2044 AMH HUNT H2494.2

HB 2044 - H AMD 276

By Representative Hunter

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that the maximum amounts school districts may levy for maintenance and operation support are calculated as a percentage of the state and federal revenues received by the districts. In determining the amounts to put forward for voter approval, school districts estimate future state and federal revenues based on current funding formulas and allocations. The legislature further finds that when K-12 funding formulas and allocations are changed in such a way that state revenues to districts are less than they would have been under a maintenance level state budget, districts' maximum levy amounts are reduced. Districts that received voter approval to collect maximum allowable levies under the prior funding formulas are forced to collect less than the amounts approved by voters. It is the intent of the legislature that changes in state funding formulas should not adversely impact the maximum allowable amounts school districts may levy for maintenance and operation support.

NEW SECTION. Sec. 2. A new section is added to chapter 84.52 RCW to read as follows:

For excess levies for collection in calendar year 2004 and thereafter, the following adjustments shall be made before the calculation made in RCW 84.52.0531(3)(a)(ii):

(1) When changes made in the state omnibus appropriations act to school district allocation formulas result in state appropriations of those district revenues included in the levy base being less than they would have been under a maintenance level state budget, each district's state levy base revenues as determined under RCW 84.52.0531(4) (a) and (b) shall be increased by the same percentage that total state appropriations in those programs included under RCW 84.52.0531(4) (a) and (b) were decreased from a maintenance level state budget. These percentage changes shall be cumulative from year to year.

(2) When changes made in the state omnibus appropriations act to school district allocation formulas result in state appropriations of those district revenues included in the levy base being greater than they would have been under a maintenance level state budget, each district's state levy base revenues as determined under RCW 84.52.0531(4) (a) and (b) shall be decreased by half of the percentage that total state appropriations in those programs included under RCW 84.52.0531(4) (a) and (b) were increased from a maintenance level state budget. These percentage changes shall be cumulative from year to year and shall be in addition to the cumulative percentage changes determined under subsection (1) of this section.

(3) The total adjustment made under subsections (1) and (2) of this section for a calendar year levy shall never be less than zero.

(4) The total percentage change to apply pursuant to this section shall be stated in the omnibus appropriations act.

Sec. 3. RCW 84.52.0531 and 1997 c 259 s 2 are each amended to read as follows:

The maximum dollar amount which may be levied by or for any school district for maintenance and operation support under the provisions of RCW 84.52.053 shall be determined as follows:

(1) For excess levies for collection in calendar year 1997, the maximum dollar amount shall be calculated pursuant to the laws and rules in effect in November 1996.

(2) For excess levies for collection in calendar year 1998 and thereafter, the maximum dollar amount shall be the sum of (a) plus or minus (b) and (c) of this subsection minus (d) of this subsection:

(a) The district's levy base as defined in subsection (3) of this section multiplied by the district's maximum levy percentage as defined in subsection (((4))) (5) of this section;

(b) For districts in a high/nonhigh relationship, the high school district's maximum levy amount shall be reduced and the nonhigh school district's maximum levy amount shall be increased by an amount equal to the estimated amount of the nonhigh payment due to the high school district under RCW 28A.545.030(3) and 28A.545.050 for the school year commencing the year of the levy;

(c) For districts in an interdistrict cooperative agreement, the nonresident school district's maximum levy amount shall be reduced and the resident school district's maximum levy amount shall be increased by an amount equal to the per pupil basic education allocation included in the nonresident district's levy base under subsection (3) of this section multiplied by:

(i) The number of full-time equivalent students served from the resident district in the prior school year; multiplied by:

(ii) The serving district's maximum levy percentage determined under subsection (((4))) (5) of this section; increased by:

(iii) The percent increase per full-time equivalent student as stated in the state basic education appropriation section of the biennial budget between the prior school year and the current school year divided by fifty-five percent;

(d) The district's maximum levy amount shall be reduced by the maximum amount of state matching funds for which the district is eligible under RCW 28A.500.010.

(3)(a) For excess levies for collection in calendar year ((1998)) 2004 and thereafter, a district's levy base shall be:

(i) The sum of allocations in (((a) through (c) of this)) subsection (4) of this section received by the district for the prior school year, including allocations for compensation increases, adjusted by the calculations made under section 2 of this act, if any;

(ii) Plus the ((sum of such allocations)) result of the calculation in (a)(i) of this subsection multiplied by the percent increase per full-time equivalent student as stated in the state basic education appropriation section of the biennial budget between the prior school year and the current school year and divided by fifty-five percent.

(b) A district's levy base shall not include local school district property tax levies or other local revenues, or state and federal allocations not identified in (((a) through (c) of this)) subsection (4) of this section.

(4) The allocations in this subsection (4) shall be included in the calculations under subsection (3) of this section:

(a) The district's basic education allocation as determined pursuant to RCW 28A.150.250, 28A.150.260, and 28A.150.350;

(b) State and federal categorical allocations for the following programs:

(i) Pupil transportation;

(ii) Special education;

(iii) Education of highly capable students;

(iv) Compensatory education, including but not limited to learning assistance, migrant education, Indian education, refugee programs, and bilingual education;

(v) Food services; and

(vi) Statewide block grant programs; and

(c) Any other federal allocations for elementary and secondary school programs, including direct grants, other than federal impact aid funds and allocations in lieu of taxes.

(((4))) (5) A district's maximum levy percentage shall be twenty- two percent in 1998 and twenty-four percent in 1999 and every year thereafter; plus, for qualifying districts, the grandfathered percentage determined as follows:

(a) For 1997, the difference between the district's 1993 maximum levy percentage and twenty percent; and

(b) For 1998 and thereafter, the percentage calculated as follows:

(i) Multiply the grandfathered percentage for the prior year times the district's levy base determined under subsection (3) of this section;

(ii) Reduce the result of (b)(i) of this subsection by any levy reduction funds as defined in subsection (((5))) (6) of this section that are to be allocated to the district for the current school year;

(iii) Divide the result of (b)(ii) of this subsection by the district's levy base; and

(iv) Take the greater of zero or the percentage calculated in (b)(iii) of this subsection.

(((5))) (6) "Levy reduction funds" shall mean increases in state funds from the prior school year for programs included under subsection (((3))) (4) of this section: (a) That are not attributable to enrollment changes, compensation increases, or inflationary adjustments; and (b) that are or were specifically identified as levy reduction funds in the appropriations act. If levy reduction funds are dependent on formula factors which would not be finalized until after the start of the current school year, the superintendent of public instruction shall estimate the total amount of levy reduction funds by using prior school year data in place of current school year data. Levy reduction funds shall not include moneys received by school districts from cities or counties.

(((6))) (7) For the purposes of this section, "prior school year" means the most recent school year completed prior to the year in which the levies are to be collected.

(((7))) (8) For the purposes of this section, "current school year" means the year immediately following the prior school year.

(((8))) (9) Funds collected from transportation vehicle fund tax levies shall not be subject to the levy limitations in this section.

(((9))) (10) The superintendent of public instruction shall develop rules and regulations and inform school districts of the pertinent data necessary to carry out the provisions of this section.

NEW SECTION. Sec. 4. A new section is added to chapter 28A.500 RCW to read as follows:

(1) For the calculation of local effort assistance, a district's levy base shall be the sum of allocations in (a) through (c) of this subsection received by the district for the prior school year, including allocations for compensation increases, plus the sum of such allocations multiplied by the percent increase per full-time equivalent student as stated in the state basic education appropriation section of the biennial budget between the prior school year and the current school year and divided by fifty-five percent. A district's levy base shall not include local school district property tax levies or other local revenues, or state and federal allocations not identified in (a) through (c) of this subsection.

(a) The district's basic education allocation as determined pursuant to RCW 28A.150.250, 28A.150.260, and 28A.150.350;

(b) State and federal categorical allocations for the following programs:

(i) Pupil transportation;

(ii) Special education;

(iii) Education of highly capable students;

(iv) Compensatory education, including but not limited to learning assistance, migrant education, Indian education, refugee programs, and bilingual education;

(v) Food services; and

(vi) Statewide block grant programs; and

(c) Any other federal allocations for elementary and secondary school programs, including direct grants, other than federal impact aid funds and allocations in lieu of taxes.

(2) For the purposes of this section, "prior school year" means the most recent school year completed prior to the year in which the levies are to be collected.

Sec. 5. RCW 28A.500.020 and 1999 c 317 s 2 are each amended to read as follows:

(1) Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(a) "Prior tax collection year" means the year immediately preceding the year in which the local effort assistance shall be allocated.

(b) "Statewide average twelve percent levy rate" means twelve percent of the total levy bases as defined in ((RCW 84.52.0531(3))) section 4 of this act summed for all school districts, and divided by the total assessed valuation for excess levy purposes in the prior tax collection year for all districts as adjusted to one hundred percent by the county indicated ratio established in RCW 84.48.075.

(c) The "district's twelve percent levy amount" means the school district's ((maximum levy authority after transfers determined under RCW 84.52.0531(2) (a) through (c) divided by the district's maximum levy percentage determined under RCW 84.52.0531(4))) levy base as determined under section 4 of this act, adjusted for transfers if the district is in a high/nonhigh relationship or in an interdistrict cooperative agreement, multiplied by twelve percent.

(d) The "district's twelve percent levy rate" means the district's twelve percent levy amount divided by the district's assessed valuation for excess levy purposes for the prior tax collection year as adjusted to one hundred percent by the county indicated ratio.

(e) "Districts eligible for local effort assistance" means those districts with a twelve percent levy rate that exceeds the statewide average twelve percent levy rate.

(2) Unless otherwise stated all rates, percents, and amounts are for the calendar year for which local effort assistance is being calculated under this chapter.

NEW SECTION. Sec. 6. This act takes effect January 1, 2004."

HB 2044 - H AMD 276

By Representative Hunter

On page 1, line 1 of the title, after "calculations;" strike the remainder of the title and insert "amending RCW 84.52.0531 and 28A.500.020; adding a new section to chapter 84.52 RCW; adding a new section to chapter 28A.500 RCW; creating a new section; and providing an effective date."

EFFECT: The levy base for calculating maximum levy authority will be increased by the same percentage that state K-12 appropriations are decreased. The increased levy base will not apply to the calculation of levy equalization.

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