By Erin Hawkins

Olympic Peninsula News Group

SEQUIM — The Sequim School District could see an increase of $3,215,724 in school funding starting with the 2018-19 school year after the state Legislature passed a two-year operating budget.

That’s the news, based on a preliminary estimate of net state and local school district funding changes, that the Sequim School Board received Monday.

The new two-year state operating budget approved by the state Legislature in late June aims to fully fund public education, with possible changes to teacher pay coming in the near future.

On June 30, the Legislature passed a two-year, $43.7 billion state budget that includes an education funding plan that adds $7.3 billion in state funds over the next four years.

This new budget addresses the state Supreme Court’s requirement that the state of Washington fund basic education after the McCleary v. Washington ruling.

“They’re still interpreting what the language means and how it will all roll out,” said Heidi Hietpas, Sequim School District director of finances and operations. “It’s very complex.”

Funding projections estimate a $6,079,258 increase for Sequim schools in the 2019-20 school year and a $6,314,811 increase in 2020-21.

Hietpas said these funding projections are tentative and could change, based on what the state Office of the Superintendent of Public Instruction decides in terms of a funding model for local school districts and how these changes will apply.

“There [are] still some questions as to how that will all be rolled out and what flexibility school districts will still have,” she said. “If it reduces flexibility, we may still not have money for certain activities or other things.”

Hietpas said a big portion of this new budget addresses the McCleary decision that provides additional funding to teachers.

“How funding is being distributed to teachers will potentially change,” Hietpas said.

Hietpas said the legislature mandated that the state come up with working models for school district funding. Depending on what those models look like — in addition to local negotiations with teacher unions — the district will be able to have an understanding of how the new budget will impact Sequim schools.

“This is just one-half of the piece of the pie,” Hietpas said.

While funding models are still in progress, certified teachers and classified staff could see increases in salary allocations as soon as this coming 2017-18 school year, with a 2.3 percent cost-of-living adjustment (COLA) increase.

The starting base salary for certified teachers at the Sequim School District as of the 2016-17 school year was $35,700 and, with the 2.3 percent COLA increase, Hietpas said the base salary for certified teachers could rise to $36,521 starting with the 2017-18 school year.

With the potential changes in funding distribution for teacher salaries, the base salary for certified teachers statewide could start at $40,000 starting with the 2018-19 school year. State allocation for salaries is based on a statewide average allocation per staffing unit, then adjusted for regional differences based on how much a district’s residential values exceed state averages.

The previous teacher salary model based teachers’ salaries on their degree, credits and years of service.

“The bottom line is there is a lot that’s changing, but a lot is changing in the 2018-19 school year,” Hietpas said. “Some of those models change as [legislators] come up with the language.”

Levy impacts

The new state budget also calls for a new K-12 funding policy that will tax property owners a minimum of $1.50 per $1,000 of assessed property value, boosting statewide education spending to $2,500 per pupil.

Heitpas said legislators are “estimating a significant increase in assessed value of property, which drives the cost per acre down.”

This also generates a tentative change in estimated funding per pupil. Preliminary numbers for the Sequim School District indicate per-student spending increases to $1,119 for the 2018-19 school year, $2,105 for the 2019-20 school year and $2,167 in 2020-21.

Hietpas added that starting in 2019, any new levies will be called “enrichment levies” for maintenance and operations and require districts to submit a plan to state officials.

“Right now, the levy doesn’t have to go to OSPI for approval as far as a spending plan, but in the future, it will,” Hietpas said.

Hietpas also said there might be more scrutiny as to how school districts are spending levy dollars. The intent, she said, is to support teacher salary and benefits and take away funding expectations from local levies.

“It’s one of the many reasons why they are changing the practice,” she said.

Neal gets extension

Sequim School Board directors unanimously approved extending Sequim Schools Superintendent Gary Neal’s contract through 2019.

“He’s been a fabulous addition to the Sequim School District,” board President Heather Short said. “He’s really pushed forward and finally developed a strategic plan in the district, which has been a long time coming.”

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Erin Hawkins is a reporter with the Olympic Peninsula News Group, which is composed of Sound Publishing newspapers Peninsula Daily News, Sequim Gazette and Forks Forum. Reach her at ehawkins@sequimgazette.com.