SENATE BILL REPORT
ESHB 2494
As Reported by Senate Committee On:
Early Learning & K-12 Education, February 21, 2024
Title: An act relating to state funding for operating costs in schools.
Brief Description: Increasing state funding for operating costs in schools.
Sponsors: House Committee on Appropriations (originally sponsored by Representatives Bergquist, Rude, Simmons, Senn, Pollet, Callan, Paul, Macri, Stonier and Gregerson).
Brief History: Passed House: 2/13/24, 80-17.
Committee Activity: Early Learning & K-12 Education: 2/19/24, 2/21/24 [DPA-WM, w/oRec].
Brief Summary of Amended Bill
  • Updates and increases per pupil amounts for materials, supplies, and operating costs in state prototypical school funding formulas beginning in the 2023-24 school year.
SENATE COMMITTEE ON EARLY LEARNING & K-12 EDUCATION
Majority Report: Do pass as amended and be referred to Committee on Ways & Means.
Signed by Senators Wellman, Chair; Nobles, Vice Chair; Wilson, C., Vice Chair; Hawkins, Ranking Member; Dozier, Hunt, Mullet and Pedersen.
Minority Report: That it be referred without recommendation.
Signed by Senator McCune.
Staff: Alex Fairfortune (786-7416)
Background:

State school funding formulas include allocations per annual average full-time equivalent student for maintenance, supplies, and operating costs (MSOC).  There are several categories of MSOC specified in state formulas and updated inflation-adjusted values are provided in the operating budget.  For the 2023-24 school year, total general education MSOC per pupil is anticipated to be $1,483.44.

 

The 2023-24 MSOC amounts by category, as listed in the operating budget, are: 

  • $178.98 for technology;
  • $416.26 for utilities and insurance;
  • $164.48 for curriculum and textbooks;
  • $326.54 for other supplies;
  • $22.65 for library materials;
  • $25.44 for instructional professional development for certified and classified staff;
  • $206.22 for facilities maintenance; and
  • $142.87 for security and central office.

 

The technology category includes $25 per pupil outside the state's program of basic education that was added in the 2022-23 school year above statutorily required amounts.

Additional MSOC amounts are provided for students in grades 9 through 12 and students enrolled in career and technical education courses and skill centers.
Summary of Amended Bill:

The MSOC per pupil amounts defined in state prototypical formulas are updated in statute to the 2023-24 school year and include a $21 per pupil increase, from $1,483.44 to $1,504.44 per pupil. The increased MSOC allocation amount of $21 per pupil is intended to address growing costs in the enumerated categories and may not be expended for any other purpose.  The $25 per pupil increase provided for technology in 2022-23 is added to statute.  

The new 2023-24 general education MSOC per pupil amounts by category are:

  • $178.98 for technology;  
  • $430.26 for utilities and insurance;
  • $164.48 for curriculum and textbooks;
  • $326.54 for other supplies;
  • $22.65 for library materials;
  • $28.94 for instructional professional development for certified and classified staff;
  • $206.22 for facilities maintenance; and
  • $146.37 for security and central office.

 

The full amount of MSOC provided in the 2023-24 school year under the bill, including additional amounts, must be provided in that school year.  The first month's MSOC payment after the bill is enacted must include the additional amounts from the beginning of the 2023-24 school year through that month.
EFFECT OF EARLY LEARNING & K-12 EDUCATION COMMITTEE AMENDMENT(S):
  • Provides that the increased MSOC allocation amount of $21 per student is intended to address growing costs in the enumerated categories and may not be expended for any other purpose.
Appropriation: The bill contains a null and void clause requiring specific funding be provided in an omnibus appropriation act.
Fiscal Note: Available.  New fiscal note requested on February 15, 2024.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony on Engrossed Substitute House Bill:

The committee recommended a different version of the bill than what was heard. PRO: MSOC will help every district across the state with rising costs that they have no control over. For example, four years ago insurance costs were $142 million and this year they are $228 million. This is a modest step in what we can do to help districts with their loss of students and loss of COVID relief dollars. Children can't learn until their basic needs are met. The real need is $400/student and this bill provides $21/student. This is a small step compared to the overall need. MSOC allocations have failed to keep pace with inflation. It is not an issue of mismanagement, it is a lack of resources. There is a 30-60 percent funding gap for MSOC in Whatcom County school districts.
 
CON: More money is not the problem. The average per-student dollar amount has doubled but educators continue to underperform, which is reflected in the OSPI report card. Raising the budget will not raise academics. 45 percent of state taxes go to the public school system already. Education rot starts in the Legislature.
 
OTHER: Each year insurance and utilities increase anywhere from 9-54 percent.
Persons Testifying:

PRO: Representative Steve Bergquist, Prime Sponsor; Melissa Gombosky, Spokane, Evergreen, Vancouver and Richland School District; Jim Kowalkowski, Rural Education Center; Nikki Lockwood, Washington State School Directors' Association; Charlie Brown, South Sound Superintendents and Skills Centers Directors; Mitch Denning, Alliance of Educational Associations; Doug Vanderleest, WA Asssociation of Maintenance and Operation Administrators; Justin Mckaughan; James Everett, Meridian School District.

CON: John Axtell; Leslie Williams, Conservative Ladies of WA.
OTHER: LYNETTE BROWER, WA State Skills Center Association.
Persons Signed In To Testify But Not Testifying: PRO: Michelle Harris, Washington State PTA; Lacey Stanage, School Alliance.