2044AMHANDGH4320.1HB 2044H AMD738By Representative AndersonWITHDRAWN 01/30/2004 Strike everything after the enacting clause and insert thefollowing:Sec. RCW 28A.400.205 and 2003 1st sp.s. c 20 s 1 are eachamended to read as follows: (1) School district employees shall be provided an annual salarycostofliving increase in accordance with this section. (a) The costofliving increase shall be calculated by applying therate of the yearly increase in the costofliving index to any statefunded salary base used in state funding formulas for teachers andother school district employees. Beginning with the 200102 schoolyear, and for each subsequent school year, except for the 200304 and200405 school years, each school district shall be provided a costofliving allocation sufficient to grant this costofliving increase,except as provided in subsection (3) of this section. (b) A school district shall distribute its costoflivingallocation for salaries and salaryrelated benefits in accordance withthe district's salary schedules, collective bargaining agreements, andcompensation policies. No later than the end of the school year, eachschool district shall certify to the superintendent of publicinstruction that it has spent funds provided for costoflivingincreases on salaries and salaryrelated benefits. (c) Any funded costofliving increase shall be included in thesalary base used to determine costofliving increases for schoolemployees in subsequent years, except as provided in subsection (3) ofthis section. For teachers and other certificated instructional staff,the rate of the annual costofliving increase funded for certificatedinstructional staff shall be applied to the base salary used with thestatewide salary allocation schedule established under RCW 28A.150.410and to any other salary models used to recognize school districtpersonnel costs. 1 (2) For the purposes of this section, "costofliving index" means,for any school year, the previous calendar year's annual averageconsumer price index, using the official current base, compiled by thebureau of labor statistics, United States department of labor for thestate of Washington. If the bureau of labor statistics develops morethan one consumer price index for areas within the state, the indexcovering the greatest number of people, covering areas exclusivelywithin the boundaries of the state, and including all items shall beused for the costofliving index in this section. (3) For districts that have historically received teacher salaryallocations in excess of the statewide salary schedule included in theappropriations act pursuant to RCW 28A.150.410, the legislature shalldecline to provide a costofliving increase allocation, or shallprovide a costofliving increase allocation at a lower rate thanotherwise required by this section, in order to bring these districts'general apportionment allocations down to or closer to the statewidesalary schedule.Sec. RCW 28A.500.020 and 1999 c 317 s 2 are each amended toread as follows: (1) Unless the context clearly requires otherwise, the definitionsin this section apply throughout this chapter. (a) "Prior tax collection year" means the year immediatelypreceding the year in which the local effort assistance shall beallocated. (b) "Statewide average ((twelve)) fifteen percent levy rate" means((twelve)) fifteen percent of the total levy bases as defined in RCW84.52.0531(3) summed for all school districts, and divided by the totalassessed valuation for excess levy purposes in the prior tax collectionyear for all districts as adjusted to one hundred percent by the countyindicated ratio established in RCW 84.48.075. (c) The "district's ((twelve)) fifteen percent levy amount" meansthe school district's maximum levy authority after transfers determinedunder RCW 84.52.0531(2) (a) through (c) divided by ((the district'smaximum levy percentage determined under RCW 84.52.0531(4))) thirtypercent, multiplied by ((twelve)) fifteen percent. 2 (d) The "district's ((twelve)) fifteen percent levy rate" means thedistrict's ((twelve)) fifteen percent levy amount divided by thedistrict's assessed valuation for excess levy purposes for the priortax collection year as adjusted to one hundred percent by the countyindicated ratio. (e) "Districts eligible for local effort assistance" means thosedistricts with a ((twelve)) fifteen percent levy rate that exceeds thestatewide average ((twelve)) fifteen percent levy rate. (2) Unless otherwise stated all rates, percents, and amounts arefor the calendar year for which local effort assistance is beingcalculated under this chapter.Sec. RCW 28A.500.030 and 2003 1st sp.s. c 25 s 912 are eachamended to read as follows: Allocation of state matching funds to eligible districts for localeffort assistance shall be determined as follows: (1) Funds raised by the district through maintenance and operationlevies shall be matched with state funds using the following ratio ofstate funds to levy funds: (a) The difference between the district's ((twelve)) fifteenpercent levy rate and the statewide average ((twelve)) fifteen percentlevy rate; to (b) The statewide average ((twelve)) fifteen percent levy rate. (2) The maximum amount of state matching funds for districtseligible for local effort assistance shall be the district's ((twelve))fifteen percent levy amount, multiplied by the following percentage: (a) The difference between the district's ((twelve)) fifteenpercent levy rate and the statewide average ((twelve)) fifteen percentlevy rate; divided by (b) The district's ((twelve)) fifteen percent levy rate. (3) Calendar year 2003 allocations and maximum eligibility underthis chapter shall be multiplied by 0.99. (4) From January 1, 2004, to June 30, 2005, allocations and maximumeligibility under this chapter shall be multiplied by 0.937.Sec. RCW 84.52.0531 and 1997 c 259 s 2 are each amended to readas follows: 3 The maximum dollar amount which may be levied by or for any schooldistrict for maintenance and operation support under the provisions ofRCW 84.52.053 shall be determined as follows: (1) For excess levies for collection in calendar year 1997, themaximum dollar amount shall be calculated pursuant to the laws andrules in effect in November 1996. (2) For excess levies for collection in calendar year ((1998)) 2005and thereafter, the maximum dollar amount shall be the sum of (a) plusor minus (b) and (c) of this subsection minus (d) of this subsection: (a) The district's levy base as defined in subsection (3) of thissection multiplied by the district's maximum levy percentage as definedin subsection (4) of this section; (b) For districts in a high/nonhigh relationship, the high schooldistrict's maximum levy amount shall be reduced and the nonhigh schooldistrict's maximum levy amount shall be increased by an amount equal tothe estimated amount of the nonhigh payment due to the high schooldistrict under RCW 28A.545.030(3) and 28A.545.050 for the school yearcommencing the year of the levy; (c) For districts in an interdistrict cooperative agreement, thenonresident school district's maximum levy amount shall be reduced andthe resident school district's maximum levy amount shall be increasedby an amount equal to the per pupil basic education allocation includedin the nonresident district's levy base under subsection (3) of thissection multiplied by: (i) The number of fulltime equivalent students served from theresident district in the prior school year; multiplied by: (ii) The serving district's maximum levy percentage determinedunder subsection (4) of this section; increased by: (iii) The percent increase per fulltime equivalent student asstated in the state basic education appropriation section of thebiennial budget between the prior school year and the current schoolyear divided by fiftyfive percent; (d) The district's maximum levy amount shall be reduced by themaximum amount of state matching funds for which the district iseligible under RCW 28A.500.010. (3) For excess levies for collection in calendar year ((1998)) 2005and thereafter, a district's levy base shall be the sum of allocations 4 in (a) through (c) of this subsection received by the district for theprior school year, including allocations for compensation increases,plus the sum of such allocations multiplied by the percent increase perfull time equivalent student as stated in the state basic educationappropriation section of the biennial budget between the prior schoolyear and the current school year and divided by fiftyfive percent. Adistrict's levy base shall not include local school district propertytax levies or other local revenues, or state and federal allocationsnot identified in (a) through (c) of this subsection. (a) The district's basic education allocation as determinedpursuant to RCW 28A.150.250, 28A.150.260, and 28A.150.350; (b) State and federal categorical allocations for the followingprograms: (i) Pupil transportation; (ii) Special education; (iii) Education of highly capable students; (iv) Compensatory education, including but not limited to learningassistance, migrant education, Indian education, refugee programs, andbilingual education; (v) Food services; and (vi) Statewide block grant programs; and (c) Any other federal allocations for elementary and secondaryschool programs, including direct grants, other than federal impact aidfunds and allocations in lieu of taxes. (4) A district's maximum levy percentage shall be ((twentytwo))thirty percent ((in 1998 and twentyfour percent in 1999 and every yearthereafter; plus, for qualifying districts, the grandfatheredpercentage determined as follows: (a) For 1997, the difference between the district's 1993 maximumlevy percentage and twenty percent; and (b) For 1998 and thereafter, the percentage calculated as follows: (i) Multiply the grandfathered percentage for the prior year timesthe district's levy base determined under subsection (3) of thissection; (ii) Reduce the result of (b)(i) of this subsection by any levyreduction funds as defined in subsection (5) of this section that areto be allocated to the district for the current school year; 5 (iii) Divide the result of (b)(ii) of this subsection by thedistrict's levy base; and (iv) Take the greater of zero or the percentage calculated in(b)(iii) of this subsection. (5) "Levy reduction funds" shall mean increases in state funds fromthe prior school year for programs included under subsection (3) ofthis section: (a) That are not attributable to enrollment changes,compensation increases, or inflationary adjustments; and (b) that areor were specifically identified as levy reduction funds in theappropriations act. If levy reduction funds are dependent on formulafactors which would not be finalized until after the start of thecurrent school year, the superintendent of public instruction shallestimate the total amount of levy reduction funds by using prior schoolyear data in place of current school year data. Levy reduction fundsshall not include moneys received by school districts from cities orcounties)). (((6))) (5) For the purposes of this section, "prior school year"means the most recent school year completed prior to the year in whichthe levies are to be collected. (((7))) (6) For the purposes of this section, "current school year"means the year immediately following the prior school year. (((8))) (7) Funds collected from transportation vehicle fund taxlevies shall not be subject to the levy limitations in this section. (((9))) (8) The superintendent of public instruction shall developrules and regulations and inform school districts of the pertinent datanecessary to carry out the provisions of this section.NEW SECTION.Sec. A new section is added to chapter 84.52 RCWto read as follows: If the total amount of local effort assistance funds and excesslevy revenue received by a district is less under sections 2 through 4of this act than they would have been had sections 2 through 4 of thisact not been enacted, the district shall receive hold harmlessallocations. Hold harmless allocations shall be the difference betweenthe amount of levy revenue and local effort assistance allocations thedistrict would have received had sections 2 through 4 of this act not 6 been enacted, and the amount of levy revenue and levy equalization thedistrict will receive under sections 2 through 4 of this act,multiplied by the following: (1) In calendar year 2005, fivesixths; (2) In calendar year 2006, foursixths; (3) In calendar year 2007, threesixths; (4) In calendar year 2008, twosixths; and (5) In calendar year 2009, onesixth.NEW SECTION.Sec. (1) Section 1 of this act is necessary forthe immediate preservation of the public peace, health, or safety, orsupport of the state government and its existing public institutions,and takes effect immediately. (2) Sections 2 through 4 of this act take effect January 1, 2005.NEW SECTION.Sec. Section 5 of this act expires January 1,2010.Beginning with calendar year 2005 levy calculations, setsthe levy lid at 30 percent of state and federal revenues for alldistricts, changes levy equalization from 12 percent to 15 percent, andprovides a declining backfill for five years to those districts losinglevy revenue under the bill. In addition, requires the state towithhold salary increase allocations from a grandfathered salarydistrict until the district's base salary is the same as the statewidebase salary. The estimated increase in local levy revenue in CY 2005is $30 million. The estimated cost to the state in fiscal year 2005 is$7 million ($13 million for calendar year 2005) for the backfill and$23 million ($41 million for calendar year 2005) for levy equalization.The salary provisions save the state about $18 million when fullyimplemented.--- END --- 7