1. Engrossed House Bill 2242 Basic Education Funding July 6, 2017

2. EHB 2242-Basic Education Funding
Part I-Salary Allocations
Part II-Enrichment Levies and Local Effort Assistance
Part III-State Property Tax Revisions
Part IV-Program of Basic Education
Part V-Local Enrichment and Accountability
Part VI-Reporting, Accounting, and Transparency
Part VII-School District Collective Bargaining and Salaries
Part VIII-School Employees’ Benefits Board
Part IX-Other Education Provisions

3. Salary Allocations
Continuation of the Statewide Salary Allocation Schedule
New state allocations with intent to fully fund in
CIS-$59,333.55
CAS-$79,127.50
CLS-$39,975.50
Amounts above adjusted to a statewide average allocation
See OSPI Multi-Year Budget Comparison Tool for your district amount

4. Salary Allocations 2018-19 2019-20 New state allocations CIS-$64,000*
New state allocations with intent to fully fund in
CIS-$59,333.55
CAS-$79,127.50
CLS-$39,975.50
Amounts above adjusted to a statewide average allocation
See OSPI Multi-Year Budget Comparison Tool for your district amount
New state allocations
CIS-$64,000*
CAS-$95,000*
CLS-$45,912*
*Amounts to be adjusted by inflation

5. Salary Allocations Regional Salary
New State Allocations “must be adjusted for regional differences in the cost of hiring staff”
Regional salary adjustments range from 1.0, or no adjustment, to 1.24, for a 24% increase.
Regional salary adjustments are set for the next 5 years; some roll back over the 5 years
See LEAP K-12 Document 3

6. Salary Allocations
each school district “shall be provided an inflationary adjustment allocation(new term for COLA)
School district shall distribute its inflation adjustment in accordance with district bargaining agreements and compensation policies
Each school district will certify to OSPI that it spent funds provided for inflation increases on salary and salary related benefits.

7. Salary Allocations 2018-19 Minimum CIS salaries
$40,000 to be adjusted for regional difference
CIS staff with at least 5 years experience must exceed the minimum salary by at least 10%
Examples:
$40,000 * 1.00 * 10% = $44,000
$40,000 * 1.16 * 10% = $51,040

8. Salary Allocations 2018-19 Maximum CIS salaries
$90,000 to be adjusted for regional difference
May exceed maximum salary for up to 10% for staff who are: educational staff associates; who teach in the subjects of science, technology, engineering, or math; or who teach in the transitional bilingual instruction or special education programs
*Minimums and maximums exclude supplemental contracts for additional time, responsibility or incentive for enrichment activities

9. Salary Allocations
each school district must annually identify the actual salary paid to each CIS staff for services rendered as part of the state’s program of basic education

10. Salary Allocations
Supplemental Contracts must be accounted for when the district is developing its four-year budget plan
Beginning September 1, 2019 supplemental contracts can only be for enrichment activities and the rate of pay may not exceed the hourly rate provided to the same instructional staff for services under the basic education salary.

11. Salary Allocations Professional Learning Days
one professional learning days
two professional learning days
three professional learning days

12. Salary Allocations Model Salary Grid
OSPI to convene a work group to develop a model salary grid by December 1, 2017
Districts are not required to use the grid
Grid intended to be a resource

13. Enrichment Levies and LEA
Maintenance and Operations Levies are renamed “Enrichment Levies”
Beginning September 1, 2019 enrichment levies may only be used to “enrich the state’s statutory program of basic education”

14. Enrichment Levies and LEA
For calendar year 2020 and thereafter, the district must receive approval of an enrichment levy expenditure plan from OSPI before submitting the enrichment levy to the voters (also applies to transportation enrichment levies).
OSPI has 30 days from receiving the plan to approve or reject the plan
A district may changes its spending plan by submitting a revised spending plan to OSPI
To revise a previously approved spending plan, the district must allow for review and comment at an open school board meeting and the board must adopt the revised plan by resolution. The revised plan must again be submitted to OSPI for approval or rejection.
Once a revision has been approved by OSPI, the district can carry the approved change into subsequent years so long as the district adopts the change as part of its annual budget proposal after a public hearing

15. Enrichment Levies and LEA
2018
2019 and thereafter
Maximum levy amount = levy base * 28%
Some districts are grandfathered above the 28% maximum
Maximum Levy amount = the lesser of $1.50 per $1,000 of assessed value of property or the maximum per-pupil limit.
Maximum per pupil limit = $2,500 * average annual resident FTE enrollment in the prior school year

16. Enrichment Levies and LEA
In 2020, Enrichment levy revenue must be deposited in a separate subfund of the general fund
Transportation vehicle enrichment levies are not subject to the levy limitations

17. Enrichment Levies and LEA
Local Effort Assistance or LEA will continued to be funded.
It is not part of the State’s statutory program of basic education so, like levies, beginning September 1, 2019 it can only be used for enrichment activities.

18. Enrichment Levies and LEA
2019- New formula for LEA

19. State Property Tax Revisions
Taxes levied by the state for calendar years 2018 – 2021 will increase to $2.70 per $1,000 of assessed valuation adjusted to the state equalized value. (State assessment for 2017 currently $2.00, Yakima County = $2.05)
Taxes levied after calendar years 2022 will be limited once again to the current statutory limits. Chapter RCW

20. Levy Planning and Approval
Levy Planning for February 2018
1 Year Levy
2 Year Levy
3 year Levy
4 year Levy
2019
No approval Necessary
2020
2020 Requires OSPI Spending Plan Approval for Levy and LEA
2021
2021 Requires OSPI Spending Plan Approval for Levy and LEA
2022
2022 Requires OSPI Spending Plan Approval for Levy and LEA

21. Enrichment Levy Options
Still must run a total dollar amount levy. Cannot run a levy based on the $ per 1,000 of assessed value
Run maximum levy at $1.50 or $2,500 per student for years
Run an amount above the $1.50 or $2,500 maximum levy for years (will be rolled back to maximum levy)
Run a levy for less than the maximum (LEA prorated for LEA eligible districts)
Only enrichment levies based on the per student amount will affect the rate per $1,000 of assessed value. Levies capped at $1.50 per $1,000 will only be $1.50 per $1,000 regardless of total dollar value of levy.

22. Levy Rollback
Any levy run above the limit will be rolled back to the limit regardless of the amount passed by the voters

23. Enrichment Levies and LEA
Once additional tax levies have been authorized for enrichment funding for a school district for a two-year through four-year period ….., no further additional tax levies for enrichment funding for the district for that period may be authorized, except for additional levies to provide for subsequently enacted increases affecting the district's maximum levy.

24. Program of Basic Education
Retains the Prototypical School Model as the definition of Basic Education

25. Program of Basic Education
K-3 class size funded at 17
MSOC $1,244.16
9-12 MSOC $170.91
K-3 class size funded at demonstrated actual class size up to 17
MSOC $1,264.07
9-12 MSOC $173.64

26. Program of Basic Education
LAP high-poverty schools are provide an additional 1.1 hours per week.
The district must distribute the high poverty allocation to the schools that generate the funding allocation
Transitional Bilingual Program funding for 7th – 12th grades increased from hours to hours
Highly Capable Program increased from 2.314% to 5% of FTE BEA enrollment
Special Education funded percentage increased from 12.7% to 13.5%
CTE indirect cost charge reduced from 15% to 5%

27. Local Enrichment and Accountability
Limits the use of school district local revenues to enrichment only
Defines local revenues as enrichment levies, transportation vehicle levies, local effort assistance(LEA), other school district local revenue including, but not limited to, grants, donations, and state and federal payments in lieu of taxes
Does not include federal revenues or local revenues that operate as an offset to the districts basic education allocation

28. Local Enrichment and Accountability
Enrichment activities are permitted if the provide supplementation beyond the state:
Minimum instructional or program component offerings of RCW 28A , 28A or 28A
Staffing ratios or program components of RCW 28A , including additional staff for class size reduction

29. Local Enrichment and Accountability
Permitted enrichment activities consist of:
Extracurricular activities, extended school days or an extended school year
Additional course offering beyond the minimum instructional program of basic education
Activities associated with early learning programs
Additional salary costs attributable to the provision or administration of the activities listed above
Additional activities or enhancements that OSPI determines to be enrichment of basic education(subject to enrichment levy approval from OSPI)

30. Local Enrichment and Accountability
If a school district spends local salary costs attributable to the administration of enrichment activities the cost may not exceed the proportion of the district’s local revenues to it’s other revenues.
Supplemental contracts are also subject to the same limitation

31. Local Enrichment and Accountability
OSPI may develop recommendations for expanding the list of permitted activities.
The legislature will look at this list in the 2018 legislative session

32. Local Enrichment and Accountability
State Auditor’s office will review the use of local revenues beginning with the school year
Any findings for failure to comply with the enrichment requirements are to be reported within 90 days to OSPI, OFM and the education and operating budget committees of the legislature
Before school year, each school board must adopt a policy for responding to local revenue audit findings
The policy must require a public hearing of the findings to be held within 30 days of the issuance of the findings
The policy may include progressive disciplinary actions for the district superintendent

33. Local Enrichment and Accountability
Beginning September 1, 2017 school districts must annually report to OSPI on supplemental contracts entered for additional Time, Responsibility or Incentive(TRI).

34. Reporting, Accounting, and Transparency
By each district must create a subfund in the general fund to account for financial operations that are paid from local revenues
School districts must track expenditures in the subfund separately to account for the expenditures of each of these revenue streams by source
District must provide any supplemental schedules required by OSPI or the state auditor

35. Reporting, Accounting, and Transparency
Budget must set forth:
Revenues from all sources
State funded basic education salary amounts, locally funded salary amounts, total salary amounts, and FTE for each individual CIS, CAS and CLS (underlined is the new requirement)
In Districts where negotiations have not been completed, the district may budget the salaries at the current year’s rate and restrict fund balance for the amount of the anticipated increase

36. Reporting, Accounting, and Transparency
Annual budget due July 10 shall include an update of the 4 year budget plan that includes a 4 year enrollment projection (this becomes part of the budget and must be adopted by the school board)
4 year budget must include an estimate of funding necessary to maintain the continuing costs of program service levels and any existing supplemental contract obligations
District must electronically publish a notice stating that the district has completed the budget and a summary of the four-year budget plan is available to the public(this is in addition to the public notice for fixing and adopting the budget)
Caseload Forecast Council shall work on a generic 4 year budget model for districts to use.

37. School District Collective Bargaining and Salaries
CAS, CIS and CAS salary increases for are limited to prior year CPI for the City of Seattle
Applies to bargaining agreements that are executed or modified after the effective date of the bill(July 6, 2017)
Also applies to supplemental contracts
Does not apply if the district’s average salary (by CLS, CIS and CAS category) is less that the average salary allocated by the state

38. School Employees’ Benefits Board
Effective January 1, 2020 all employees of school districts, ESDs and charter schools shall be insured by the SEBB.
Between now and December 31, 2019 districts and insurance providers will have to report data to the SEBB for creation of the SEBB

39. School Employees’ Benefits Board
Effective January 1, 2020, Districts will not be able to offer basic or optional benefits if they are not provided by the SEBB

40. School Employees’ Benefits Board
Until creation of the SEBB districts shall:
Offer a high deductible health plan option with a health saving account
Make progress toward employee premiums for full family that are not more than three time the premiums for employee only coverage
Offer employees at least one plan the is not a high deductible plan in conjunction with a health saving account
Procure insurance services through and open competitive process
Comply with data reporting requirements of OIC

41. School Employees’ Benefits Board
For benefits beginning January 1, 2020, the governor will bargain with school employees over the dollar amount to be contributed on behalf of each employee for health care benefits

42. Other Education Provisions
Intent to phase in enriched staffing values
Legislature intends to review and prioritize future staffing ratio increases to focus on reducing the opportunity gap, assisting struggling students, enhancing the educational outcomes for all students and strengthening support for all schools and school district staff
OSPI to convene a work group to review and prioritize the additional staff enrichments by December 1, 2019

43. Other Education Provisions
Elementary
Middle
High
Current
Additional
Principals
1.2530
0.0470
1.3530
1.8800
0.0200
Teacher Librarian
0.6630
0.3370
0.5190
0.4810
0.5230
0.4770
Heath and Social Services
School Nurses
0.0760
0.5090
0.0600
0.8280
0.0960
0.7280
Social Workers
0.0420
0.2690
0.0060
0.0820
0.0150
0.1120
Psychologists
0.0170
0.0870
0.0020
0.0220
0.0070
Guidance Counselors
0.4930
1.2160
0.7840
2.5390
0.9610
Teaching Assistance
0.9360
1.0640
0.7000
0.3000
0.6520
0.3480
Office Support
2.0120
0.9880
2.3250
1.1750
3.2690
0.2310
Custodians
1.6570
0.0430
1.9420
0.0580
2.9650
0.0350
Student and Staff Safety
0.0790
0.0000
0.0920
0.6800
0.1410
1.1590
Parent Involvement Coordinators
0.0825
0.9175
1.0000

44. Other Education Provisions
Class size reduction
Future class size reductions
Grades K-3
0.00
Grade 4
2.00
Grade 5-6
Grade 7-8
3.53
Grade 9-12
3.74
CTE
4.00
Skills

45. Miscellaneous Provisions
Apportionment Allocation schedule to change
Old
New
Differences
September
9.00%
October
8.00%
-1.00%
November
5.50%
5.00%
-0.50%
December
January
8.50%
February
March
April
May
June
6.00%
July
10.00%
12.50%
2.50%
August
100.00%