1. 1 Educational Service District 113 Survey Research & Election Results October 23 th, 2013 J ON G ORES M ANAGING D IRECTOR (206) 389-4043 JG ORES @ DADCO. COM

2. Today’s presentation will focus on E LECTION R ESULTS S URVEY R ESEARCH 1

3. Source: Washington Secretary of State: Election and Voting website and individual County Auditor websites. Washington State Election Results School Districts Only M&O Levies: 45 passed and 2 failed Capital Projects Levies: 15 passed and 2 failed Transportation Levies: N/A Bond Authorizations: 5 passed and 28 failed 2011 Election Results2012 Election Results M&O Levies: 166 passed and 6 failed Capital Projects Levies: 34 passed and 3 failed Transportation Levies: N/A Bond Authorizations: 12 passed and 6 failed M&O Levies: 43 passed and 1 failed Capital Projects Levies: 14 passed and 1 failed Transportation Levies: 1 passed and 0 failed Bond Authorizations: 12 passed and 14 failed 2013 Election Results (Through April 2013) 2

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8. 2014 Special Election and Resolution Filing Dates 7

9. Survey Results – Statewide Survey Renewal of M&O Levy Would you say that you are now more likely, equally likely, or less likely to approve renewal of the local levy that supports daily operations of your local schools, as compared with two to four years ago? Source: 2011 Economic Research Center, Washington State University 2013 Elway Poll, D.A. Davidson & Co. 8

10. Statewide Survey Results – July 2013 Renew LevyTotal AgeArea 18-3536-5051-6465+SeattleKingP/KN. SoundWestEast More Likely 19%20%13%20%24%19%21%19%23%10%24% Equally Likely 47%59%56%46%35%56%54%39%48%49%38% Less Likely 27%22%23%29%30%19%17%37%25%34%31% Don’t Know/Not Applicable 7%0%9%5%10%7%9%6%5%7% Renewal of M&O Levy Would you say that you are now more likely, equally likely, or less likely to approve renewal of the local levy that supports daily operations of your local schools, as compared with two to four years ago? Source: The Elway Poll, D.A. Davidson, July 2013 9

11. Survey Results – Statewide Survey Renewal of M&O Levy Here are two questions about whether you would vote for or against, or be undecided about a school levy in your district if you knew two additional facts. The first one is, the number of students per class would increase if the levy is not approved. Would you vote: Source: 2011 Economic Research Center, Washington State University 2013 Elway Poll, D.A. Davidson & Co. 10

12. Statewide Survey Results – July 2013 Class SizeTotal AgeArea 18-3536-5051-6465+SeattleKingP/KN. SoundWestEast For47%61%52%48%43%54%50%43%58%47%43% Against32%27%32%35%29%28%31%35%32%38%26% Undecided20%12%16%18%29%19% 22%9%15%31% Renewal of M&O Levy The first one is, the number of students per class would increase if the levy is not approved. Would you vote for or against, or be undecided? Source: The Elway Poll, D.A. Davidson, July 2013 11

13. Survey Results – Statewide Survey Renewal of M&O Levy The second one is, the levy pays for one-fifth of the daily operating cost of the school. In this case would you vote for the levy, be undecided or vote against the levy? Source: 2011 Economic Research Center, Washington State University 2013 Elway Poll, D.A. Davidson & Co. 12

14. Survey Results – July 2013 OperatingTotal AgeArea 18-3536-5051-6465+SeattleKingP/KN. SoundWestEast For53%59%51%59%43%57%60%41%60%50%47% Against23%22%26%22%25%20%19%30%23%32%18% Undecided24%20%24%19%32%22%21%30%17%18%34% Renewal of M&O Levy The second one is, the levy pays for one-fifth of the daily operating cost of the school. In this case would you vote for the levy, be undecided or vote against the levy? Source: The Elway Poll, D.A. Davidson, July 2013 13

15. Statewide Survey Results – July 2013 Last year, the state supreme court ruled that the legislature was not putting enough money into public education. In response, the legislature added just under $1 billion dollars to the state education budget. Given this additional money, if your local school district were to put a maintenance and operations levy on the ballot in the next year, which of these statements best describes you: Source: The Elway Poll, D.A. Davidson, July 2013 14

16. Statewide Survey Results – July 2013 Last year, the state supreme court ruled that the legislature was not putting enough money into public education. In response, the legislature added just under $1 billion dollars to the state education budget. Given this additional money, if your local school district were to put a maintenance and operations levy on the ballot in the next year, which of these statements best describes you: Renew LevyTotal AgeArea 18-3536-5051-6465+SeattleKingP/KN. SoundWestEast As Likely 42%45% 47%30%46%47%26%43%34%49% Think Twice 27%29%32%21%30%31%23%28% 26%28% Oppose 22%14% 27% 11%19%37%20%32%16% Depends 6%8%5% 8%7%5%7%8%6%3% Don’t Know/Not Applicable 3%4%3%1%5%4%5%2% 1%3% Source: The Elway Poll, D.A. Davidson, July 2013 15

17.  There is a proposal before the legislature to provide funding to every school district to have full-day every day kindergarten. If they have full-day every day kindergarten, many school districts will have to add classrooms to meet this requirement.  If there were a measure on the ballot in your community to increase property taxes in order to add classrooms for a full-day every day kindergarten, which of the following would you.. 2012 Statewide Totals West % East % Definitely Support1714 Probably Support it26 Probably Oppose21 Definitely Oppose3236 Don't Know/NA49 Definitely/Probably Support:King Co.No. SoundWestEastern Age 18-35 Age 36-50 Age 51-64 Age 65+ 43%42%48%36%40%63%51%37% Source: The Elway Poll, D.A. Davidson, September 2012. Statewide Survey Results – July 2013 16

18. Statewide Survey Results – July 2013  Electronic Books  In your opinion should electronic books - such as Kindles, Nooks and iPads - be available for students in your district? Yes: King Co. No. SoundWestEasternDemsRep Perfect Voters Age 18-35 Age 36-50 Age 51-64 63%59%58%66%61%71%56%60%68%61%68% 17

19. 19  Grades  Students are often given the grades A, B, C, D and Fail to denote the quality of their work. Suppose the public schools themselves in your community were graded in the same way. What grade would you give the public schools here – A, B, C, D, or Fail? National Totals 2012 % 2007 % 2002 % 1997 % 1992 % A&B4845474640 A12910 9 B36 373631 C 34 3233 D1314101112 Fail45365 Don’t know/refused426510 Source: August 2012 PDK/Gallup Poll: “What Americans said about the public schools” Survey Results – National Survey 2012 18

20. 20  Overall Grade  Overall, what grade would you give your local school district. We will use a letter grade, like they use in school where: [A] is Excellent [B] is Good [C] is Satisfactory [D] is Unsatisfactory [F] is Failing Source: The Elway Poll, D.A. Davidson, September 2012. 2012 Statewide Totals West % East % A1518 B3239 C2617 D138 F65 Don’t know/refused814 A/B Grades:AllKing Co. No. SoundWestEasternDemsRep Perfect Voters65+ 47%48%57%47%57%58%54% 50% Survey Results – National Survey 2012 19

21. 21 Survey Results – Statewide Survey 2012 20

22. Statewide Survey Results – July 2013  Taxes  If there were a proposal to increase taxes to make more computer technology available to students in your district, would you… Source: The Elway Poll, D.A. Davidson, September 2012. 2012 Statewide Totals West % East % Definitely Support that proposal3435 Probably Support it1526 Probably Oppose it2017 Definitely Oppose that proposal2913 Don't Know/NA29 Definitely/Probably Support: King Co. No. SoundWestEasternDemsRep Perfect Voters Age 18-35 Age 36-50 Age 65+ 49%56%59%49%61%71%40%59%74%56%54% 21

23. Voter Outlook Index Items: Two-Year Trend In next year, will things get better or worse.. In the United States In Washington State 1922

24. Voter Outlook Index Items: Two-Year Trend In next year, will things get better or worse.. In your Community For You and Your Family 2023

25. Mr. Gores joined D.A. Davidson & Co. in 2006 as a Senior Vice President in the Fixed Income Capital Markets division. Previously, he was with Seattle Northwest Securities for 18 years as Vice President of Public Finance, where he served as Manager of the School Finance Group for Washington State schools. Since 1985, Jon’s focus of practice has been school district public finance. He has been instrumental in developing financing solutions for specific school district funding needs. His advocacy on behalf of school districts with the State legislature contributed to the repeal of the law that caused the tax rate spike that districts encountered with a mid-year bond sale, and led to the expanded use of limited general obligation (LGO) debt. His efforts resulted in H.B. 1832, which allows school districts to use LGO debt for remodeling of and additions to existing facilities. Most recently Mr. Gores was instrumental in the passage of legislation that allows a direct transfer of state forest revenue from the debt service fund to the capital projects fund. Jon is a member of WASA, WSSDA, WASBO, and is a featured speaker at numerous conferences. He serves as a trustee of the Washington State School Boards Educational Foundation. He has been a guest lecturer at the University of Washington, WSU, Seattle Pacific University and Seattle University. Mr. Gores served on the School Bond Guarantee Program advisory committee and was appointed to the Finance Committee for the Simple Majority. Jon is a recipient of the Advocate for Education Award by WSU. Bio – Jon Gores 24

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