Brief Summary of Engrossed Substitute Bill

Provides that increased instructional hours in Basic Education will be phased-in starting no earlier than the 2014-15 school year.
Allows the funding formula for the Transitional Bilingual Instructional Program to provide differential per-student allocations based on students' need for intervention, as directed in the operating budget and regardless of the statutory formula.
Modifies the pupil transportation funding formula to include only statistically significant cost factors, state allocations for compensation, and a federal rather than state indirect cost rate.
Provides support for career and technical education student organizations to the extent funding is available.
Repeals an intent section from 2010 legislation establishing a statutory schedule for increased funding for specified Basic Education programs.

Background:

Basic Education and K-12 Funding Formulas. In 2009 legislation was enacted that provided an outline of new funding formulas to support Basic Education and modifed the Instructional Program of Basic Education that must be provided by all school districts. Among the changes is to require school districts to increase minimum instructional hours from a districtwide annual average of 1,000 hours, to 1,000 hours for grades 1 through 6 and 1,080 hours for grades 7 through 12. This increase is to occur according to an implementation schedule adopted by the Legislature. A schedule has not yet been adopted. Also within this legislation a new transportation funding formula was adopted to predict pupil transportation costs based on regression analysis, to take effect September 1, 2011.

In 2010 subsequent legislation (Chapter 236, Laws of 2010 or Substitute House Bill 2776) was enacted to implement the details of the revised Basic Education funding formulas. The phase-in of funding enhancements to certain aspects of the funding formulas was specified in the legislation, including K-3 class size, allocations for maintenance, supplies, and operating costs, implementation of all-day kindergarten, and implementation of the new pupil transportation funding formula were included in the legislation. For the Transitional Bilingual Instructional Program (TBIP), the funding formulas provide for an allocation based on a specified number of supplemental hours of instruction per week per eligible student in a specified class size.

Science Assessments. Beginning with the graduating class of 2013, students will be required to meet the state standard on the high school assessments in all four subjects of reading, writing, mathematics, and science to earn a Certificate of Academic Achievement (CAA). Students in special education who are not appropriately tested by the regular assessment may earn a Certificate of Individual Achievement (CIA). Unless exceptions are provided, earning the CAA or CIA is a requirement for graduation.

Career and Technical (CTE) Student Organizations. The Office of the Superintendent of Public Instruction (OSPI) must provide staff support for statewide coordination of CTE student organizations, including but not limited to the National FFA Organization; Family, Career, and Community Leaders of America; SkillsUSA; Distributive Education Clubs of America; Future Business Leaders of America; and the Technology Student Organization.

Special Services Pilot Program. In 2003 the Legislature authorized and funded two school districts to pilot programs of early and intensive intervention services with the intent to reduce the number of students who may eventually require special education services. The pilot program was originally to expire June 30, 2007. In 2007 the Legislature reauthorized, expanded, and funded the pilot program for seven school districts. The expanded pilot program is to expire June 30, 2011.

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Summary of Bill:

Basic Education and K-12 Funding Formulas. The required increase in minimum instructional hours under the Instructional Program of Basic Education continues to occur according to an implementation schedule adopted by the Legislature, but not before the 2014-15 school year.

The pupil transportation funding formula is adjusted as follows:

The new formula includes statistically significant factors only.
The growth in salaries and benefits in the allowable prior year expenditures will not exceed the growth provided for in the operating budget.
During the transition to full implementation, in-lieu bus depreciation payments to contracting districts are not included in the reported prior year expenditures, and the indirect-cost rate added to the final prior year expenditures is specified as the federal restricted indirect rate.

The funding formula for the TBIP provides that, notwithstanding the requirement that funding allocations provide a statewide average number of hours per week of instruction, the actual per-student allocation may be scaled for a larger allocation for students needing more intensive intervention and a commensurate reduced allocation for those needing less intensive intervention, as specified in the operating budget.

The intent section from 2010 legislation establishing the details of funding formulas and the phase-in of specific funding enhancements is repealed.

Science Assessments. Students in the graduating class of 2015, rather than 2013, will be required to meet the state standard on the high school science assessment in order to earn a CAA or CIA and for purposes of graduation.

CTE Student Organizations. The SPI is responsible for staffing the CTE student organizations only to the extent that funds are available.

Special Services Pilot Program. The special services pilot program expires March 1, 2011, instead of June 30, 2011.