SENATE BILL REPORT

                   SB 6284

              As Reported By Senate Committee On:

                  Education, January 27, 1998

Title:  An act relating to mandatory titles in school excess‑levy titles.

Brief Description:  Prescribing mandatory titles in school excess‑levy titles.

Sponsors:  Senators Hochstatter, Zarelli, Sellar, Swecker, Johnson and Stevens.

Brief History:

Committee Activity:  Education:  1/16/98, 1/27/98 [DPS, DNPS].

SENATE COMMITTEE ON EDUCATION

Majority Report:  That Substitute Senate Bill No. 6284 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Hochstatter, Chair; Finkbeiner, Vice Chair; Johnson and Zarelli.

Minority Report:  Do not pass substitute.

  Signed by Senators Goings, McAuliffe and Rasmussen.

Staff:  William Bridges (786-7424)

Background:  The Washington State Constitution limits the annual combined property tax rate to 1 percent of a parcel=s assessed value.  But when 60 percent of a school district=s voters approve, a district may levy taxes in Aexcess@ of the constitutional limit for the Asupport@ or capital construction of schools.  Excess levies are also authorized by statute for the Amaintenance and operation@ or capital construction of schools. 

At least one school district in King County has drafted ballot titles that do not use the words Aexcess@ or Amaintenance and operation.@  For example, one title uses the words Aaddition to regular tax levies.@  Another title uses the words Aeducational program and operation.@  The King County Superior Court recently rejected a challenge to the ballot titles and ordered that the titles be certified for the February 3, 1998, special election. 

Summary of Substitute Bill:  School districts that seek excess levies must use the words Aexcess levy@ or Alevy in excess@ in ballot titles.  Furthermore, school districts seeking excess levies for the maintenance and operation support of the district must also use the words Amaintenance and operation@ in ballot titles.

Substitute Bill Compared to Original Bill:  The substitute clarifies that maintenance and operation ballot titles shall use the words "maintenance and operation."

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  First, the word Aexcess@ has been used for 20 years and is clear and concise.  AExcess@ informs the voters that they are voting for a levy that is above the 1 percent limit.  The word Aadditional,@ on the other hand, can be read to mean the proposed tax is within the 1 percent limit.  Second, allowing the Seattle School District to avoid the word Aexcess@ would set a bad precedent.  Third, the word "excess" is necessary to trigger senior-citizen tax exemptions and deferrals.  Fourth, the words Amaintenance and operation@ have also been used for a number of years without complaint.  Finally, by substituting the words Aeducational program@ for Amaintenance,@ a school district may mislead voters into thinking the levy funds will go for earmarked programs rather than into the district=s general fund.

Testimony Against:  First, "additional" is more accurate because "excess" has a negative connotation; it denotes Aover indulgence.@  Second, the 1 percent limit applies to the aggregate amount of property taxes.  But districts don't really know the aggregate amount of taxes; therefore, an "excess" levy may not really be "excess."  Third, the King County prosecutor and a King County Judge agree that the state Constitution does not require the words Aexcess@ or Amaintenance and operation.@  Fourth, other districts have used the disputed language without complaint.  Fifth, requiring the disputed language will increase levy failures.  Sixth, Amaintenance and operation@ incorrectly suggests Abasic education.@  Finally, local school districts should be allowed to choose their own levy language. 

Testified:  Fred Bucke, citizen (pro); George Fleming, Seattle Public Schools (con); Mark Green, Seattle Public Schools (con); Pat Griffith, citizen (con); Linda Jordan, People for Ethical Government (pro); George Scarola, levy campaign volunteer (con); Dwayne Slate, Washington State School Directors' Association (con).