Senate Budget – Unconstitutional Fund Transfer?

In the Senate Republican budget they transfer $166 million of the “Common School Construction Fund” into the operating budget. The Treasurer does not believe he has the constitutional authority to make this transfer and has said so publicly. The Senate Republicans are waving a letter from their staff attorney that says it’s all right. I’m not a lawyer, but the arguments from the Senate staff sounded like counting angels dancing on the head of pins.

The constitutional language in question is in Article IX, Section 3

There is hereby established the common school construction fund to be used exclusively for the purpose of financing the construction of facilities for the common schools. The sources of said fund shall be: (1) Those proceeds derived from the sale or appropriation of timber and other crops from school and state lands subsequent to June 30, 1965, other than those granted for specific purposes; (2) the interest accruing on said permanent common school fund from and after July 1, 1967, together with all rentals and other revenues derived therefrom and from lands and other property devoted to the permanent common school fund from and after July 1, 1967; and (3) such other sources as the legislature may direct. That portion of the common school construction fund derived from interest on the permanent common school fund may be used to retire such bonds as may be authorized by law for the purpose of financing the construction of facilities for the common schools.

Continue reading “Senate Budget – Unconstitutional Fund Transfer?”

Legislative Update

We’ve gone through the first week. The governor and the state-wide officials have all been inaugurated, I fit into the same tuxedo I got married in 23 years ago for the inaugural ball, the Senate is in uproar about Senator Tom’s defection and the consequent change in partisan control, the sun came out (briefly) in Olympia, and we are back to work. The only real surprise to me was the tuxedo fitting.

The Senate is controlled by Republicans due to Democratic Senators Rodney Tom and Tim Sheldon caucusing with them. Sen. Tom is the “majority leader” and Sen. Sheldon has a leadership role. I’m not sure how this will work out in the end but it’s gotten a lot of press. We have successfully negotiated a bipartisan budget for the last two years that I have been budget chairman, and I expect that to continue. The change in control of the Senate does not affect the budget as much as you might expect. It may have a profound effect on issues like women’s healthcare, gun safety and those that have more partisan differences of opinion. I am withholding judgment until the end of the session and we see how things work out.

We have three big tasks this year that we must complete, plus a few additional projects many of us would like to get to if we complete the important work.

  1. Adopt a budget that balances for both 2013-15 and 2015-17 in order to comply with the strongest balanced budget requirement in the country. (It’s interesting to note that the state has adopted balanced budgets every year since 1889 without this requirement so maybe it wasn’t as important as people thought it should be…)
  2. Resolve the supreme court’s requirement in the McCleary case that we live up to the constitutional requirement to “amply provide for the education of all children.” Current estimates are that this will require about $4.5 billion every two years by 2018, and we must make “steady progress” towards meeting this goal.
  3. Work out all the details of the Medicaid expansion enabled by the federal Affordable Care Act (Obamacare.) This will cover nearly 350,000 additional people in Washington and save the state over $100 million a year. The health insurance exchange will cover an additional 400,000 or so people, leaving almost everyone in Washington covered.

I’d like to adopt a transportation package that finishes the funding for the West end of the 520 project and invests in other important transportation infrastructure, but this should come after we address the base budget issues and McCleary. I’d also like us to take reasonable steps forward on gun safety in light of the recent spurt of mass killings, but this will be difficult as there are substantial differences between members on the issue. Perhaps the US Congress will be more functional than the Legislature on this topic, but that would be a real surprise.

This newsletter is made up of several recent blog postings I’ve done. If you’re interested in the topic you should be able to click through to the website to see the rest of the article. I find that if I share everything I write with you that the parts at the end don’t get read. Perhaps I should take this as a sign, but I can’t help myself.

For more posts that didn’t fit into this newsletter, and the stuff I post during session you can read my website.

Budget Outline

The current economic outlook calls for modest growth, but growth in tax revenue slower than our obligations. Our current projections show a shortfall of $904 million in the 2013-15 budget.

2013-15 balance sheet

The cryptic “NGFS + Op PW” title in the spreadsheet stands for “Near General Fund plus Opportunity Pathways” accounts, and is the sum of most state taxes that go into the overall budget. “BSA” stands for “Budget Stabilization Account” or the rainy day fund. We can’t spend this fund without a super-majority vote, so the problem is $904 million, not the $349 million on the bottom line.

Many changes will happen to this budget before we are done, including the addition of the McCleary obligation. Adding all the problems together nets you about a $2.8 billion problem.

Keep reading about the budget… 

What’s the “McCleary Problem?”

In 2012 the Washington State Supreme Court found that Washington State was not funding our education system at anything close to the level the constitution requires. Just before the holidays the court opined again, that

“the overall level of funding remains below the levels that have been declared constitutionally inadequate.” (Washington State Supreme Court, 2012)

On the Legislative side the Joint Task Force on Education Finance report issued in December 2012 detailed an eventual cost of about $4.5 billion dollars per biennium in additional funding needed to meet the court’s definition of “constitutionally adequate.” Arguments that the court isn’t talking about funding are belied by the quote above.

Despite protestations to the contrary, this session the Legislature needs to make steady progress towards completely meeting the court’s requirement by 2018. There are 5 school years between now and 2018, and “steady progress” means we get about 2/5ths of the way to the complete solution, or about $1.7 billion.

I personally do not believe that just adding additional money to the system will resolve all the problems we face, particularly with respect to the achievement gap faced by many low-income students. The funds are necessary, but probably not sufficient to improve matters significantly. The same can be said about the proposed accountability changes. I believe we can do both, and have significant results. There will be much negotiation this year to come to a resolution.

For more information read What’s in McCleary?

Gun Safety

I’ve held off commenting on gun safety because I wanted to think about it for a while after the Sandy Hook incident. Writing new policy in knee-jerk response to a single incident typically is a bad idea. However, there have been enough incidents that I think we need to respond and create a safer place to live.

I have already received a lot of email on this issue and I try to address most of the issues that have come up. These are addressed in the actual blog post – there have been a LOT of issues raised.

Some people think about this issue from a “rights” perspective – “I have a constitutional right to own whatever kind of firearm I want” and some from a public health perspective – “it turns out to be a bad idea to let people with unresolved mental health problems or domestic violence issues, felons, and children own dangerous weapons.” We can balance these two perspectives in reasonable ways.

  • Ensure that people with domestic violence restraining orders, mental health issues, etc. are unable to purchase guns by requiring background checks on all gun purchases, including those at gun shows.
  • Keep guns out of the hands of small children and other unauthorized people by creating some kind of “safe storage” requirement. If you are going to keep a gun in your house or car you should be responsible to ensure that children do not have access to it.
  • Reduce the availability of military capacity guns that can fire many rounds very quickly. This is an extension of the principle we use in banning the private ownership of machine guns, bazookas and tanks and would fall under the supreme court’s definition of “unusual and dangerous” weapons. I believe this is a problem that can best be addressed at the federal level, not at the state level. I have no detailed knowledge of Sen. Feinstein’s bill or President Obama’s proposal and cannot comment on the specifics other than to say that it is an issue in the other Washington, not this one.
  • And, on a more personal note, I would feel more secure if most people (including elected officials, but not the numerous state patrol officers stationed at the capitol) were prohibited from carrying firearms on the floor of the House. A surprisingly large number of people who are not off-duty police officers feel a need to carry concealed pistols in a building filled with children, tour groups and sometimes angry protesters. The likelihood of accidents seems high.

For the much longer post read Gun Safety in Washington.

Education Voters Public Forum – Tuesday Jan 22nd

I’m appearing with Senator Steve Litzow at a forum hosted by the League of Education Voters on Tuesday of this week. I don’t expect the event to be a formal debate, but Steve and I will lay out some differences between the positions our caucuses have, and talk about the possibility of compromise and what that might look like. (I recognize that “compromise” is a word that is vanishing from our political lexicon, but in this Washington we try to maintain a quality vocabulary.)

Formal press release:

The League of Education Voters is hosting a forum to discuss education in Washington state with Rep. Ross Hunter and Sen. Steve Litzow on Tuesday, Jan. 22 from 7 to 8:30 p.m. at the King County Library Administration Building. (960 Newport Way NW, Issaquah)

The forum will allow residents to learn more about competing visions for funding public education in Washington.

During the event, participants will hear about the current budget shortfall, the costs associated with meeting the McCleary decision by 2018 and a comparison of the different legislative approaches to address the issue.

The forum is free and open to the public. Please register by emailing info@educationvoters.org. There will be more of these events.

What’s in “McCleary?”

In 2012 the Washington State Supreme Court found that Washington State is not funding our education system at anything close to the level the constitution requires. Just before the holidays the court opined again, that

“the overall level of funding remains below the levels that have been declared constitutionally inadequate.” (Washington State Supreme Court, 2012)

On the Legislative side the Joint Task Force on Education Finance report issued in December 2012 detailed an eventual cost of about $4.5 billion dollars per biennium in additional funding needed to meet the court’s definition of “constitutionally adequate.” Arguments that the court isn’t talking about funding are belied by the quote above.

Despite protestations to the contrary, this session the Legislature needs to make steady progress towards completely meeting the court’s requirement by 2018. There are 5 school years between now and 2018, and “steady progress” means we get about 2/5ths of the way to the complete solution, or about $1.7 billion.

Continue reading “What’s in “McCleary?””

Budget Outline 2013-15

In 2013 the Legislature has three big budget problems to address. It may be that there are other issues for the Legislature (gun safety, mental health, transportation…) but as the budget chair I have an odd focus on what I’m responsible for.

  1. Balance the 2013-15 budget, plus make sure that the 2015-17 budget is structurally sound. We start with a $904 million shortfall and have to address the two issues below, plus comply with the strongest 4-year balanced budget requirement in the nation.
  2. The Supreme Court’s 2012 McCleary decision has major impact on school funding decisions and adds $1.4 billion to the already difficult problem.
  3. The Medicaid expansion called for by the federal Affordable Care Act (ACA) is complex, but provides us with the opportunity to cover hundreds of thousands of Washington citizens and save hundreds of millions. Implementation decisions will be difficult given the campaign rhetoric, but I believe we will get there.

The political situation in the state Senate will make resolution more interesting and create a lot of political theater. I look forward to negotiating a rational solution.

For a printable version of this post click here.

Boring post about Joint Education Financing Task Force

For those who are interested the state is maintaining a website with information about the meetings the task force is holding. You can sign up at this website for notifications of meetings, perhaps the most interesting part of what is, for now, pretty empty and forlorn.

http://www.leg.wa.gov/jointcommittees/EFTF/Pages/default.aspx

Impact of Early Learning

The New York Times had an article this weekend on the impact of Kindergarten teachers on student success later in life. It’s worth reading for lots of reasons, but perhaps the title is good enough: “The Case for $320,000 Kindergarten teachers.”

 The conclusions of the article are pretty useful:

  • Successful early learning matters:Students who had learned much more in kindergarten were more likely to go to college than students with otherwise similar backgrounds. Students who learned more were also less likely to become single parents. As adults, they were more likely to be saving for retirement. Perhaps most striking, they were earning more.”
  • Class size — which was the impetus of Project Star — evidently played some role. Classes with 13 to 17 students did better than classes with 22 to 25.
  • Quality teaching matters:Some are highly effective. Some are not. And the differences can affect students for years to come.”

The study goes on to do a present-value analysis of the added income from students witha  good kindergarten teacher and puts the value at $320,000. This is a reach, and there is some normal variance between teachers to be expected, but focusing much of our efforts at improving the craft of teaching, with high-quality evaluations that provide a strong feedback loop about what’s working and what’s not is absolutely critical.

It’s also interesting to note that the article is is in the business section of the paper, and that the author of the study is a respected economist, rather than an education researcher. Making our education system work better is an important part of our economic development strategy, not just a nice thing to have.

Education Financing Update

For the entire 6 years I’ve been in the legislature I’ve worked on school funding. I’ve tried to improve the amount and the efficacy of use of the money. This year a bipartisan group of six legislators introduced a package of reforms coming from the Basic Education Financing Task Force report. I’ve written about it in this blog before (http://s485995026.onlinehome.us/?cat=3) and will in the future.

We’re in the middle of a tumultuous period in the evolution of the bills. Our original bills (HB 1410 and SB 5444) were a 110 page first draft that we expected to engender a robust discussion. We were right about part of it – the discussion was robust, but unfortunately not substantive. The Olympia-based education groups have been very negative on the proposal, with most outside groups supportive. The legislation changes distribution of billions of dollars, and we were probably naive to expect change of this magnitude to go smoothly.

We’ve taken a new approach – we’re starting with a blank slate instead of a large first draft. We’ve introduced two bills with similar titles but no real content. The new bills are HB 2261 and SB 6048.  We will move these bills through the system while we work on re-crafting a comprehensive bill. This is the strategy we used successfully in fixing the math standards last year.

Behind the scenes the House and Senate are working daily on trying to build consensus around the big pieces of the package. We’ll recapitulate the process we used to build the original legislation with the six of us in a room, but with many more people involved. I expect this to be painful, but it’s a necessary step. Pat, Skip, Rodney, Fred, Glenn and I spent hundreds of hours learning and working with the alternatives. We’ll try to lead everyone through the same process, but in less time.

This will be a circuitous process. We need your input as we move forward. Thanks for staying engaged.

Open Letter to Teachers about HB 1410

I’ve had a lot of questions from teachers on HB 1410 that seem to indicate some misunderstanding of our intent and I believe a misreading of the bill. 1410 is a serious attempt to address school funding inadequacies and the structural problems that have built up over 30 years since the last major revision.  The worst structural problem affecting teachers is the legislature’s inability to give raises to teachers without bankrupting school districts. This occurs due to the interaction between TRI pay and the number of teachers local districts have to hire to meet even a weak definition of “basic education.”  This is crazy, and not in the interest of anyone in the system, most particularly teachers.

Our seminal observation about the current system is that it’s resulted in a pretty serious decline in the relative competitiveness of teacher salaries over the last few decades. The stat I use with some frequency is that the SAT scores of students entering teaching programs at universities have declined 75 points over the last 25-30 years. The number is national, not specific to Washington, but is an indicator that we’re losing our attractiveness to the top students. This is a recipe for failure of the system, as we totally depend on teacher quality for any results. The first thing we MUST do is start with competitive teacher salaries. Our proposal includes a comparable wage survey of the labor markets in Washington, comparing teacher salaries to jobs that have similar educational and talent requirements.

Continue reading “Open Letter to Teachers about HB 1410”

Seat Belts in School Buses

I reacted the same way many of you did when I heard from my son about the Bellevue High School football team bus rolling over – I was horrified. We followed the news all afternoon via phone from the Tacoma dome where he was waiting to photograph the game. (Check out his pictures at www.jackhunterphoto.com. I don’t do many commercial plugs in my newsletters or blogs, but hey, it’s my kid!) The players all had their pads on and thankfully nobody was seriously hurt except for superfan Gary, who’s still recovering. Two coaches were thrown from the bus.

Continue reading “Seat Belts in School Buses”

Basic Education Funding Task Force

I’m a member of the Basic Education Financing Task Force (BEFTF,) a group appointed by the legislature and the governor to try to re-write how K-12 education is funded in Washington. This is the reason I originally ran for the legislature in 2002, and has been a very long term project for me. The current system is dysfunctional – it’s so complex that very few legislators actually understand it, increases in teacher salaries from Olympia cause huge financial problems for local districts, and the many small buckets of money require districts to spend a lot of time doing the accounting work to track where it goes. We are also dependent on local communities paying for large parts of what anyone would call a “basic education” instead of the state, who has the constitutional responsibility for this.

Continue reading “Basic Education Funding Task Force”