BILL REQ. #:  H-1679.1 

Read first time 02/18/2003.   Referred to Committee on Education.

     AN ACT Relating to school district salary allocations; amending RCW 28A.150.410 and 28A.400.205; adding new sections to chapter 28A.400 RCW; 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 chapter 28A.400 RCW to read as follows:
     The cost of housing for each school district shall be determined every ten years based on a standard set of housing specifications and on data reported for the most recent annual period for which data are available. The data shall be collected by a nationally recognized entity that collects statistically valid housing cost data for federal government agencies and businesses, selected by the legislative evaluation and accountability program and subject to approval by the legislative fiscal committees. The legislative evaluation and accountability program shall contract with the entity selected under this section from funds provided for this purpose.

NEW SECTION.  Sec. 2   A new section is added to chapter 28A.400 RCW to read as follows:
     Districts shall be divided into quartiles based on each district's cost of housing as determined under section 1 of this act. The salary increases provided to certificated instructional staff under RCW 28A.400.205 shall be distributed differentially to each of the quartiles until percentage differences in certificated instructional staff base salaries are as follows: The base salary for districts in the second quartile shall be five percent greater than the base salary in the lowest quartile; the base salary for districts in the third quartile shall be ten percent greater than the base salary in the lowest quartile; the base salary for districts in the fourth quartile shall be fifteen percent greater than the base salary in the lowest quartile. After these percentage differences have been attained, salary increases shall be provided at the same percentage for all districts.
     The base salary for each of the quartiles shall be established in the omnibus appropriations act and shall be reflected in supporting LEAP documents. The statewide salary allocation schedule included in the omnibus appropriations act shall be the schedule for the districts in the lowest quartile.
     The percentage increases provided under this section and RCW 28A.400.205 shall be the same for every district within each quartile, except that a grandfathered district shall not receive salary increase allocations and the base salary of the grandfathered district shall remain unchanged, until the base salary of the district's quartile is greater than the grandfathered district's base salary. In the year in which the grandfathered district's base salary would be less than the base salary of the district's quartile, the grandfathered district shall receive a salary increase such that its base salary is equal to the base salary of the quartile.
     For purposes of this section, "base salary" means the state salary allocation for an employee with a baccalaureate degree and zero years of service; a "grandfathered district" means one of the thirty-four districts with a base salary as identified on the LEAP 12E schedule for the 2002-03 school year greater than the base salary on the statewide salary allocation schedule.

Sec. 3   RCW 28A.150.410 and 2002 c 353 s 1 are each amended to read as follows:
     (1) The legislature shall establish for each school year in the appropriations act a statewide salary allocation schedule, for allocation purposes only, to be used to distribute funds for basic education certificated instructional staff salaries under RCW 28A.150.260. The statewide salary allocation schedule shall be adjusted for cost-of-living differences as specified under section 2 of this act.
     (2) Salary allocations for state-funded basic education certificated instructional staff shall be calculated by the superintendent of public instruction by determining the district's average salary for certificated instructional staff, using the statewide salary allocation schedule and adjustments for cost-of-housing differences under section 2 of this act, and related documents, conditions, and limitations established by the omnibus appropriations act.
     (3) Beginning January 1, 1992, no more than ninety college quarter-hour credits received by any employee after the baccalaureate degree may be used to determine compensation allocations under the state salary allocation schedule and LEAP documents referenced in the omnibus appropriations act, or any replacement schedules and documents, unless:
     (a) The employee has a masters degree; or
     (b) The credits were used in generating state salary allocations before January 1, 1992.

Sec. 4   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 except that differential salary increases may be provided for certificated instructional staff as provided under section 2 of this act if total state funding for salary increases for certificated instructional staff is the same as it would be if the cost-of-living increase were provided to all certificated instructional staff at the same rate.
     (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.
     (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.

NEW SECTION.  Sec. 5   This act takes effect August 1, 2003.