BySenate Early Learning & K-12 Education (originally sponsored by Senators Wellman, Lovelett, Kuderer, Nobles, Valdez, and C. Wilson; by request of Superintendent of Public Instruction)

AN ACT Relating to enrichment levies; amending RCW 84.52.0531; and creating a new section.

NEW SECTION. Sec. 1. The legislature finds that the current school district enrichment levy model has caused unintentional harm to school districts, creating financial distress with significant negative impacts on district budgets, staff, and students. The current model has negatively impacted districts as they struggle to hire and retain staff due to the high cost of living, rising inflation, and competition from other employers.

The legislature acknowledges that Washington adopted a regionalized school salary model for state-funded school employees, but did not adopt a regionalized school salary model for local levy-funded school employees.

The legislature finds that school districts have struggled to hire and retain qualified staff due to unforeseen consequences of the current school salary model. Furthermore, the legislature finds that aligning levy-funded school district salaries and the state salary model would allow affected school districts to remedy staffing issues locally at no cost to state taxpayers.

Therefore, the legislature intends to remedy the current enrichment levy model by aligning state and local levy-funded school district staff salaries beginning in 2025.

(1) Beginning with taxes levied for collection in 2020, the maximum dollar amount which may be levied by or for any school district for enrichment levies under RCW 84.52.053 is equal to the lesser of ((two dollars and fifty cents))$2.50 per ((thousand dollars))$1,000 of the assessed value of property in the school district or the maximum per-pupil limit. This maximum dollar amount shall be reduced accordingly as provided under RCW 43.09.2856(2).

(2) The definitions in this subsection apply to this section unless the context clearly requires otherwise.

(a) For the purpose of this section, "inflation" means the percentage change in the seasonally adjusted consumer price index for all urban consumers, Seattle area, for the most recent 12-month period as of September 25th of the year before the taxes are payable, using the official current base compiled by the United States bureau of labor statistics.

(i) ((Two thousand five hundred dollars))(A) $2,500, as increased by inflation beginning with property taxes levied for collection in 2020, multiplied by the number of average annual full-time equivalent students enrolled in the school district in the prior school year, for school districts with fewer than ((forty thousand))40,000 annual full-time equivalent students enrolled in the school district in the prior school year; and

(B) Beginning with taxes levied for collection in calendar year 2025, multiplied by the regionalization factor for the district pursuant to the omnibus appropriations act for the prior school year; or

(ii) ((Three thousand dollars))(A) $3,000, as increased by inflation beginning with property taxes levied for collection in 2020, multiplied by the number of average annual full-time equivalent students enrolled in the school district in the prior school year, for school districts with ((forty thousand))40,000 or more annual full-time equivalent students enrolled in the school district in the prior school year; and

(B) Beginning with taxes levied for collection in calendar year 2025, multiplied by the regionalization factor for the district pursuant to the omnibus appropriations act for the prior school year.

(c) "Open for in-person instruction to all students" means that all students in all grades have the option to participate in at least 40 hours of planned in-person instruction per month and the school follows state department of health guidance and recommendations for resuming in-person instruction to the greatest extent practicable.

(d) "Prior school year" means the most recent school year completed prior to the year in which the levies are to be collected, except as follows:

(i) In the 2022 calendar year, if 2019-20 school year average annual full-time equivalent enrollment is greater than the school district's 2020-21 school year average annual full-time equivalent enrollment and the school district is open for in-person instruction to all students by the beginning of the 2021-22 school year, "prior school year" means the 2019-20 school year.

(ii) In the 2023 calendar year, if 2019-20 school year average annual full-time equivalent enrollment is greater than the school district's 2021-22 school year average annual full-time equivalent enrollment and the school district was open for in-person instruction to all students by the beginning of the 2021-22 school year, "prior school year" means the 2019-20 school year.

(3) For districts in a high/nonhigh relationship, the enrollments of the nonhigh students attending the high school shall only be counted by the nonhigh school districts for purposes of funding under this section.

(4) For school districts participating in an innovation academy cooperative established under RCW 28A.340.080, enrollments of students attending the academy shall be adjusted so that each participant district receives its proportional share of student enrollments for purposes of funding under this section.

(5) Beginning with propositions for enrichment levies for collection in calendar year 2020 and thereafter, a district must receive approval of an enrichment levy expenditure plan under RCW 28A.505.240 before submission of the proposition to the voters.

(6) 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.

(7) Beginning with taxes levied for collection in 2018, enrichment levy revenues must be deposited in a separate subfund of the school district's general fund pursuant to RCW 28A.320.330, and for the 2018-19 school year are subject to the restrictions of RCW 28A.150.276 and the audit requirements of RCW 43.09.2856.

(8) Funds collected from levies for transportation vehicles, construction, modernization, or remodeling of school facilities as established in RCW 84.52.053 are not subject to the levy limitations in subsections (1) through (5) of this section.