SENATE BILL REPORT
E2SHB 455
BYHouse Committee on Ways & Means (originally sponsored by Representatives Ebersole, Holm, Peery, Cole, Appelwick, Pruitt, Hine, Locke and Unsoeld; by request of Governor Gardner)
Enhancing the financing and management of the states' schools.
House Committe on Education
Rereferred House Committee on Ways & Means
Senate Committee on Education
Senate Hearing Date(s):April 2, 1987
Majority Report: Do pass as amended and refer to Committee on Ways & Means.
Signed by Senators Gaspard, Chairman; Bauer, Vice Chairman; Rinehart, Vice Chairman; Bender, Smitherman, Warnke.
Senate Staff:Don Bennett (786-7424)
April 7, 1987
Senate Committee on Ways & Means
Senate Hearing Date(s):April 16, 1987
Majority Report: Do pass as amended.
Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Fleming, Kreidler, Moore, Owen, Rinehart, Talmadge, Vognild, Warnke, Williams, Wojahn.
Senate Staff:Mike Williams (786-7439)
April 16, 1987
AS REPORTED BY COMMITTEE ON WAYS & MEANS, APRIL 16, 1987
BACKGROUND:
A series of levy failures in larger school districts during the mid-1970's preceded the original Seattle school funding court case and the passage of the 1977 Basic Education Act. Also in 1977 the Legislature enacted a plan to phase down districts' maintenance and operations levies to a maximum of 10 percent of state allocations. The 1977 act granted most districts "grandfather" levy authority above 10 percent, in order to cushion the levy lid's immediate impact on district revenues. In the intervening decade, the levy lid statute has been amended a number of times to postpone the phase-down to 10 percent.
Most recently, in 1985, the Legislature amended the Levy Lid Act to hold districts' maximum levy percentages constant for 1986 through 1988 at the district's 1985 levy percentage, or the 1985 state or Educational Service District average, whichever is greater. An effect of this change is that the levy lid is currently higher than 18 percent in all districts. The 1985 legislation retained the goal of a phase-down to 10 percent, however. Without further amendments, a phase-down in levy capacity would resume in 1989, with a 10 percent lid implemented in 1993.
The Governor also appointed an Advisory Council on School Funding in 1985, to study and make recommendations on school funding issues. In discussing the role of levies, the council addressed the issue of disparities in local taxing effort. Currently, a district with a low assessed valuation per pupil must assess a higher tax rate to support the same program level that a district with a high assessed valuation per pupil can support at a lower tax rate.
The Governor's Advisory Council also considered the issues of state allocation formulas and school employees' salaries.
In the legislative budget adopted in 1985, the staffing allocation for kindergarten through third grade was increased to 51 certificated staff per thousand students, effective in the 1986-87 school year. The statutory formula in the Basic Education Act remains at 50 certificated staff per thousand students.
Since 1981 the Legislature has limited salary increases granted by school districts to the increases provided in the state appropriations bill. The state has controlled average salary levels for certificated and classified staff, and since 1984, has prohibited school districts from distributing salary increases disproportionately to administrators. Within these limits, school districts have maintained their own salary schedules. In the 1986 supplemental budget, the Legislature provided funding to establish a minimum teachers salary of $16,500 for all districts.
SUMMARY:
The bill addresses the areas of school levy lids, levy equalization, staffing ratios, and school employees' salaries.
The five-year phase-down of school levies to 10 percent of state allocations is eliminated, and replaced with an indefinite phase- down to a 20 percent lid. Districts below 20 percent would be authorized to go up to 20 percent, effective for levies collected in calendar year 1989. Other districts would be authorized to retain current levy percentages up to 30 percent, with phase-down occurring only as state allocation formulas are enhanced. Enhancements in state allocations, other then enrollment or workload increases, compensation increases, or inflationary adjustments, count as "levy reduction funds".
Furthermore, the bill establishes a new base for computing a district's levy lid. Formerly, the district's lid was calculated by multiplying the levy percentage by the district's state allocations for the prior school year. The new base under the bill includes most federal as well as state allocations (Federal Impact Aid monies, or Public Law 874 funds, are not included). Also, the bill contains a statewide factor for adjusting districts allocations to a current year rather than prior year basis. While the other enhancements to the levy base are effective for levies collected in 1989 and thereafter, the current year adjustment also applies to levies collected in 1988.
The bill establishes a state program of levy equalization, to be implemented for levies collected in calendar year 1989. This program provides state matching funds, based on local effort, to districts with an assessed valuation per pupil which is below the statewide average. Levies above 10 percent would not be matched with state equalization funds.
In the area of state basic education funding formulas, the bill splits the certificated staff allocation of 50 per thousand students into 46 instructional staff and 4 administrative staff. In addition, for allocations based upon kindergarten through grade three enrollment, the instructional staffing ratio is increased to 48 instructional staff per thousand students in the 1987-88 school year and 49 instructional staff per thousand students in the 1988-89 school year.
Districts shall maintain minimum staffing ratios of 45 instructional staff per thousand students in the 1987-88 school year, and 46 instructional staff per thousand students in the 1988-89 school year and thereafter. The staffing ratio for the 1988-89 school year shall take effect only if an additional appropriation is made for this purpose.
The bill establishes a base contract year of at least 185 days, for all certificated staff. Funds for certificated instructional staff salaries shall be distributed using a statewide salary allocation schedule, for allocation purposes only, established in the appropriations bill. Any salary factor in the statewide salary allocation schedule for an employee with a masters degree shall not be less than the highest salary factor for an employee with a baccalaureate degree and the same number of years of experience. No district shall receive an allocation which is less than its 1986-87 average salary level, and the Legislature may grant minimum salary increases on that base.
Although the statewide salary allocation schedule is for allocation purposes only, minimum salary levels are established. No certificated instructional employee may be paid less than the statewide salary schedule amount for an employee with a BA and zero years of experience. No certificated instructional employee with a masters degree may be paid less than the schedule amount for an employee with an MA and zero years of experience.
The bill removes salary compliance provisions for school district administrative and classified staff. For certificated instructional staff, it prohibits school districts from providing an average salary which exceeds the average salary level allocated by the state. Also, fringe benefits at the level funded by the state or actual fringe benefit level for the prior school year are to be considered salary for compliance purposes. Districts may exceed these salary limitations only by supplemental contracts for additional time, additional responsibility, or incentives. Supplemental contracts shall be for one year only, and shall not be provided for services which are a necessary part of the constitutionally mandated basic education program.
Provisions regarding additional staffing allocations for grades K-3, 185 contract days, and higher salary factors for employees with masters degrees shall not take effect unless implemented in the appropriations bill.
School districts shall conduct a study of their compensation practices for classified staff. The study shall include job analysis and pay equity analysis. School districts shall report the results of their studies to the Superintendent of Public Instruction by August 1, 1989. The Superintendent of Public Instruction shall assist in the studies by providing technical assistance and compiling the data for a report to the legislature by December 15, 1989.
School districts may place before the electorate a two-year maintenance and operation levy, and/or a levy to support the construction, modernization, or remodeling of school facilities at a special or general election.
SUMMARY OF PROPOSED EDUCATION COMMITTEE AMENDMENT:
For excess levies to be collected in 1988, districts maintain levy capacity provided in the 1985 freeze legislation, RCW 84.52.0531(5). A district's base levy rate is the greater of its actual levy rate, the educational service district average levy rate, or the statewide average levy rate.
A district's levy capacity in dollars is determined by multiplying the levy rate times the prior year's state basic education allocation, plus allocations for pupil transportation, handicapped education, gifted and compensatory programs, plus the percent increase per full time student in the basic education appropriation from the prior school year to the current school year.
Maximum local levies are limited to 20 percent beginning with the 1989 collection year. Levy base, for determining capacity, is increased to include direct federal grants and to reflect percentage enrollment increases. The levy amount is then reduced by the amount of local effort assistance funding received in 1987.
Districts whose current levy rates exceed 20 percent are to reduce levy percentages by one-fifth of the percentage points above 20 percent in each successive biennium until all districts are down to the 20 percent maximum by 1997. Districts with levy rates in excess of 30 percent in 1987 will reduce rates to 30 percent for levies in 1988, to be collected in 1989.
The state will equalize the first 10 percent of any levy in an eligible low-assessed district. The local effort assistance (LEA) provided by the state is deducted from a district's levy capacity. The district receives the difference between its tax rate and the state average tax rate; times the assessed valuation of the district. Any remaining levy amount to be raised is assessed at the actual tax rate.
The state's basic education funding formula is increased over a ten-year period, to generate 55 certificated employees per 1,000 full-time equivalent students in 1997-1999. Classified employees continue to be funded at one per three certificated employees. The allocation system is separated into certificated administrative staff (at four per 1,000 in each biennium for districts enrolling more than 1,750 and on a sliding formula for districts with less students) and certificated instructional staff (beginning at 46 per 1,000 and increasing by one additional instructional staff per 1,000 FTE students each biennium, until reaching 51 instructional staff per student in 1997-98 in grades K-12). Until full implementation, the K-3 funding ratio will exceed the 4-12 funding ratio by one certificated employee per 1,000 students. In the second year of each biennium, the classified employee funding ratio and the nonemployee related cost factor reflect the previous year's increase in the certificated instructional staff funding ratio.
Beginning with the 1987-88 school year, the basic education formula will include a ratio of one certificated person to 16.67 annual average fulltime equivalent students in grades 9-12 enrolled in approved vocational education programs. Any increase in funds generated by this change in ratio shall be used by local school districts to provide additional support for their local vocational education programs in the 1987-88 school year.
The enrollment counts at the district level commence with the fourth day of the school year, or the fourth school day in September for districts beginning school in August.
Districts are to maintain a maximum ratio of students per instructional staff with reductions each biennium of this ten-year plan. During the 1987-89 biennium, districts must maintain a ratio of no more than 22.2 FTE students per instructional staff. (The current statewide average is 20.67 to 1). The ratio would be phased down during each successive biennium until the 1995-96 school year, when the maximum ratio shall not exceed 19.6 FTE students per instructional staff.
A statewide salary allocation schedule for certificated instructional staff is established. (The schedule is similar to the LEAP staff experience schedule.) It is for allocation of salaries only. The MA column is adjusted to mirror the BA + 135 column. The Phd + 45 column is eliminated. Longevity steps for 20 and 25 years experience are added to the schedule, both beginning with the MA column.
Districts are authorized to exceed average staff salary levels from the allocation schedule, by separate contract, for additional duties, responsibilities or other agreed upon purposes, subject to local bargaining. Supplemental contracts are for one year, do not obligate the state financially, and if not renewed, are not affected by continuing contract laws.
A pay equity and job content analysis assessment project is created to study duties, responsibilities, and salaries of district classified staff.
The proposed amendment provides an effective date of September 1, 1987.
SUMMARY OF PROPOSED WAYS & MEANS COMMITTEE AMENDMENT:
House Bill 166 is repealed and replaced by time, responsibility and incentives "(TRI)" restrictions for certificated instructional staff only. Classified and administrative staff are exempt. Certificated instructional staff salaries are distributed on an allocation methodology.
Maximum levy capacity is limited to 20 percent; districts over 30 percent must come down to 30 percent; districts between 20 percent and 30 percent will come down to 20 percent as additional state funds are made available. The first 10 percent levy is equalized based on levy rates.
Class size is reduced for the K-3 block with a 51/1,000 certificated level. In subsequent bienniums one additional certificated instructional staff per 1,000 students is added annually in grades four through 12 until 1993-1994 when the ratio meets 51/1,000 for all grades (55/1,000 certificated staff). The secondary vocational ratio is reduced to 1/16.67 staff ratio.
Fiscal Note: available
Senate Committee - Testified: EDUCATION: Bob Pickles, Washington Education Association; Howard Coble, Washington Association of School Administrators; Paul W. Locke, citizen lobbyist; Kathleen Preston, Washington Vocational Association
Senate Committee - Testified: WAYS & MEANS: Howard Coble, Washington Association of School Administrators; Kathleen Preston, Washington Vocational Association