Z-805                 _______________________________________________

                                                   SENATE BILL NO. 3615

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Bauer and Benitz; by Temporary Committee on Educational Policies, Structure and Management request

Read first time 2/6/85 and referred to Committee on Education.

AN ACT Relating to local excess levies; providing for a study of the current situation with respect to expenditure of funds and a temporary increase in the state property tax to provide relief from the levy limitation; adding a new section to chapter 84.55 RCW; creating new sections; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     The state has imposed a limitation on the amount of excess levies which may be collected by school districts; however many school districts have been authorized to operate above this limitation until 1990.  These districts have not shown evidence of sufficient plans to meet the phase-down schedule, and there is dispute over what activities the excess levy funds are used to support.

          It is the intent of this act to investigate thoroughly the extent and nature of excess levies collected by school districts.

NEW SECTION. Sec. 2.     Each school district shall prepare a detailed report on the effects of the ten percent levy limitation, including continuation of the phase-down schedule and the amount of levy money expended by purpose.  Such report shall be submitted to the state board of education and the office of the superintendent of public instruction, on forms and in the manner prescribed by the state board and the office of the superintendent of public instruction by April 1, 1986.

NEW SECTION. Sec. 3.     The state board of education and the office of the superintendent of public instruction shall conduct a review and evaluation of the school district reports and prepare a detailed summary with both individual district information and state summary statistics on the amount of excess levy money collected and expended by purpose under the oversight of the senate and house of representatives education committees, with the assistance of the attorney general's office and present the findings and recommendation to the governor and legislature no later than November, 1986.

NEW SECTION. Sec. 4.  A new section is added to chapter 84.55 RCW to read as follows:

          (1) The limitations under this chapter on the aggregate amount of regular property taxes that may be levied in 1985 and payable in 1986 for school districts shall be increased by fifty million dollars.  These additional levies shall be proportionately distributed to districts in a manner parallel to the distribution of basic education funds.

          (2) Application of the increased revenues resulting under subsection (1) of this section shall be at the discretion of the local board, except that they shall not be used to augment salaries.

          (3) This fifty million dollar increase shall be used only in calculating levies made in 1985, 1986, and 1987, and payable the following years.

NEW SECTION. Sec. 5.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.