READ FIRST TIME 02/22/07.   

     AN ACT Relating to basic education funding; creating new sections; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The state's definition of basic education and the corresponding funding formulas must be regularly updated in order to keep pace with evolving educational practices and increasing state and federal requirements and to ensure that all schools have the resources they need to help give all students the opportunity to be fully prepared to compete in a global economy. The work of Washington learns steering committee and the K-12 advisory committee provides a valuable starting point from which to evaluate the current educational system and develop a unique, transparent, and stable educational funding system for Washington that supports the goals and the vision of a world-class learner-focused K-12 educational system that were established in the final Washington learns report.
     This act is intended to make provision for some significant steps towards a new basic education funding system and establishes a technical work group to address the details and next steps beyond the 2007-2009 biennium that will be necessary to implement a new comprehensive K-12 finance formula or formulas that will provide Washington schools with stable and adequate funding as the expectations for the K-12 system continue to evolve.

NEW SECTION.  Sec. 2   (1) The Washington state institute for public policy shall staff a joint task force to review the definition of basic education and all current basic education funding formulas and develop a new funding structure and all necessary formulas, and a new definition of basic education, that is realigned with the new expectations of the state's education system as established in the November 2006 final report of the Washington learns steering committee and the basic education provisions established in chapter 28A.150 RCW.
     (2) The joint task force shall consist of thirteen members:
     (a) Four members shall be legislators. The president of the senate shall appoint one member from each of the two largest caucuses of the senate. The speaker of the house of representatives shall appoint one member from each of the two largest caucuses of the house of representatives;
     (b) The chair, who shall have business experience, experience with Washington finance issues including knowledge of the K-12 funding formulas, and who shall be appointed by the governor;
     (c) The superintendent of public instruction or the superintendent's designee; and
     (d) The governor shall appoint the remaining seven members. Each of the two largest caucuses of the senate shall submit names to the president of the senate to submit to the governor. Each of the two largest caucuses of the house of representatives shall submit names to the speaker of the house of representatives to submit to the governor. The governor shall select individuals who have evidence of significant experience with Washington K-12 finance issues, including the use and application of the current basic education funding formulas.
     (3) The Washington institute of public policy shall consult with stakeholders and experts in the field to develop information for use by the joint task force.
     (4) In developing the recommendations, the joint task force shall review and build upon the following:
     (a) Reports related to K-12 finance produced at the request of or as a result of the Washington learns study, including reports completed for or by the K-12 advisory committee;
     (b) High-quality studies that are available; and
     (c) Research and evaluation of the cost-benefits of various K-12 programs and services developed by the institute for public policy as directed by the legislature in section 607(15), chapter 372, Laws of 2006.
     (5) The institute for public policy shall provide to the joint task force the following:
     (a) An initial report within sixty days of the effective date of this section establishing an initial plan of action, reporting deadlines, a timeline for fulfilling the requirements of section 3 of this act, and an initial recommended timeline for a phased-in implementation of a new funding system that does not exceed six years;
     (b) A second report by September 15, 2007, that includes recommendations, including implementing legislation as necessary, for at least two but no more than four options for allocating school employee compensation. One of the options must be outcome-based, and one of the options must be a redirection and prioritization within existing resources based on research-proven education programs. The report must also include a projection of the expected effect of the investment made under the new funding structure. The second report shall also include a finalized timeline and plan for addressing the remaining components of a new funding system; and
     (c) A final report with recommendations for at least two but no more than four options for revising the remaining K-12 funding structure, including implementing legislation as necessary, and a timeline for phasing in full adoption of the new funding structure. The final report shall be submitted to the joint task force by January 1, 2008. One of the options must be outcome-based, and one of the options must be a redirection and prioritization within existing resources based on research-proven education programs. The final report must also include a projection of the expected effect of the investment made under the new funding structure.

NEW SECTION.  Sec. 3   (1) The funding structure alternatives developed by the joint task force under section 2 of this act shall take into consideration the legislative priorities in this section, to the maximum extent possible and as appropriate to each formula.
     (2) The funding structure should reflect the most effective instructional strategies and service delivery models and be based on research-proven education programs and activities with demonstrated cost benefits. In reviewing the possible strategies and models to include in the funding structure the task force shall, at a minimum, consider the following issues:
     (a) Professional development for all staff;
     (b) Whether the compensation system for instructional staff shall include pay for performance, knowledge, and skills elements; elements to recognize assignments that are difficult; recognition for the professional teaching level certificate in the salary allocation model; and a plan to implement the pay structure;
     (c) Voluntary all-day kindergarten;
     (d) Optimum class size, including different class sizes based on grade level and ways to reduce class size;
     (e) Focused instructional support for students and schools;
     (f) Extended school day and school year options; and
     (g) Health and safety requirements.
     (3) The recommendations should provide maximum transparency of the state's educational funding system in order to better help parents, citizens, and school personnel in Washington understand how their school system is funded.
     (4) The funding structure should be linked to accountability for student outcomes and performance.

NEW SECTION.  Sec. 4   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.