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Nov 2000 Initiative 728

Municipal League of King County Takes no position on Initiative 728 2000 General Election This measure directs a portion of state property tax to a new Student Achievement Fund for class size reduction, extended learning opportunities, and professional development, transfers money in excess of the minimum required for the I-601 “Rainy Day Fund” to the Student Achievement Fund to be used for the same purposes, and dedicates state lottery revenues (which currently go to the General Fund) to the Student Achievement Fund and to school construction.


Municipal League of King County

Takes no position on Initiative 728

2000 General Election


Ballot Measure Title: Shall school districts reduce class sizes, extend learning programs, expand teacher training, and construct facilities, funded by lottery proceeds, existing property taxes, and budget reserves?

Ballot Measure Summary: This measure would direct that certain existing state revenue, including all unobligated lottery revenue, be placed in a student achievement fund and in the education construction fund. Part of the state property tax levy would be distributed directly to school districts as student achievement funds. These distributions would not affect the state expenditure limit. The emergency reserve fund would be recalculated, and some of the redirected money would be placed in the student achievement fund.

Summary
This measure directs a portion of state property tax to a new Student Achievement Fund for class size reduction, extended learning opportunities, and professional development, transfers money in excess of the minimum required for the I-601 “Rainy Day Fund” to the Student Achievement Fund to be used for the same purposes, and dedicates state lottery revenues (which currently go to the General Fund) to the Student Achievement Fund and to school construction.

Main Provisions
  • Would direct a portion of the state property tax to a new Student Achievement Fund to be used for new allocations to school districts for class size reduction, extended learning opportunities, and professional development.
  • Would transfer money in excess of the minimum required for the "Emergency Reserve Fund" (the I-601 rainy day fund) to the new Student Achievement Fund for class size reduction, extended learning opportunities, and professional development in school districts. Under current law these excess revenues would support school construction.
  • Would dedicate state lottery revenues, which are currently deposited in the state General Fund, to the new Student Achievement Fund and to school construction.

 

Preliminary Estimate of Short Term Fiscal Impacts

I-728 redirects $470 million in General Fund revenue in the 2001-03 Biennium to provide dedicated funding for education. The following tables compare revenues in the Student Achievement Fund, the School Construction Fund, and projected reserve funds under current law and under I-728.

Projected Fund Balances Under Current Law*

'99-01 Biennium

'01-03 Biennium

Student Achievement Fund

$0 million

$0 million

Education Construction Fund**

$242 million

$367 million

Reserves***

$960 million

$1,006 million

 

Projected Fund Balances Under I-728*

'99-01 Biennium

'01-03 Biennium

Student Achievement Fund

$0 million

$395 million

Education Construction Fund**

$242 million

$87 million

Reserves***

$960 million

$878 million

*Revenues are based on the June 2000 revenue forecast (assuming no additional tax cuts). Spending is based on the I-601 spending limit for FY 2001 and for the 2001-03 Biennium. No increases are assumed for the spending limit in the 2001-03 Biennium due to program cost shifts to the General Fund from other state or local funds.

** Figures projected for the Education Construction Fund assume that because the Emergency Reserve Fund (ERF) is not expected to receive additional revenues in FY 2001, that all required transfers from the ERF to the Education Construction Fund during FY 2001 will be made prior to January 1, 2001. It is possible, however, that the actual timing of fund transfers will be different.

*** Includes Emergency Reserve and General Fund Balance.

Goals Stated in the Body of the Initiative

 

  • To provide funding to meet the student achievement standards of the state education reform act of 1993.
  • Achieve higher academic standards through smaller class sizes
  • Appropriate money to achieve new, higher standards of academic learning
  • Allow school districts to select from “menu” of strategies** (flexibility and local control) and to report back annually on progress in student achievement (accountability)

**"Menu" of Strategies

  • Major reductions in K-4 class size;
  • Selected class size reductions in grades 5-12, such as small high school writing classes;
  • Extended learning opportunities for students who need or want additional time in school;
  • Investments in educators and their professional development
  • Early assistance for children who need pre-kindergarten support in order to be successful in school; and
  • Providing improvements or additions to facilities to support class size reductions and extended learning opportunities.

Arguments For and Agains

For

  • STATEWIDE EQUITY - strategies would apply equally to all students regardless of property values of areas/districts
  • RELIEVES LEVY STRESS - though district levies could still be on the ballot, this measure ENSURES funding for all districts, whether or not they are able to pass levies
  • IMPETUS? - Smaller class sizes will exacerbate problem of teacher availability. If it passes, perhaps it would spur legislative action.
  • JOB QUALITY - Although not addressing teacher salaries, the effect of the initiative would be to improve the teaching situation and “quality of job life” for teachers.

 

Against
  • METHOD - the great need of Public Education in the state demands a more comprehensive, legislative response.
  • STRATEGY - With smaller class sizes, this legislation will exacerbate the problem of finding and keeping enough quality teachers in the long term.
  • ADVISABILITY - Will the legislature assume NO responsibility for school funding?
  • GOAL - This initiative does not even address the desperate need to increase salaries for teachers. 

 

Recommendation
The board was not able to reach the 2/3 majority vote necessary to take a position on this issue.


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