BILL REQ. #:  H-1167.1 

Read first time 02/05/2003.   Referred to Committee on Education.

     AN ACT Relating to cost-of-living adjustments in basic education salary allocations for certificated instructional staff; amending RCW 28A.400.200 and 28A.400.205; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that large and growing disparities in the cost-of-living among regions of the state have resulted in widely disparate purchasing power of salaries for certificated instructional staff supported by basic education allocations. The legislature declares that in the interest of recruiting and retaining qualified instructional staff in all regions of the state, and of ensuring continuous compliance with Article IX, section 2 of the state Constitution, that basic education salary allocations should be adjusted on an ongoing basis for differences in the cost-of-living among regions of the state, as determined through a rigorous method of economic analysis.

Sec. 2   RCW 28A.400.200 and 2002 c 353 s 2 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.
     (2)(a) Salaries for certificated instructional staff shall not be less than the salary provided in the appropriations act in the statewide 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 statewide salary allocation schedule for an employee with a masters degree and zero years of service;
     (3) The legislative evaluation and accountability program, in consultation with the state office of the forecast council, shall establish and maintain a set of economic indicators for the purpose of adjusting the statewide salary allocation schedule by a statewide cost-of-living index. The economic indicators shall include but not necessarily be limited to the median cost of housing.
     (a) Not later than July 1, 2004, the legislative evaluation and accountability program shall submit the statewide cost-of-living index to an advisory committee for its review. The advisory panel shall be appointed by the governor, and shall consist of one member representing the office of financial management, one member representing the employment security department, one member representing the office of the superintendent of public instruction, and three representatives of the private sector having demonstrated expertise in regional economics. The advisory committee shall not receive compensation for performance of its duties but may be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.
     (b) Not later than October 1, 2004, the advisory committee created under this section shall submit to the director of the legislative evaluation and accountability program written comment on the proposed statewide cost-of-living index. The written comment shall include but shall not be limited to an evaluation of the extent to which the proposed cost-of-living index. The written comment shall include but shall not be limited to an evaluation of the extent to which the proposed cost-of-living index meets the intent of chapter ..., Laws of 2003 (this act), and any recommendations for revision to the index or its components.
     (c) Not later than January 15, 2005, the director of the legislative evaluation and accountability program shall submit the statewide cost-of-living index to the governor, the chairs and ranking minority members of the senate committees on ways and means and education, and the chairs and ranking minority members of the house of representatives committees on appropriations and education. The statewide cost-of-living index shall be deemed approved unless rejected by resolution of both houses of the legislature.
     (d) The legislative evaluation and accountability program shall collect and maintain data on the economic activity comprising the statewide cost-of-living index for geographic areas of the state coterminous with the boundaries of the nine educational service districts established under RCW 28A.310.010. The legislative evaluation and accountability program shall, on a semiannual basis, provide a report to the office of financial management, the office of the superintendent of public instruction, and the chairs and ranking members of the senate committees on ways and means and education and the house of representatives committees on appropriations and education summarizing the data by educational service district and identifying significant changes in its findings from previous reports.
     (e) Beginning with appropriations for the school year beginning September 1, 2005, and for each subsequent school year, the legislative evaluation and accountability program shall adjust the statewide salary allocation schedule provided in RCW 28A.400.200(2), for each educational service district, on the basis of the cost-of-living index established under (c) of this subsection. The index shall be applied in each educational service district as a fraction of the statewide average cost-of-living index.
     (f) The legislative evaluation and accountability program, in consultation with the office of financial management and the office of the superintendent of public instruction, shall on a biennial basis identify the changes in the cost-of-living index from the previous two-year period for each educational service district of the state. The legislative evaluation and accountability program shall also, on a biennial basis, report on any changes it deems necessary and appropriate in the manner in which the cost-of-living index is calculated and applied.
     (4)(a) The actual average salary paid to certificated instructional staff shall not exceed the district's average certificated instructional staff salary used for the state basic education allocations for that school year as determined pursuant to RCW 28A.150.410.
     (b) Fringe benefit contributions for certificated instructional staff shall be included as salary under (a) of this subsection only to the extent that the district's actual average benefit contribution exceeds the amount of the insurance benefits allocation provided per certificated instructional staff unit in the state operating appropriations act in effect at the time the compensation is payable. For purposes of this section, fringe benefits shall not include payment for unused leave for illness or injury under RCW 28A.400.210; employer contributions for old age survivors insurance, workers' compensation, unemployment compensation, and retirement benefits under the Washington state retirement system; or employer contributions for health benefits in excess of the insurance benefits allocation provided per certificated instructional staff unit in the state operating appropriations act in effect at the time the compensation is payable. A school district may not use state funds to provide employer contributions for such excess health benefits.
     (c) 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))) (5) Salaries and benefits for certificated instructional staff may exceed the limitations in subsection (((3))) (4) 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.405.240, shall not exceed one year, and if not renewed shall not constitute adverse change in accordance with RCW 28A.405.300 through 28A.405.380. 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.
     (((5))) (6) Employee benefit plans offered by any district shall comply with RCW 28A.400.350 and 28A.400.275 and 28A.400.280.

Sec. 3   RCW 28A.400.205 and 2001 c 4 s 2 are each amended to read as follows:
     (1) School district employees shall be provided an annual salary cost-of-living increase in accordance with this section.
     (a) The cost-of-living increase shall be calculated by applying the rate of the yearly increase in the cost-of-living index to any state-funded salary base used in state funding formulas for teachers and other school district employees. Beginning with the 2001-02 school year, and for each subsequent school year, each school district shall be provided a cost-of-living allocation sufficient to grant this cost-of-living increase for the salaries, including mandatory salary-related benefits, of all employees of the district.
     (b) A school district shall distribute its cost-of-living allocation for salaries and salary-related benefits in accordance with the district's salary schedules, collective bargaining agreements, and compensation policies. No later than the end of the school year, each school district shall certify to the superintendent of public instruction that it has spent funds provided for cost-of-living increases on salaries and salary-related benefits. Beginning with the 2005-06 school year and each subsequent school year, the cost-of-living allocation to each district for certificated instructional staff shall be adjusted by the cost-of-living index established for each educational service district of the state under RCW 28A.400.200. In no case may adjustment by the cost-of-living index cause the base contract salary of any individual certificated instructional staff to be lower than the base contract salary for the previous school year.
     (c) Any funded cost-of-living increase shall be included in the salary base used to determine cost-of-living increases for all school employees in subsequent years. For teachers and other certificated instructional staff, the rate of the annual cost-of-living increase funded for certificated instructional staff shall be applied to the base salary used with the statewide salary allocation schedule established under RCW 28A.150.410 and to any other salary models used to recognize school district personnel costs.
     (d) Beginning with the 2001-02 school year, the state shall fully fund the cost-of-living increase in this section as part of its obligation to meet the basic education requirements under Article IX of the Washington Constitution.
     (2) For the purposes of this section, "cost-of-living index" means, for any school year, the previous calendar year's annual average consumer price index, using the official current base, compiled by the bureau of labor statistics, United States department of labor for the state of Washington. If the bureau of labor statistics develops more than one consumer price index for areas within the state, the index covering the greatest number of people, covering areas exclusively within the boundaries of the state, and including all items shall be used for the cost-of-living index in this section.