Original Notice.

     Preproposal statement of inquiry was filed as WSR 07-10-026.

     Title of Rule and Other Identifying Information: WAC 392-139-310 Finance -- Maintenance and operations levies -- Determination of excess levy base.

     Hearing Location(s): Old Capitol Building, 600 South Washington, Olympia, WA 98504-7200, on September 27, 2007, at 10:00 a.m.

     Date of Intended Adoption: September 28, 2007.

     Submit Written Comments to: Rules Coordinator, Legal Services, Office of Superintendent of Public Instruction, P.O. Box 47200, Olympia, WA 98504-7200, e-mail Penny.coker@k12.wa.us, fax (360) 753-4201.

     Assistance for Persons with Disabilities: Contact Clarice Nnanabu, TTY (360) 664-3631 or (360) 725-6271.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Rules are updated to reflect changes in the state and federal revenues in the levy base due to the addition of revenue codes in the school district accounting manual.

     Reasons Supporting Proposal: Revisions are required to implement accounting manual changes in revenue codes.

     Statutory Authority for Adoption: RCW 28A.150.290.

     Statute Being Implemented: None.

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

     Name of Proponent: Office of superintendent of public instruction, governmental.

     Name of Agency Personnel Responsible for Drafting: Steve Shish, Office of Superintendent of Public Instruction; Implementation: Calvin W. Brodie, Office of Superintendent of Public Instruction; and Enforcement: Jennifer Priddy, Office of Superintendent of Public Instruction.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. This rule is not applicable to nongovernmental agencies.

     A cost-benefit analysis is not required under RCW 34.05.328. This rule is not applicable to nongovernmental agencies.

August 15, 2007

Dr. Terry Bergeson

State Superintendent

OTS-9916.1

AMENDATORY SECTION(Amending WSR 06-17-142, filed 8/22/06, effective 9/22/06)

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 from the prior school year(s) as determined in subsections (4) and (5) of this section:

     (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))

     4399 Transportation - operations;

     4499 Transportation - depreciation;

     6199 Transportation - operations;

     6299 Transportation - operations; and

     6399 Transportation - operations.

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

     4121 Special education; ((and))

     4321 Special education;

     6124 Special education supplemental;

     6224 Special education supplemental; and

     6324 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:

     3100 Barrier reduction;

     4155 Learning assistance;

     4165 Transitional bilingual;

     4163 Promoting academic success;

     4166 Student achievement;

     4365 Transitional bilingual;

     6151 Disadvantaged;

     6153 Migrant;

     6164 Limited English proficiency;

     6251 Disadvantaged;

     6253 Migrant;

     6264 ((Bilingual (direct);)) Limited English proficiency;

     6267 Indian education - JOB;

     6268 Indian education - ED; ((and))

     6351 Disadvantaged;

     6353 Migrant;

     6364 Limited English proficiency;

     6367 Indian education - JOM; and

     6368 Indian education - ED.

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

     4198 School food services (state);

     4398 School food services;

     6198 School food services (federal);

     6298 School food services;

     6398 School food services; and

     6998 USDA commodities.

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

     6176 Targeted assistance;

     6276 Targeted assistance; and

     6376 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;

     6154 Reading first;

     6162 Math and science - professional development;

     6200 Direct special purpose grants; ((and))

     6221 Special education - Medicaid reimbursement;

     6238 Secondary vocational education;

     6246 Skills center;

     6252 School improvement;

     6254 Reading first;

     6262 Math and science - professional development;

     6300 Federal grants through other agencies - unassigned;

     6310 Medicaid administrative match; ((and))

     6321 Special education - Medicaid reimbursement;

     6338 Secondary vocational education;

     6346 Skills center;

     6352 School improvement;

     6354 Reading first; and

     6362 Math and science - professional development.

     (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.

     (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):

     3100 Barrier reduction;

     4121 Special education;

     4155 Learning assistance;

     4163 Promoting academic success;

     4165 Transitional bilingual;

     4166 Student achievement;

     4174 Highly capable;

     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 Disadvantaged;

     6152 School improvement;

     6153 Migrant;

     6154 Reading first;

     6162 Math and science - professional development;

     6164 Limited English proficiency;

     6176 Targeted assistance; ((and))

     6198 School food services (federal); and

     6199 Transportation - operations.

     (b) For the 2004 calendar year, the following state and federal allocations are taken from the F-195 budget including budget extensions.

     For the 2005 calendar year and thereafter, the following federal allocations shall be taken from the school district's second prior year F-196 annual financial report:

     4321 Special education;

     4365 Transitional bilingual;

     4398 School food services;

     4399 Transportation - operations;

     5200 General purpose direct federal grants - unassigned;

     6100 Special purpose - OSPI - unassigned;

     6200 Direct special purpose grants;

     6221 Special education - Medicaid reimbursement;

     6224 Special education supplemental;

     6238 Secondary vocational education;

     6246 Skills center;

     6251 Disadvantaged;

     6252 School improvement;

     6253 Migrant;

     6254 Reading first;

     6262 Math and science - professional development;

     6264 ((Bilingual (direct);)) Limited English proficiency;

     6267 Indian education - JOM;

     6268 Indian education - ED;

     6276 Targeted assistance;

     6298 School food services;

     6299 Transportation - operations;

     6300 Federal grants through other agencies - unassigned;

     6310 Medicaid administrative match;

     6321 Special education - Medicaid reimbursement;

     6324 Special education supplemental;

     6338 Secondary vocational education;

     6346 Skills center;

     6351 Disadvantaged;

     6352 School improvement;

     6353 Migrant;

     6354 Reading first;

     6362 Math and science - professional development;

     6364 Limited English proficiency;

     6367 Indian education - JOM;

     6368 Indian education - ED;

     6376 Targeted assistance;

     6398 School food services;

     6399 Transportation - operations; and

     6998 USDA commodities.

     (5) Effective for levy authority and local effort assistance calculations for the 2005 calendar year and thereafter:

     (a) District revenues determined in subsection (4) of this section shall be reduced for revenues received as a fiscal agent. School districts shall report fiscal agent revenues pursuant to instructions provided by the superintendent of public instruction.

     (b) The amount determined in subsection (4)(b) of this section, after adjustment for fiscal agent moneys, shall be inflated for one year using the percentage change in the implicit price deflator for personal consumption expenditures for the United States as published for the most recent twelve-month period by the Bureau of Economic Analysis of the Federal Department of Commerce.

     (6) State and federal 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) 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. 06-17-142, § 392-139-310, filed 8/22/06, effective 9/22/06. Statutory Authority: RCW 84.52.0531(9) and 28A.150.290. 03-21-040, § 392-139-310, filed 10/8/03, effective 11/8/03. Statutory Authority: RCW 28A.150.290(1) and 84.52.0531(9). 02-17-113, § 392-139-310, filed 8/21/02, effective 9/21/02; 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.]

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