HOUSE BILL REPORT
SHB 2812
As Passed House:
February 9, 2006
Title: An act relating to school district levies.
Brief Description: Modifying school district levy provisions.
Sponsors: By House Committee on Appropriations (originally sponsored by Representatives Hunter, Rodne, Quall, Nixon, P. Sullivan, Jarrett, Clibborn, Tom, Morrell, Fromhold, Roberts, Schual-Berke, Simpson, Anderson and Kagi).
Brief History:
Education: 1/25/06, 2/1/06 [DP];
Appropriations: 2/4/06 [DPS].
Floor Activity:
Passed House: 2/9/06, 62-36.
Brief Summary of Substitute Bill |
|
|
|
HOUSE COMMITTEE ON EDUCATION
Majority Report: Do pass. Signed by 9 members: Representatives Quall, Chair; P. Sullivan, Vice Chair; Anderson, Assistant Ranking Minority Member; Haigh, Hunter, McDermott, Santos, Tom and Wallace.
Minority Report: Without recommendation. Signed by 3 members: Representatives Talcott, Ranking Minority Member; Curtis and Priest.
Staff: Sarah Ream (786-7303).
HOUSE COMMITTEE ON APPROPRIATIONS
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 18 members: Representatives Sommers, Chair; Fromhold, Vice Chair; Anderson, Assistant Ranking Minority Member; Cody, Conway, Darneille, Dunshee, Grant, Haigh, Hunter, Kagi, Kenney, Kessler, Linville, McDermott, Miloscia, Schual-Berke and P. Sullivan.
Minority Report: Do not pass. Signed by 12 members: Representatives Alexander, Ranking Minority Member; McDonald, Assistant Ranking Minority Member; Armstrong, Bailey, Buri, Chandler, Clements, Hinkle, Pearson, Priest, Talcott and Walsh.
Staff: Ben Rarick (786-7349).
Background:
Initiatives 728 (I-728) and 732 (I-732), as originally passed by the voters in 2000, provided
additional state funds to public K-12 schools. In 2003, the Legislature enacted legislation
that reduced the amounts school districts would have otherwise received under I-728 and
I-732. Then, in 2004, the Legislature enacted legislation that allowed districts, for levies
collected in calendar years 2005 through 2007, to increase their levy bases by the amount
they would have otherwise received if I-728 and I-732 had not been amended. These changes
are described in more detail below.
I-728 and amendment in 2003
Initiative 728 dedicated lottery proceeds and a portion of the state property tax for
educational purposes by transferring revenues to the Student Achievement Fund and the
Education Construction Account.
Initiative 728 gave school districts an allocation of $450 per full-time equivalent (FTE)
beginning with the 2004-2005 school year. Thereafter, the $450 per FTE would increase
annually for inflation.
However, in 2003 the Legislature enacted Engrossed Substitute Senate Bill 6058, which
changed the per FTE allocation as follows:
In subsequent years, the annual allocation would be $450/FTE increased for inflation.
I-732 and amendment in 2003
Initiative 732 provided that beginning with the 2001-2002 school year, an annual
cost-of-living adjustment (COLA) would be granted to K-12 teachers and other public school
employees.
During the 2001-2003 biennium, the Legislature appropriated sufficient funding to provide a
COLA to K-12 staff. In 2003, the Legislature enacted Senate Bill 6059, which removed the
provision requiring the annual COLA for the 2003-2005 biennium.
Increase to levy base following the 2003 amendment of I-728 and I-732
In 2004, Senate Bill 6059 temporarily increased each district's levy base for calendar years
2005 through 2007. A district's levy base was increased by two factors:
(1) the difference between what a district would have received if I-728 had not been
amended and what the district did receive; and
(2) the difference between what the district would have received if it had received the
COLA as provided by I-732 and what it actually received.
Background:
Summary of Substitute Bill:
The increase in districts' levy bases provided in 2004, extended for levy collections through
calendar year 2011.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Testimony For: (Education) Districts were harmed in two ways by the Legislature's
amendments to I-728 and I-732. First, the districts did not receive full funding. Second, the
levy base was not allowed to grow as it otherwise would have. Seventy districts will receive
more than $35 million in local levy funds under this bill. Districts need predictable funding
from locally approved levies. Levies are planned years in advance; districts need to be able
to project what their levy base will be when they take a levy to the voters.
(With concerns) Increasing the levy base increases the amount of levy equalization. Levy
equalization should be fully funded by the state. Over-reliance on local levies will continue
to be an on-going issue.
Testimony For: (Appropriations) This is a simple bill that removes the sunset provision in current legislation allowing districts to continue receiving levy assistance and collect local taxes at the rate that essentially restores, for the purposes of the levy base calculation, the amounts cut from I-728 and I-732 in the last biennium. This is an important bill because public schools are underfunded as it is. Even though this legislation does create additional State General Fund expense, it's also important to realize that this enables local school districts to raise their levy lid and raise more money locally, so it helps districts in multiple ways.
Testimony Against: (Education) None.
Testimony Against: (Appropriations) None.
Persons Testifying: (Education) (In support) Representative Hunter, prime sponsor; Dean
Mack, Issaquah School District; Janene Fogard, Lake Washington School District; Grace
Yuan, North Shore School District; and Randy Parr, Washington Education Association.
(With concerns) Barbara Mertens, Washington Association of School Administrators.
Persons Testifying: (Appropriations) Randy Parr, Washington Education Association.