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Note: WSSDA's post-session video update will be
available later today at
www.youtube.com/wssda
In the wee hours between Monday night and Tuesday
morning, the 2010 Legislature finally adjourned. This
“short” 60-day supplemental session turned into a
protracted 90-day affair, caused by a House vs. Senate
stalemate over taxes. Just when legislative observers
were starting to believe budget and tax negotiators were
not going to be able to come to agreement within the
constitutionally limited 30-days allotted for a Special
Session, the dam broke — this past weekend, after
multiple offers and counter-offers, House and Senate
leaders resolved their differences and struck a deal on
a tax package. Then, the other dominoes fell into place
fairly quickly: agreements on a final 2010 Supplemental
Operating Budget and a final 2010 Supplemental Capital
Budget were finalized. A job-creation bill was a part of
the “end game” and was linked to the agreements on taxes
and the two budgets. Each of these “go home” pieces were
completed before the 2010 Legislative adjourned “Sine
Die” last night.
The final, compromise tax package, estimated to raise
just under $757 million, imposes a B&O tax surcharge on
services; increases taxes on cigarettes, beer and pop;
extends the sales tax to bottled water, candy and gum;
and makes various tax changes to ensure out-of-state
companies pay Washington taxes. Ultimately, the Senate
gave up on an increase in the state sales tax and the
House gave up on the elimination of tax breaks for
banks, buyers of custom software and out-of-state
residents.
The 2010 Supplemental Operating Budget includes
approximately $755 million in reductions from the
underlying 2009-11 budget adopted last year, including
about $120 million in K-12 cuts (a reduction in the
Maintenance Level budget). The K-12 portion of the
budget includes the following major changes:
- An additional $29.8 million is provided to
increase Local Effort Assistance from the current 12
percent rate to 14 percent.
- An additional $8 million is provided to maintain
funding for the Per Pupil Inflator at 4 percent, as
originally established in the underlying 2009-11
budget.
- An additional $5.1 million is provided to
implement SB 6696, the Race to the Top education
reform bill ($2.4 million) and to begin
implementation of HB 2776, K-12 funding formula
changes ($2.5 million)
As anticipated, the remaining per pupil allocations
for Initiative 728 Student Achievement Funds are
eliminated, saving $79 million.
- Current funding for K-4 Class Size Enhancements
are reduced by $30 million. Funding for K-3
enhancements is maintained; grade four enhancements
are reduced.
- Bus Depreciation funding is reduced by $22
million. Funding will be provided to cover the sales
tax cost of replacing buses in the final year of the
bus’s expected life cycle, rather than providing a
portion of the funds to districts each year, as is
current policy.
- $15.6 million is saved by eliminating the last
state-funded Learning Improvement Day
Another fairly minor budget issue — but a major,
disconcerting policy issue — is embedded in the final
budget, as adopted last night. As originally adopted by
the Senate, the final budget includes $250,000 to fund a
School District Reorganization Commission. The
Commission will be required to develop and recommend a
comprehensive plan for the reorganization (that is,
“consolidation”) of Washington school districts for
review and potential adoption by the Legislature by Dec.
1, 2012. The plan must include the following: A list of
the recommended school districts and ESDs and their
respective boundaries; recommended procedures and
timelines for phased-in implementation of the
reorganization plan; procedures and timelines for
determination, adjustment, and transfer of assets and
liabilities among school districts, including bonded
indebtedness; procedures and timelines for determination
and election of school district and ESD boards of
directors; and any other relevant elements the
Commission deems essential for legislative and
gubernatorial consideration (Section 501 (1)(b)(i-iv) of
SB 6444). The governor has the opportunity to veto
these provisions; however, she has expressed support for
school district consolidation in the past, so it is
unlikely she will strike this language.
Further details of the 2010 Supplemental Operating
Budget are available on the Legislative Evaluation &
Accountability Committee’s
Operating Budget page. Included is the final bill as
passed the Legislature, a complete agency detail and a
summary of the budget.
The 2010 Supplemental Capital Construction Budget (HB
2836) makes changes to the original 2009-11 Capital
Budget adopted last year. For K-12 education, there is a
reduction of almost $120 million. The largest reduction
is in the School Construction Assistance Grant Program
(almost $169 million). It is not anticipated, however,
that this reduction will impact any school construction
projects currently “in the pipeline.” Skills Centers
also receive reduced appropriations: Vocational Skills
Center construction ($3 million); Vocational Skills
Center Minor Capital Projects ($100,000); North Central
Technical Skills Center ($47,000); and Northeast King
County Skills Center ($997,000). Additionally, the
budget provides an increase of $50 million to provide
Energy Efficiency and Small Repair Grants.
Further details of the 2010 Supplemental Capital
Construction Budget are available on the LEAP
Capital Budget page.
Finally, a major part of the budget deals was the
adoption of the so-called “Jobs Act,”
HB 2561. The Jobs Act will send a $505 million bond
issue to Washington’s voters in November. If adopted by
the voters, jobs are anticipated to be created by
providing grants for capital improvements of public
facilities (school district and higher education
buildings) for energy cost savings. The temporary sales
tax on bottled water (a part of the major tax package,
SB 6143) would be made permanent to pay the debt
service costs for the bonds, if the bond issue is
ratified by the voters.
Now that the 2010 Legislature has completed its
business and has adjourned, WSSDA staff will continue to
prepare our annual End of Session Summary. The Summary —
which will include a full review of the 2010
Supplemental Operating and Capital Budgets, a
comprehensive list of the many education-related bills
that were adopted by this Legislature and a list of the
many more education bills that were introduced, but
failed to be enacted — will be mailed to all school
district Legislative Representatives and also will be
posted on the WSSDA Web site. WSSDA will also conduct an
End of Session Webinar in the next few weeks; keep an
eye out for the scheduling of that event.
As a reminder, WSSDA has already begun to prepare for
the 2011 Legislative Session. The WSSDA Legislative
Committee has sent a
Request for Legislative Proposals to all school
district Legislative Representatives and
Superintendents. We encourage you and your colleagues to
take some time to think about what YOU would like to see
on YOUR Association’s Legislative Agenda next year and
submit those ideas to the Legislative Committee for
consideration. The deadline for submission is Friday,
May 28, 2010. Also, mark your calendars now for the
annual Legislative Assembly, scheduled for Sept. 24-25
in Vancouver, WA.
2010 is an election year — all 98 seats in the House
and half the seats in the Senate will be up for election
this fall. Think about your education priorities and be
prepared to voice your opinion and concerns during the
election season. You deserve to know if legislative
incumbents and challengers alike will support or oppose
your priorities.
Finally, barring any unforeseen legislative
emergency, this will be the last official Daily
Legislative Update for 2010. Your WSSDA staff
appreciates your attention to these Updates and
appreciates your willingness to be active in the
legislative process, helping us to advocate on behalf of
your education priorities. We trust these Updates have
been beneficial to you. The preparation for the 2011
Legislative Session now begins …
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