SENATE BILL REPORT

EHB 1573

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

Senate Hearing Date(s):March 29, 1989

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bailey, Bauer, Cantu, Fleming, Gaspard, Johnson, Lee, Matson, Moore, Newhouse, Niemi, Owen, Saling, Smith, Talmadge, Williams, Wojahn.

Senate Staff:Ken Kanikeberg (786-7715)

                  March 30, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 29, 1989

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 district's "grandfather" levy authority.  This reduction would apply to districts with levy authority above 20 percent, until their authorized levies were reduced to 20 percent.  In 1987, levy reduction funds were defined 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 from the district's allocations for the prior school year that were not specifically excluded were considered levy reduction funds.

In 1988, legislation again defined levy reduction funds as 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 statewide 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 shall mean 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.

An emergency is declared and the act shall take effect July 1, 1989.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Effective Date:The bill contains an emergency clause and takes effect on July 1, 1989.

Senate Committee - Testified: No one