The legislature is scheduled to finish its third special session on Thursday, July 21.  There is still no resolution on the 2017-19 Capital Budget. The Seattle Times published a detailed story on the Capital Budget dispute.

WSSDA Summary Document Links

Impact Summary Documents

Levy & Local Effort Assistance (LEA) Policy Impacts – Tax Analyses

K-12 Compensation Allocation Legislative Guidance

WASA Information from Bill Keim

With the last-minute release of the 2017-19 Operating Budget (SSB 5883.SL) and the McCleary funding plan (HB 2242), we are working hard to understand the implications of these changes. As our understanding grows, we will provide more information, but for now please consider the following updates:

Collective Bargaining
In addition to new funding formulas and major changes to calculations of levies and Local Effort Assistance, there are major changes to school employee compensation and collective bargaining. Since HB 2242 was adopted there has been some confusion about when all the changes take place. Many of the impacts of the bill occur in the 2018-19 school year; however, the new bargaining and salary restrictions (found in Part VII of the bill) were adopted with an emergency clause—meaning they became effective as soon as the governor signed the bill on July 6. In other words, districts currently bargaining must comply with the new provisions now—there is NO “90-day” trigger allowing you to execute a CBA using the previous process.

For those districts which are not currently bargaining, it is important to be aware that state funding will change regardless of your CBA and may leave some districts with contracts extending beyond the 2017-18 school year with state allocations that do not fund the negotiated amounts.

Regarding both salary allocations and other basic education funding, we strongly encourage you to work with your Business Managers (and/or ESD fiscal staff) to analyze the fiscal impacts of the new legislation and not rely on the many estimates provided by legislative staff. Many of their assumptions may not apply to your local district’s circumstances. OSPI is also expected to have their budget Pivot Table and Multi-Year Comparison Tool available in the next week or two to assist in your evaluation of budget impacts.

Late Start/Early Release Days
HB 2242 included a provision (Section 106) to limit school districts’ use of late start/early release days to seven occurrences each school year. Prior to signing the bill,Governor Inslee vetoed this section. There are no restrictions on these days at this time.

Levy Accounting and Accountability
Provisions adopted in ESB 5023 (Levy Cliff Delay) are amended by HB 2242. Beginning with levies submitted to voters in Calendar Year 2018, ESB 5023 required districts to provide a report to OSPI detailing the programs and activities to be funded—and receive approval—before the issue could be placed on the ballot.  Additionally, ESB 5023 required levy revenue, beginning with levy collections in Calendar Year 2018, to be deposited in a local revenue subfund of the district’s general fund. HB 2242 postpones implementation of both the accountability and accounting provisions to begin with levies collected in Calendar Year 2020 and beyond.