HOUSE BILL REPORT

HJR 4215

BYRepresentatives H. Sommers,  Ebersole, Brough, Allen, Appelwick, Miller, Locke and Jacobsen

Authorizing an additional regular property tax levy for school districts.

House Committe on Ways & Means/Revenue

Majority Report:  Do pass.  (9)

      Signed by Representatives Appelwick, Chair; Basich, Grimm, Holland, Madsen, Rust, Schoon, Valle and Winsley.

House Staff:Bill Freund (786-7093)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/REVENUE MARCH 5, 1987

BACKGROUND:

The 1977 Legislature enacted common school funding reform.  The primary purpose of the reform was to comply with the Washington State Supreme Court's mandate that adequate state funding for basic education be provided, and that school district's ability to provide this program could not be dependent on passage of special levies.

The Legislature established a plan to increase state funding for education over a four year period and as an adjunct to that plan, adopted the levy lid act to wean school districts from their heavy dependence on special levies.  The original levy lid act limited school district special levies to not more than ten percent of the state basic education allowance.  For districts having previous revenues greater than the state funding plus the ten percent levy, a grandfather clause allowed additional levy capacity.

The levy lid act has been amended frequently since its inception.  The effect of the amendments has been to substantially expand the base upon which the levy lid is calculated and secondly to increase the number of districts in "grandfather status".  Originally the plan was to bring districts down to a ten percent levy gradually.  However, the Legislature has at least three times postponed the phase down plan.

In addition to special levies there is a regular state levy of $3.60/$1000 of true and fair value dedicated for the common schools.  In the early 1970's this levy was collected at the local level and then it was replaced with an equalized state levy.

Regular levies of port districts and public utilities are outside the constitutional one percent of true and fair value limitation on regular property taxes.

SUMMARY:

The Legislature is authorized to enable school districts to levy a regular levy outside of the constitutional one percent limitation in an amount not exceeding two dollars per thousand of true and fair value.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.