BILL REQ. #:  S-3779.2 

Read first time 01/19/12.   Referred to Committee on Ways & Means.

     AN ACT Relating to improving budget sustainability by modifying education funding mandates; amending RCW 28A.505.220 and 43.135.045; amending 2010 1st sp.s. c 27 s 1 (uncodified); repealing RCW 28A.400.205, 28A.400.206, 28B.50.465, and 28B.50.468; and providing an effective date.

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

Sec. 1   RCW 28A.505.220 and 2011 1st sp.s. c 17 s 1 are each amended to read as follows:
     (1) Total distributions for the student achievement program from the general fund to each school district shall be based upon the average number of full-time equivalent students in the school district during the previous school year as reported to the office of the superintendent of public instruction by August 31st of the previous school year. The superintendent of public instruction shall ensure that moneys generated by skill center students are returned to skill centers.
     (2) The allocation rate per full-time equivalent student shall be three hundred dollars in the 2005-06 school year, three hundred seventy-five dollars in the 2006-07 school year, and four hundred fifty dollars in the 2007-08 school year. For each subsequent school year, the amount allocated per full-time equivalent student shall be adjusted for inflation by the implicit price deflator as published by the federal bureau of labor statistics. However, ((for the 2011-12 and 2012-13 school years)) beginning with the 2012-13 school year, the amount allocated per full-time equivalent student shall be as specified in the omnibus appropriations act. These allocations per full-time equivalent student shall be supported from the distributions from the education legacy trust account created in RCW 83.100.230 and the state general fund.
     (3) The school district annual amounts as defined in subsection (2) of this section shall be distributed on the monthly apportionment schedule as defined in RCW 28A.510.250.

Sec. 2   RCW 43.135.045 and 2011 1st sp.s. c 50 s 950 are each amended to read as follows:
     The education construction fund is hereby created in the state treasury.
     (1) Funds may be appropriated from the education construction fund exclusively for common school construction or higher education construction. During the 2007-2009 fiscal biennium, funds may also be used for higher education facilities preservation and maintenance. During the 2009-2011 and 2011-2013 fiscal biennia, the legislature may transfer from the education construction fund to the state general fund such amounts as reflect the excess fund balance of the fund.
     (2) Funds may be appropriated for any other purpose only if approved by a two-thirds vote of each house of the legislature and if approved by a vote of the people at the next general election. An appropriation approved by the people under this subsection shall result in an adjustment to the state expenditure limit only for the fiscal period for which the appropriation is made and shall not affect any subsequent fiscal period.
     (3) Funds for the student achievement program in RCW 28A.505.210 and 28A.505.220 shall be appropriated to the superintendent of public instruction strictly for distribution to school districts to meet the provisions set out in the student achievement act. Allocations shall be made on an equal per full-time equivalent student basis to each school district.
     (((4) After July 1, 2010, the state treasurer shall transfer one hundred two million dollars from the general fund to the education construction fund by June 30th of each year.))

Sec. 3   2010 1st sp.s. c 27 s 1 (uncodified) is amended to read as follows:
     The legislature finds that institutions of higher education are key to the future employment opportunities of Washington citizens and to the economic well-being of the state. The legislature finds that the recruitment of entrepreneurial researchers at institutions of higher education and the formation of research innovation teams will further enhance faculty recruitment and economic development. The legislature further finds that current financial aid and early childhood education programs are underfunded and subject to the unpredictability of the state budget. It is the intent of the legislature to direct lottery account moneys toward the Washington opportunity pathways account and that those funds stabilize and increase existing resources for the recruitment of entrepreneurial researchers, innovation partnership zones and research teams, early childhood education, opportunity grants, educational opportunity grants, get ready for math and science scholarships, passport to college promise scholarships, college bound scholarships, the state work study program, the state need grant, Washington scholars awards, the Washington award for vocational excellence, and Washington promise scholarships. ((It is also the intent of the legislature to continue funding the education construction fund by redirecting a portion of general state revenues to that fund.))

NEW SECTION.  Sec. 4   The following acts or parts of acts are each repealed:
     (1) RCW 28A.400.205 (Cost-of-living increases for employees) and 2011 1st sp.s. c 18 s 1, 2009 c 573 s 1, 2003 1st sp.s. c 20 s 1, & 2001 c 4 s 2;
     (2) RCW 28A.400.206 (Cost-of-living increases -- Duty of state) and 2003 1st sp.s. c 20 s 2 & 2001 c 4 s 1;
     (3) RCW 28B.50.465 (Cost-of-living increases -- Academic employees) and 2011 1st sp.s. c 18 s 2, 2009 c 573 s 2, 2003 1st sp.s. c 20 s 3, & 2001 c 4 s 3; and
     (4) RCW 28B.50.468 (Cost-of-living increases -- Classified employees) and 2011 1st sp.s. c 18 s 3, 2009 c 573 s 3, 2003 1st sp.s. c 20 s 4, & 2001 c 4 s 4.

NEW SECTION.  Sec. 5   Section 1 of this act takes effect July 1, 2012.