SENATE BILL REPORT

SB 6505

BYSenators McDonald, Rinehart, Bailey, Bender, Gaspard, Patterson and Hayner

Requiring the specific identification of levy reduction funds in the appropriations act.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 3, 1988; February 4, 1988

Majority Report:  That Substitute Senate Bill No. 6505 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Ken Kanikeberg (786-7715)

                  February 5, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 4, 1988

BACKGROUND:

During the 1987 legislative session, additional funds were appropriated for enhancement of local education programs (block grant) and improved staffing ratios for K-3.  Specific identification of the K-3 enhancement as levy reduction funds was included.  However, no specific reference was made to the block grant funding as levy reduction funds.

Both the K-3 enhanced funding level and the block grant funding were included in the base for calculation of the levy lid.  Statute now defines levy reduction funds as increases appropriated by the Legislature that are not attributable to enrollment or workload changes, compensation increases, or inflationary adjustments.  A recent Attorney General's Opinion determined block grant funds are levy reduction funds.

SUMMARY:

The original bill was not considered.

EFFECT OF PROPOSED SUBSTITUTE:

This measure redefines levy reduction funds as those that are not attributable to enrollment or workload 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: FOR:  Dan Reff, Bellevue School District; John Kvamme, Tacoma School District; Kris Van Gorkom, Washington Association of School Administrators; Karen Davis, Washington Education Association; Olaf Kvamme, Seattle School District; Bruce Mrkvicka, Superintendent of Public Instruction; Jack Eaton, Lake Washington School District