AN ACT Relating to excess school levies by school districts; amending RCW 84.52.0531; adding a new section to chapter 28A.41 RCW; and making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 1, chapter 374, Laws of 1985 and RCW 84.52.0531 are each amended to read as follows:

The maximum dollar amount which may be levied by or for any school district for maintenance and operation support under the provisions of RCW 84.52.053 shall be as follows:

(1) For excess levies in ((~~1985~~)) 1988 for collection in ((~~1986~~)) 1989 and thereafter, the sum of:

(a) That amount equal to ((~~ten~~)) twenty percent of each school district's prior year basic education allocation; plus

(b) That amount equal to ((~~ten~~)) twenty percent of each school district's prior year state allocation, exclusive of federal funds, for the following programs:

(i) Pupil transportation;

(ii) Handicapped education costs;

(iii) Gifted; and

(iv) Compensatory education, including but not limited to remediation assistance, bilingual education, and urban, rural, racial disadvantaged programs; plus

(c) In the case of nonhigh school districts only, an amount equal to the total estimated amount due by the nonhigh school district to high school districts pursuant to chapter 28A.44 RCW, as now or hereafter amended, for the school year during which collection of the levy is to commence, less the increase in the nonhigh school district's basic education allocation as computed pursuant to subsection (4) of this section due to the inclusion of pupils participating in a program provided for in chapter 28A.44 RCW in such computation.

(2) Excess levies authorized under this section or under RCW 84.52.052 shall not be used directly or indirectly to increase the average salary or fringe benefits for certificated or classified personnel in any school district: PROVIDED, That any school district may expend excess levy funds to provide increases in salary and fringe benefits for classified or certificated personnel whose salary and fringe benefits are provided wholly from local school district excess levies in a percentage not to exceed the respective average percentage increases in the salary and fringe benefit levels for classified and certificated employees of the district funded with state appropriated funds: PROVIDED FURTHER, That those contracts which have been negotiated prior to July 1, 1977 by those school districts for such school year shall not be abrogated by this section. "Fringe benefits" for purposes of this subsection shall include:

(a) Employer retirement contributions, if applicable;

(b) Health and insurance payments including life, accident, disability, unemployment compensation, and workmen's compensation; and

(3) Any school district whose average base compensation for certificated or classified personnel respectively is below state-wide average base compensation level for certificated or classified personnel during the preceding school year, may collect and expend property taxes authorized by this section, or under RCW 84.52.052, for the purpose of increasing such district's average compensation for certificated or classified personnel as allowed in the latest applicable state operating budget. "Compensation", for purposes of this subsection, shall mean salary plus fringe benefits for classified and certificated personnel of a school district as allowed in the latest applicable state operating budget.

(4) For the purpose of this section, the basic education allocation shall be determined pursuant to RCW 28A.41.130, 28A.41.140, and 28A.41.145, as now or hereafter amended: PROVIDED, That when determining the basic education allocation under subsection (1) of this section, effective September 1, 1979, nonresident full time equivalent pupils who are participating in a program provided for in chapter 28A.44 RCW or in any other program pursuant to an interdistrict agreement shall be included in the enrollment of the resident district and excluded from the enrollment of the serving district.

Certificated personnel shall include those persons employed by a school district in a teaching, instructional, administrative or supervisory capacity and who hold positions as certificated personnel as defined under RCW 28A.01.130, as now or hereafter amended, and every school district superintendent, and any person hired in any manner to fill a position designated as, or which is in fact, that of deputy superintendent or assistant superintendent. Classified personnel shall include those persons employed by a school district other than certificated personnel as defined in this section in a capacity for which certification is not required.

(5) Any district is authorized to exceed the levy limitations imposed by subsection (1) for taxes to be collected during calendar years 1985 through ((~~1993~~)) 1988 as follows:

((~~(a)~~)) For excess levies to be collected in calendar years 1986, 1987, and 1988, a base year levy percentage shall be established. The base year levy percentage shall be equal to the greater of: ((~~(i)~~)) (a) The district's actual levy percentage for calendar year 1985, ((~~(ii)~~)) (b) the average levy percentage for all school district levies in the state in calendar year 1985, or ((~~(iii)~~)) (c) the average levy percentage for all school district levies in the educational service district of the district in calendar year 1985.

(((b) The base year levy percentage established in (a) of this subsection shall be reduced in even increments beginning in calendar year 1989. The incremental reduction shall equal one-fifth of the percentage points the base year levy percentage exceeds the amount authorized in subsection (1) of this section.

(c) For excess levies to be collected in calendar year 1993, the maximum dollar amount which may be levied by or for any school district shall not exceed the amount authorized in subsection (1) of this section. The provisions of this subsection shall not apply to excess levies to be collected after calendar year 1993.))

(6) Any district is authorized to exceed the levy limitations in subsection (1) of this section for levies in 1988 for collection in 1989 and thereafter if the actual amount of moneys raised by the district for the levy in 1987 for collection in 1988 is greater than would be raised if the limits in subsection (1) of this section were applied. The district shall not raise a greater amount of money than that raised for the levy in 1987 for collection in 1988 under this subsection. The superintendent of public instruction shall review the school districts' levy rates under this subsection and reduce the amount by which a district may exceed the levy limitations in subsection (1) of this section on a dollar for dollar basis by any amount by which the basic education allocation is increased above the 1986-87 levels.

(7) 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.

NEW SECTION. Sec. 2. A new section is added to chapter 28A.41 RCW to read as follows:

(1) All school districts with a total assessed property valuation per pupil which is lower than the state-wide average assessed property valuation per pupil may receive from the state general fund, if funds are so appropriated, money equal to the difference between the money generated by a twenty percent excess levy under RCW 84.52.0531 based on the district's assessed property valuation per pupil and the money which would be generated if the state-wide average assessed valuation per pupil applied within the district. This process shall be called equalization.

(2) Districts may have only the first ten percent of their excess levy under RCW 84.52.0531 equalized.

(3) A district shall not receive equalization moneys if the district does not pass an excess levy under RCW 84.52.0531. If the district elects to assess a levy of less than ten percent, only the levy percentage actually approved by its voters shall be equalized up to the first ten percent.

NEW SECTION. Sec. 3. The sum of .......... dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1989, from the general fund to the superintendent of public institution for the purposes of this act.