FINAL BILL REPORT

SHB 1915

                                  C 252 L 88

BYHouse Committee on Ways & Means/Appropriations (originally sponsored by Representatives Ebersole, Appelwick, Peery, Holm, Pruitt, Rasmussen and Todd)

Specifying school district levy bases and levy reduction funds.

House Committe on Education

House Committe on Ways & Means/Appropriations

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

Some school districts have "grandfather" levy authority that allows them to impose maintenance and operations levies equivalent to more than 20 percent of their state and federal allocations.  Under 1987 legislation, these "grandfather" levies would be phased down to the 20 percent lid only if state funding for programs in the levy base were enhanced.

During the 1987 legislative session, funds were appropriated for a new program of local education program enhancement.  These funds were included in the base for calculation of the levy lid, but no specific reference was made to these funds as levy reduction funds.  These funds were considered levy reduction funds, however, because they fell within the definition of levy reduction funds and did not fall within the definition of excluded funds.  Under the 1987 statute, "levy reduction funds" are any increases for programs included in the levy base, that are not attributable to enrollment or workload, compensation increases, or inflation.

SUMMARY:

State funding increases that were added in the 1987-88 school year may be used to reduce the levy authority of districts having levies between 20 and 30 percent only if they fall within the definition of levy reduction funds adopted by the Superintendent of Public Instruction prior to March 1, 1988.  Specifically, state allocation of local education program enhancement funds in 1987-88 are not levy reduction funds.

For levies to be collected in 1989 and thereafter, levy reduction funds are the difference between the state funding formulas for the prior school year and the current school year, as applied to the current school year's population, salary, benefits, and cost inflation levels.

VOTES ON FINAL PASSAGE:

      House 90   3

      Senate    47     0 (Senate amended)

      House              (House refused to concur)

      Senate    49     0 (Senate amended)

      House 96   0 (House concurred)

EFFECTIVE:June 9, 1988