Changes to Education Finance in Washington state

South Shore PK-8 students - League of Education VotersThe Legislature made significant changes to the K-12 education funding structures in 2017—infusing more than $7 billion in state money into the system over four years through House Bill 2242. As the fiscal impacts of the changes became clearer, legislators proposed a range of changes to address the concerns that districts have voiced around HB 2242.

As the legislature made changes in 2018 to their plan to fully fund education, League of Education Voters feels it is important that the changes should be focused on:

Direct investments based on student need. Any changes to the funding system should drive resources to districts based on the needs of their student populations.

Eliminate disparities between districts. Modifications made to the structures put in place in HB 2242 should address unintended impacts that created (and recreated) inequities between high-property value/low-poverty districts and low-property value/high-poverty districts.

Attracting & retaining educators. State funding formulas should ensure that districts across the state are provided enough resources to attract and retain a diverse educator workforce.

Increase transparency in funding system. Increased access to data on spending and student outcomes is essential to ensure the effectiveness and equity of the new systems and structures put into place.

Read our side-by-side of the 2018 funding changes compared to current law

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Summary of the 2018 Washington Legislature’s Supplemental Budget

By League of Education Voters Policy Team

Washington State LegislatureThe Washington state Legislature passed a state budget agreement (Senate Bill 6032) that adds court-ordered K-12-school funding and also gives a one-time property-tax cut. The 2017-19 supplemental operating budget plan aimed at satisfying the long-running state Supreme Court school-funding order known as the McCleary decision. Below is a summary of how the budget impacts Early Childhood Education, K-12, and Higher Education.

Early Childhood Education

Legislators prioritized increasing home visitation capacity, and Working Connections Child Care (WCCC) provision to homeless families in this budget. Funds are also provided to improve overall early childhood education (ECE) system capacity, including Washington State Department of Children, Youth and Families (DCYF) implementation, with $700K for a degree program to produce more educators, and $403K to strategize ways to engage the Washington business community and to educate ECE providers. Additional allocations will go toward supporting nurse consultations, mental health interventions, and trauma informed service provision.

  • $2.3M—Home visiting expansion +275 families & to equalize rates
  • $1.6M—Working Connections Childcare 4-month grace period for homeless families
  • $1M—Implementation of the new Department of Children, Youth, and Families
  • $74,000—Implement House Bill 2861 (trauma-informed child care)
  • $150K—Home visit Medicaid facilitator – maximize federal dollars collected for home visiting
  • $700K—ECE degree program at Western on the Peninsula, will produce 75 BAs/year
  • $240K—“Childcare Collaboration Task Force” created by House Bill 2367: Dept. of Commerce to convene a task force to study the impact of child care affordability and accessibility on the workforce & businesses, to report findings & recommendations by the end of 2019

K-12

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2018 Legislative Priority: K-12 Funding Implementation

By League of Education Voters Policy Team

The passage of House Bill 2242 in 2017 will inject an additional $7 billion in state funding into our K-12 system.

In order to determine whether the new investments are distributed equitably and improve student outcomes, we will need more robust means to track school spending and results. We will also need to examine the new structures and mechanisms put into place to ensure they do not recreate inequities in our funding system.

Opportunity: New mechanisms to track spending are created in both HB 2242 and in the new federal ESSA legislation.

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The Latest Washington State Supreme Court’s McCleary Ruling

By League of Education Voters Policy Team

Temple of Justice - League of Education Voters McCleary RulingThis morning the Washington State Supreme Court issued their latest order on the McCleary case detailing whether or not the state has met its responsibility to fully fund education. In a unanimous opinion the Supreme Court ruled that the state’s plan to fully fund education will provide enough resources to meet its constitutional responsibility to fund basic education, but the Court also stated that the timeline for full-funding put forward by the state takes too long. Basically – the policy and structure are good, but the state needs to pay for it faster.

In the order, the Court details each funding stream that constitutes the Washington State Legislature’s plan to fully fund education:  Materials, Supplies, & Operating Costs (MSOC), transportation, categorical programs such as the Learning Assistance Program (LAP) and the Transitional Bilingual Instruction Program, staff salaries, K-3 class size reduction, and full-day kindergarten. The Court concludes that when fully funded according to House Bill 2242, the funding amounts will be sufficient to provide for an amply funded basic education.

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The Supreme Court’s McCleary Check In

Daniel ZavalaBy Daniel Zavala, Director of Policy and Government Relations

96 days. That is how many days have passed since sine die (the official term for when the legislative session ends) back on July 20. Since that time, here at League of Education Voters, we’ve been sifting through the language of HB 2242 (the major education bill this past session) and the state budget (SB 5883) to determine the impact of new state money in K-12. All of this revolves around the context of the McCleary court order.

Importantly, today the Washington State Supreme Court heard oral arguments about whether the state fulfilled its duty to adequately fund basic education. Previously, the court ruled that the state overly relied on local levies to fill what the state wasn’t providing around compensation and K-3 class size reduction, among other areas. While both sides (the state and plaintiff’s attorney, Thomas Ahearne) made their case about whether the legislative action this year satisfies the court’s order, the direction around McCleary, adequacy, and equity still remains murky.

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Seattle Public Schools Budget Shortfall FAQs

By Jake Vela, LEV Senior Policy Analyst

  • Rear view of class raising hands - League of Education VotersHow big is the budget shortfall for the 2017-18 school year?
    • Seattle Public Schools (SPS) has recently announced that they have an expected budget shortfall of $74 million for the 2017-18 school year. The $74 million shortfall would be about 10% of the $790 million budget recommendation adopted by Seattle Public Schools in 2016-17.
  • Why is Seattle Public Schools expecting a $74 million budget deficit in 2017-18?
    • The expiring of a temporary increase in how much the state allows Seattle to raise through local levies (levy lid) accounts for $30 million of the shortfall. The other $44 million is because the staffing levels agreed to by the district and the unions in the most recent contracts exceeded the funding levels they knew would be available in the 2017-18 school year.
  • Why is the state levy lid being reduced starting January 2018?
    • In 2010 the legislature temporarily increased the amount of money school districts could raise through local levies (levy lid). This increase was intended to be a band aid to allow districts, who were able to pass additional levies, to make-up for the reduction in state funding for education due to the economic recession. This temporary increase is set to expire at the end of calendar year 2017 as specified in the original legislation in 2010.
  • Is SPS expecting a budget deficit in 2016-17?
    • Yes, the 2016-17 budget adopted by SPS expected to spend $35 million more than they anticipated to get from the federal, state, and local sources. SPS was able to do this because they spent $35 million in reserves they had remaining from previous years.
  • Is this approach to budgeting by SPS sustainable?
    • The Office of Superintendent of Public Instruction recommends that districts end each school year with reserves equaling at least 5% of their annual budget to be able to address unexpected changes in costs or funding support from local, state, or federal funding sources. To meet the 5% goal SPS would need to maintain a reserve of $39.5 million to remain in good financial health. According to the 2016-17 adopted budget Seattle is expected to end the School year with an ending fund balance of $39.9 million which would be just enough to meet the 5% reserve fund goal.
  • How has the level of state funding changed since the beginning of the recession in 2008?
    • Adjusted for inflation the state is contributing 14% more per-student for K-12 education in fiscal year 2017 than they did in fiscal year 2009.
  • When did Seattle Public School agree to the salary and staffing levels that created this budget deficit?
    • Seattle Public Schools agreed to their most recent collective bargaining agreement in September 2015 after the state had passed their most recent budget in July 2015. The district agreed to this budget following the strike at the start of the 2015-16 school year. The recent and future salary increases and staffing levels agreed to by SPS and the unions in their 2015 Collective Bargaining Agreements set district staffing levels and salary increases through the 2017-18 school year
  • How much of a school district’s budget is dedicated to staffing costs?
    • Over 80% of the average school district’s budget is from staffing costs.
  • What is a reduction in force (RIF) notice?
    • It is the notice a district sends out to existing staff that may need to be laid off if the district will not have sufficient funds in the following school year. Receiving a RIF notice does not mean an employee will be losing their job, but it does mean they will be in a pool of employees that may be laid off.
  • What determines who will receive a RIF notice?
    • The district will send out RIF notices to teachers, support staff, and other staff positions based on the district’s plan to cope with the budget shortfall.
  • What determines which employees do or do not receive a RIF notice?
    • Who does and does not receive a RIF notice is tied to the level of experience an employee has, so teachers with less experience will be more likely to receive a RIF notice than more experienced employees. New and beginning teachers are more often found in schools with higher levels of low-income students. Teachers, staff, and students in these schools will experience more uncertainty in their school building than other schools.
  • Will the budget deficit be solved before the district would need to send out RIF notices?
    • The legislature is expected to invest more money in basic education in the 2017 legislative session, but a final budget isn’t expected to be completed before the district completes their budget preparations for the 2017-18 school year.
  • How much does $74 million mean on a per-student basis?
    • $74 million translates to a budget shortfall of $1,407 per SPS student. The state would need to increase education funding by approximately $1.5 billion for the 2017-18 school year, one-year before the court mandated deadline of 2018-19, for Washington to experience a funding increase of $1,400 per-student statewide.
  • Are other districts experiencing similar budget shortfalls?
    • In the future other districts may communicate to their communities that they are expecting a budget shortfall because of the levy cliff or other budgeting challenges, but as of December 15, 2016 we are not aware of other districts publically stating they expect to have a budget shortfall in the 2017-18 school year.

Education Funding Takeaways from California

By Daniel Zavala, Director of Policy and Government Relations

Daniel Zavala, League of Education Voters Director of Policy and Government RelationsTwo weeks ago, I went with a Washington delegation to Sacramento, the birthplace of the Local Control Funding Formula (LCFF), California’s shift from state-controlled funding to local decision-making. Joined by fellow education advocates and stakeholders, including members of our state legislature, we met with members from California’s education community. This included staffers with government agencies, association members (e.g. California Teachers Association), and public advocates.

Our field trip was an exploration of the options available to our state in pursuing changes to our education funding system. California is just a few years into their model, and we got some great first-hand accounts of lessons learned and how they set up their system. However, the state is still grappling with exactly how they want to measure success, and districts are modifying their behavior based on their newfound spending freedom.

So what is the LCFF? The LCFF is a funding formula in California intended to provide resources more equitably to students with learning and socio-economic barriers, while providing greater flexibility to district leaders and school educators to serve and respond to their students’ needs.

California’s response to funding education fits squarely into three realms: the wild west of the 1960s and before, the Serrano* era of the 1970s where the state supreme court required equal funding of districts and wound up with over 40 restricted categorical funding areas leaving little flexibility in spending decisions, and the LCFF age that focuses on equitable funding based on student need. The shift from Serrano to the LCFF came after the Getting Down to Facts report highlighted issues and provided recommendations for a weighted funding model and shift to local control.

The LCFF operates under three funding streams: 1) a base grant that only varies based on the grade level band but is equal for all students across the state; 2) a supplemental grant of 20% more funding above the base grant for low-income, English-learners, and foster youth; and 3) a concentration grant of 50% more funding above the base grant for each student above a concentration threshold of 55% of students with high-needs (e.g. if a district has 60% economically disadvantaged students, then the 5% above that 55% threshold would generate the concentration grant increase). One important note is that special education funding is calculated and administered separately from the LCFF. Even without touching special education funding, this structure change resulted in a roughly $11B shift of resources toward students identified as high-need.

So now that districts have additional funds for students identified as high-need, what is the state doing to ensure fidelity of taxpayer money? In conjunction with the LCFF, districts compile a three-year Local Control and Accountability Plan (LCAP) with annual updates that outlines how the allocation of funds will address state defined priority areas including: 1) basic services, 2) implementation of state standards, 3) parent involvement, 4) student achievement, 5) student engagement, 6) school climate, 7) course access, and 8) other student outcomes. These plans are then evaluated based on a rubric with indicators focused on: 1) academics, 2) college and career readiness, 3) graduation rates, 4) English-learners, 5) chronic absenteeism, and 6) suspension rates. Where districts are not implementing plans with success, a regional California Collaborative for Educational Excellence (CCEE) provides technical assistance and support. Where districts fail to improve** or implement recommendations from the CCEE, schools are referred to the State Superintendent of Instruction (SPI) for intervention.

Takeaways/Lessons Learned

I know that is a lot to take in, and even this overview doesn’t get into the granular details of the program. With some background knowledge about LCFF and its origin, it is also important to note the takeaways and guidance given to our Washington delegation. First, the state must track how dollars are being spent, and specifically, where dollars are being spent with academic success. When we are talking about fulfilling our Washington state constitutional requirement for ample funding of basic education, we have a right to know where those public funds are being spent. Second, LCFF was a huge culture shift for schools and districts in how they worked with budgets and funding. That shift has to be accompanied by capacity building so that districts can build expertise on how to use data to identify needs to drive spending decisions. After all, the additional money is only helpful when the spending decisions are informed and targeted. Third, to help build capacity, some of the additional funding needs to be spent on training. If our state wants to do this well, we need to make sure we actually focus on quality implementation and give our school leaders the skills to effectively shift their spending practices. Which leads me to the final takeaway: implementation has to be phased in, so that schools and districts have time and incentives to learn how to operate under a new structure without fear of reproach during that transition.

So what does this mean for Washington? I think the California example presents a good framework for us to learn and discuss what would work in Washington. The LCFF is what a diverse group of Californians decided their schools needed. Now we have to embark on a discussion with ALL education stakeholders to learn how we can create a system that works first and foremost for the benefit of our students. One thing is certain, the current system is serving only some of our students and schools well, but it is not serving ALL our students equitably.

Our trip to Sacramento sparked three thoughts that I will leave with you:

Should we focus our efforts on continued district-level budgeting control or school-based budgeting? For instance, there are roughly 600 schools in California with majority high-need student populations within districts that do not reach the concentration grant threshold.

How does an equitable funding system take into account regional cost differences, whether that is cost of living or hard-to-staff subjects and schools requiring additional funding for compensation?

Finally, how do we ensure that there is community-level engagement, understanding, and transparency in our funding system?

 

*Serrano v. Priest lawsuits and Proposition 13 (1971-1978)

**defined as districts that “fail to improve outcomes of 3 or more student subgroups in 1 or more priorities in 3 out of 4 school years.”

Watch our LEVinar on Education Funding Takeaways from California

Student Voice: Could McCleary be Asking for More Inspiration?

By MyKaila Young, League of Education Voters intern

MyKaila Young, League of Education Voters internWith the proposal of a new and improved system that will help to ensure that all students feel confident and equipped, one thing I, as well many educators, policymakers and parents may be wondering is: how can the new system set in place with McCleary be used to inspire students moving forward? In addition to teaching kids the fundamentals of learning, how can we teach them the fundamentals of a living an enriched and motivated life in a way that’s engaging for every student – those who have a strong network of support at home and those who do not?

To begin this week of following McCleary, resilience is best defined as the ability to work with challenges in a way that teaches and enriches, and in turn allows an individual to thrive. It’s what many might consider to be one the great and rare virtues in life. I mean rare in the sense that not all students understand how to obtain it, where it comes from, etc. The task is figuring out how all students can understand it and, in turn, embrace it in a way that it is maintained to college and beyond. How do you get students to become resilient?

It’s not very often when I’m at a loss for words. In fact, I can count on my hand the number of times that I’ve been so inspired or surprised to the point I could barely write or think. All I wanted to do was just hold on to that moment. This has only happened a few times. The first was when I read Life Without Principle for the first time. The second was when I received the Gates Millennium Scholarship. The third was when I stood in front of the Eiffel Tower last year on Thanksgiving. The fourth was when former Congressman John Lewis acknowledged my presence, and the very last experience was a bit peculiar because it consisted of crossing paths with a complete stranger and receiving a card.

A business card is a business card, but he didn’t have just an ordinary business card. He had an answer to exactly what the K-12 system is missing. Part of what McCleary understands and recognizes is based on the statistics and feedback of the current system, but this stranger who handed me his card really understood, and built an entire organization around it.

In hindsight, his organization propels the missing fragment in the K-12 system that some students find, while others, unfortunately, do not. His story was printed on the back of his card, and my entire life was completely changed. I was overtaken with inspiration, and once again unaware of what to do with myself for the fifth time in my life.

I’ve met a lot of remarkable and inspiring people over the years, but this encounter was a bit different. His story filled my heart with so much hope and possibility for the future that it inspired me to the point of silence. He is also a Gates Millennium Scholar, CEO of From Hardships to Scholarships, and goes by the name Deonte Bridges. He is someone who I’ve added to my list of Great Inspirations.

Deonte is originally from Atlanta, and he introduced me to the impact that this virtue of resiliency can have when it comes to education.

I attended the Annual Library Association Conference in Orlando, and former Congressman John Lewis was one of the keynote speakers. I was staying at the Hyatt Regency and near the reception desk when he walked by with a few of his colleagues. I waved at him and he waved back at me. As if life wasn’t great enough after that moment, I was able to casually network with my fellow GMS Scholars over the next five days. It was in that same lobby that I was lucky to be in the right place at the right time to meet Deonte Bridges.

We were standing by the second elevator towers in the Hyatt and he was casually dressed in a white shirt. At the time, I didn’t know how powerful he was, or who he was for that matter, because I’m a little behind in ALL social media movements. That’s one thing I promised myself at the beginning of next year I would work on – using my social media accounts more, instead of writing in my journals all the time. I didn’t know that he took the Internet by storm when he graduated his senior year, around the same time he was welcomed into the GMS family.

Deonte was first male valedictorian of his high school in more than a decade and earned over $1,000,000 in scholarships – all while overcoming hardships such as the untimely death of his brother, his mother’s diagnosis with cancer, and being robbed at gunpoint. In a live interview he invited me to watch, he said he remembers a time during his freshman year of high school when he told everyone that he was going to get a million dollars in scholarships. Everyone thought he was crazy and didn’t believe him or in his ability to make something like that happen as an inner city youth. When he did it, despite everything else that was going on in his life, it took the world by storm. He had that same Alice in Wonderland Confidence I spoke about in my previous blog.

With over 1 million YouTube views of his powerful speech about overcoming the odds, people in Europe, Africa, and throughout the U.S were taken away by the beautiful virtue he carried throughout the K-12 educational system and Morehouse College. From there, he was featured on CNN Live, in Essence Magazine, and on a wide range of talk shows.

Deonte currently speaks to educators and students on topics such as education, character development, resilience, and values, to name a few. His full motivational series answers that burning question we all have: how we can instill this rare but vital virtue into the hearts and minds of every student in the K-12 system.

I guess you can say he’s like the Guru of Virtues when it comes to empowering young students to understand and acknowledge how much potential they have, and how they can unleash it no matter which obstacles or unexpected visits from adversity they may have.

As a young girl, when I would read literature, it was solely because I recognized that I had the potential to be great at something. I had a small hint when I was 9 that it would be writing. I just needed to figure out what I could do with it, or if I was even capable of doing anything with it. In Henry Thoreau’s Life Without Principles, I learned that although society may try to limit what I believe I can do, or make me feel that I didn’t have any potential, ultimately the decision was up to me. I related to his thoughts, words and perspectives in a way that helped me protect my potential at any costs, and in turn become resilient.

Although, Aristotle, Martin Luther King, Malcolm X and the great Henry Thoreau have all left behind their legacies, I will never forget the experience of finding someone to relate to. But every student is different. We can’t expect every student to pick up a copy of the books I read and expect them to become resilient, or we can’t expect every student to do what Deonte did to become resilient, because we all find resiliency in different ways. However, what we can do is give every student access to different programs and resources that will help them ultimately decide how they can become resilient in a way that is unique to them. That’s what From Hardships to Scholarships offers, and more.

When I read his card, he reminded me of the same exact hope that I carried with me over the years when I made the choice to always see the value and potential in my life, even if I was part of a system that made me feel like I did not matter. The only difference between my earlier inspiration and how it’s maintained today is that I found someone who is still living I can relate to – but my resiliency is different it is from how he found his. I share mine through writing, and he is actively working and sharing his in a way that’s helping all students and faculty think about what they want their legacies to be, and how much potential they have.

It made me wonder if McCleary is really asking whether there is enough funding geared towards programs to help kids who may not have the best sources of inspiration. Would they benefit from leadership programs offered in a more engaging way?

Is there enough money and time being invested in helping kids personally develop their passions and sense of self, in addition to learning the fundamentals? Where can we start when considering how to recruit more faculty that can relate to students and what they experience once the schools doors close? From Hardships to Scholarships answered all my burning questions after getting to know the founder himself through his organization and motivational series.

I often wonder how we can expect a child to go on to do great work and fully utilize their Education Passports beyond high school if their inspiration, sense of self, and drive isn’t fully developed. Education is something that is lifelong. It’s not just about algorithms, equations, or how Christopher Columbus had it all wrong. It’s about growing into your potential and then, in turn, sharing it with people around you in such a way that contributes to making the world a better place. It’s about preparing students for the next phase of life. And although that’s an algorithm within itself, it’s something that Pi squared can’t always solve.

McCleary and redefining what basic education means is a start to helping students figure out how to solve the more complex algorithms when the school doors close. Life is hard for us all at certain points. We should encourage all students to wear their potential as armor and allow their passion and knowledge to carry them to the success that every person, whether student or educator, desires.

 

Read MyKaila’s second post, Alice in Wonderland, Imagining McCleary