SENATE BILL REPORT

SHB 1915

BYHouse Committee on Ways & Means/Appropriations (originally sponsored by Representatives Ebersole, Appelwick, Peery, Holm, Pruitt, Rasmussen and Todd)

Specifying school district levy bases and levy reduction funds.

House Committe on Education

Rereferred House Committee on Ways & Means/Appropriations

Senate Committee on Ways & Means

Senate Hearing Date(s):February 27, 1988

Majority Report:  Do pass as amended.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bauer, Bluechel, Cantu, Deccio, Fleming, Gaspard, Hayner, Johnson, Lee, Moore, Newhouse, Saling, Smith, Talmadge, Vognild, Williams, Zimmerman.

Senate Staff:Ken Kanikeberg (786-7715)

                  February 29, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 27, 1988

BACKGROUND:

Currently, some school districts have "grandfather" levy authority which allows them to impose maintenance and operations levies equivalent to more than twenty percent of their state and federal allocations.  Under 1987 legislation, these "grandfather" levies would only be phased down to the twenty percent lid if state funding for programs in the levy base were enhanced.

During the 1987 legislative session, funds were appropriated for a new program of local education program enhancement.  These funds were included in the base for calculation of the levy lid, but at that time there was no specific reference to these funds as levy reduction funds.  These funds were considered levy reduction funds because they fell within the definition of levy reduction funds and did not fall within the definition of excluded funds.  Under the 1987 statute, "levy reduction funds" are any increases for programs included in the levy base, which are not attributable to enrollment or workload, compensation increases, or inflation.

SUMMARY:

State funding increases that were added in the 1987-88 school year count to reduce the levy authority of districts having levies between twenty and thirty percent only if they fall within the definition of levy reduction funds adopted by the superintendent of public instruction prior to February 1, 1988.  Specifically, state allocation of local education program enhancement funds in 1987-88 are not levy reduction funds.

For levies to be collected in 1989 and thereafter, levy reduction funds shall be the difference between the state funding formulas for the prior school year and the current school year, as applied to the current school year's population, salary, benefits, and cost inflation levels.

SUMMARY OF PROPOSED SENATE AMENDMENT:

Levy reduction funds are redefined as those that are not attributable to enrollment or work load changes, compensation increases, or inflationary adjustments, and are or were specifically identified as such in the appropriations act.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Dan Reff, Bellevue School District (against); Karen Davis, WEA; Bruce Mrkvicka, OSPI