AN ACT Relating to education fiscal matters; amending RCW 28A.58.0951, 28A.41.130, 28A.41.140, and 28A.41.155; adding a new section to Title 28A RCW; creating new sections; repealing RCW 28A.41.112, 41.59.935, and 84.52.0531; and providing an effective date.

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

NEW SECTION. Sec. 1. A new section is added to Title 28A RCW to read as follows:

(1) The office of the superintendent of public instruction shall develop a weighted student formula for implementation in the 1991-93 omnibus appropriations act. The basic education apportionment for instruction, employee compensation, vocational staff and equipment, categorical programs and salaries, insurance benefits, retirement contributions, and handicapped education shall be converted from the current salary allocation formula to a per pupil formula. The formula shall recognize the staff mix for each school district based on LEAP Document 1R developed on May 7, 1989, at 11:00 hours. Different student weights shall be assigned for basic education, vocational education, skills centers, handicapped education, learning assistance, transitional bilingual education, and education of highly capable students.

(2) The superintendent of public instruction shall consider the following factors in developing the weighted student formula:

(a) Basic education requirements;

(b) Vocational education requirements;

(d) Handicapped education programs;

(e) Transitional bilingual education programs;

(f) An enhanced weighted factor for handicapped and transitional bilingual students who are mainstreamed into basic education classrooms;

(g) Learning assistance programs;

(h) Programs for highly capable students;

(i) A small school factor, based on 1989-91 funding for small schools; and

(j) A family income factor that takes into account the number of students eligible for free and reduced lunches or who are from families below the poverty level as determined by 1980 census data.

(3) The superintendent of public instruction shall consult with the advisory committee established in section 2 of this act in developing the weighted student formula and report its recommendations to the education committees of the senate and the house of representatives no later than January 1, 1991.

(4) For the 1991-92 and 1992-93 school years, excluding enhancements for the family income factor and for mainstreamed handicapped and bilingual students, a district shall not receive fewer funds per full time equivalent pupil than it did in the 1990-91 school year.

NEW SECTION. Sec. 2. (1) An advisory committee of legislators and citizens representative of education organizations concerned with the delivery of categorical instructional services and regular classroom instruction shall be appointed by the superintendent of public instruction to advise the superintendent regarding the development of the weighted student formula.

(2) This section shall expire January 31, 1991.

Sec. 3. Section 205, chapter 2, Laws of 1987 1st ex. sess. and RCW 28A.58.0951 are each amended to read as follows:

(1) Every school district board of directors shall fix, alter, allow, and order paid salaries and compensation for all district employees ((~~in conformance with this section~~)). Whenever a school district board of directors increases the salary and compensation of district employees above amounts provided in the allocation formula in section 1 of this 1990 act, then such additional salary and compensation increases shall be solely the financial responsibility of that school district.

(((2)(a) Salaries for certificated instructional staff shall not be less than the salary provided in the appropriations act in the state-wide salary allocation schedule for an employee with a baccalaureate degree and zero years of service; and

(b) Salaries for certificated instructional staff with a masters degree shall not be less than the salary provided in the appropriations act in the state-wide salary allocation schedule for an employee with a masters degree and zero years of service;

(3)(a) The actual average salary paid to basic education certificated instructional staff shall not exceed the district's average basic education certificated instructional staff salary used for the state basic education allocations for that school year as determined pursuant to RCW 28A.41.112.

~~(b)~~)) (2) Fringe benefit contributions for basic education certificated instructional staff shall be included as salary under ((~~(a) of~~)) this ((~~subsection~~)) section to the extent that the district's actual average benefit contribution exceeds the ((~~greater of: (i) The~~)) formula amount for insurance benefits provided per certificated instructional staff unit in the state operating appropriations act in effect at the time the compensation is payable((~~; or (ii) the actual average amount provided by the school district in the 1986-87 school year~~)). For purposes of this section, fringe benefits shall not include payment for unused leave for illness or injury under RCW 28A.58.096, or employer contributions for old age survivors insurance, workers' compensation, unemployment compensation, and retirement benefits under the Washington state retirement system.

((~~(c)~~)) (3) Salary and benefits for certificated instructional staff in programs other than basic education shall be consistent with the salary and benefits paid to certificated instructional staff in the basic education program.

(((4) Salaries and benefits for certificated instructional staff may exceed the limitations in subsection (3) of this section only by separate contract for additional time, additional responsibilities, or incentives. Supplemental contracts shall not cause the state to incur any present or future funding obligation. Supplemental contracts shall be subject to the collective bargaining provisions of chapter 41.59 RCW and the provisions of RCW 28A.67.074, shall not exceed one year, and if not renewed shall not constitute adverse change in accordance with RCW 28A.58.450 through 28A.58.515. No district may enter into a supplemental contract under this subsection for the provision of services which are a part of the basic education program required by Article IX, section 3 of the state Constitution.))

Sec. 4. Section 2, chapter 46, Laws of 1973 as last amended by section 201, chapter 2, Laws of 1987 1st ex. sess. and RCW 28A.41.130 are each amended to read as follows:

From those funds made available by the legislature for the current use of the common schools, the superintendent of public instruction shall distribute annually as provided in RCW 28A.48.010 to each school district of the state operating a program approved by the state board of education an amount which, when combined with an appropriate portion of such locally available revenues, other than receipts from federal forest revenues distributed to school districts pursuant to RCW 28A.02.300 and 28A.02.310, as the superintendent of public instruction may deem appropriate for consideration in computing state equalization support, excluding excess property tax levies, will constitute a basic education allocation in dollars for each annual average full time equivalent student enrolled, based upon one full school year of one hundred eighty days, except that for kindergartens one full school year shall be one hundred eighty half days of instruction, or the equivalent as provided in RCW 28A.58.754, as now or hereafter amended.

Basic education shall be considered to be fully funded by those amounts of dollars appropriated by the legislature pursuant to RCW 28A.41.130 and ((~~28A.41.140~~))section 1 of this 1990 act to fund those program requirements identified in RCW 28A.58.754 in accordance with the formula and ratios provided in ((~~RCW 28A.41.140~~)) section 1 of this 1990 act and those amounts of dollars appropriated by the legislature ((~~to fund the salary requirements of RCW 28A.41.110 and 28A.41.112~~)).

Operation of a program approved by the state board of education, for the purposes of this section, shall include a finding that the ratio of students per classroom teacher in grades kindergarten through three is not greater than the ratio of students per classroom teacher in grades four and above for such district: PROVIDED, That for the purposes of this section, "classroom teacher" shall be defined as an instructional employee possessing at least a provisional certificate, but not necessarily employed as a certificated employee, whose primary duty is the daily educational instruction of students: PROVIDED FURTHER, That the state board of education shall adopt rules and regulations to insure compliance with the student/teacher ratio provisions of this section, and such rules and regulations shall allow for exemptions for those special programs and/or school districts which may be deemed unable to practicably meet the student/teacher ratio requirements of this section by virtue of a small number of students.

If a school district's basic education program fails to meet the basic education requirements enumerated in RCW 28A.41.130, ((~~28A.41.140~~)) section 1 of this 1990 act, and 28A.58.754, the state board of education shall require the superintendent of public instruction to withhold state funds in whole or in part for the basic education allocation until program compliance is assured: PROVIDED, That the state board of education may waive this requirement in the event of substantial lack of classroom space.

Sec. 5. Section 14, chapter 244, Laws of 1969 ex. sess. as last amended by section 202, chapter 2, Laws of 1987 1st ex. sess. and RCW 28A.41.140 are each amended to read as follows:

((~~The basic education allocation for each annual average full time equivalent student shall be determined in accordance with the following procedures:~~

(1) The governor shall and the superintendent of public instruction may recommend to the legislature a formula based on a ratio of students to staff for the distribution of a basic education allocation for each annual average full time equivalent student enrolled in a common school. The distribution formula shall have the primary objective of equalizing educational opportunities and shall provide appropriate recognition of the following costs among the various districts within the state:

~~(a) Certificated instructional staff and their related costs;~~

~~(b) Certificated administrative staff and their related costs;~~

~~(c) Classified staff and their related costs;~~

~~(d) Nonsalary costs;~~

~~(e) Extraordinary costs of remote and necessary schools and small high schools, including costs of additional certificated and classified staff; and~~

~~(f) The attendance of students pursuant to RCW 28A.58.075 and 28A.58.245, each as now or hereafter amended, who do not reside within the servicing school district.~~

(2) (a) This formula for distribution of basic education funds shall be reviewed biennially by the superintendent and governor. The recommended formula shall be subject to approval, amendment or rejection by the legislature. The formula shall be for allocation purposes only. While the legislature intends that the allocations for additional instructional staff be used to increase the ratio of such staff to students, nothing in this section shall require districts to reduce the number of administrative staff below existing levels.

(b) The formula adopted by the legislature for the 1987-88 school year shall reflect the following ratios at a minimum: (i) Forty-eight certificated instructional staff to one thousand annual average full time equivalent students enrolled in grades kindergarten through three; (ii) forty-six certificated instructional staff to one thousand annual average full time equivalent students enrolled in grades four through twelve; (iii) four certificated administrative staff to one thousand annual average full time equivalent students enrolled in grades kindergarten through twelve; and (iv) sixteen and sixty-seven one-hundredths classified personnel to one thousand annual average full time equivalent students enrolled in grades kindergarten through twelve.

(c) Commencing with the 1988-89 school year, the formula adopted by the legislature shall reflect the following ratios at a minimum: (i) Forty-nine certificated instructional staff to one thousand annual average full time equivalent students enrolled in grades kindergarten through three; (ii) forty-six certificated instructional staff to one thousand annual average full time equivalent students in grades four through twelve; (iii) four certificated administrative staff to one thousand annual average full time equivalent students in grades kindergarten through twelve; and (iv) sixteen and sixty-seven one-hundredths classified personnel to one thousand annual average full time equivalent students enrolled in grades kindergarten through twelve.

(d) In the event the legislature rejects the distribution formula recommended by the governor, without adopting a new distribution formula, the distribution formula for the previous school year shall remain in effect: PROVIDED, That the distribution formula developed pursuant to this section shall be for state apportionment and equalization purposes only and shall not be construed as mandating specific operational functions of local school districts other than those program requirements identified in RCW 28A.58.754 and 28A.41.110. The enrollment of any district shall be the annual average number of full time equivalent students and part time students as provided in RCW 28A.41.145, as now or hereafter amended, enrolled on the first school day of each month and shall exclude full time equivalent handicapped students recognized for the purposes of allocation of state funds for programs under chapter 28A.13 RCW. The definition of full time equivalent student shall be determined by rules and regulations of the superintendent of public instruction: PROVIDED, That the definition shall be included as part of the superintendent's biennial budget request: PROVIDED, FURTHER, That any revision of the present definition shall not take effect until approved by the house appropriations committee and the senate ways and means committee: PROVIDED, FURTHER, That the office of financial management shall make a monthly review of the superintendent's reported full time equivalent students in the common schools in conjunction with RCW 43.62.050.

~~(3)~~)) (1)(a) Certificated instructional staff shall include those persons employed by a school district who are nonsupervisory employees within the meaning of RCW 41.59.020(8): PROVIDED, That in exceptional cases, people of unusual competence but without certification may teach students so long as a certificated person exercises general supervision: PROVIDED, FURTHER, That the hiring of such noncertificated people shall not occur during a labor dispute and such noncertificated people shall not be hired to replace certificated employees during a labor dispute.

(b) Certificated administrative staff shall include all those persons who are chief executive officers, chief administrative officers, confidential employees, supervisors, principals, or assistant principals within the meaning of RCW 41.59.020(4).

((~~(4)~~)) (2) Each annual average full time equivalent certificated classroom teacher's direct classroom contact hours shall average at least twenty-five hours per week. Direct classroom contact hours shall be exclusive of time required to be spent for preparation, conferences, or any other nonclassroom instruction duties. Up to two hundred minutes per week may be deducted from the twenty-five contact hour requirement, at the discretion of the school district board of directors, to accommodate authorized teacher/parent-guardian conferences, recess, passing time between classes, and informal instructional activity. Implementing rules to be adopted by the state board of education pursuant to RCW 28A.58.754(6) shall provide that compliance with the direct contact hour requirement shall be based upon teachers' normally assigned weekly instructional schedules, as assigned by the district administration. Additional record-keeping by classroom teachers as a means of accounting for contact hours shall not be required. However, upon request from the board of directors of any school district, the provisions relating to direct classroom contact hours for individual teachers in that district may be waived by the state board of education if the waiver is necessary to implement a locally approved plan for educational excellence and the waiver is limited to those individual teachers approved in the local plan for educational excellence. The state board of education shall develop criteria to evaluate the need for the waiver. Granting of the waiver shall depend upon verification that: (a) The students' classroom instructional time will not be reduced; and (b) the teacher's expertise is critical to the success of the local plan for excellence.

Sec. 6. Section 102, chapter 2, Laws of 1987 1st ex. sess. and RCW 28A.41.155 are each amended to read as follows:

(1) Commencing with taxes assessed in ((~~1988~~)) 1990 to be collected in calendar year ((~~1989~~)) 1991 and thereafter, in addition to a school district's other general fund allocations, each eligible district shall be provided local effort assistance funds as provided in this section. Such funds are not part of the district's basic education allocation. ((~~For the first distribution of local effort assistance funds provided under this section in calendar year 1989, state funds may be prorated according to the formula in this section.~~))

(2) (a) "Prior tax collection year" shall mean the year immediately preceding the year in which the local effort assistance shall be allocated.

(b) The "state-wide average ten percent levy rate" shall mean ten percent of the total levy bases as defined in RCW 84.52.0531(4) summed for all school districts, and divided by the total assessed valuation for excess levy purposes in the prior tax collection year for all districts as adjusted to one hundred percent by the county indicated ratio established in RCW 84.48.075.

(i) Ten percent of the district's levy base as defined in ((~~RCW 84.52.0531(4)~~)) subsection (5) of this section, plus ((~~one-half of any amount computed under RCW 84.52.0531(3)(b)~~)), in the case of nonhigh school districts, one-half of the total estimated amount due by the nonhigh school district to high school districts under chapter 28A.44 RCW for the current school year; divided by

(ii) The district's assessed valuation for excess levy purposes for the prior tax collection year as adjusted to one hundred percent by the county indicated ratio.

(d) "Eligible districts" shall mean those districts with a ten percent levy rate which exceeds the state-wide average ten percent levy rate.

(3) Allocation of state matching funds to eligible districts for local effort assistance shall be determined as follows:

(a) Funds raised by the district through maintenance and operation levies during that tax collection year shall be matched with state funds using the following ratio of state funds to levy funds: (i) The difference between the district's ten percent levy rate and the state-wide average ten percent levy rate; to (ii) the state-wide average ten percent levy rate.

(b) The maximum amount of state matching funds for which a district may be eligible in any tax collection year shall be ten percent of the district's levy base as defined in RCW 84.52.0531(4), multiplied by the following percentage: (i) The difference between the district's ten percent levy rate and the state-wide average ten percent levy rate; divided by (ii) the district's ten percent levy rate.

(4) Fifty-five percent of local effort assistance funds shall be distributed to qualifying districts during the applicable tax collection year on or before June 30 and forty-five percent shall be distributed on or before December 31 of any year. (5) For purposes of this section, a district's levy base shall be the sum of the following allocations received by the district for the prior school year, including allocations for compensation increases, adjusted by the percent increase per full time equivalent student in the state basic education appropriation between the prior school year and the current school year:

(a) The district's basic education allocation as determined pursuant to RCW 28A.41.130, 28A.41.140, and 28A.41.145, or the weighted pupil formula established in section 1 of this 1990 act;

(b) State and federal categorical allocations for the following programs:

(i) Pupil transportation;

(ii) Handicapped education;

(iii) Education of highly capable students;

(iv) Compensatory education, including but not limited to learning assistance, migrant education, Indian education, refugee programs, and bilingual education;

(v) Food services; and

(vi) State-wide block grant programs; and

(c) Any other federal allocations for elementary and secondary school programs, including direct grants, other than federal impact aid funds and allocations in lieu of taxes.

(6) For purposes of this section:

(a) "Prior school year" means the most recent school year completed before the year in which levies are to be collected; and

(b) "Current school year" means the year immediately following the prior school year.

NEW SECTION. Sec. 7. The superintendent of public instruction shall identify laws that will become obsolete or erroneous due to changes in the funding formula in section 1 of this act and shall report its findings and recommendations to the legislature by December 1, 1990.

NEW SECTION. Sec. 8. The following acts or parts of acts are each repealed:

(1) Section 204, chapter 2, Laws of 1987 1st ex. sess., section 4, chapter 1, Laws of 1987 3rd ex. sess., section 1, chapter 16, Laws of 1989 1st ex. sess. and RCW 28A.41.112;

(2) Section 3, chapter 16, Laws of 1981, section 206, chapter 2, Laws of 1987 1st ex. sess. and RCW 41.59.935; and

(3) Section 1, chapter 374, Laws of 1985, section 40, chapter 185, Laws of 1987, section 101, chapter 2, Laws of 1987 1st ex. sess., section 1, chapter 252, Laws of 1988, section 1, chapter 141, Laws of 1989 and RCW 84.52.0531.

NEW SECTION. Sec. 9. Section 6 of this act shall take effect January 1, 1991.