SENATE BILL REPORT
SB 5616
BYSenators McDonald, Gaspard, Rasmussen, Rinehart, Moore, Smitherman, Talmadge, Johnson, Bailey and Fleming
Regarding the identification of levy reduction funds.
Senate Committee on Ways & Means
Senate Hearing Date(s):March 1, 1989; March 2, 1989
Majority Report: Do pass.
Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Fleming, Gaspard, Hayner, Johnson, Lee, Moore, Newhouse, Niemi, Owen, Saling, Smith, Talmadge, Warnke, Williams.
Senate Staff:Ken Kanikeberg (786-7715)
March 15, 1989
AS PASSED SENATE, MARCH 14, 1989
BACKGROUND:
During the 1987 legislative session, the Legislature significantly revised the levy lid statutes. The revisions established a levy lid not to exceed 20 percent of the total state and federal allocations. Districts that currently have levies in excess of 20 percent were allowed to maintain those levies at existing levels, not to exceed 30 percent. Such districts are termed "grandfather" districts. These "grandfather" districts' levies can only be reduced over time by an amount equal to enhancements to state school funding formulas.
In an attempt to standardize and quantify the process for reducing levies, the 1988 Legislature adopted a formula to determine which funding enhancements will be considered levy reduction funds. The Attorney General, in a 1988 opinion, suggested that the Legislature may wish to specify whether appropriations for new programs or program enhancements are levy reduction funds.
SUMMARY:
Levy reduction funds are redefined 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: none requested
Senate Committee - Testified: PRO: Dan Reff, Bellevue School District; Karen Davis, WEA; Kris Van Gorkom, WASA; Ken Watson, Seattle Schools; John Kvamme, Tacoma Schools; Terry Michalson, SPI