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After several days of clear and sunny skies, the rain
returned Tuesday. Unfortunately, even though you could
retreat indoors to avoid the rain, the clouds and a
feeling of doom and gloom hovered within legislative
buildings as both Senate and House budget-writers
released their 2010 Supplemental Operating Budget
proposals today. Links to each budget proposal, along
with a summary and the agency detail, are available from
the Legislative Evaluation & Accountability Program
Committee, under
2010
Supplemental Budgets. Brief details of each proposal
follow below and we will provide more comprehensive
information of the two plans in the next issue of our
Impact newsletter.
The Senate plan solves the state’s $2.8 billion
budget problem in four parts: budget reductions in all
areas of state government total $838 million; $583
million in approved or “anticipated” federal relief
(including $483 million in federal Medicaid payments);
$498 million in various budget transfers; and $918
million in new revenue. The new revenue would come from
an elimination of several tax loopholes or tax
exemptions ($518 million); a one dollar per pack
increase in the cigarette tax ($86 million); and a
temporary 0.3 percent increase in the state sales tax
($313 million). The sales tax “surcharge” would be
imposed from June 1, 2010 through June 30, 2013. The
estimated $313 in additional 2009-11 revenue is intended
to maintain funding for Local Effort Assistance,
state-funded all-day kindergarten and state higher
education need grants.
The Senate’s budget would reduce the K-12 education
portion of the “maintenance level” budget by $214
million (maintenance level is the current budget, plus
mandatory “maintenance” increases, such as increases in
student enrollment and special education costs). By way
of comparison, Gov. Gregoire’s Book I budget included a
$406 million reduction to K-12, and her Book II budget
called for $197 million in reductions. The major
reductions include:
- The remaining $99 per student allocation to
support purposes of Initiative 728 is eliminated,
saving $79 million.
- Funding for the Class Size Enhancement in Grade
4 is eliminated (saving $37.2 million) and the K-3
Staff Ratio is reduced (saving $65.7 million).
Currently, the law requires 49 certificated
instructional staff (CIS) to 1,000 annual average
FTE students enrolled in grades kindergarten through
three; the enacted budget provides enhancements over
these levels to reduce class size, funding 53.17 CIS
per 1,000 average annual FTE students in grades
kindergarten through four. These enhancements are
decreased from the current ratios of 53.17 staff per
1,000 student FTEs to 49.5 staff per 1,000 student
FTEs in grades K-3.
- Classified staff ratio enhancements are
eliminated, saving $15.3 million.
- The final state-funded Learning Improvement Day
is eliminated, saving $15.3 million.
- Numerous smaller statewide programs and grants
are reduced or eliminated, decreasing costs by $10.5
million.
The House plan solves the state’s $2.8 billion budget
problem in four parts: budget reductions in all areas of
state government total $653 million (including $45
million in reductions already adopted with the passage
of
HB 2921); $641 million in anticipated federal
funding; $547 million in various budget transfers,
including $311 from reserves (leaving $428 million in
the state’s General Fund ending balance; and $857
million in new revenue. The new revenue would come
from…an unknown source. House budget-writers intend on
releasing their revenue plan tomorrow. Several plans are
on the table, including the mix of “discretionary” use
taxes from the governor, the Senate’s 0.3 percent sales
tax increase, and several ideas already introduced in
the House. Those House plans include a temporary one
cent increase in the sales tax, an increase in the
estate tax for “high wage” earners, and an elimination
of tax loopholes or tax exemptions.
The House’s budget would reduce the K-12 education
portion of the “maintenance level” budget by $112
million — while it also provides some important
increased funding. $7.2 million is provided to increase
the “per pupil inflator” from one percent to four
percent. This increases Local Effort Assistance funds
for school districts and will allow some districts to
collect additional local funds previously approved by
voters. Another $25.3 million is provided to increase
Local Effort Assistance by two percent, as provided for
in
HB 2893.
The major K-12 reductions included in the House
budget include:
- The remaining $99 per student allocation to
support purposes of Initiative 728 is eliminated,
saving $79 million.
- Beginning in the 2010-11 school year,
alternative learning experience (ALE) programs such
as online and digital learning delivered over the
internet, parent partnership programs (primarily
instructional programs taking place in the home,
with district responsibility for overseeing
instruction), and contract-based learning programs
will no longer be available to students in grades
K-6, saving $22.7 million.
- The final state-funded Learning Improvement Day
is eliminated, saving $15.7 million.
- Funding for K-4 staffing levels is reduced,
saving $11.1 million. The state allocation for
teachers and other certificated instructional staff
in grades K-4 is reduced to approximately 52.7 staff
per 1,000 students, from the current allocation rate
of 53.2 staff per 1,000 students.
- A number of reductions are made to the National
Board for Professional Teaching Standards bonus
program, totaling approximately $5.7 million.
- Numerous smaller statewide programs and grants
are reduced or eliminated, decreasing costs by $10.8
million.
- Funding for the Focused Assistance program is
eliminated, saving $3 million.
- Funding for Navigation 101 implementation grants
is discontinued beginning in FY 2011, saving $3.2
million.
- Funding for the Beginning Educator Support Team
(BEST) program is discontinued beginning FY 2011,
saving $2.3 million.
- Funding for the Alternative Routes to
Certification program is reduced by $2.1 million in
FY 2011.
- Funding for middle school career and technical
education is discontinued beginning in FY 2011,
saving $1.8 million.
Both the Senate and House budgets were heard in their
respective legislative committees this afternoon and
evening. Both budget plans are expected to move fairly
quickly; both are already scheduled to be moved out of
their committees tomorrow. Whether both houses will
adopt their own plan is to be determined. Normally, one
house will pass their budget to the other house, where
it will be amended and sent back to the first house,
then behind-the-scenes negotiations on a final
compromise budget will begin. Because both houses
introduced their respective plans on the same day, it is
unclear what process these budgets will follow. Of
course, we will continue to keep you apprised.
In other budget news, the Senate did not release its
2010 Supplemental Capital Construction Budget proposal
today. Senate leaders indicated that it will be released
“in a couple of days.” The House, however, did
release its Capital plan today. We will provide details
of that proposal in tomorrow’s Update.
Finally, legislative committees continue to meet even
as the blizzard of budget activity begins. We will
provide more details of those events tomorrow; however,
we did want to make quick note of two issues. The House
Education Committee adopted
SB 6696, the education reform bill intended to
enhance Washington’s application for federal “Race To
The Top” funds. SB 6696 makes changes to
teacher/principal evaluations; changes teacher tenure
provisions; expands options for educator certification;
and implements the State Board’s statewide education
accountability system. SB 6696 now moves to the House
Ways & Means Committee for action.
The House Education Committee also adopted an amended
version of
SB 6604. SB 6604 is the education “flexibility” bill
which would repeal, suspend or amend a series of K-12
unfunded mandates. The bill includes language that would
have negatively impacted WSSDA’s membership structure.
Today, before adopting the bill, the Committee adopted a
striking amendment that stripped this language from the
bill — along with all other provisions in the bill,
except the repeal of Student Learning Plans. The bill
now moves to the House Rules Committee, awaiting action
by the full House.
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