Compensation Technical Working Group Releases K-12 Salary Recommendations

Last week The Compensation Technical Working Group finished nearly a year’s worth of work around K-12 salary recommendations by releasing a 177 page report to the Legislature. The Compensation Technical Working Group (CTWG) was formed after the Legislature passed legislation tasking the group with developing an enhanced, collaboratively designed salary allocation model for the K-12 sector. According to a news release from the CTWG, the key directives for the group’s report were:

  • Attract and retain the highest quality educators
  • Reduce the number of tiers within the existing salary allocation model
  • Account for regions of the state where it may be difficult to recruit and retain teachers
  • Conduct a comparative labor market analysis of school employee salaries and other compensation
  • Provide a concurrent implementation schedule

The nine key recommendations are:

  • Increase the starting salary for teachers and educational staff associates to $48,687
  • Provide Fair Market-Based salary allocations for all K-12 staff
  • Maintain comparable wage levels through an annual cost-of-living-adjustment (COLA) and periodic wage analyses
  • Align the Salary Allocation Model to the Career Continuum for Educators
  • Invest in 10 days of Professional Development time
  • Allocate mentors and instructional coaches in the Basic Education Funding Formula
  • Provide appropriate staffing levels and increased program support for Basic Education
  • Amply fund state Basic Education salary allocations and limit locally funded salary enhancement to 10 percent of the state allocation
  • Ensure school districts receive the same or higher state salary allocations per state-funded employee

Detailed descriptions of these recommendations can be found in the report.

Of particular interest to The Evergreen State College were the group’s recommendations on salary allocation for teacher’s with advanced degrees. The Evergreen State College currently offers a Master’s in Teaching. After much deliberation the group recommended a model that “recognizes the level of education the employee attains. The salary allocation model provides an increase in salary for a graduate degree (Master’s or PhD), but reduces the premium from the current 21 percent (highest in the nation) to 8 percent. The group lowered the premium to a similar level that other states pay educators for advanced degrees as well as to a level recognized by comparable occupations.”

The group reached these conclusions after reviewing research on graduate degrees and teacher effectiveness. Recognizing that the research is mixed and limited to studies that measure the effect on student achievement in limited subjects and grade levels, the group relied primarily focused on research that found an in-subject Master’s degree leads to increased student achievement in those particular subjects. As a result, the CTWG recommended that the advanced degrees must be relevant to current or future assignments, as locally determined by the school district, in order to be eligible for placement on the proposed tier on the salary allocation model. This recommendation is aligned with the current statutory requirement that credits be aligned to the individual’s current or future assignment. Additional credits and clock hours are removed from the salary allocation model, but the group recommends that the state pay for additional time for professional development activities.

This recommendation should have little effect on Evergreen’s program due to the fact we require students enter the MIT program with their “content” area credits achieved.

The report is to be sent to the Legislature for their consideration. With a price tag of nearly $2 Billion to implement all of the recommendations, the Legislature will need to decide whether to accept the group’s findings, and if so, how they will be implemented and ultimately paid for. Although the price tag is very steep, the CTWG’s recommendations were released on the heels of the State Supreme Court’s McCleary decision. In McCleary, the court found that Washington is not living up to its constitutional duty to fully-fund K-12 education. As a result, the CTWG’s recommendations may play a significant role in the coming legislative session.

Several other groups will also be taking up the report. Most immediately the Quality Education Council will meet July 20 at the Cherberg Building in Olympia. It is expected that the QEC will discuss the recommendation in depth and make recommendations to the Legislature based on their deliberations.

Another group that will be keeping tabs on the Compensation Technical Working Group recommendations is the Joint Education Funding Task Force created by HB 2824. The group is directed to produce a report by the end of the year that describes how to fund elements of ESHB 2261. Passed in 2009, ESHB 2261 sets out to fully-fund K-12 education, a constitutional duty of the State of Washington.

State Caseload Forecast Down

The Washington State Caseload Forecast Council reported earlier this week that caseloads are down in the State – good news! Although very small savings were achieved, Washington will see a $56 million increase in the general fund. Savings are typically achieved when the number of kids in public schools, the number of inmates in prisons, the number of families receiving temporary assistance or medical assistance and/or the number children in foster care, etc.  are lower than expected.

Announced before the health care decision was released by the Supreme Court this week, some forecasters were very uncertain whether these savings would ever be realized. With an affirmation by the Supreme Court, it looks like they are safe for now.

For a full report see the following link: http://www.cfc.wa.gov/Web/20120627_DraftOverviewandNarratives.pdf

Committee meets on GET Program

The Advanced Tuition Payment, Legislative Advisory Committee met yesterday, June 28 on the health of the Guaranteed Education Tuition (GET) program, Washington’s prepaid tuition program. The State Actuary was on hand to report on its status.  GET has been on shaky ground due to the combined forces of double-digit tuition growth and the falling value of its investments, resulting in the program to be underfunded.  However, after continued popularity with the general public, the Actuary reported that GET is “roughly on track” to be fully funded in 17 years.

The issue of full funding has been an ongoing concern for the Legislature and to those who have bought into the program. The Legislature has remained particularly concerned because a GET contract promises that the State will make up any shortfall in funding. GET began running into funding issues at the start of the recession, and in order to build up reserves, the cost of a GET unit increased this year by more than at any time in the history of the 14-year-old program, jumping from $117 in 2010-11 to $163 this year.

As well as the current health of the program, the committee heard analysis of how the program might be impacted if colleges and universities in Washington implement differential tuition rates. Differential tuition, the practice of charging students different rates of tuition depending on what program of study they chose, has become an issue of concern for the GET program. Institutions were authorized in 2011 to charge differential tuition rates if they so desired, however, the practice has yet to be implemented at any university or college.  Of primary concern at the Legislature is how differential tuition might negatively impact the GET program.

The State Actuary provided analysis of two scenarios. Currently GET has an 80% funding status. A 20% increase in the cost of a GET credit with differential tuition would result in a 67% funded status, and a 50% increase results in a 54% funded status. In order to make this up, the cost of GET credits increases significantly. Currently $163, a 20% increase results in a $257 price tag, and a 50% increase at $521 price tag. Not surprisingly, legislators were alarmed at this rate increase but unable to come to a conclusion. Committee staff members provided a few recommendations on how to proceed, but no final decisions were made. The Committee is expected to meet once more before the fall when recommendations must be made to the legislature.

Congress Reaches Deal on Student Loan Interest Rates, But Loans Still to Become More Expensive

The U.S. Senate reached an agreement on legislation to prevent student loan interest rates from doubling on July 1.

Earlier this week the U.S. Senate agreed to extend the current 3.4 percent rate on Stafford loans for one year and provide $700 million extra for deficit reduction. The $6.7 billion agreement would primarily be funded from two pension measures.

The first would change how private pension interest payments are calculated. The second would increase premiums for companies participating in the Pension Benefit Guaranty Corporation. The two changes to pension measures would provide $5.5 billion.

The additional $1.2 billion would come from limiting how long a student could receive Stafford loans to 150% of the average time it takes to complete a degree. Currently there is no limit on loans.

The agreement now goes to the House for consideration. The U.S. House previously passed a loan extension bill that paid for the legislation by using funds from a preventative care fund in the health care law.

House leadership is signaling that a vote on the agreement will come early next week.

Despite this deal, college students will still see an increase in the cost of their federal loans.

Beginning on July 1 students seeking an advance degree will be responsible for paying the interest on their federal loans while they are in school and immediately after they graduate.

In addition undergraduate students who take out federally subsidized loans will no longer have their interest covered by the government during the six months after they complete school. This change applies to new loans issued through July 2014.

These students may benefit from the lower interest rate, but they will be charged this interest as soon as they graduate. For students who apply for federal loans next year they will have a higher interest rate – 6.8% – and have to pay as soon as they get done walking across the stage.

HECB Holds Final Meeting

On June 28 the Washington Higher Education Coordinating Board (HECB) held its final meeting as a state agency.

The meeting focused primarily on the Board’s Call to Action and a dialogue with higher education stakeholders with regard to the current context of higher education in Washington and hopes for the new agency that will replace the HECB on July 1.

The Call to Action focuses on renewing the state’s commitment to serve more students. The call lays out the current context highlighting the reductions in state funding, the benefits of raising educational attainment, and the long-term impact of a disinvestment in higher education.

The call asks stakeholders and policymakers to maintain access and affordability with an eye to the future in this challenging fiscal environment.

As higher education institutions and states nationwide continue to grapple with new funding realities, we again stress the need to find new ways to invest in our children’s and our society’s futures by maintaining our historic commitment to educating all our citizens to higher levels. Institutions and states share this responsibility.

The Higher Education Coordinating Board will be replaced on July 1 by the Washington Student Achievement Council.

 

 

Higher Education Chair Hosts Stakeholder Meeting

On Monday, June 18 the Government Relations office attended a meeting of higher education stakeholders, chaired by House Higher Education Representative Larry Seaquist on the UW Tacoma campus in downtown Tacoma, WA. Other elected officials in attendance included, Representative Susan Fagan, Representative Hans Zeiger and Senator David Frockt.

Stakeholders spanning the spectrum of the higher education community were in attendance, including, representatives of the four year public baccalaureate institutions, stakeholders from the community college and independent private college sector and students.

Among the topics up for discussion was how to continue to press the legislature and public to keep higher education a top priority, specifically in the 2013 legislative session. Higher education was spared from cuts during the 2012 legislative session and many feel it will be vulnerable as we move into a big budget session. With revenues remaining rather flat (see the most recent economic revenue forecast) and the Washington State Supreme Court’s decision earlier this year that the legislature has not been adequately funding k-12 education requiring significant investment in coming sessions, many are concerned there will be very little money left, if any, to fund higher education.

Stakeholders shared their ideas for keeping higher education a priority, including, continued media coverage of the community. Representative Seaquist also charged the group with thinking about top priorities for higher education and how their importance might be relayed to the general public and policy makers.

The next stakeholder meeting is slated to take place sometime in September after the August primary.

Washington Revene Forecast Stable

The release of the state economic and revenue forecast today shows signs of stability.

The first official revenue forecast since the Legislature left Olympia shows a small net change in the current biennium’s forecast. Effectively flat, the forecast declined by $16.1 million for the 2011-13 biennium.  A decline also occurred for the 2013-15 biennium – $133 million.

The total increase in revenue for the current budget (2011-13) is an increase of $156 million. However this includes additional revenue that was already accountaed for in the budget passed this year. The forecast projects an increase from the February forecast of $197 million in the 2013-15 biennium.

Within this context, legislative fiscal leaders noted that changes related to funding basic education-this does not include changes in employee compensation-would cost the state approximatley $1 billion in 2013-15, $2.5 billion in 2105-17, and $3 billion in the 2017-19 biennium.

All in all state revenues appear to be flat at this time, though revenues have not recovered from pre-recession levels. Within Washington revenue continues to grow at a slow rate primarily due to a flat construction sector and declining state and local government employment. Looking forward there is a 40% chance of the pessimistic forecast occurring in both this and the next biennium compared to 10% for the optimistic forecast.

With that said, legislators believe that as long as this course forward holds another special session prior to the January regular session is unlikely.

Washington Gubernatorial Candidates Debate

On Tuesday the Association of Washington Businesses hosted the first gubernatorial debate in Washington.

The debate provided insight into how both candidates would address a range of issues facing Washington. Among the issues highlighted included charter schools, Initiative 1053 repeal, and jobs and the economy.

In addition both candidates spoke to their approach to fund higher education. Inslee spoke to his goal to cap the interset rate for state-backed student loans, expand online courses, and increase partnerships with the state’s premier private colleges.

McKenna focused on the need to stop the erosion of state support for higher education and restore funding levels to their historical average, enroll more in-state students in our universities, and emphasize degree programs that align with our future job needs, such as science, technology, engineering, math, math education, business management, accounting, and health science.

No additional debates between the two candidates have been scheduled to date.

U.S. Senate Committee Passes Education Spending Bill

This week the U.S. Senate Appropriations Committee passed a spending bill that will increase some federal funding for higher education.

The bill would increase the maximum Pell Grant by $85 in the 2013 fiscal year and give $100 million more in funds to the National Institutes of Health.

The maximum award for the Pell Grant would increase from $5,550 to $5,635 in the 2013-14 academic year. The increase is a result of a mandatory inflation adjustment. Discretionary spending to the program would remain flat.

The bill also would keep spending flat for most other student-aid programs for the 2013 fiscal year, including the Supplemental Educational Opportunity Grants and Federal Work Study.

In addition the bill would:

  • Increase funding for international and foreign-language programs (from $74 million to $75.7 million)
  • Provide funding for the First in the World program which would allow colleges to test new approaches to education
  • Restore eligibility for federal financial aid to students without high-school diplomas or GED’s who have passed an “ability to benefit” test
  • Restore $50.72 million in funding for the Math and Science Partnership program
  • Reduce funds to Race to the Top for elementary and secondary education to office the restoration to the Math and Science Partnership program

The bill now goes to the full Senate for a vote. The U.S. House Appropriations Panel is expectd to draft its own version of the bill next week.

Filing Week Passes; Competitive Election Season Ahead

Last week was Filing Week- the one-week filing period for candidates- at the Washington State Elections Division and county election offices. Hundreds of candidates filed for 364 offices ranging from the U.S. Senate and Governor to statewide offices and legislative seats.

The results of Filing Week indicated a high turnover in statewide offices, the congressional delegation and the Legislature. Almost twenty-five candidates filed for open seats in the Governor, Secretary of State, Attorney General and State Auditor offices alone. In addition approximately twenty candidates are in the running for open seats in the 1st and 6th U.S. House Districts and the new 10th District. Finally there is a slew of new candidates running for the state legislature, with nearly two dozen incumbents leaving the state House and Senate.

This Monday marked the final day for candiates to withdraw and the final list of candidates is now official as of Tuesday.

The next step is Washington’s Top Two Primary on August 7. Primary ballots will go out to voters by July 20.