Brief Description: Changing local effort assistance allocations.

Sponsors: Representatives Sommers and Fromhold.

Hearing Date:

Staff: Denise Graham (786-7137).

Background:

In 1987 the Legislature created the Local Effort Assistance Program, also known as levy equalization, which provides state allocations to eligible school districts to match local maintenance and operation levy revenues.

The levy equalization formula compares the tax rate a district needs in order to raise an amount equal to 12 percent of its state and federal revenues with the statewide average tax rate needed to raise 12 percent of state and federal revenues to all districts. Districts with above average tax rates receive a state match on local levy dollars.

Summary of Bill:

Calendar year 2004 and 2005 local effort assistance allocations to school districts will be reduced by 11.7 percent.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.