SENATE BILL REPORT

HB 2043

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 of Second Reading

Title: An act relating to temporarily suspending inflationary increases in educational employee compensation.

Brief Description: Temporarily suspending inflationary increases in educational employee compensation.

Sponsors: Representatives Hunter and Sullivan.

Brief History: Passed House: 6/27/13, 54-36.

Committee Activity: Ways & Means:

SENATE COMMITTEE ON WAYS & MEANS

Staff: Elise Greef (786-7708)

Background: Initiative 732 Cost-of-Living Adjustments. Initiative 732 (I-732) was approved by voters in the November 2000 general election. It required the state to provide an annual cost-of-living adjustment (COLA) for K-12 teachers and other public school employees, as well as community and technical college academic employees and classified employees at technical colleges. The COLA is based on the Seattle-area Consumer Price Index (CPI) from the most recently-completed calendar year.

The I-732 COLA has been suspended during three biennia since being approved by voters. The suspensions occurred during the 2003-05, 2009-11, and 2011-13 biennia. The I-732 COLA adjustments assumed in the 2013-15 maintenance level budget are 2.5 percent for the 2013-14 school year, and 1.8 percent for the 2014-15 school year.

National Board for Professional Teaching Standards Program. The National Board for Professional Teaching Standards (NBPTS) program provides an opportunity for teachers to seek an advanced teaching credential by undertaking a rigorous application process. Once earned, the certification is valid for ten years.

Washington is in its thirteenth year of participation in the NBPTS program. In 2000 Washington had 71 NBPTS-certified teachers. The Office of the Superintendent of Public Instruction (OSPI) projects 5501 teachers will be certified in the 2013-14 school year, and approximately 575 teachers will become newly certified in the 2013-14 school year. Adjusting for inflation, the bonus for the 2013-14 school year is $5,510, up from $5,090.

Summary of Bill: The I-732 COLAs are suspended for the 2013-14 and 2014-15 school years for K-12 employees and for the 2014 and 2015 fiscal years for applicable higher education employees. Inflation adjustments to the NBPTS certification bonus are also suspended for the 2013-14 and 2014-15 school years.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: None.

Effective Date: The bill contains an emergency clause and takes effect on July 1, 2013.