1. 2016 Legislative Platform 10,000 Foot View

2. Session Dynamics Short Legislative Session – 60 days – Jan 11 to March 11 Purpose: Refine 2015-17 budget Deal with issues that can’t wait another year Major education issues Supreme Court Fine K 12 Compensation / over-reliance on levies Supreme Court Decision on Charter Schools Other issues Court and agency decisions on State responsibility for mentally ill Fire season costs are increasing (last year was record-setting) Initiative 1366 - 2/3 vote for tax increase or 1% reduction of sales tax

3. Political considerations House 50 democrats, 48 republicans In 2008, 63 democrats / 35 republicans Senate 26 (25 republicans and 1 democrat), 23 democrats In 2008, 32 democrats / 17 republicans 2016 Election Cycle Don’t want to upset traditional partisan supporters Raising taxes will hurt democrats ability to increase their numbers Carbon tax and raising minimum wage initiatives likely to be on ballot

4. 1.Basic education funding McCleary - PSE supports full funding of basic education and the McCleary decision through additional progressive revenue sources and the reduction of reliance on local levy support of basic education.

5. What’s been funded so far? 2013-15 Budget - $982 million $373.9 million - MSOC (materials, supplies, operating costs) $141 million - LAP (learning assistance program) $131.8 million - school transportation $103.6 million - K 1 class size reduction $97 million - increased instructional hours $89.8 million - all day K 2015-17 Budget - $1.27 billion $741 million - MSOC $350 million - K 3 class-size reduction $180 million - all day K

6. How much more is needed? Depends upon who is talking… Minimum $2.5 billion over 2 year budget State takes responsibility for compensation which impacts local levy and salary negotiations Maximum $6.5 billion State also takes responsibility for staffing, classrooms, and updated formulas

7. Market Based Salary Recommendations Compensation Workgroup 2012 Report HB 2261Requirement QEC received report

8. 8 Position Current State Funding Current Local Funding Total Current Funding New State Funded Amount Teaching Assistance (InstructionalAides/Paraeducators)$31,699$1,197$32,896$45,386 Office Support and other Non-instructional Aides$31,699$6,037$37,736$40,949 Custodians$31,699$5,070$36,769$39,454 Classified staff providing student and staff safety$31,699$5,651$37,350$44,040 Family Involvement Coordinator $45,386 Technology$31,699$23,249$54,948$83,253 Facilities, maintenance and grounds$31,699$15,616$47,315$50,057 Warehouse, laborers, and mechanics$31,699$10,743$42,442$36,522 Central Office, Classified$31,699$22,872$54,571$56,374 Classified salary recommendation

9. Cost of salary recommendation $277 million 2015 - HB 2239, SB 6109, SB 6130 Market based salaries, COLA, localization salary increase Some tied to reduced ability to locally negotiate salaries that rely upon levy funds 2014 - House appropriations committee passed HB 2792 to fully fund 2013 – House passed budget funded 50% of the increase 9

10. Staffing adequacy recommendations “(b) Recommendations for assuring adequate levels of state-funded classified staff to support essential school and district services.” PSE added this to HB 2776

11. Staffing adequacy report Workgroups developed classification recommendations “The QEC provisionally adopts the recommendations of the Classified Staffing Adequacy Working Group for essential staffing levels” - QEC 2011 Report to the Legislature Placed into Initiative 1351 (with small changes)

12. Paraeducators Elementary School – 400 students 1.164 FTE increase Middle School – 432 students.3 FTE Increase High School – 600 students.35 FTE Increase 12

13. Secretaries Elementary School – 400 students 1 FTE increase Middle School – 432 students 1.3 FTE Increase High School – 600 students.25 FTE Increase 13

14. Student safety Elementary School – 400 students.08 FTE decrease Middle School – 432 students.61 FTE Increase High School – 600 students 1.16 FTE Increase 14

15. Parent involvement coordinator Elementary School – 400 students.92 FTE increase Middle School – 432 students 1 FTE Increase High School – 600 students 1 FTE Increase 15

16. Technology For every 1,000 students 2.2 FTE Increase 16

17. Facilities, Maintenance, Grounds For every 1,000 students 2.2 FTE Increase 17

18. Warehouse, Laborers, Mechanics For every 1,000 students 1.6 FTE Increase 18

19. Increased state cost - $680 Million

20. Expand revenue for education services Property tax swap Raise State Property Tax to the Maximum Allowed - $3.60 per thousand Calendar Year 2015 is $2.14 per thousand School districts reduce local levy reliance Increase percentage of new revenue for education funding 2013-15 Operating Budget - 45.2% to K 12, 9.1% to Higher Education 2015-17 Operating Budget – 47.5% to K 12, 9.2% to Higher Education Capital Gains Tax Increase

22. 2. Insurance Insurance Funding - PSE supports high quality, comprehensive, affordable health care insurance options for K-12 and higher education employees including exploration of consolidation.

23. 32% - Insurance Premium Increases WEA/Premera has 60% of K 12 covered lives 2013-14 School Year - rates up 17% 2014-15 School Year - rates up 8% 2015-16 School Year - rates up 7% 2016-17 School Year - rates up/down ?

24. 1.56% - State Funding Increase Same 4 year period… 2013-2014 $768.00 0.00% 2014-2015 $768.00 0.00% 2015-2016 $780.00 1.56% 2016-2017 $780.00 0.00%

25. 8.9% - PEBB UMP premium increase UMP Classic has 61% of State & higher education employees 2014 – 2.6% rate increase 2015 – 6.3% rate increase 2016 - No rate increase 2017 - ? increase

26. 2012 insurance reform – SB 5940 After 3 years, report from HCA (Health Care Authority) and JLARC (Joint Legislative Audit Review Committee) on: Benefits of consolidation Costs of consolidation Different forms of consolidation: Separate pools for classified and certificated All K 12 in PEBB All K 12 in SEBB (School Employee Benefit Board) HCA report published --- June 1, 2015 JLARC report approved --- January 6, 2016

27. 3.Paraeducators Paraeducator Bill - PSE supports SB 5179 and HB 1293 making paraeducators a recognized, integral part of the educational professionals team.

28. Opportunity Gap Students 108,379 Ell / TBIP Eligible Students $160 million per year (state) 476,714 LAP Eligible Students $450 million per year (state and federal) 141,987 Special Education Students $1.1 billion per year (state and federal)

31. Implement Paraeducator reforms Raising standards for Special Education, General Education, ELL (English Language Learners) and LAP/Title I Paraeducators All Paraeducators must meet Title 1 Standards to be employed All Paraeducators will have 3 years to meet program specific standards Professional development Career ladder Pathway to teacher certification Professional development for teachers and principals who supervise a Paraeducator

32. 2015 Supplemental Budget Instructional Professional Development Funds for Paraeducators

33. 2014-15 School Year

34. 2015 – 17 Operating Budget

35. 4.Higher Education Classification Process Higher Education - Classification and Reclassification of State Employees Process – PSE supports a review and revision of the state employee classification process and expanding the ability to appeal the removal/exemption of positions from civil service.

36. PSE supports increased authority for unions to challenge the removal of positions from civil service. Civil service rules apply to classified employees in higher education. If position is removed or exempted from civil service laws by employer, the employee must also be removed from bargaining unit covering classified employees. [PSE represents classified employees at WWU, CWU, and WSU]. Currently: Unions can only challenge removal of a position if it is vacant. If position is currently filled, union has no right to challenge and must rely on employee in position to challenge removal. Typically, reclassification out of civil service means more money for employee, so little motivation to challenge. This means union has very little say in positions leaving bargaining unit. PSE wants to explore possibility of changing law so that unions can challenge removal of position even if position is currently held by employee. Gives unions more power to ensure Universities are not unlawfully attempting to diminish membership.

37. 5. Higher Education collective bargaining Higher Education - Study the impact of allowing higher education to negotiate collective bargaining agreements consistent with community and technical colleges.

38. PSE supports study of impact of changing how higher education classified employees bargain with employers. Currently: employees bargain under RCW 41.80; contracts must be approved by OFM and legislature. Result is PSE is not only bargaining with universities, but also must bargain with state of Washington. Contracts become a "political football" for House and Senate to throw back and forth during budget debates. PSE wants to explore possibility of removing state approval process for our higher education bargaining units. Would result in true collective bargaining between PSE and universities. Treated the same as community and technical college bargaining as described in RCW 41.56.

39. 6. Bus Driver protection Bus Driver Good Samaritan Law - Supports HB 1120 which protects school transportation staff who witness, or intervene in volatile or threatening situations where the safety and well-being of person or property is at risk.

40. 2015 Session Results Trial lawyers objected to providing more protection Reduced their right to sue Underlying good samaritan law provides protection

41. 7. Mental health funding Support Funding - PSE supports increased, adequate funding for educational programs and services for the care of mentally ill students and their families.

42. Courts are demanding more support Boarding mentally ill at emergency rooms in hospitals Western State Hospital - federal agency threatening to eliminate medicaid funding if problems are not fixed

43. 8. Charter schools PSE supports the state Supreme Court ruling that charter schools are unconstitutional.

44. August 2015 Decision Close down charter school program 1909 precedent that elected school board must determine how state education funds are spent

45. 9. Union rights Legislation that strengthens and supports the rights of employees to unionize and requires all union members to pay their fair share of union dues.

46. 10. Compensation Compensation to attract and retain highly qualified/high quality K-12 and higher education employees to include fully funding state salary surveys and indexed COLA's.

47. Initiative 732 COLA – Seattle CPI School YearState FundedSeattle CPI 2009-100.0%4.2% 2010-110.0%0.6% 2011-12-1.9%0.3% 2012-130.0%2.7% 2013-141.9%2.5% 2014-150.0%1.3% 2015-163.0%2.2% (est) 2016-171.8%1.9% (est)

48. Salary Survey Funding Continue state funding for salary survey for positions significantly below market based salaries

49. 11. Pensions Preserving and fully funding state pensions in good times and bad.

50. Unfunded liability - $5.004 Billion PERS 1 - $4.965 Billion TRS 1 - $2.913 Billion PERS 2/3 – (-$214 Million) TRS 2/3 – (-$350 Million) SERS 2/3 – (-$26 Million) PSERS/LEOFF/WSPRS – (-$2.230 Billion) Paid off by 2025 (TRS 1) 2027 (PERS 1) assuming legislature makes annual payments Source: August 28, 2015 Report on Financial Condition and Economic Experience Study to Pension Funding Council (see Projected Unit Credit Funded Status on an Actuarial Value Basis, Page 8 of 52)

52. 12. Health care insurance Providing high quality, comprehensive, affordable health care insurance options for state and educational employees.

53. 13. Higher education funding Increasing funding for higher education.