WSSDA

Daily Legislative Update

by Dan Steele, WSSDA Director of Governmental Relations

For Friday, March 12, 2010

Note: WSSDA's weekly video legislative update is now available at www.youtube.com/wssda.

Last night — Day 60 of the scheduled 60-day 2010 Regular Session — the Legislature adjourned Sine Die just before 9:00 pm. Because a final, compromise 2010 Supplemental Operating Budget (and necessary additional revenues to fund the budget) was not able to be completed, Gov. Gregoire announced she will call the Legislature back to town for a Special Session beginning at noon on Monday, March 15. In her official proclamation, Gregoire requests the Legislature to focus on the completion of the Supplemental Operating Budget, the Supplemental Capital Construction Budget and a job creation package. She also states that the Special Session should last no more than seven days. In a press conference following the adjournment of the Regular Session, Senate Majority Leader Lisa Brown and House Speaker Frank Chopp joined Gov. Gregoire and agreed with her that the focus should (and probably will) be on the two supplemental budgets and a jobs package; however, the governor’s direction is not binding. Under the provisions of the state constitution, when the governor calls a Special Session, she cannot limit the topics to be addressed, nor can she limit the length of the session. The only real parameter is the maximum length of the Special Session, which is 30 days.

Yesterday, House and Senate negotiations resulted in the resolution and adoption of three major education bills: HB 2893, HB 2776 and SB 6696.

HB 2893 will: (1) restore school district levy bases by allowing the “full funding” of Initiative 728 (Student Achievement) and Initiative 732 (educator COLAs) and the K-4 Class Size Enhancement to be counted in the calculation of the levy base, even though the funding has been eliminated; (2) increase the local levy lid for all school districts (including grandfathered districts) by four percent; (3) allow a “supplemental” levy for districts that are mid-cycle and want to capture the additional levy capacity included in this bill; and (4) increase Local Effort Assistance (for all eligible districts) by two percent. The bill also includes a very important “reverse severability” clause, which declares that each section of the bill represents a comprehensive plan for addressing school levy laws such that if any section passed by the Legislature is invalidated or not signed into law, or if OSPI does not certify that full funding has been appropriated for the LEA rates in the bill, the entire act is null and void.

HB 2776 is the bill from the Quality Education Council and the Funding Formula Technical Working Group that will implement the new prototypical school funding model, as outlined in last session’s basic education finance reform bill, HB 2261. In addition to the new financing model, the bill provides for a phase-in of smaller class sizes in K-3 by the 2015-16 school year, enhanced spending on Maintenance, Supplies and Operating Costs or MSOC (formerly known as Non-Employee Related Costs or NERC) and a new formula for pupil transportation costs.

SB 6696 is the bill to implement various education reform measures intended to enhance Washington’s eligibility for federal “Race To The Top” funding. The bill will implement a new teacher and principal evaluation system; revise current teacher tenure provisions; make changes to enhance alternative routes to teacher certification; and implement the State Board of Education’s new statewide school accountability plan.

HB 2776 and SB 6696 were in dispute until just prior to last night’s adjournment of the session. The dispute was essentially over education funding. In short, the House wanted bills with a strong funding commitment, while the Senate did not want to “over-commit” and provide a “false promise.” Key education-minded legislators worked vigorously behind-the-scenes to forge a compromise to secure passage of these two bills. Upon reaching an agreement, Sen. Rosemary McAuliffe released a statement announcing the breakthrough, saying, “It’s great to end this regular session on a high note with these two powerful bills to reform our education system for our kids.”

In terms of the budget, three major issues need be negotiated:

  • The total amount of spending in the budget (or in Olympia-speak, the “size of the box”);
  • The total amount of new revenue to fund the budget; and
  • The total amount of money left in an ending fund balance.

In last night’s press conference, Sen. Brown and Speaker Chopp noted that the House and Senate have come to an agreement on the “size of the box.”  Upon being questioned about the final spending level in the budget, Brown responded that the House and Senate have essentially “split the difference.”  Of course, moving the pieces within the box will continue to be difficult, but usually the overall size of the budget is a major sticking point. For this budget, another thorny issue remains the revenue package. The Senate plan includes a three-tenths of a cent increase in the state sales tax, while the House plan includes a menu of tax items, but not a sales tax increase.

As the Special Session convenes, we will continue to provide these Updates. Remember that there is still an opportunity to have an impact on budget decisions. Make sure you remain in contact with your local legislators so they know your thoughts and opinions on the state budget.

WSSDA Legislative Report Index

WSSDA legislative reports are prepared by WSSDA's Governmental Relations staff team: Dan Steele (360.252.3010) and Sheila Chard (360.252.3011). We welcome your questions and comments. We also encourage school directors to keep in touch with their legislators on a regular basis. If you need contact information, visit the Legislature's District Lookup Tool. WSSDA also provides a number of links to key House and Senate committees.