WSR 02-14-143

PROPOSED RULES

SUPERINTENDENT OF

PUBLIC INSTRUCTION

[ Filed July 3, 2002, 9:07 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 02-10-008.

Title of Rule: Finance -- Levies.

Purpose: Rules are updated to reflect: (1) Changes in the state and federal revenues in the levy base; (2) EHB 3011 which prorates local effort assistance (LEA) for 2003 to 99% of the formula allocation otherwise provided; and (3) rescind rule changes adopted two years ago to adjust levy base for differences between budgeted and actual revenues in the levy base.

Other Identifying Information: Chapter 392-139 WAC, Finance levies.

Statutory Authority for Adoption: RCW 28A.150.290(1) and 84.52.0531(9).

Statute Being Implemented: None.

Summary: Levy base revenue accounts are updated to reflect recent legislative appropriations and changes in the school district chart of accounts as shown in the school district accounting manual as revised in 2001 and 2002. The 2002 legislature passed EHB 3011, which prorates local effort assistance (LEA) for the 2003 calendar year at 99% of the formula allocation otherwise provided.

Reasons Supporting Proposal: Revisions are required to implement legislative changes in state revenues and EHB 3011. The revisions for federal revenues accounts are required to reflect the underlying program changes required by the federal ESEA legislation.

Name of Agency Personnel Responsible for Drafting: Linda Harrison, Office of Superintendent of Public Instruction; Implementation: Allen H. Jones, Office of Superintendent of Public Instruction, (360) 725-6300; and Enforcement: Mike Bigelow, Office of Superintendent of Public Instruction, (360) 753-1718.

Name of Proponent: Office of Superintendent of Public Instruction, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: The purposes of the existing chapter 392-139 WAC is to define the annual procedures that the superintendent of public instruction shall use to determine for each school district:

(1) The maximum dollar amount which may be levied on its behalf for general fund maintenance and operation support pursuant to RCW 84.52.053 and 84.52.0531; and

(2) The local effort assistance to be allocated to it pursuant to chapter 28A.500 RCW.

Proposal Changes the Following Existing Rules: The proration of LEA in 2003 will reduce maximum LEA and LEA allocations by one percent. Those districts with voter approved levies above their levy authority will be able to make up for the loss of LEA by collecting more local property tax. 72% of the 2003 LEA impact will fall in the 2002-03 school year. Approximately 55% of the 2003 property tax revenue impact will fall in the 2002-03 school year.

Elimination of the adjustment of budgeted federal revenues in the levy base will increase levy authority and LEA eligibility for those districts that budgeted more federal revenue in 2000-01 than they received. It will reduce levy authority and LEA eligibility for districts that budgeted less than they received.

Addition of student achievement revenues to the levy base will benefit all districts beginning in calendar year 2003. The other revenue account changes have minimal impacts.

No small business economic impact statement has been prepared under chapter 19.85 RCW. No small business impacts have been identified.

RCW 34.05.328 does not apply to this rule adoption.

Hearing Location: Old Capitol Building, Bruno Conference Room, 2nd Floor, P.O. Box 47200, Olympia, WA 98504-7200, on August 6, 2002, at 9-11 a.m.

Assistance for Persons with Disabilities: Contact Sheila Emery by August 1, 2002, TDD (360) 664-3631, or (360) 725-6271.

Submit Written Comments to: Legal Services, Office of Superintendent of Public Instruction, P.O. Box 47200, 600 South Washington Street, Olympia, WA 98504-7200, fax (360) 753-4201, by August 1, 2002.

Date of Intended Adoption: August 7, 2002.

June 28, 2002

Dr. Terry Bergeson

Superintendent of

Public Instruction

OTS-5763.1


AMENDATORY SECTION(Amending WSR 01-22-098, filed 11/6/01, effective 12/7/01)

WAC 392-139-008   Effective date.   This chapter applies to levy authority and local effort assistance calculations for the ((2002)) 2003 calendar year and thereafter. Levy authority and local effort assistance calculations for ((2000 and 2001)) prior calendar years are governed by rules in effect ((at the time of the calculations)) as of January 1 of the calendar year.

[Statutory Authority: RCW 28A.150.290(1) and 84.52.0531(9). 01-22-098, 392-139-008, filed 11/6/01, effective 12/7/01. Statutory Authority: RCW 84.52.0531(9) and 28A.150.290. 00-09-017, 392-139-008, filed 4/11/00, effective 5/12/00.]


AMENDATORY SECTION(Amending Order 18, filed 7/19/90, effective 8/19/90)

WAC 392-139-205   Definition -- F-195.   As used in this chapter, "F-195" means the annual school district budget document including budget extensions officially adopted by each school district pursuant to chapter 28A.505 RCW for each year's operations. This document includes estimates of revenues to be received from federal sources during the school year. The federal revenues reported on a school district's F-195 for the prior school year are included in the district's excess levy base pursuant to WAC 392-139-310 if they qualify for inclusion and are not reported on Report 1197. The accounts included in the levy base and reported on the F-195 are listed in WAC 392-139-310 (4)(b).

[Statutory Authority: 1990 c 33. 90-16-002 (Order 18), 392-139-205, filed 7/19/90, effective 8/19/90. Statutory Authority: RCW 28A.41.170 and 84.52.0531(10). 89-23-121 (Order 18), 392-139-205, filed 11/22/89, effective 12/23/89; 88-03-007 (Order 88-6), 392-139-205, filed 1/8/88.]


AMENDATORY SECTION(Amending WSR 01-22-098, filed 11/6/01, effective 12/7/01)

WAC 392-139-310   Determination of excess levy base.   The superintendent of public instruction shall calculate each school district's excess levy base as provided in this section.

(1) Sum the following state and federal allocations for the prior school year:

(a) The basic education allocation as defined in WAC 392-139-115 and as reported on the August Report 1191;

(b) The state and federal categorical allocations for the following:

(i) Pupil transportation. Allocations for pupil transportation include allocations for the following accounts:

4199 Transportation - operations; and

4499 Transportation - depreciation.

(ii) Special education. Allocations for special education include allocations for the following accounts:

4121 Special education; and

6124 Special education supplemental.

(iii) Education of highly capable students. Allocations for education of highly capable students include allocations identified by account 4174 Highly capable.

(iv) Compensatory education. Allocations for compensatory education include allocations identified by the following accounts:

4155 Learning assistance;

((4162 Better schools - staff;))

4165 Transitional bilingual;

4166 Student achievement (((2001-02 school year and thereafter)));

6151 Remediation through 2001-02 school year;

6151 Disadvantaged (2002-03 school year and thereafter);

6153 Migrant;

6164 Limited English proficiency (2002-03 school year and thereafter);

6264 Bilingual (direct);

6267 Indian education - JOM;

6268 Indian education - ED; and

6367 Indian education - JOM.

(v) Food services. Allocations for food services include allocations identified by the following accounts:

4198 School food services (state);

6198 School food services (federal); and

6998 USDA commodities.

(vi) Statewide block grant programs. Allocations for statewide block grant programs include allocations identified by the following accounts:

((4163 Better schools - professional development;))

4175 Local education program enhancement (((including student learning improvement allocations))) (through 2001-02 school year);

4175 Flexible education (2002-03 school year and thereafter); and

6176 Targeted assistance.

(c) General federal programs. Allocations for general federal programs identified by the following accounts:

5200 General purpose direct federal grants - unassigned;

6100 Special purpose - OSPI - unassigned;

6121 Special education - Medicaid reimbursement;

6138 Secondary vocational education;

6146 Skills center;

6152 School improvement (2002-03 school year and thereafter);

6154 Reading first (2002-03 school year and thereafter);

6177 Eisenhower professional development;

6200 Direct special purpose grants; and

6300 Federal grants through other agencies - unassigned; and

6310 Medicaid administrative match (2002-03 school year and thereafter).

(2) Increase the result obtained in subsection (1) of this section by the percentage increase per full-time equivalent student in the state basic education appropriation between the prior school year and the current school year as stated in the state Operating Appropriations Act divided by 0.55.

(3) Revenue accounts referenced in this section are defined in the accounting manual for public school districts in the state of Washington, revised 2001, except those identified for the 2002-03 school year and thereafter, which are from the accounting manual revised 2002.

(4) The dollar amount of revenues for state and federal categorical allocations identified in this section shall come from the following sources:

(a) The following state and federal categorical allocations are taken from the Report 1197 Column A (Annual Allotment Due):

4121 Special education;

4155 Learning assistance;

((4162 Better schools - staff;

4163 Better schools - professional development;))

4165 Transitional bilingual;

4166 Student achievement (((2001-02 school year and thereafter)));

4174 Highly capable;

4175 Local education program enhancement (through 2001-02 school year);

4175 Flexible education (2002-03 school year and thereafter);

4198 School food services (state);

4199 Transportation - operations;

4499 Transportation - depreciation;

6121 Special education - Medicaid reimbursements;

6124 Special education - supplemental;

6138 Secondary vocational education;

6146 Skills center;

6151 Remediation (through 2001-02 school year);

6151 Disadvantaged (2002-03 school year and thereafter);

6152 School improvement (2002-03 school year and thereafter);

6153 Migrant;

6154 Reading first (2002-03 school year and thereafter);

6164 Limited English proficiency (2002-03 school year and thereafter);

6176 Targeted assistance;

6177 Eisenhower professional development; and

6198 School food services (federal).

(b) The following state and federal allocations are taken from the F-195:

5200 General purpose direct federal grants - unassigned;

6100 Special purpose - OSPI - unassigned;

6200 Direct special purpose grants;

6264 Bilingual (direct);

6267 Indian education - JOM;

6268 Indian education - ED;

6300 Federal grants through other agencies - unassigned;

6310 Medicaid administrative match (2002-03 school year and thereafter);

6367 Indian education - JOM; and

6998 USDA commodities.

(5) ((Effective for levy authority and local effort assistance calculations for 2003 and thereafter, allocations in subsections (4)(b) of this section shall be adjusted by the difference between actual and budgeted allocations for the school year before the prior school year calculated as follows:

(a) Sum actual revenues for these accounts from Report F-196; and

(b) Subtract final budgeted revenues for these accounts from Report F-195.

(6))) State moneys generated by a school district's students and redirected by the superintendent of public instruction to an educational service district at the request of the school district shall be included in the district's levy base.

(((7))) (6) State basic education moneys generated by a school district's students and allocated directly to a technical college shall be included in the district's levy base.

[Statutory Authority: RCW 28A.150.290(1) and 84.52.0531(9). 01-22-098, 392-139-310, filed 11/6/01, effective 12/7/01. Statutory Authority: RCW 84.52.0531(9) and 28A.150.290. 00-09-017, 392-139-310, filed 4/11/00, effective 5/12/00. Statutory Authority: RCW 84.52.0531(a) and 28A.150.290(2). 98-08-096 (Order 98-06), 392-139-310, filed 4/1/98, effective 5/2/98. Statutory Authority: RCW 84.52.0531(10) and 28A.150.290. 96-19-037 (Order 96-13), 392-139-310, filed 9/11/96, effective 10/12/96. Statutory Authority: RCW 28A.150.290(2) and 84.52.0531(10). 93-21-092 (Order 93-20), 392-139-310, filed 10/20/93, effective 11/20/93; 92-19-124 (Order 92-07), 392-139-310, filed 9/21/92, effective 10/22/92. Statutory Authority: RCW 28A.41.170 and 84.52.0531(10). 89-23-121 (Order 18), 392-139-310, filed 11/22/89, effective 12/23/89; 88-03-007 (Order 88-6), 392-139-310, filed 1/8/88.]


AMENDATORY SECTION(Amending WSR 00-09-017, filed 4/11/00, effective 5/12/00)

WAC 392-139-660   Determination of maximum local effort assistance.   The superintendent of public instruction shall calculate maximum local effort assistance for each eligible school district as follows:

(1) Subtract the statewide average twelve percent levy rate from the district twelve percent levy rate;

(2) Divide the result obtained in subsection (1) of this section by the district twelve percent levy rate; and

(3) Multiply the result obtained in subsection (2) of this section by the district twelve percent levy amount.

(4) For the 2003 calendar year only, multiply the result of subsection (3) of this section by 0.99.

[Statutory Authority: RCW 84.52.0531(9) and 28A.150.290. 00-09-017, 392-139-660, filed 4/11/00, effective 5/12/00. Statutory Authority: RCW 84.52.0531(a) and 28A.150.290(2). 98-08-096 (Order 98-06), 392-139-660, filed 4/1/98, effective 5/2/98. Statutory Authority: RCW 28A.150.290(2) and 84.52.0531(10). 93-21-092 (Order 93-20), 392-139-660, filed 10/20/93, effective 11/20/93. Statutory Authority: RCW 28A.41.170 and 84.52.0531(10). 89-23-121 (Order 18), 392-139-660, filed 11/22/89, effective 12/23/89; 88-03-007 (Order 88-6), 392-139-660, filed 1/8/88.]


AMENDATORY SECTION(Amending WSR 00-09-017, filed 4/11/00, effective 5/12/00)

WAC 392-139-670   Local effort assistance allocations.   The superintendent of public instruction shall calculate each eligible school district's local effort assistance entitlement as the lesser of the ((following)) amounts in subsections (1) and (2) of this section:

(1)(a) For the 2003 calendar year, the school district's certified excess levy for the calendar year as reported to the superintendent of public instruction pursuant to WAC 392-139-665 times the school district's state matching ratio for the calendar year calculated pursuant to WAC 392-139-625 times 0.99; ((or))

(b) For the 2004 calendar year and thereafter, the school district's certified excess levy for the calendar year as reported to the superintendent of public instruction pursuant to WAC 392-139-665 times the school district's state matching ratio for the calendar year calculated pursuant to WAC 392-139-625;

(2) The school district's maximum local effort assistance calculated pursuant to WAC 392-139-660.

[Statutory Authority: RCW 84.52.0531(9) and 28A.150.290. 00-09-017, 392-139-670, filed 4/11/00, effective 5/12/00. Statutory Authority: RCW 84.52.0531(a) and 28A.150.290(2). 98-08-096 (Order 98-06), 392-139-670, filed 4/1/98, effective 5/2/98. Statutory Authority: RCW 28A.150.290(2) and 84.52.0531(10). 93-21-092 (Order 93-20), 392-139-670, filed 10/20/93, effective 11/20/93. Statutory Authority: RCW 28A.41.170 and 84.52.0531(10). 89-23-121 (Order 18), 392-139-670, filed 11/22/89, effective 12/23/89; 88-03-007 (Order 88-6), 392-139-670, filed 1/8/88.]

Washington State Code Reviser's Office