Subject of Possible Rule Making: Chapter 392-139 WAC, Finance -- Levies, school districts maintenance and operation levy authority and eligibility for local effort assistance (LEA).

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 84.52.0531(9), 28A.150.290.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Changes are being proposed to eliminate the following:

•     The practice of using school districts estimates of federal revenues received directly in determining the levy base.

•     The inclusion of fiscal agent revenues, i.e. revenues that a district receives on behalf of other districts or other public entities, from the levy base.

     Inclusion of these items can increase a district's levy amount and may not only affect its eligibility for levy equalization, but that of other districts as well.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

     Process for Developing New Rule: Early solicitation of public comments and recommendations respecting new, amended or repealed rules, and consideration of the comments and recommendations in the course of drafting rules.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by sending written comments to Rules Coordinator, Legal Services, Office of Superintendent of Public Instruction, P.O. 47200, Olympia, WA 98504-7200, fax (360) 753-4201, TTY (360) 664-3631. For telephone assistance contact Calvin W. Brodie, (360) 725-6301.

February 11, 2003

Thomas J. Kelly

for Dr. Terry Bergeson

Superintendent of

Public Instruction

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