HOUSE BILL REPORT

HB 1173

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Adds the State Treasurer or State Treasurer's designee as a member to the Financial Education Public-Private Partnership (Partnership).
Provides that teachers who are members of the Partnership be reimbursed for travel expenses and allowed to attend official meetings.
Modifies the duties of the Partnership.
Requires the Office of the Superintendent of Public Instruction to make financial education curriculum available to school districts, and school districts to provide courses with this curriculum.

Background:

The Financial Education Public-Private Partnership (Partnership) consists of four legislators, four representatives from the financial services sector, four educators, one designee from the Department of Financial Institutions, and two representatives from the Office of the Superintendent of Public Instruction (OSPI).

The duties of the Partnership include:

communicating financial education standards and strategies for improving financial education to school districts;
reviewing and developing a procedure for endorsing financial education curriculum;
identifying assessments and outcome measures that schools can use to determine whether students meet financial education standards; and
monitoring and providing guidance for professional development.

Legislation enacted in 2007 established "understanding the importance of work and finance" as one of the goals of basic education. In 2008 financial literacy was included in Washington's 7th Grade Level Expectations for social studies and economics. There are no separate Essential Academic Learning Requirements (EALRs) for financial education.

The JumpStart Coalition for Personal Financial Literacy (Coalition) is a nonprofit organization that promotes financial literacy among students from pre-kindergarten through college. The Coalition partners with corporate, nonprofit, academic, and government entities, including Washington. The Washington branch of the Coalition adopted financial literacy concepts that link with the EALRs, which school districts are encouraged to adopt.

Summary of Bill:

The State Treasurer or the State Treasurer's designee is added as a member to the Partnership.

Teachers who are members of the Partnership are to be paid their travel expenses according to current law from funds available in the Partnership account. Funds from the Partnership account may also pay for a substitute teacher when member teachers attend official meetings of the Partnership. If the Partnership pays for these expenses, the school district must release a teacher to attend official Partnership meetings.

Online instructional materials and resources are added to the financial education curriculum the Partnership reviews on an ongoing basis. The Partnership is tasked with working with the OSPI for purposes of integrating financial education skills and content knowledge into the Common Core State Standards, and working with the State Board of Education to incorporate financial education into definitions and standards for career and college readiness.

The Partnership is no longer required to identify assessments and outcome measures for schools to determine whether students meet the financial education standards, or to create professional development that could lead to a certificate endorsement or other certification of competency.

The OSPI is required to make curricula available to all districts for a course or courses in financial education. These courses must be selected with input from the Partnership. School districts must provide high school students the opportunity to complete financial education courses and publicize the availability of these courses to students and their families.

Staff Summary of Public Testimony (Education):

(In support) This bill would help students make smart financial decisions and avoid fraud. This is a logical extension of the work previously done by the Partnership. This would increase agency collaboration and allow young people to attain financial education. The Financial Education Public Private Partnership is a great joint partnership. It would be great for the OSPI to provide financial education to school districts. It is important to provide students with a solid foundation in the middle class. Without a basic understanding of finances, people can watch their assets get wiped out. The best time to provide financial education is when a student is in school, not later on. It is particularly important to teach this to students in families that do not have this education. This is necessary to create an even playing field. This will help students invest their money wisely.

(Opposed) None.

Staff Summary of Public Testimony (Appropriations Subcommittee on Education):

(In support) This organization has made limited financial requests of the state and asks now for only a very modest increase. The Financial Education Public-Private Partnership (Partnership) has been very conservative with their expenditures and have made sure to leverage public dollars with private. Many of the activities of the organization are supported by donations. It is time to refresh the Partnership and update the organization's purpose. The Partnership wants students to make smart financial decisions while they are in school and long after graduation. The work of the group goes beyond those duties required. Teachers have approached the organization, requesting assistance in incorporating financial education into their own curriculum. The organization also provides outreach as part of its services. The State Treasurer (Treasurer) is already a key partner in the organization's work. It only makes sense to make the Treasurer's role official in the work. The Office of the State Treasurer believes it is part of the Treasurer's duties to help guide people in learning to make sound financial decisions. There are about 140 districts providing financial education at the high school level. The Office of the Superintendent of Public Instruction has providing training for teachers in curriculum related to financial education. These training opportunities have a high level of interest by teachers and each training opportunity has had a waiting list for enrollment within days of becoming available to teachers.

(Opposed) None.

Persons Testifying (Education): Linda Jekel, Department of Financial Institutions; Troy Stang, Northwest Credit Union Association; Lee Wojnor, Asset Building Coalition of Thurston County; Juan Aguilar, Yakima County Asset Building Coalition; Gina Stark, Office of the State Treasurer, and JumpStart Washington; Randy Dorn, Superintendent of Public Instruction; and Todd Pietzsch, Boeing Employees Credit Union.