1. JoLynn Berge – Chief Financial Officer, OSPI Andrea Cobb – Policy Analyst, OSPI

2.  Funding for basic education is not ample, stable or dependable  Proposed Remedy: ◦ Determine the cost of amply providing for basic education ◦ Comply with the constitutional mandate to provide stable and dependable funding for such costs of basic education 2

3.  Affirms the trial court’s ruling that the State was not meeting its obligation under Article IX  Finds that ESHB 2261 was a promising reform, and if funded, would remedy the deficiencies in state funding  Expresses intent to retain jurisdiction over the case to monitor implementation of ESHB 2261 and help ensure the State’s progress toward complying with its paramount duty by 2018 3

4.  Establishes the Joint Select Committee on Article IX Litigation to: ◦ Facilitate communication between the Washington Supreme Court and the Legislature with regard to Article IX legislation ◦ Advise the attorneys who represent the Legislature before the supreme court ◦ Inform members of the Legislature about communications from the supreme court regarding McCleary 4

5.  Jurisdiction is retained at the Washington Supreme Court  The court requires the State to file annual reports to the court through the Article IX committee following budget enactment  The court’s review of the reports focuses on whether the State has made “real and measurable progress”  Reports were submitted in September 2012 and August 2013 5

6.  The Legislature did not make changes to basic education funding during the 2012 legislative session  The report provides a baseline description of the K-12 budget 6

7.  Finds that “the State’s first report fell short” ◦ There is insufficient indication of how full compliance with Article IX will be achieved  Reiterates that 2018 is a firm date for full constitutional compliance  Specifies that the 2013 report must set out a plan in sufficient detail to allow measurement of progress according to periodic benchmarks ◦ The report should indicate the phase in plan achieving the State’s mandate and demonstrate how the State’s budget meets its plan ◦ The plan must address all areas identified in ESHB 2261 7

8.  Provides information on the $982 M enhancement made to basic education in the 2013-15 operating budget including: ◦ Full-day kindergarten$89.9 M ◦ Pupil Transportation$131.7 M ◦ Materials, supplies and operating costs$374 M ◦ Early elementary class size$103.6 M ◦ Learning Assistance Program$141.3 M ◦ Transitional Bilingual Program$18.9 M ◦ Parent Inv. Cord. & Guidance Counselors$24.1 M ◦ Instructional Hours$97 M 8

9.  Acknowledges that “meaningful steps were taken in the 2013 legislative session”  States however, that the State “cannot realistically claim to have made significant progress when its own analysis shows that it is not on target to implement ESHB 2261 and SHB 2776 by the 2017-18 school year”  Ordered the State to submit a complete plan for fully implementing its program of basic education for each school year between 2014 and 2018 no later than April 30, 2014 9

10.  Instructional program of basic education ◦ Instructional hours ◦ Instruction in the EALRS ◦ Opportunity to complete 24 credits for high school graduation ◦ Learning Assistance Program ◦ Transitional Bilingual Instruction Program ◦ Special Education Services ◦ Highly Capable Program  Institutional programs (for juveniles in detention)  Transportation  Full-day Kindergarten 10

11. Enhancement AreaPolicyStatutory Deadline Pupil TransportationMove to expected cost model2013-15 Biennium Materials, Supplies & Operating CostsFund actual cost per pupil as of 2007-08 SY adjusted by inflation 2015-16 School Year Full Day Kindergarten (FDK)Continue implementation of state funded FDK for all schools beginning with highest poverty 2017-18 School Year Early Elementary Class Size (K-3)Reduce to 17.0 FTE students per teacher 2017-18 School Year Increase Instructional Hours*Increase to 1,080 hours in each of grades 7-12 th and 1,000 in each of grades 1 st – 6 th Schedule to be adopted by the Legislature Opportunity for 24 Credits*Provide students the opportunity to complete 24 credits for graduation Schedule to be adopted by the Legislature CompensationRequires a technical workgroup to make recommendations for an enhanced compensation model No required date or target specified *E2SSB 6552, adopted in 2014, revised the requirements related to increased instructional hours and the opportunity for 24 credits 11

12.  E2SSB 6552 – Student hour and graduation requirements ◦ Increased minimum instructional hour requirements beginning in 2015-16 ◦ Implemented the SBE college and career ready graduation framework for the graduating class of 2019 (Opp. to earn 24 credits) ◦ Increased funding for:  High school guidance counselors to from 2.009 to 2.539  MSOC in grades 9-12 by $164.25  Lab science class size to 19.98 FTE  ESHB 2207 – Basic education funding ◦ Prohibited the state from offsetting the first $70,000 of federal forest revenues for districts with greater than 57% poverty  ESSB 6002 – Operating budget ◦ Provided allocations to fully implement the expected cost model for pupil transportation funding beginning in the 2014-15 SY 12

13.  Full Funding Proposals ◦ SHB 2792 – Education Funding Allocations ◦ SB 6574 – Education Funding  Other Basic Education Funding Proposals ◦ HB 2589 & SB 6438 – Basic ed allocation formula  Revenue Proposals ◦ HB 2796 – Ed funding/tax pref. changes ◦ SHB 2244 & SB 6546 – Capital budget/ed resources ◦ SSB 5881 – Revenue growth for education ◦ SB 6571 – Remote Seller tax/ed funding  Capital Funding Proposals ◦ EHB 2797 – Kindergarten & Elementary ◦ SB 6483 – Education facilities/bonds 13

14.  Full Funding Proposals ◦ SHB 2792 – Education Funding Allocations ◦ SB 6574 – Education Funding  Other Basic Education Funding Proposals ◦ HB 2589 & SB 6438 – Basic ed allocation formula  Revenue Proposals ◦ HB 2796 – Ed funding/tax pref. changes ◦ SHB 2244 & SB 6546 – Capital budget/ed resources ◦ SSB 5881 – Revenue growth for education ◦ SB 6571 – Remote Seller tax/ed funding  Capital Funding Proposals ◦ EHB 2797 – Kindergarten & Elementary ◦ SB 6483 – Education facilities/bonds 14

15. Enhancement AreaSHB 2792SB 6574 Pupil TransportationAligns the statutory funding formula to reflect full funding and implementation of the system beginning in 2014-15 Not addressed Materials, Supplies & Operating CostsAllocations for MSOC are increased for students in grade 9-12 beginning in 2014-15 Increases funding for general MSOC and provides additional allocations for MSOC for students in grade 9-12 beginning in 2014-15 Full Day Kindergarten (FDK)Provides an implementation schedule for FDK of equal annual increments beginning in 2015- 16 Provides an implementation schedule for FDK of equal annual increments beginning in the 2015-17 biennium, and increase funding for FDK to 57.5% of students in 2014-15 Early Elementary Class Size (K-3)Provides an implementation schedule for K-3 class size reduction of equal annual increments beginning in 2014-15 for schools with >50% FRPL and 2015-16 for all others Provides an implementation schedule for K-3 class size reduction of equal annual increments beginning in the 2015-17 biennium, and reduced grade 2 high poverty class size from 24.10 to 20.85 in SY 2014-15 Increase Instructional HoursRevised to 1,000 in grades 1-8 and 1,080 in grades 9-12, beginning with the 2015-16 school year. Allows hours to be averaged districtwide Opportunity for 24 CreditsDirects the state board to adopt rules to implement 24 credits Career and College Ready Framework for the class of 2019 Authorizes the implementation of the opportunity for 24 credits beginning with the graduating class of 2019 CompensationIncreases classified and certificated administrative staff salaries in equal annual increments to the market rate salary in the 2017-18 school year Increases classified and certificated administrative salaries beginning in the 2015- 17 biennium; provides that a revised salary allocation schedule should be phase in for CIS between the 2015-16 and 2020-21 SYs 15

16. Enhancement AreaSHB 2792SB 6574 Learning Assistance ProgramIncreased funding to 2.3975 hours per week Transitional Bilingual Instruction Program Provides an implementation schedule to increased allocations to 6 hrs./wk. in middle school and 8 hrs./wk. in high school beginning in the 2015-16 SY Increased allocations to 6 hrs./wk. in middle school and 8 hrs./wk. in high school beginning in the 2015-17 biennium Other Class Size ReductionReduces lab science class size in grades 9-12 to 19.98 Provides an implementation schedule to reduce general education class size in grade 9-12 to 23; lab science and CTE to 19, and skill center class size to 16 beginning in the 2015-17 biennium Elementary and Middle School StaffIncreased allocations for elementary family engagement coordinators and middle school guidance counselors beginning in 2015-16 Increased allocations for guidance counselors and family and community engagement coordinators High School StaffIncreased allocations for guidance counselors beginning in 2015-16 Increased allocations for principals, assistant principals, other certificated administrators and guidance counselor 16

17. School level staffing per base enrollment Staff TypeElem (K-6)Middle (7-8)High (9-12) Base Enrollment Students400432600 Principals CAS1.301.401.90 Current allocation 1.251.351.88 Teacher Librarians CIS1.00 Current allocation 0.6630.5190.523 Guidance Counselors CIS0.502.0003.50 Current allocation 0.4931.2162.539 Health & Social Services School Nurses CIS0.5850.8880.824 Current allocation 0.0760.0600.096 Social Workers CIS0.3110.0880.127 Current allocation 0.0420.0060.015 Psychologists CIS0.1040.0240.049 Current allocation 0.0170.0020.007 Teaching Assistants CLS1.1951.2951.121 Current allocation 0.9360.7000.652 Office Support CLS3.2203.0293.382 Current allocation 2.0122.3253.269 Custodians CLS3.5243.4544.512 Current allocation 1.6571.9422.965 Student & Staff Safety CLS0.0990.5060.723 Current allocation 0.0790.0920.141 Parent Involvement Coordinators CLS0.676 Current allocation 0.082500 The values in the columns represent the full funding values recommended by the QEC along with current statutory funding levels 17

18.  Local funds used for basic education ◦ ESB 6499, SHB 2792 (Sec 7), and ESSB 6002 (Sec 924, as passed House) proposed a local finance taskforce  Salary compliance ◦ SHB 2792 proposes up to a 10% local salary enhancement beyond salaries fully funded in SY 2020-21  Capital ◦ EHB 2797 proposed funding FDK and K-3 class size reduction with lottery revenue bonds ◦ SB 6483 created a competitive grant program to provide additional FDK and K-3 classrooms as well as and STEM labs 18

19.  Many elements of basic education have not been addressed by the Legislature at this point  The proposals that have put forward are not far apart on the elements of basic education that they do address  Potential areas of debate in the 2015 session include: ◦ Compensation for certificated instructional staff ◦ Local levy capacity 19