FINAL BILL REPORT

HB 1573

                                  C 141 L 89

BYRepresentatives Ebersole, Wang, Betrozoff, May, Appelwick, Heavey, Valle, Walker, Locke, Holland, Cole, Pruitt, Ferguson, Horn, Dorn, Winsley and Jacobsen

Regarding identification of levy reduction funds.

House Committe on Education

Rereferred House Committee on Appropriations

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

In 1987 the Legislature enacted legislation to determine which money received by a school district could be counted toward a reduction in the calculation of districts' levy authority.  This reduction applies to any school district with levy authority above 20 percent, until its authorized levy is reduced to 20 percent.  The 1987 legislation defined levy reduction funds as increases in state funds allocated to a district that are not attributable to enrollment or workload changes, compensation increases, or inflationary adjustments recognized in the state allocation formulas.  Any other increases in state allocations that were not specifically excluded were considered levy reduction funds.

In 1988, legislation redefined levy reduction funds to include:  enhancements in state funding formulas for basic education allocations; state and federal categorical allocations for pupil transportation, handicapped education, education of highly capable students, compensatory education, food services and state-wide block grant programs; and any other federal allocations for elementary and secondary school programs, including direct grants other than federal impact aid funds and allocations in lieu of taxes.  The 1988 legislation included language defining how to compute a formula enhancement.

SUMMARY:

The definition of levy reduction funds is changed.  Levy reduction funds are increases in state funds that are not attributable to enrollment changes, compensation increases, or inflationary adjustments and that are or were specifically identified as levy reduction funds in the appropriations act.  Levy reduction funds shall not include money received by a school district from cities or counties.

VOTES ON FINAL PASSAGE:

      House 93   0

      Senate    43     0

EFFECTIVE:July 1, 1989