The document discusses several key issues facing K-12 school finance in Washington: 1) State funding formulas are not keeping pace with rising costs, leaving districts with deep budget shortfalls; 2) Compensation, health benefits, and other operating costs are increasing faster than revenue; 3) The state underfunds basic education programs including salaries, special education, and learning assistance. It proposes recommendations to address these issues, such as redefining basic education resources and increasing funding for staffing, salaries, and program support.

6. State, Local, and Federal Funds Total $9.3 Billion

9. Total Compensation Ranges Between 82% and 84% of Total Expenditures

10. School Districts Spend $1 Billion on Health, Life and Disability Insurance

11. HLD Expenditures per Student Have Increased Steadily Since 1999 HLD as % of per Student Expenditures

12. School Districts Expend 8-9% More for HLD Benefits than the State Allocates per Teacher

13. Mandatory Pension Contributions Increasing Rapidly

15. Additional Salaries Increase 6%+ Annually

18. 1% COLA Drives Significant Percentage Increase in TRI Schedule

19. Compensation Expenditures Grow Faster than Local, State and Federal Revenue *Budgeted

20. Structural Disconnect Continues in 2009-10 School Year 1% COLA above I-732 COLA for all Teachers in a District $28 - $35 per student Cost of 2009-10 I-732 COLA on Local Funds (COLA projected at 5%) $99 per student Typical Levy Growth (2007 to 2008) $60 - $100 per student

22. 2000-2008: State Savings of $1.3 Billion in Employer Pension Contributions; $364 Million for Local Funds

25. Spending Ending Fund Balance Only Delays Cuts; Many Districts Have Little Balance to Spend

26. Largest Change for Smallest School Districts

27. Operating Fund Value of Districts with Less than 2% EFB Held Steady/Remains Large

32. 6 Key Funding Shortfalls Must be Addressed Learning Assistance (4) B . Staff Ratios (1) (Certificated Instructional, Administrative & Classified ) C. Salaries (2) & Benefits D. Operating Costs (NERC) (3) = State General Apportionment Busing (6) Special Education Bilingual (5) A. District Enrollment I-728 Gifted

35. Certificated Instructional Staff Ratios (1A) Certificated Instructional Staff K-4: 1:18.8 5-12: 1:21.7 Includes All Teachers, Instructional Coaches, Nurses, Counselors, Librarians, and all other Pupil Support The ratios do not represent true class sizes. Class sizes increase when planning periods, specialist teachers, librarians, counselors, etc., are purchased from the ratio above.

36. Districts Choose Between Lower Class Sizes, More Hours per Day, and Student Support Instructional Coaches Librarians = = Nurses Current Proposed Guidance Counselors & Pupil Support Certificated Instruction Staff K-4: 1:18.8 5-12: 1:21.7 Students per 1 FTE Staff 6 periods + 1 hr planning Teachers Grades K-5 Grades 6-8 Grades 9-12 1:24.7 1:29.0 1:29.0 1:1,250 1:2,659 1:786 1:462 Certificated Instruction Staff K-5: 15.89 6-12: 18.43 1:21.2 1:25.5 1:25.5 1:1,000 1:500 1:750 1:403 Students per 1 FTE Staff 6 periods + 1 hr planning

37. Districts Hire Many More Classified Staff Than Are Funded by the State (1B)

46. State NERC Funding Intended to Cover All Non-Employee Costs Related to Basic Education = = $9,476 per CIS (2006-07 SY) $468 per student

47. Districts Spend Over $500 Million More on NERC Than the State Funds (3) 18-yr Cycle 8-yr Cycle

48. An Increasing Number of Districts Spend Over 80% of Their NERC Allocation on Utilities and Insurance

51. Poverty is Now the Funding Driver; Lap Funds, in Total, LAP Funds Have Increased Substantially.

52. Despite Large Increases in Funding, Buying Power Remains Constant

57. Buying Power of State Transitional Bilingual Program is Constant

61. Transportation Funding Gap is Widening JLARC est. for basic education responsibilities underfunding in 2004-05: $92.6 - $114 Million

62. Diesel $ per Gallon up 48% Over Sept 2007 Price West Coast Monthly Average Retail Price per Gallon of Diesel

63. Districts Budgeted 28% More for Fuel in 2008-09

73. 2003-05 and Beyond, Impact to Local Funds Was Minimized by Suspension of I-732 COLA

74. 2000-2008: Local Funds Avoided $551 Million in Compensation Costs

75. From 1999-2008, I-728 and Federal Funds Increased by $614 Million; B eginning 2008-09 Only Small Increases

76. Districts are Already Maximizing Levy Authority

77. LAP $ per LAP “Poverty Unit” Now Greater Than 1992-93 Level

78. Combined Resources for Struggling Students Have Consistently Increased