New report: School Funding: Accounting for the Billions Spent in Response to McCleary

By: WRC
8:52 am
October 5, 2020

In response to the McCleary decision, and as part of the Legislature’s adopted school funding reforms, state spending on public schools increased $14.244 billion or 110.0 percent from 2009–11 to 2019–21. Over the same period, all other state spending increased by just 52.0 percent.

In addition to increasing spending, the Legislature increased the state property tax and reduced school district levy authority. Statewide, enrichment levies as a percent of total district revenues dropped from 17.5 percent in SY 2017–18 to 12.3 percent in SY 2018–19. Despite the reduction in local levy authority, combined school property taxes (the state tax plus local enrichment levies) in 2020 are 33.0 percent higher than they were in 2017, the year before the first McCleary-related tax changes took effect.

From SY 2010–11 to SY 2018–19 (the most recent year of available data), total per-pupil revenues to districts increased by 49.7 percent (per-pupil revenues from state sources increased by 81.6 percent while local taxes per pupil decreased by 0.3 percent). District expenditures per pupil reached $14,545 in SY 2018–19, an increase of 46.3 percent from SY 2010–11.

Washington’s increased spending on schools is showing up in national school district spending and revenue rankings. In SY 2017–18 (the most recent year of comparable data), Washington schools ranked 18th in spending per pupil, 8th in district per-pupil revenues from state sources, and 32nd in district per-pupil revenues from local sources. These rankings are up from SY 2010–11, when they were, respectively, 29th, 15th, and 35th. District spending increased significantly in SY 2018–19—this is not yet reflected in Washington’s national ranking due to the data lag.

The average base salary for certificated teachers increased from $55,718 in SY 2017–18 to $73,101 in SY 2018–19, an increase of 31.2 percent. The average total salary (including supplemental contracts) for certificated teachers was $84,187 in SY 2018–19, up 13.1 percent over SY 2017–18. The average base salary for central administrators increased by 5.1 percent from SY 2017–18 to SY2018–19, while the average base salary for classified staff increased by 6.6 percent.

The state Supreme Court blessed the Legislature’s changes. But the influx of billions of dollars—especially for SY 2018–19—led to teacher strikes, double-digit salary increases, and school district claims of significant budget deficits. Meanwhile, with the regionalization factors the Legislature added to salaries in districts with higher home values, it has maintained previous inequitable funding. And there has already been an erosion of the levy limits that were put in place to help preserve equity and prevent districts from using local revenues to fund basic education, raising the specter of another McCleary-style lawsuit in the future.

Read the full report here.

Categories: Budget , Education , Publications , Tax Policy.