AN ACT Relating to enhancing state local effort assistance funding for public schools; amending RCW 28A.500.015; and providing an effective date.

(1) Beginning in calendar year ((2020))2025 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)(a) For an eligible school district with an actual enrichment levy rate that is less than ((one dollar and fifty cents))$1.50 per ((thousand dollars))$1,000 of assessed value in the school district, the 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 rate divided by ((one dollar and fifty cents))$1.50 per ((thousand dollars))$1,000 of assessed value in the school district.

(b) For an eligible school district with an actual enrichment levy rate that is equal to or greater than ((one dollar and fifty cents))$1.50 per ((thousand dollars))$1,000 of assessed value in the school district, the annual local effort assistance funding is equal to the school district's maximum local effort assistance.

(c) Beginning in calendar year ((2022))2025, for state-tribal education compact schools ((established under))subject to chapter 28A.715 RCW, the annual local effort assistance funding is equal to the actual enrichment levy per student as calculated by the superintendent of public instruction for the previous year for the school district in which the state-tribal education compact school is located, up to a maximum per student amount of ((one thousand five hundred fifty dollars as increased by inflation from the 2019 calendar year))$2,250, increased for inflation beginning in calendar year 2025, multiplied by the student enrollment of the state-tribal education compact school in the prior school year.

(d)(i) Beginning in calendar year 2025, for charter schools established under chapter 28A.710 RCW, the annual local effort assistance funding is equal to the actual enrichment levy per student as calculated by the superintendent of public instruction for the previous year for the school district in which the charter school is located, up to a maximum per student amount of $2,250, increased for inflation beginning in calendar year 2025, multiplied by the student enrollment of the charter school in the prior school year.

(ii) The legislature must appropriate annual local effort assistance funds for charter schools from the Washington opportunity pathways account in accordance with RCW 28A.710.270.

(3) 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.

(a) "Eligible school district" means a school district where the amount generated by a levy of ((one dollar and fifty cents))$1.50 per ((thousand dollars))$1,000 of assessed value in the school district, divided by the school district's total student enrollment in the prior school year, is less than 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.

(ii) The amount generated by a levy of ((one dollar and fifty cents))$1.50 per ((thousand dollars))$1,000 of assessed value in the school district.

(d) "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((, except as follows:

(i) In the 2022 calendar year, if 2019-20 school year average annual full-time equivalent enrollment is greater than the school district's 2020-21 school year average annual full-time equivalent enrollment, "prior school year" means the 2019-20 school year.

(ii) In the 2023 calendar year, if 2019-20 school year average annual full-time equivalent enrollment is greater than the school district's 2021-22 school year average annual full-time equivalent enrollment, "prior school year" means the 2019-20 school year)).

(e) "State local effort assistance threshold" means ((one thousand five hundred fifty dollars))$2,250 per student, increased for inflation beginning in calendar year ((2020))2025.

(5) 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) 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.