SENATE BILL REPORT

HB 2040

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Changes the calculation of a nonhigh school district's local levy payments to a high school district to serve a nonhigh school student.

Background: A nonhigh school district is a district that does not provide instruction for all grades kindergarten through twelfth grade. When a student residing in a nonhigh school district attends high school, the nonhigh school district sends the student to a high school district that provides secondary instruction.

Nonhigh school and high school districts may raise funds locally through enrichment levies. Enrichment levies must be used only for enrichment beyond the state's program of basic education. New limits on enrichment levy collections take effect in 2019, limiting districts to the lesser of $1.50 per $1,000 of assessed property value in the district or $2,500 per pupil. Enrichment levy rates per student vary by district.

Nonhigh school districts are required to reimburse the high school districts for the costs of educating nonhigh school students. The payment amount per student is defined as the enrichment levy rate per student levied by the high school district.

Summary of Bill: A nonhigh school district's payment per student to a high school district is the lesser of the enrichment levy rate per student levied by the high school district or the enrichment levy rate per student levied by the nonhigh school district.

Revenue provided by nonhigh school districts to high school districts is designated for secondary school buildings. Upon a nonhigh school district's request, the high school district must report annual data for attendance, grades, discipline, and state assessments for nonhigh school secondary students served by the high school district within 60 days of the request.

Staff Summary of Public Testimony: PRO: Prior to January 1, 2019, nonhigh districts used local maintenance and operation levy proceeds to pay the high districts. Nonhigh districts had additional local levy authority to pay that nonhigh fee and it did not reduce the levy amount for their own nonhigh district needs. Nonhigh districts no longer have the increased levy authority to transfer funds to high districts. Now, on average, more than 20 percent of enrichment levy funds from nonhigh districts will go to high districts leaving less to support their own students. The second two parts are accountability pieces. These ensure that money will go to secondary students and build in a feedback mechanism so nonhigh districts can get valuable information on how to prepare their students for success.