AN ACT Relating to a municipality grant program for school districts; adding new sections to chapter 28A.03 RCW; and making an appropriation.

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

NEW SECTION. Sec. 1. It is the intent of the legislature to establish a municipality grant program to provide eligible school districts an opportunity to apply for state funds that are separate from and in addition to the state funds allocated for the state's basic program of education.

NEW SECTION. Sec. 2. Throughout sections 1 through 6 of this act, "municipality" means a city or town as defined under chapter 35.01 RCW, a township as defined under Title 45 RCW, or a county as defined under Title 36 RCW.

NEW SECTION. Sec. 3. (1) The superintendent of public instruction shall establish and administer a municipality grant program to assist eligible school districts in meeting special needs of the district.

(2) School districts shall be eligible to apply for additional state funds under the grant program if the school district meets at least three of the criteria listed below and if the municipality in which the school district is located meets at least two of the criteria listed below:

(a) The school district's annual average full-time equivalent student enrollment is five thousand or more for the current school year;

(b) At least forty-five percent of the lunches served by the district in the current school year are free or reduced price meals;

(c) The dropout rate for the district as determined by the superintendent of public instruction is twenty percent or greater for the two preceding school years;

(d) The number of languages or dialects, or both, spoken by students in the school district as a native language other than English is twenty or more;

(e) The annual per capita personal income of the county in which the school district is located is three thousand dollars or more below the state-wide annual per capita personal income for the preceding calendar year;

(f) The percentage of the population of the county in which the school district is located that received assistance under the aid to families with dependent children program for the preceding calendar year exceeded by two percent or more the percentage of the state-wide population that received assistance under the aid to families with dependent children program for the preceding calendar year;

(g) The annual average unemployment rate of the county in which the school district is located exceeded the statewide average annual unemployment rate for the preceding calendar year by two percent or more; and

(h) The percentage of the population of the county in which the school district is located that received assistance under the state refugee assistance program for the preceding calendar year exceeded by five one-hundredths of a percent or more the percentage of the state-wide population that received assistance under the state refugee assistance program for the preceding calendar year.

(3) Districts eligible to receive funds under the municipality grant program shall receive a grant amount which does not exceed one and forty-five one-hundredths percent of the district's state basic education allocation received in the preceding school year.

NEW SECTION. Sec. 4. Eligible school districts interested in applying for funds under the municipality grant program shall submit a grant application to the superintendent of public instruction. Grant applications shall include the following:

(1) Documentation that the district board of directors has held at least one public hearing regarding the proposed use of the grant funds. The public hearing and other public hearings held by the district may be held as part of the public hearings required pursuant to chapter 28A.65 RCW;

(2) Identified budgeted expenditures for the grant funds. The expenditure plan may be included as part of the district's annual budget required under chapter 28A.65 RCW;

(3) Documentation that the development of the expenditure plan, prior to the first public hearing, involved teachers, school and district administrators, educational staff associates and classified personnel, parents, students, and members of the community at-large;

(4) A description of the services, programs, or activities that will be funded, in whole or in part, by the grant funds;

(5) A description of the methods and procedures to be used to evaluate the effectiveness of the services, programs, or activities supported by the grant funds; and

(6) Other information as requested by the superintendent of public instruction.

NEW SECTION. Sec. 5. (1) Grant funds shall be used for purposes identified by the school district in compliance with section 4 of this act. New or existing programs enhanced by funds received under the municipality grant program shall not become a part of the state's basic program of education obligation as set forth under Article IX of the state Constitution.

(2) Only those aspects of the expenditure plan that affect the wages, hours, and terms and conditions of employment shall be subject to the provisions of chapter 41.59 RCW.

NEW SECTION. Sec. 6. (1) Each school district receiving funds under the municipality grant program established under section 3 of this act shall submit biennially to the superintendent of public instruction a report on the district's use of the grant funds and other information required by the superintendent of public instruction. The superintendent of public instruction shall establish the date for submittal of reports.

(2) The superintendent of public instruction shall submit biennially to the legislature a report on the municipality grant program. The first report shall be submitted not later than January 15, 1992.

NEW SECTION. Sec. 7. The superintendent of public instruction shall adopt rules as necessary under chapter 34.05 RCW to implement the provisions of sections 3 through 6 of this act.

NEW SECTION. Sec. 8. The sum of thirty million dollars, or as much thereof as may be necessary, is appropriated from the general fund to the superintendent of public instruction for the biennium ending June 30, 1991, to carry out the purposes of sections 3 through 6 of this act.

NEW SECTION. Sec. 9. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 10. Sections 1 through 7 of this act are each added to chapter 28A.03 RCW.