Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Education Committee

HB 2567

Brief Description:  Changing the maximum allowable percentage for maintenance and operation school levies.

Sponsors:  Representatives Santos, Jarrett, Hunt, O'Brien, Cairnes, Conway, Esser, Quall, Dickerson, McIntire, Kirby, Wood, Lysen, Chase, Kenney, Simpson, McDermott and Kagi.

Hearing Date:  2/4/02

Staff:  Susan Morrissey (786‑7111).

Background:

In 1977 when the state assumed additional responsibility for funding schools, the Legislature limited school district maintenance and operation levy authority by passing the levy lid law.  This law determines the maximum amount that school districts can collect through local maintenance and operation levies.  The original 1977 law, which took effect in 1979, sought to limit levy revenue to 10 percent of a school district's state basic education allocation.  It also contained a grandfather clause that permitted districts that historically relied heavily on levies to exceed the 10 percent limit.

The levy lid law has subsequently been modified 10 times.  Under current law, for most districts the levy lid is 24 percent of the total state and federal funds received by the district.  There are 91 school districts that are grandfathered in at higher amounts.

Summary of Bill:

The levy lid is increased by 4 percent to 28 percent of the total state and federal funds received by each district.  The levy lid for grandfathered school districts is also increased by 4 percent.  The levy lid increase applies to levy collections during the 2003 calendar year and every year thereafter.

Appropriation:  None.

Fiscal Note:  Requested on 1/30/02.

Effective Date:  Ninety days after adjournment of session in which bill is passed.