Washington State

House of Representatives

Office of Program Research

BILL

 ANALYSIS

Appropriations Committee

 

 

ESSB 6058

Brief Description: Modifying the distribution of state property taxes.

 

Sponsors: Senator Oke; by request of Office of Financial Management.


Brief Summary of Engrossed Substitute Bill

    Changes the per student allocations from the Student Achievement Fund (SAF).

    Changes the SAF distribution schedule from 10 months to 12 months.


Staff: Denise Graham (786-7137).


Background:


Under the law prior to enactment of Initiative 728 (I-728), lottery and state collected property tax revenues were deposited in the state general fund.


I-728 was approved by voters in the November 2000 general election. Under this initiative, lottery proceeds and a portion of the state property tax are dedicated for educational purposes by transferring revenues into the Student Achievement Fund and the Education Construction Account.


Under I-728, allowable uses of the Student Achievement Fund include: hiring more teachers to reduce class sizes and making necessary capital improvements; creating extended learning opportunities for students; providing professional development for educators; and providing early childhood programs.


Between school years 2001 and 2004, varying percentages of the lottery and a portion of the state property tax are deposited into the Student Achievement Fund.


Under I-728, the Student Achievement Funds provided to school districts are scheduled to increase in the 2004-05 school year through changes to property tax transfers into the account. These changes would increase the school district allocation from $211.67 per FTE student in the 2003-04 school year to $450 per FTE student in the 2004-05 school year. In subsequent school years, the $450 per student allocation to school districts would increase by inflation measured by the implicit price deflator.


Student Achievement Fund distributions to school districts have been made over a ten-month period each year, from September through June. Basic education apportionment funds are distributed to districts according to a 12-month schedule required by statute.


Summary of Engrossed Substitute Bill:


The per student allocations from the Student Achievement Fund are: $254 per FTE student in the 2004-05 school year; $300 per FTE student in the 2005-06 school year; $375 per FTE student in the 2006-07 school year; and $450 per FTE student in the 2007-08 school year. In subsequent school years, the $450 per student allocation to school districts increases by inflation measured by the implicit price deflator.


Beginning in the 2004-05 school year, Student Achievement Fund allocations will be distributed to school districts based on the state apportionment schedule.


Appropriation: None.


Fiscal Note: Available.


Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.