School Principals.