1. WASA New Superintendent Workshop Olympia, July 28, 2014

2.  Where We’ve Been ◦ McCleary v. State of Washington ◦ Education Finance Reform  Where We Are ◦ 2013-15 Budget Overview ◦ McCleary impacts  Where We’re Going ◦ Budget Outlook ◦ WASA 2015 Legislative Platform  Superintendent Advocacy 2

3.  2005: The Network for Excellence in Washington Schools (NEWS) is formed ◦ Comprised of many organizations and school districts committed to improving the quality of public education in Washington (430+ members in 2014)  2007: McCleary v. State of Washington filed in King County Superior Court  NEWS filed a lawsuit, asking the courts to order the State of Washington to live up to its paramount constitutional duty to make ample provision for the education of all Washington children 3

4. Dollars in Billions

5. Source: OSPI 5/10

6.  2009: McCleary v. State of Washington heard in King County Superior Court  2010: Judge John Erlick rules for the plaintiffs, declaring the State’s failure to fully fund public schools is unconstitutional: ◦ “ This court is left with no doubt that under the State’s current financing system, the state is failing in its constitutional duty. “ 6

7. “State funding is not ample, it is not stable, and it is not dependable…local school districts continue to rely on local levies and other non-state resources to supplement state funding for a basic education.” “Paramount means preeminent, supreme, and more important than others. Funding K-12 education…is the state’s first and highest priority before any other state programs or operations.” - Judge John Erlick 7

8. 8 ESHB 2261 – Program Changes Required

9. 9 SHB 2776 – Funding Changes Required

10. 10 SHB 2776 Resource Phase-in School Year2010-112011-122012-132013-142014-152015-162016-172017-18 1 Full-Day Kindergarten Must be fully funded statewide by 2017-18 Phase-in based on FRPL 219 Schools More funding can begin More funding must begin Continues to ramp up Fully Funded 2 K-3 Class Size Reduction Must be fully funded statewide by 2017-18 Phase-in based on FRPL $0 More funding can begin More funding must begin Continues to ramp up Fully Funded 3 Materials, Supplies, Operation Costs (MSOC) Must be fully funded by 2015-16 $ per student basis More funding can begin More funding must begin Continues to ramp up Funded at new level 4 Basic Transportation Must be fully funded by 2014-15 % of formula funded basis More funding can begin More funding must begin Continues to ramp up Fully Funded Source: OSPI, 5/10

11.  Supreme Court rules (January 2012): ◦ The State “has consistently failed” to provide the ample funding required by the Constitution. ◦ “Reliance on levy funding to finance basic education was unconstitutional 30 years ago in Seattle School District, and it is unconstitutional now.”  Supreme Court Orders State to: ◦ “demonstrate steady progress” under ESHB 2261; and ◦ “show real and measurable progress” towards full Article IX, Section 1 compliance by 2018. 11

12. 2013-15 Budget Overview

13. 13 2013-15 Operating Budget (as adopted, June 2013) Total Resources$33.54 billion (including transfers of $520 million) Total Spending$33.49 billion Ending Fund Balance$53 million (0.2% of spending) Budget Stabilization Account$578 million Total Reserves$630 million (2.0% of spending) K-12 Education 2011-13$13.65 billion K-12 Education 2013-15$15.21 billion Total K-12 increase$1.56 billion (11.4% increase) Basic Education Enhancement$982.2 million

14. 14 2013-15 Operating Budget (as amended, March 2014) Total Resources$33.95 billion (including transfers of $420 million) Total Spending$33.65 billion Ending Fund Balance$296 million Budget Stabilization Account$583 million Total Reserves$879 million K-12 Education 2011-13$13.65 billion K-12 Education 2013-15$15.27 billion Total K-12 increase$1.62 billion Basic Education Enhancement$1.07 billion

15. 15 Education Funding Task Force Adopted Spending Plan Source: Joint Task Force on Education Funding, Final Report, 12/12

17. 17 Initial McCleary Basic Education Investment 2013-15 Operating Budget $5 $4 $3 $2 $1 $0 Billions

18. 18 Note: Pupil Transportation “fully funded” in 2014-15 Source: OSPI, 4/14

19. 19 Real and Steady Progress Towards Full Funding -- State Testimony vs. Actual Funding— (Per Pupil State Funding) Source: Network for Excellence in Washington Schools response to 2013 Post-Budget Filing, 1/14

20. 2015-17 What Does the Future Hold?

21. Real Per Capita General Fund-State Revenues (2009 Dollars) Source: OFM, 12/13

22. 22 2013-15 & 2015-17 Budget Outlook (Dollars in Millions) Source: Economic & Revenue Forecast Council, 4/14

23. 23 Source: Washington State Budget & Policy Center, 3/14 2015-17 Projected Budget Shortfall (March 2014)

24. Source: Washington State Budget & Policy Center, 6/14 2015-17 Projected Budget Shortfall (June 2014)

25. 25 Additional Revenue Necessary to Sustain Investments in Education and Other Priorities

26. 26 General Fund-State Revenues as Percentage of Washington Personal Income Source: OFM, 12/13

27. 27  Ensure the state’s new basic education finance system is fully funded and fully implemented by 2018—as directed by the Supreme Court’s McCleary decision  Expand state revenue collections to fully comply with the McCleary decision and maintain other needed government services  Update the school employee compensation system, ensuring the establishment of an equitable and ample allocation system WASA 2015 Platform (DRAFT)

28.  An educated citizenry is critical to the state’s democracy; a well-educated population is the foundation of our democracy, our economy, and the American dream  Public education plays a critical role in promoting equality, operating as the great equalizer; public education provides unprivileged citizens with the tools they need to compete on a level playing field with citizens born into wealth or privilege 28

29.  Education plays a critical role in building and maintaining a strong economy; public education builds the well-educated workforce necessary to attract more stable and higher wage jobs to the state’s economy  Washington’s duty to education is constitutionally declared to be its paramount duty  In summary: Public education is a wise “investment” in the future 29

30. School Superintendent Advocacy — What You Can Do —

31.  Establish an ongoing, personal relationship with your legislators (and their staff)  Remember you are the education “expert” and a valuable resource to legislators  Personalize issues with names of students, teachers, school buildings, etc.  Collaborate with community groups  Keep colleagues and WASA informed 31

34.  WASA: www.wasa-oly.org  Education Associations: ◦ WSSDA: www.wssda.org ◦ AWSP: www.awsp.org ◦ WEA: www.washingtonea.org ◦ PTA: www.wastatepta.org  Education Agencies: ◦ OSPI: www.k12.wa.us ◦ SBE: www.sbe.wa.gov ◦ PESB: www.pesb.wa.gov  Legislative-related: ◦ Legislature Homepage: www.leg.wa.gov ◦ Governor’s Homepage: www.governor.wa.gov ◦ LEAP (Budget info): http://leap.leg.wa.gov/leap/default.asp 34

35. Daniel P. Steele Assistant Executive Director, Government Relations 825 Fifth Avenue SE Olympia, WA 98501 360.489.3642 dsteele@wasa-oly.org 2014 New Superintendent Workshop