AN
ACT Relating to school district levies; amending RCW 84.52.0531 and
28A.500.010; creating new sections; and repealing RCW 28A.320.150.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1.
Funding resulting from this act is for school district activities which
supplement or are not related to the state's basic program of education
obligation as set forth under Article IX of the state Constitution.
Sec.
2. RCW 84.52.0531
and 1995 1st sp.s. c 11 s 1 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 determined as follows:
(1)
For excess levies for collection in calendar year ((1992)) 1997,
the maximum dollar amount shall be calculated pursuant to the laws and rules in
effect in November ((1991)) 1996.
(2)
((For the purpose of this section, the basic education allocation shall be
determined pursuant to RCW 28A.150.250, 28A.150.260, and 28A.150.350:
PROVIDED, That when determining the basic education allocation under subsection
(4) of this section, nonresident full time equivalent pupils who are
participating in a program provided for in chapter 28A.545 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.
(3))) For
excess levies for collection in calendar year ((1993)) 1998 and
thereafter, the maximum dollar amount shall be the sum of (a) ((and)) plus
or minus (b) and (c) of this subsection minus (((c))) (d)
of this subsection:
(a)
The district's levy base as defined in subsection (((4))) (3) of
this section multiplied by the district's maximum levy percentage as defined in
subsection (((5))) (4) of this section;
(b)
((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.545 RCW 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 (1) of this
section due to the inclusion of pupils participating in a program provided for
in chapter 28A.545 RCW in such computation)) For districts in a
high/nonhigh relationship, the high school district's maximum levy amount shall
be reduced and the nonhigh school district's maximum levy amount shall be
increased by an amount equal to the estimated amount of the nonhigh payment due
to the high school district under RCW 28A.545.030(3) and 28A.545.050 for the
school year commencing the year of the levy;
(c)
For districts in an interdistrict cooperative agreement, the nonresident
school district's maximum levy amount shall be reduced and the resident school
district's maximum levy amount shall be increased by an amount equal to the per
pupil basic education allocation included in the nonresident district's levy
base under subsection (3) of this section multiplied by:
(i)
The number of full-time equivalent students served from the resident district
in the prior school year; multiplied by:
(ii)
The serving district's maximum levy percentage determined under subsection (4)
of this section; increased by:
(iii)
The percent increase per full-time equivalent student as stated in the state
basic education appropriation section of the biennial budget between the prior
school year and the current school year divided by fifty-five percent;
(d)
The district's maximum levy amount shall be reduced by the maximum amount
of state matching funds for which the district is eligible under RCW
28A.500.010 ((for which the district is eligible in that tax collection year)).
(((4)))
(3) For excess levies for collection in calendar year ((1993)) 1998
and thereafter, a district's levy base shall be the sum of allocations in (a)
through (c) of this subsection received by the district for the prior school
year, including allocations for compensation increases, plus the sum of such
allocations multiplied by the percent increase per full time equivalent student
as stated in the state basic education appropriation section of the biennial
budget between the prior school year and the current school year and divided by
fifty-five percent. A district's levy base shall not include local school
district property tax levies or other local revenues, or state and federal
allocations not identified in (a) through (c) of this subsection.
(a)
The district's basic education allocation as determined pursuant to RCW
28A.150.250, 28A.150.260, and 28A.150.350;
(b)
State and federal categorical allocations for the following programs:
(i)
Pupil transportation;
(ii)
((Handicapped)) Special education;
(iii)
Education of highly capable students;
(iv)
Compensatory education, including but not limited to learning assistance,
migrant education, Indian education, refugee programs, and bilingual education;
(v)
Food services; and
(vi)
State-wide block grant programs; and
(c)
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.
(((5)
For excess levies for collection in calendar year 1993 and thereafter, a
district's maximum levy percentage shall be determined as follows:
(a)
Multiply the district's maximum levy percentage for the prior year by the
district's levy base as determined in subsection (4) of this section;
(b)
Reduce the amount in (a) of this subsection by the total estimated amount of
any levy reduction funds as defined in subsection (6) of this section which are
to be allocated to the district for the current school year;
(c)
Divide the amount in (b) of this subsection by the district's levy base to
compute a new percentage;
(d)
The percentage in (c) of this subsection or twenty percent, whichever is
greater, shall be the district's maximum levy percentage for levies collected
in that calendar year; and
(e)
For levies to be collected in calendar years 1994 through 1997, the maximum
levy rate shall be the district's maximum levy percentage for 1993 plus four
percent reduced by any levy reduction funds.
For
levies collected in 1998, the prior year shall mean 1993.
(6))) (4)
A district's maximum levy percentage shall be twenty-two percent in 1998 and
twenty-four percent in 1999 and every year thereafter; plus, for qualifying
districts, the grandfathered percentage determined as follows:
(a)
For 1997, the difference between the district's 1993 maximum levy percentage
and twenty percent; and
(b)
For 1998 and thereafter, the percentage calculated as follows:
(i)
Multiply the grandfathered percentage for the prior year times the district's
levy base determined under subsection (3) of this section;
(ii)
Reduce the result of (b)(i) of this subsection by any levy reduction funds as
defined in subsection (5) of this section that are to be allocated to the
district for the current school year;
(iii)
Divide the result of (b)(ii) of this subsection by the district's levy base;
and
(iv)
Take the greater of zero or the percentage calculated in (b)(iii) of this
subsection.
(5)
"Levy reduction funds" shall mean increases in state funds from the
prior school year for programs included under subsection (((4))) (3)
of this section: (a) That are not attributable to enrollment changes,
compensation increases, or inflationary adjustments; and (b) that are or were
specifically identified as levy reduction funds in the appropriations act. If
levy reduction funds are dependent on formula factors which would not be
finalized until after the start of the current school year, the superintendent
of public instruction shall estimate the total amount of levy reduction funds
by using prior school year data in place of current school year data. Levy reduction
funds shall not include moneys received by school districts from cities or
counties.
(((7)))
(6) For the purposes of this section, "prior school year" ((shall))
means the most recent school year completed prior to the year in which
the levies are to be collected.
(((8)))
(7) For the purposes of this section, "current school year" ((shall))
means the year immediately following the prior school year.
(((9)))
(8) Funds collected from transportation vehicle fund tax levies shall
not be subject to the levy limitations in this section.
(((10)))
(9) 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. 3. The
house of representatives and senate fiscal committees shall study data and
issues relevant to the state funded local effort assistance program known as
"levy equalization" and prepare a report of findings and recommendations
to the legislature by December 1, 1997.
Sec.
4. RCW
28A.500.010 and 1993 c 410 s 1 are each amended to read as follows:
(1)
Commencing with taxes assessed in 1988 to be collected in calendar year 1989
and thereafter, in addition to a school district's other general fund
allocations, each eligible district shall be provided local effort assistance
funds as provided in this section. Such funds are not part of the district's
basic education allocation. ((For the first distribution of local effort
assistance funds provided under this section in calendar year 1989, state funds
may be prorated according to the formula in this section.))
(2)(a)
"Prior tax collection year" ((shall)) means the year
immediately preceding the year in which the local effort assistance shall be
allocated.
(b)
The "state-wide average ten percent levy rate" ((shall)) means
ten percent of the total levy bases as defined in RCW 84.52.0531(((4))) (3)
summed for all school districts, and divided by the total assessed valuation
for excess levy purposes in the prior tax collection year for all districts as
adjusted to one hundred percent by the county indicated ratio established in
RCW 84.48.075.
(c)
The "district's ten percent levy rate" ((of a district
shall)) means((:
(i)
Ten percent of the district's levy base as defined in RCW 84.52.0531(4), plus
one-half of any amount computed under RCW 84.52.0531(3)(b) in the case of
nonhigh school districts; divided by
(ii))) the
district's ten percent levy amount divided by the district's assessed
valuation for excess levy purposes for the prior tax collection year as
adjusted to one hundred percent by the county indicated ratio.
(d)
The "district's ten percent levy amount" means the school
district's maximum levy authority after transfers determined under RCW
84.52.0531(2)(a) through (c) divided by the district's maximum levy percentage
determined under RCW 84.52.0531(4) multiplied by ten percent.
(e)
The "district's twelve percent levy amount" means the school
district's maximum levy authority after transfers determined under RCW
84.52.0531(2)(a) through (c) divided by the district's maximum levy percentage
determined under RCW 84.52.0531(4) multiplied by twelve percent.
(f)
"Districts eligible ((districts" shall)) for ten
percent equalization" means:
(i)
Before the 1999 calendar year, those districts with a ten percent levy rate
which exceeds the state-wide average ten percent levy rate; and
(ii)
In the 1999 calendar year and thereafter, those districts with a ten percent
levy rate that exceeds the state-wide average ten percent levy rate but that is
not in the top quartile of all district rates ranked from highest to lowest.
(g)
"Districts eligible for twelve percent equalization" means in the
1999 calendar year and thereafter, those districts with a ten percent levy rate
in the top quartile of all district rates ranked from highest to lowest.
(h)
Unless otherwise stated all rates, percents, and amounts are for the calendar
year for which local effort assistance is being calculated under this section.
(3)
Allocation of state matching funds to eligible districts for local effort
assistance shall be determined as follows:
(a)
Funds raised by the district through maintenance and operation levies ((during
that tax collection year)) shall be matched with state funds using the
following ratio of state funds to levy funds: (i) The difference between the
district's ten percent levy rate and the state-wide average ten percent levy
rate; to (ii) the state-wide average ten percent levy rate.
(b)
The maximum amount of state matching funds for ((which a district may be
eligible in any tax collection year shall be ten percent of the district's levy
base as defined in RCW 84.52.0531(4))) districts eligible for ten
percent equalization shall be the district's ten percent levy amount,
multiplied by the following percentage: (i) The difference between the
district's ten percent levy rate and the state-wide average ten percent levy
rate; divided by (ii) the district's ten percent levy rate.
(c)
In the 1999 calendar year and thereafter, the maximum amount of state matching
funds for districts eligible for twelve percent equalization shall be the
district's twelve percent levy amount multiplied by the following percentage:
(i) The difference between the district's ten percent levy rate and the
state-wide average ten percent levy rate; divided by (ii) the district's ten
percent levy rate.
(4)(((a)
Through tax collection year 1992, fifty-five percent of local effort assistance
funds shall be distributed to qualifying districts during the applicable tax
collection year on or before June 30 and forty-five percent shall be
distributed on or before December 31 of any year.
(b)
In tax collection year 1993 and thereafter,)) Local
effort assistance funds shall be distributed to qualifying districts as
follows:
(((i)))
(a) Thirty percent in April;
(((ii)))
(b) Twenty-three percent in May;
(((iii)))
(c) Two percent in June;
(((iv)))
(d) Seventeen percent in August;
(((v)))
(e) Nine percent in October;
(((vi)))
(f) Seventeen percent in November; and
(((vii)))
(g) Two percent in December.
NEW SECTION. Sec. 5. RCW
28A.320.150 and 1995 1st sp.s. c 11 s 2 are each repealed.
