BILL REQ. #:  H-1671.3 

Read first time 02/07/2007.   Referred to Committee on Education.

     AN ACT Relating to creating performance-based compensation pilot projects for staff in public schools; amending RCW 28A.400.200, 28A.400.205, and 41.59.935; adding a new section to chapter 28A.400 RCW; creating a new section; and providing an expiration 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:
     A performance-based compensation pilot project for staff in public schools is established under this section for up to five school districts.
     (1) School districts may apply to participate in the pilot project by submitting a proposal to the superintendent of public instruction, signed by the school district board of directors and the exclusive bargaining representatives for certificated instructional staff and classified staff of the district, that contains the following:
     (a) The goals and objectives of the project and how success will be measured;
     (b) A description of the process by which the district and the exclusive bargaining representatives will complete a performance-based compensation agreement;
     (c) Commitment by all parties of time during the planning year for the joint development of the agreement and development of the performance evaluation, salary schedule, and professional development components of the agreement;
     (d) The extent to which learning improvement days will be used to support the project;
     (e) The extent to which supplemental contracts and resources for additional time, additional responsibilities, or incentives will be incorporated into and aligned with the project; and
     (f) Other information that indicates a willingness, readiness, and capacity by all parties to design and implement a high-quality performance-based compensation pilot project.
     (2) Applications shall be submitted to the superintendent of public instruction by November 1, 2007. The superintendent may approve up to five applications and shall provide notice of approvals no later than January 31, 2008.
     (3) Districts selected to participate in the pilot project, in collaboration with their exclusive bargaining representatives, shall develop the components of performance-based compensation agreements during the remainder of the 2007-08 school year. At a minimum, agreements must, as applicable:
     (a) Describe how certificated instructional staff can achieve career advancement and additional compensation, including how the school district will provide career advancement options that allow staff who provide direct instruction to retain primary roles in student instruction;
     (b) Restructure the traditional salary schedule from one based on years of experience, educational degrees, and credits of continuing education to a new salary schedule that bases a significant proportion of any compensation increase on staff performance, measured using schoolwide student achievement gains on the Washington assessment of student learning and other objective student assessments, other indicators of student achievement, and an objective performance evaluation system;
     (c) Provide for ongoing school and classroom-based professional development activities that are designed to improve instructional skills, aligned with the school improvement plan, based on identified student learning needs and goals, and provided by trained mentor teachers and coaches;
     (d) Ensure that the compensation of any staff shall not decrease as a result of implementing the agreement;
     (e) Include components of performance-based compensation for classified school staff; and
     (f) Estimate the costs to implement the agreement.
     (4) The objective performance evaluation system under this section must include individual evaluations that are conducted by the building principal or other district staff and other evaluations using multiple criteria that are conducted by a jointly selected and trained evaluation team using a standards-based evaluation instrument and process.
     (5) Performance-based compensation agreements shall be implemented districtwide, but may include components that are unique to individual schools within the district.
     (6) Districts selected to participate in the pilot project must submit their performance-based compensation agreements to the superintendent of public instruction for approval by July 15, 2008. The office shall review the agreements to ensure the components required under this section are clearly detailed in the agreements and that the agreements are in compliance with applicable state laws. The office may approve only agreements that are legally binding on the school district and the exclusive bargaining representatives beginning with the 2008-09 school year.
     (7) Beginning with the 2008-09 school year and ending with the 2012-13 school year, school districts with performance-based compensation agreements approved under this section shall receive one hundred fifteen dollars per full-time equivalent student, which shall be used in combination with the amounts allocated under the statewide salary allocation schedule and the omnibus appropriations act for staff salaries to pay for the performance-based compensation agreements.
     (8) The superintendent of public instruction may develop guidelines for the operation of the performance-based compensation pilot projects.

NEW SECTION.  Sec. 2   (1) The Washington state institute for public policy shall conduct an evaluation of the performance-based compensation pilot projects established under section 1 of this act, including an examination of:
     (a) Student academic progress as measured by the Washington assessment of student learning and other measures, compared to similar students and schools in school districts not participating in the projects;
     (b) Quality of professional development activities conducted under the projects;
     (c) Impact on recruitment and retention of staff; and
     (d) Teacher, principal, and parent satisfaction with the projects and the results.
     (2) School districts participating in the pilot projects shall assist the institute with the evaluation, including but not limited to distributing surveys, conducting interviews, and providing data.
     (3) The institute shall report its findings to the legislature by December 1, 2012.

Sec. 3   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) Except as authorized under a performance-based compensation agreement approved under section 1 of this act, 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)(a) Except as authorized under a performance-based compensation agreement approved under section 1 of this act, 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) 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 under this subsection may be incorporated into a performance-based compensation agreement approved under section 1 of this act. 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) Employee benefit plans offered by any district shall comply with RCW 28A.400.350 and 28A.400.275 and 28A.400.280.

Sec. 4   RCW 28A.400.205 and 2003 1st sp.s. c 20 s 1 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, except for the 2003-04 and 2004-05 school years, each school district shall be provided a cost-of-living allocation sufficient to grant this cost-of-living increase.
     (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 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. For school districts with a performance-based compensation agreement approved under section 1 of this act, the annual cost-of-living increase shall be applied only to the base salary used with the statewide salary allocation schedule.
     (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.

Sec. 5   RCW 41.59.935 and 1990 c 33 s 571 are each amended to read as follows:
     Nothing in this chapter shall be construed to grant employers or employees the right to reach agreements regarding salary or compensation increases in excess of those authorized in accordance with RCW 28A.150.410 and 28A.400.200, and, if applicable, a performance-based compensation agreement approved under section 1 of this act.

NEW SECTION.  Sec. 6   This act expires September 1, 2013.