April 4, 2025

HB 2050 was heard in House Appropriations on Thursday, April 3rd at 1:30 pm. Dave Larson of the WSSDA Legislative Committee and Tukwila School Board testified in opposition to this bill on behalf of WSSDA. The bill has two key parts that may be of concern to school districts and their boards:

• Proposes changes to the apportionment schedule by reducing payments in February and March and moves payment out to August. School districts may have to borrow money (with additional interest expense) or delay payments to vendors that could result in late payment penalties as a result of this proposed change.
• Limits the enrollment used to calculate Local Effort Assistance funding to when the district's Alternative Learning Experience enrollment exceeds 33%.

For many school districts, February, March, and April represent the lowest cash flow months of the year. During this period, schools face heightened financial pressure as they must manage their budgets. The timing of these payments is crucial, especially since the largest expense for school districts—salaries and benefits—must be paid consistently throughout the year. An alteration to the payment schedule could jeopardize the ability of these districts to meet their financial obligations.

Should this bill be enacted, districts that do not maintain substantial fund balances may find themselves in a difficult position. They could be forced to resort to borrowing money to cover immediate expenses, which would lead to additional interest costs. Alternatively, districts might delay payments to vendors or service providers, risking late payment penalties that could further strain their budgets.

While the senate does not have a stand-alone bill on apportionment shifts, they do propose such a change in their proposed operating budget by locking in tightly to “school year” instead of fiscal year. The Senate's language is problematic because the intent is to reduce apportionment payments in FY26 (before June 30) and then not make districts whole until the 26-27 school year (September 30). Districts do not have fund balances to carry them through a three-month delay of $386 million dollars. Any proposal that would reduce payments in spring months by a percent or two each month and then increase July’s percentage is problematic and creates a significant delay between forgone revenue and when districts are made whole.

The potential financial ramifications of moving apportionment payments to later in the year highlight the need for careful consideration of the proposal. The suggestion to balance the state’s budget should not come at the expense of school districts. It is essential for legislators to think critically about how such changes could impact the operational stability of schools and the quality of education they provide. If an apportionment shift is inevitable, as signaled by the policy being in both the house and senate, we want the least amount of delay possible between when districts are forgoing payments and when they receive those payments.

HB 2049 was heard in House Finance on Thursday, April 3rd at 8:00 am. Daniel Lunghofer, WSSDA's Accountant, testified as other on behalf of WSSDA. This bill includes an updated version of HB 1356 to increases school district levy lids and LEA. The key points in Daniel's testimony included:

Support for Special Education Funding: WSSDA supports the proposed increase in Special Education funding, particularly the elimination of the arbitrary enrollment cap on the number of students that can be funded. This change is essential for fulfilling the state's obligation to provide adequate Special Education services.

Concerns About Funding Inequities: While we acknowledge that an increase in levy authority may benefit some districts, and are supportive of meeting our districts' financial needs, we have concerns about the impact on those facing a cap based on the maximum levy tax rate. This situation could exacerbate the existing per-pupil funding disparities within the current levy laws, despite some offset from increased local effort assistance.

State Responsibility: The proposed changes related to levy and local effort assistance are viewed as forcing a local solution to a state obligation. It is crucial that such measures are considered alongside the state's commitment to adequately funding basic education, including Special Education, materials, supplies, operating costs (MSOCs), and transportation.

HB 2044 is being proposed as “necessary to implement the budget” (NTIB) as it is a cost savings to the state. The bill would eliminate the requirement of a school district to file a truancy petition with the local juvenile court but instead enter into an agreement with a child and parent that establishes school attendance requirements or refers a child to a community engagement board under RCW 28A.225.025. The community engagement board would be required to enter into an agreement with the child and parent that establishes school attendance requirements and takes other appropriate actions to reduce the child's absences.

WSSDA does not intend to weigh in on this bill during the House Appropriations Committee hearing on Saturday, April 5th as we are still unpacking the policy implications related to our member-adopted positions. We would appreciate hearing your insights about the existing policy and proposed changes and encourage you to weigh in directly with House Appropriations Committee Members with your perspectives.

In Washington State, the Employment Security Department (ESD) administers the unemployment insurance (UI) program, which provides benefits to eligible unemployed individuals. To qualify for UI benefits, a claimant must meet specific criteria: they must have worked at least 680 hours during the base year, been separated from their job through no fault of their own or have quit for a valid reason, and must be able and available to work while actively seeking suitable employment. Additionally, claimants are required to complete a one-week waiting period before they can start receiving UI benefits. It is important to note that certain benefit payments are not charged to the experience rating accounts of employers who contribute to the UI program, which helps mitigate the financial impact on employers when their former employees receive these benefits.

Individuals are currently disqualified from receiving unemployment insurance (UI) benefits if their unemployment results from a strike or a lockout at the place of their last employment. However, this disqualification does not apply if the individual is not involved in, financing, or directly interested in the strike or lockout, and does not belong to a group of workers who are. The disqualification ends when the strike or lockout concludes.

SB 5041 was heard in House Appropriations today after making it through the Senate with little opposition. WSSDA and WASA partnered to write this letter to all House Appropriations members expressing our deep concerns with the bill. The Seattle Times released this Op-Ed last month to elevate the problems this bill would create. The bill aims to modify the disqualification for striking workers in the following ways:

End of Disqualification: The disqualification for striking workers ends on either the second Sunday following the start of the strike (if not found illegal) or the date the strike concludes.

Repayment of Benefits: If a final judgment declares the strike illegal, any benefits received must be repaid by the workers. Additionally, if retroactive wages are paid for weeks during which the individual received benefits, the Employment Security Department (ESD) will issue an overpayment assessment to recover those benefits.

Waiting Period: A regular one-week waiting period applies after the disqualification ends before any benefits can be issued.

Employer Charges: For contribution-paying employers, benefits paid to striking workers will only affect the experience rating of the employer from whom the worker separated.

Removal of Lockout Disqualification: The disqualification based on a lockout of employees in a multi-employer bargaining unit has been removed, allowing those individuals to qualify for unemployment insurance benefits.

We will keep you informed on this bill's progress. Please let us know if you have further questions or other concerns that we can raise on your behalf (strategicadvocacy@wssda.org).

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