BySenators Wellman, Wilson, C., Hunt, and Conway; by request of Superintendent of Public Instruction

AN ACT Relating to school district levies; amending RCW 84.52.0531 and 28A.500.015; and providing an effective date.

(1) Beginning with taxes levied for collection in ((2019))2020, the maximum dollar amount which may be levied by or for any school district for enrichment levies under RCW 84.52.053 is equal to the lesser of ((one dollar and fifty cents per thousand dollars))twenty-two percent of ((the assessed value of property in)) the school district's prior school year actual state and federal revenue or the maximum per-pupil limit.

(2) The definitions in this subsection apply to this section unless the context clearly requires otherwise.

(a) For the purpose of this section, "inflation" means, for any school year, the rate of the yearly increase of the previous calendar year's annual average consumer price index for all urban consumers, Seattle area, using the official current base compiled by the bureau of labor statistics, United States department of labor.

(b) "Maximum per-pupil limit" means ((two))three thousand five hundred dollars, multiplied by the number of average annual full-time equivalent students enrolled in the school district in the prior school year. Beginning with property taxes levied for collection in 2020, the maximum per-pupil limit shall be increased by inflation.

(c) "Prior school year" means the most recent school year completed prior to the year in which the levies are to be collected.

(3) For districts in a high/nonhigh relationship, the enrollments of the nonhigh students attending the high school shall only be counted by the nonhigh school districts for purposes of funding under this section.

(4) For school districts participating in an innovation academy cooperative established under RCW 28A.340.080, enrollments of students attending the academy shall be adjusted so that each participant district receives its proportional share of student enrollments for purposes of funding under this section.

(5) ((Beginning with propositions for enrichment levies for collection in calendar year 2020 and thereafter, a district must receive approval of an enrichment levy expenditure plan under RCW 28A.505.240 before submission of the proposition to the voters.

(6))) 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.

(((7)))(6) Beginning with taxes levied for collection in 2018, enrichment levy revenues must be deposited in a separate subfund of the school district's general fund pursuant to RCW 28A.320.330, and for the 2018-19 school year are subject to the restrictions of RCW 28A.150.276 and the audit requirements of RCW 43.09.2856.

(((8) Funds collected from levies for transportation vehicles, construction, modernization, or remodeling of school facilities as established in RCW 84.52.053 are not subject to the levy limitations in subsections (1) through (5) of this section.))

(1) Beginning in calendar year ((2019))2020 and each calendar year thereafter, the state must provide state local effort assistance funding to supplement school district enrichment levies as provided in this section.

(2) For an eligible school district, annual local effort assistance funding is equal to the ((school district's maximum local effort assistance multiplied by a fraction equal to the school district's actual enrichment levy divided by the school district's maximum allowable enrichment levy))the difference between the tax rate for the lesser of a twenty-two percent levy or the maximum per pupil limit and the state local effort assistance threshold.

(3) State local effort assistance funding shall be provided to eligible school districts even if they do not run an enrichment levy.

(4) The state local effort assistance funding provided under this section is not part of the state's program of basic education deemed by the legislature to comply with the requirements of Article IX, section 1 of the state Constitution.

(((4)))(5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

(a) "Eligible school district" means a school district whose ((maximum allowable enrichment levy divided by the school district's total student enrollment in the prior school year is less than))tax rate for the lesser of a twenty-two percent levy or the maximum per pupil limit, exceeds the state local effort assistance threshold.

(b) For the purpose of this section, "inflation" means, for any school year, the rate of the yearly increase of the previous calendar year's annual average consumer price index for all urban consumers, Seattle area, using the official current base compiled by the bureau of labor statistics, United States department of labor.

(i) The school district's actual prior school year enrollment multiplied by the state local effort assistance threshold; and

(e))) "Prior school year" means the most recent school year completed prior to the year in which the state local effort assistance funding is to be distributed.

(((f)))(e) "State local effort assistance threshold" means ((one thousand five hundred dollars per student, increased for inflation beginning in calendar year 2020))the same as set forth in the omnibus appropriations act.

(((g) "Student enrollment" means the average annual full-time equivalent student enrollment.

(5)))(6) For districts in a high/nonhigh relationship, the enrollments of the nonhigh students attending the high school shall only be counted by the nonhigh school districts for purposes of funding under this section.

(((6)))(7) For school districts participating in an innovation academy cooperative established under RCW 28A.340.080, enrollments of students attending the academy shall be adjusted so that each participant district receives its proportional share of student enrollments for purposes of funding under this section.