1	Overview of K-12 Funding in Washington Washington State PTA 2005 Convention Presenter: Mary Kenfield WSTPA Government Relations Director
2	If our American way of life fails the child, it fails us all. ~ Pearl S. Buck
3	"This Presentation was created using..." This Presentation was created using existing data from both the Office of Superintendent of Public Instruction and the Senate Ways & Means Committee. Therefore, there are two sets of data used. You will see data from two different budget cycles: 2001-03 and 2003-05. Dates are noted on slides.
4	Overview General Information Education Spending State Funding Federal Funding Local Funding
5	General Information
6	Washington Public Schools Approximately 1 million public school students 73,000 private school students 19,000 home school students “Local control” state 296 school districts 2,200 public schools
7	State Constitution Washington State Constitution Article IX Section 1. “It is the paramount duty of the state to make ample provision for the education of all children residing within its borders, without distinction or preference on account of race, color, caste, or sex.” Section 2. “The legislature shall provide a general and uniform system of public schools . . . and such . . . normal and technical schools as may hereafter be established.”
8	Court Decisions 1978 (Seattle School District No. 1 v. State) the Washington Supreme Court interpreted article IX, section 1 to mean that the state Legislature must define a “basic program of education,” Must be distinguished from all other educational programs or services, and sufficiently and amply fund it from a regular and dependable source which cannot be dependent on local tax levies.
9	Basic Education Act (BEA) of 1977 In 1983 a trial court found that the system of education defined by the Legislature to comply with the constitution included the Basic Education Act of 1977: Minimum program hours; Teacher contact hours; Mix of course offerings.
10	Specifics of the Act A minimum of 180 school days/year Minimum instructional hours for K-12 Specific instructional content for each grade group Minimum ratios of certificated staff to students.
11	Basic Education Programs Currently six programs fall within the legislative definition of basic education, and therefore must be funded by the state: General apportionment; Special education for students with disabilities; Some pupil transportation; Learning Assistance program; Transitional Bilingual Education; Educational programs in juvenile detention centers and state institutions.
12	State Budget & K-12 Education
13	State General Fund 2003-05
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15	General Fund Support for K-12
16	2001-03 State General Fund Revenues
17	Sources of Funding – School Year 2003-04 State -- $5.2 billion Local Taxes – $1.2 billion Federal -- $833 million Other -- $354 million Reserves -- $110 million Total -- $7.7 billion
18	Lottery Revenues (state) Established in 1992 Lottery revenue deductions: The deductions from Lottery before the schools are as follows: King County - $3.9M Stadium and Exhibition Account- $ 7.0M DSHS- $0.5M Income after the above deductions goes to schools as follows: 75% goes to the student achievement fund. (I-728) 25% goes to capital construction for schools (This is the state funding for approved construction or major renovations to schools) Approximately 100 million per year for schools total.
19	School Facilities Funding (state)
20	The Expenditures
21	How is the money divided? Teaching -- $4 billion or 62.2% Other Support Activities -- $833 million or 10.9% Teaching Support -- $613 million or 8.0% Central Administration -- $466 million or 6.1% Building Administration -- $446 million or 5.8% Pupil Transportation -- $288 million or 3.7% Food Services -- $252 million or 3.3%
22	Per-student Spending 2003-04 Total $7,956 per student (average) State - $5,373 Local - $1,238 Federal - $864 Other - $367 Reserves - $115
23	History of Total Per-student Spending 1994 -- $5,608 per student 2004 -- $7,956 per student Approximately 42% increase Growth rate of total per student spending exceeds both the Seattle Consumer Price Index and Implicit Price Deflator State funding level of funding increased from $4,342 in 1994 to $5,373 in 2004 – 24% increase (slightly below the CPI)
24	Washington Compared to other States Per Student Spending Washington average $7,579 – ranked 34^th for 2002/03 SY National Average - $8,428 Oregon - $8185 California - $7,523 Idaho - $6,778 Students Enrolled Per Teacher Washington 19.1 students per teacher ranks 5^th highest in Nation National Average – 15.7 Oregon – 20.4 California – 20.2 Idaho – 17.9 Teacher Average Salary Levels Washington $44,958 ranked 18^th highest National average - $45,891 Oregon - $47,600 California - $56,283 Idaho - $40,148
25	The State Funding Formula
26	General Apportionment Basic Funding Concepts Enrollment Staff Units (Teachers, Administrators & Aides) Salaries & Benefits Nonemployee Related Costs (NERC) State General Apportionment Allocation
27	Factor # 1: Basic Education Enrollment Student FTE based on “seat time” Grade K: 2 hours per day = 0.5 FTE Grades 1–3: 4 hours per day = 1.0 FTE Grades 4–12: 5 hours per day = 1.0 FTE (Enrolled hours–not attendance) (Nine monthly count dates–first school day of each month) Alternative Learning Experience, Work-based Learning, and Running Start provide exceptions to seat time FTE rule.
28	Factor # 2 Legislative Staffing Ratios 1,000 FTE students generate: 4.0 Certificated Administrative Staff e.g. Superintendents, Principals etc. 46.0 Certificated Instructional Staff e.g. Teachers, Program Supervisors 16.7 Classified Staff e.g. Business office, classroom aides Enhanced staffing (per 1,000 FTEs): K–3 FTEs = 49.0 - 54.0 4th grade = 46.0 – 54.0
29	Factor # 3 Instructional Staff – Salary Funding The state determines the funding provided to each certificated position based upon the experience and education level of the staff hired. This is captured in a staff mix factor. District wide average mix factor determines the state funding provided for each funded certificated staff position in the district.
30	Staff Mix The staff mix factor is a five-decimal number between 1.00000 and approximately 2.00000 that quantifies the educational and experience level of instructional staff of the district. 1.00000 equals a new teacher with no experience The highest staff mix, approximately 2.00000, equals a teacher with a PhD and 16 or more years of experience
31	Compensation Certificated staff are typically compensated as follows: Base Contract – typically tied to state funding schedule. Supplemental Contracts for additional time, responsibilities and incentives (TRI). The state assumes No responsibility for supplemental contracts. These are typically funded from local levy.
32	2002–2003 General Apportionment Simplified Example 1,000 Students Staff Units and Salaries 46 certificated instructional staff X 1.59675 X $28,300 = $ 2,078,649 4 certificated administrative staff X $48,741 = 194,964 16.7 classified staff X $25,926 = 432,964 Mandatory Benefits Certificated staff - ($2,078,649 + 194,964) X 9.57% = 217,585 Classified - $432,964 X 12.36% = 53,514 Insurance Benefits 50 certificated staff X $457.07 X 12 months = 274,242 16.7 classified staff X 1.15 X $457.07 X 12 months = 105,336 Nonemployee Related Costs 50 certificated staff X $8,604 = 430,200 TOTAL ALLOCATION. . . . . . . . . . . . . . . . . . . $ 3,787,454
33	Why do some districts get more state funding than others? Salary base differences. Different levels of staff experience and education. Low test scores affect LAP funding. Levy Equalization funding. Different levels of students participating in: Bilingual Programs Special Education Vocational Education Transportation
34	Special Education Funding (state and federal) Funding for up to 12.7% of all students. Allocation per student 93.09% of basic ed allocation. Safety net funding provided for districts with unusually high costs kids: Districts must make application for Safety net to the State Safety Net Oversight Committee. Changes made in the 2005 Legislative Session
35	Learning Assistance Program (state) Purpose: to assist low achieving students. Currently funding provided based on: Students in bottom quartile on national tests (50%). High poverty districts (50%). 2005 Legislation changes the formula to 100% poverty $430.77 provided per funded unit in 2001-02 Money may be spent on any student. Typical service: LAP instructors provide one-on-one or small group instructional support.
36	Bilingual Education (state and federal) Purpose: To assist limited English proficient (LEP) students. Funding is based on number OF eligible students. $713 provided per bilingual student. Legislature has proposed variable funding based on grade level and years in bilingual program. Typical services: Pull out English instruction, classroom assistant, or bilingual classroom.
37	Programs for Highly Capable Students (state) Purpose: To provide additional support for highly capable (gifted) students. Funding provided for 2% of total enrollment. Currently $332 provided per student (2007 -$ 347.25 2008 $ 349.48. increase of $ 14.59 over the current funding) Money is used in a variety of ways for enriched programs: Centrum, Imagination Destination, Pull-out, Site specific, etc
38	Local Funding
39	Local Levy Local levies are for enhancements to the state basic education programs provided. i.e. – extracurricular activities, enhanced class offerings, additional duties for teachers. Requires voter approval: 60% supermajority required and 40% of votes cast in last general election. For 2003, 17 districts did not have a local levy.
40	School District Levies Prior to 1977 there was no limit on the amounts that school districts could raise from local levies. In 1977 the Legislature passed the Levy Lid Act, which limited school district M&O levies to 10 % of a levy base and set a four year time limit for districts to get to that level. In subsequent sessions the Legislature raised the limit to its current 24% of the levy base. Last changed in 1999.
41	The Basic Levy Components Levy Base Levy Lid Percent
42	Levy Base What is included? The levy base is generally the total of the state and federal revenues a district received in the previous school year. The levy base is one of the limiting factors for levies.
43	Levy Lid Percent A district may raise a levy equal to the levy base times this percentage. Statewide rate is 24%. 91 districts have “grand-fathered” levy authority percentages up to 34%.
44	Levy Equalization – What is this? Levy equalization is state funding provided to eligible districts to match excess general fund levies. To qualify districts must: Pass a levy. Have above average tax rates due to low property valuations per student. Have a levy rate per 1,000 that exceeds a calculated state average rate required to collect a levy equal to 12 % of the levy base.
45	Levy Equalization – Who gets it? For calendar year 2003, 215 of the state’s 296 districts received LEA allocations totaling $161.5 Million. 20 additional districts were eligible but failed to pass a levy. Changes were made in the 2005 Legislative session.
46	Local Property Tax The three main factors that determine the local property tax rates: The various combinations of taxing districts. Budget amounts for each taxing district. Voter approved special levies and bonds.
47	Local Property Tax Rates Average tax rate per 1,000 for 2002 State schools tax $3.02 Local regular taxes 5.16 Local special taxes 4.34 Total average rate 12.52
48	Voter Initiatives I-728 Approved in 2000 Transfers a portion of the state property tax to the student achievement fund Distributed to districts for various student-focused programs/activities I-732 Approved in 2000 Annual cost of living salary adjustment (COLA) for K-12 teachers and other public school employees Only for state-funded staff
49	Federal Funding To Schools 2001-02 Top 4 Programs Statewide $ (Millions) IDEA (Special Education) 159.0 Title I 142.7 USDA – Food Services 128.8 Impact Aid 47.8
50	Federal Funds -Allocations Generally, Title I funds are allocated to districts in part based upon poverty factors obtained from the US Census Bureau. IDEA and Impact Aid is based upon specific student populations and counts. USDA funding is based upon free & reduced price eligibilities.
51	Summary
52	Strengths of the Current System Recognized by a General Accounting Office study as one of the more equitable state funding systems in the nation. Recognizes cost differences among school districts: Salary differences based upon the education and experience of staff hired. Small schools Provides enhanced funding for special needs populations: Students with disabilities (Special Education) Second language students (Bilingual Education) Low achieving students (Learning Assistance Program)
53	Accountability for Inputs Not Outputs Must maintain 46/1000 certificated instructional staff. Must use K–4 enhancement for K–4 staffing. Must pay minimum salaries for beginning teachers. Must not exceed state average allocated salary for average base salaries of certificated staff (salary compliance). Must use state accounting and program structure.
54	Education Finance Study SB 5441 enacted into law Authorizes the “Early Learning, K-12, Higher Education Finance Study” Steering committee Three Advisory committees - early learning, K-12, and higher education Simultaneous review of all levels of education Interim report due to Legislature – Nov. 15, 2005 and June 16, 2006. Final report to the Legislature – Nov. 16, 2006
55	How to Advocate for Ample School Funding Bond & Levy Campaign Committee Attend community meetings to discuss school budget proposal Provide input on I-728 allocations Letters to the Editor Contact your Legislators Learn how ballot measures will impact state resources and school budgets
56	Contact Information Mary Kenfield Washington State PTA Government Relations Director mkenfield@wastatepta.org 253.906.8773 (cell) 253.565.2153 (office)