WSR 98-05-040

PROPOSED RULES

SUPERINTENDENT OF

PUBLIC INSTRUCTION

[Filed February 11, 1998, 10:58 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 97-16-098.

Title of Rule: Chapter 392-139 WAC, School district levy authority and local effort assistance.

Purpose: To increase levy authority by two percent in 1998 and by four percent in 1999 and thereafter; to increase local effort assistance from ten percent to twelve percent for selected districts; and to repeal the limitation on levy amounts put on the ballot.

Statutory Authority for Adoption: RCW 84.52.0531(a) and 28A.150.290(2).

Statute Being Implemented: Chapter 259, Laws of 1997.

Summary: See Purpose above.

Reasons Supporting Proposal: Necessary to implement chapter 259, Laws of 1997.

Name of Agency Personnel Responsible for Drafting: Rick Wilson, Office of Superintendent of Public Instruction, (360) 753-2298, Implementation: Allen H. Jones, Office of Superintendent of Public Instruction, (360) 753-6708; and Enforcement: Michael L. Bigelow, Office of Superintendent of Public Instruction, (360) 753-1718.

Name of Proponent: Office of Superintendent of Public Instruction, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: The rule is necessary to implement the changes in levy authority and local effort assistance as required by chapter 259, Laws of 1997. This law restores the four percent added levy authority provided during 1993-1997 in two steps: Two percent in 1998 and an additional two percent in 1999. Local effort assistance is increased from ten percent to twelve percent for those districts whose ten percent tax rates are in the top quartile of all school district ten percent levy rates ranked from high to low.

As a result of the new law school district levy authority will increase by $90-100 million over two years and state local effort assistance payments will increase by $11-12 million dollars in 1999 and thereafter.

Proposal Changes the Following Existing Rules: See above.

No small business economic impact statement has been prepared under chapter 19.85 RCW. No business impact is anticipated.

RCW 34.05.328 does not apply to this rule adoption. The contents of the rule are dictated by statute.

Hearing Location: Wanamaker Conference Room, 2nd Floor, Old Capitol Building, P.O. Box 47200, Olympia, WA 98504-7200, on March 24, 1998, at 9:00 a.m.

Assistance for Persons with Disabilities: Contact Jim Rich by March 10, 1998, TDD (360) 664-3631, or (360) 753-6733.

Submit Written Comments to: Legal Services, Office of Superintendent of Public Instruction, P.O. Box 47200, 600 South Washington Street, Olympia, WA 98504-7200, FAX (360) 753-4201, by March 23, 1998.

Date of Intended Adoption: March 25, 1998.

February 10, 1998

Terry Bergeson

Superintendent of

Public Instruction

AMENDATORY SECTION (Amending Order 93-20, filed 10/20/93, effective 11/20/93)

WAC 392-139-007 Organization of this chapter. This chapter contains rules for excess levy authority and state matching money for excess levies also known as local effort assistance. The general organization of the chapter is as follows:

Sections 001-099 General provisions and definitions.

Sections 100-299 Definitions for excess levy authority.

Sections 300-399 Determination of excess levy authority.

Sections 600-649 Definitions for local effort assistance.

Sections 660-679 Determination of local effort assistance for ((1993, 1996)) 1998 and thereafter.

((Sections 680-699 Determination of local effort assistance for 1994 and 1995.))

Sections 900-999 Notification, petitions and requests for review.

[Statutory Authority: RCW 28A.150.290(2) and 84.52.0531(10). 93-21-092 (Order 93-20), 392-139-007, filed 10/20/93, effective 11/20/93. Statutory Authority: RCW 28A.41.170 and 84.52.0531(10). 89-23-121 (Order 18), 392-139-007, filed 11/22/89, effective 12/23/89; 88-03-007 (Order 88-6), 392-139-007, filed 1/8/88.]

AMENDATORY SECTION (Amending Order 18, filed 7/19/90, effective 8/19/90)

WAC 392-139-215 Definition--P-223H. As used in this chapter, "P-223H" means the form printed by the superintendent of public instruction and distributed annually to all school districts for reporting of ((handicapped)) special education students pursuant to chapter 28A.155 RCW.

[Statutory Authority: 1990 c 33. 90-16-002 (Order 18), 392-139-215, filed 7/19/90, effective 8/19/90. Statutory Authority: RCW 28A.41.170 and 84.52.0531(10). 89-23-121 (Order 18), 392-139-215, filed 11/22/89, effective 12/23/89; 88-03-007 (Order 88-6), 392-139-215, filed 1/8/88.]

AMENDATORY SECTION (Amending Order 96-13, filed 9/11/96, effective 10/12/96)

WAC 392-139-310 Determination of excess levy base. The superintendent of public instruction shall calculate each school district's excess levy base as provided in this section. Levy base adjustments pursuant to WAC 392-139-901 shall be included in revenues shown in this section.

(1) Sum the following state and federal allocations for the prior school year:

(a) The basic education allocation as defined in WAC 392-139-115 and as reported on the August Report 1191;

(b) The state and federal categorical allocations for the following:

(i) Pupil transportation. Allocations for pupil transportation include allocations for the following accounts:

4199 Transportation - operations; and

4499 Transportation ((reimbursement)) - depreciation.

(ii) Special education. Allocations for special education include allocations for the following accounts:

4121 Special education ((of children)); and

6124 Special education supplemental((, EHA, Part B; and

6127 Special education deinstitutionalized)).

(iii) Education of highly capable students. Allocations for education of highly capable students include allocations identified by account 4174 Highly capable.

(iv) Compensatory education. Allocations for compensatory education include allocations identified by the following accounts:

4155 Learning assistance;

4165 Transitional bilingual;

6151 Remediation((, ESEA, Chapter 1));

6153 Migrant((, ESEA, Chapter 1));

6164 Bilingual((, P.L. 93-380 (SPI))) Title VII Part A;

6167 Indian education((,)) - JOM;

6264 Bilingual((, P.L. 93-380)) (direct); and

6268 Indian education((,)) - ED.

(v) Food services. Allocations for food services include allocations identified by the following accounts:

4198 School food services (state);

6198 School food services (federal); and

6998 USDA commodities.

(vi) State-wide block grant programs. Allocations for state-wide block grant programs include allocations identified by the following accounts:

4175 Local education program enhancement (including student learning improvement allocations); and

6176 ((ESEA, Chapter 2)) Targeted assistance.

(c) General federal programs. Allocations for general federal programs identified by the following accounts:

5200 General purpose direct federal grants((,)) - unassigned;

6100 Special purpose((,)) - OSPI((,)) - unassigned;

6138 Secondary vocational education;

6146 Skills center;

6177 ((Mathematics and science)) Eisenhower professional development;

6200 Direct special purpose grants; and

6246 Skills center((,)) - direct federal grant.

(2) Increase the result obtained in subsection (1) of this section by the percentage increase per full-time equivalent student in the state basic education appropriation between the prior school year and the current school year as stated in the state Operating Appropriations Act divided by 0.55.

(3) Revenue accounts referenced in this section are ((from)) defined in the accounting manual for public school districts in the state of Washington, revised ((1996)) 1997.

(4) The dollar amount of revenues for state and federal categorical allocations identified in this section shall come from the following sources:

(a) The following state and federal categorical allocations are taken from the Report 1197 Column A (Annual Allotment Due):

4121 Special education;

4155 Learning assistance;

4165 Transitional bilingual;

4174 Highly capable;

4175 Local education program enhancement;

4198 School food services (state);

4199 Transportation - operations;

4499 Transportation ((reimbursement)) - depreciation;

6124 Special education - supplemental;

((6127 Special education deinstitutionalized;))

6138 Secondary vocational education;

6146 Skills center;

6151 Remediation((, ESEA, Chapter 1));

6153 Migrant((, ESEA, Chapter 1));

6176 ((ESEA, Chapter 2)) Targeted assistance;

6177 ((Mathematics and science)) Eisenhower professional development; and

6198 School food services (federal).

(b) The following state and federal allocations are taken from the F-195:

5200 General purpose direct federal grants((,)) - unassigned;

6100 Special purpose((, SPI,)) - OSPI - unassigned;

6164 Bilingual((, P.L. 93-380 (SPI))) - Title VII Part A;

6167 Indian education((,)) - JOM;

6200 Direct special purpose grants;

6246 Skills center((,)) - direct federal grant;

6264 Bilingual((, P.L. 93-380)) (direct);

6268 Indian education((,)) - ED; and

6998 USDA commodities.

(5) State moneys generated by a school district's students and redirected by the superintendent of public instruction to an educational service district at the request of the school district shall be included in the district's levy base.

(6) State basic education moneys generated by a school district's students and allocated directly to a technical college shall be included in the district's levy base.

[Statutory Authority: RCW 84.52.0531(10) and 28A.150.290. 96-19-037 (Order 96-13), 392-139-310, filed 9/11/96, effective 10/12/96. Statutory Authority: RCW 28A.150.290(2) and 84.52.0531(10). 93-21-092 (Order 93-20), 392-139-310, filed 10/20/93, effective 11/20/93; 92-19-124 (Order 92-07), 392-139-310, filed 9/21/92, effective 10/22/92. Statutory Authority: RCW 28A.41.170 and 84.52.0531(10). 89-23-121 (Order 18), 392-139-310, filed 11/22/89, effective 12/23/89; 88-03-007 (Order 88-6), 392-139-310, filed 1/8/88.]

AMENDATORY SECTION (Amending Order 96-13, filed 9/11/96, effective 10/12/96)

WAC 392-139-320 Determination of maximum excess levy percentage. (1) For ((1994, 1995, 1996 and 1997)) 1998, each school district's maximum excess levy percentage equals the district's 1993 excess levy percentage plus ((four)) two percent (e.g., 21.5% plus ((4%)) 2% equals ((25.5%)) 23.5%).

(2) For ((1993, 1998)) 1999 and thereafter, the superintendent of public instruction shall calculate each school district's maximum excess levy percentage as the greater of twenty-four percent or the percentage calculated as follows:

(a) Multiply the district's excess levy base determined pursuant to WAC 392-139-310 by:

(i) For ((1993,)) 1999 ((and thereafter)), the school district's 1993 maximum excess levy percentage ((for the prior calendar year)) plus four percent (e.g., 21.5% plus 4% equals 25.5%);

(ii) For ((1998)) 2000 and thereafter, the school district's maximum levy percentage for ((1993)) the prior calendar year;

(b) Subtract from the result obtained in (a) of this subsection the school district's levy reduction funds for the year of the levy; and

(c) Divide the result obtained in (b) of this subsection by the school district's excess levy base.

[Statutory Authority: RCW 84.52.0531(10) and 28A.150.290. 96-19-037 (Order 96-13), 392-139-320, filed 9/11/96, effective 10/12/96. Statutory Authority: RCW 28A.150.290(2) and 84.52.0531(10). 93-21-092 (Order 93-20), 392-139-320, filed 10/20/93, effective 11/20/93. Statutory Authority: RCW 28A.41.170 and 84.52.0531(10). 89-23-121 (Order 18), 392-139-320, filed 11/22/89, effective 12/23/89; 88-03-007 (Order 88-6), 392-139-320, filed 1/8/88.]

AMENDATORY SECTION (Amending Order 93-20, filed 10/20/93, effective 11/20/93)

WAC 392-139-620 Definition--Eligible school district--((1993, 1996)) 1998 and thereafter. As used in this chapter, "eligible school district" for ((1993, 1996)) 1998 and thereafter means a school district whose ten percent levy rate exceeds the state-wide average ten percent levy rate.

[Statutory Authority: RCW 28A.150.290(2) and 84.52.0531(10). 93-21-092 (Order 93-20), 392-139-620, filed 10/20/93, effective 11/20/93. Statutory Authority: RCW 28A.41.170 and 84.52.0531(10). 89-23-121 (Order 18), 392-139-620, filed 11/22/89, effective 12/23/89; 88-03-007 (Order 88-6), 392-139-620, filed 1/8/88.]

NEW SECTION

WAC 392-139-622 Definition--Districts eligible for ten percent equalization--1999 and thereafter. As used in this chapter, "districts eligible for ten percent equalization" in 1999 and thereafter means school districts with a ten percent levy rate that exceeds the state-wide average ten percent levy rate but that is not in the top quartile of district ten percent levy rates ranked from highest to lowest.

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NEW SECTION

WAC 392-139-623 Definition--Districts eligible for twelve percent equalization--1999 and thereafter. As used in this chapter, "districts eligible for twelve percent equalization" in 1999 and thereafter means school districts with a ten percent levy rate in the top quartile of district ten percent levy rates ranked from highest to lowest.

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AMENDATORY SECTION (Amending Order 93-20, filed 10/20/93, effective 11/20/93)

WAC 392-139-625 Definition--State matching ratio--((1993, 1996)) 1998 and thereafter. As used in this chapter, "state matching ratio" for ((1993, 1996)) 1998 and thereafter, means the ratio calculated for each school district as follows:

(1) Subtract the state-wide average ten percent levy rate from the district ten percent levy rate; and

(2) Divide the result by the state-wide average ten percent levy rate.

[Statutory Authority: RCW 28A.150.290(2) and 84.52.0531(10). 93-21-092 (Order 93-20), 392-139-625, filed 10/20/93, effective 11/20/93. Statutory Authority: RCW 84.52.0531(10) and 28A.41.170. 88-03-007 (Order 88-6), 392-139-625, filed 1/8/88.]

DETERMINATION OF LOCAL EFFORT ASSISTANCE FOR ((1993, 1996)) 1998 AND THEREAFTER

AMENDATORY SECTION (Amending Order 93-20, filed 10/20/93, effective 11/20/93)

WAC 392-139-660 Determination of maximum local effort assistance--((1993, 1996 and thereafter)) 1998. The superintendent of public instruction shall calculate maximum local effort assistance for each eligible school district for calendar years ((1993, 1996 and thereafter)) 1998 as follows:

(1) Subtract the state-wide average ten percent levy rate from the district ten percent levy rate;

(2) Divide the result obtained in subsection (1) of this section by the district ten percent levy rate; and

(3) Multiply the result obtained in subsection (2) of this section by the district ten percent levy amount.

[Statutory Authority: RCW 28A.150.290(2) and 84.52.0531(10). 93-21-092 (Order 93-20), 392-139-660, filed 10/20/93, effective 11/20/93. Statutory Authority: RCW 28A.41.170 and 84.52.0531(10). 89-23-121 (Order 18), 392-139-660, filed 11/22/89, effective 12/23/89; 88-03-007 (Order 88-6), 392-139-660, filed 1/8/88.]

NEW SECTION

WAC 392-139-661 Determination of maximum local effort assistance--1999 and thereafter. The superintendent of public instruction shall calculate maximum local effort assistance for each eligible school district in calendar year 1999 and thereafter as follows:

(1) Subtract the state-wide average ten percent levy rate from the district ten percent levy rate;

(2) Divide the result obtained in subsection (1) of this section by the district ten percent levy rate; and

(3)(a) For districts eligible for ten percent equalization, multiply the result obtained in subsection (2) of this section by the district ten percent levy amount; and

(b) For districts eligible for twelve percent equalization, multiply the result obtained in subsection (2) of this section by the district twelve percent levy amount.

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AMENDATORY SECTION (Amending Order 93-20, filed 10/20/93, effective 11/20/93)

WAC 392-139-670 Local effort assistance allocations--((1993, 1996)) 1998 and thereafter. The superintendent of public instruction shall calculate each eligible school district's local effort assistance entitlement for ((1993, 1996)) 1998 and thereafter as the lesser of the following amounts:

(1) The school district's certified excess levy for the calendar year as reported to the superintendent of public instruction pursuant to WAC 392-139-665 times the school district's state matching ratio for the calendar year calculated pursuant to WAC 392-139-625; or

(2) The school district's maximum local effort assistance for ((the calendar year)) 1998 calculated pursuant to WAC 392-139-660, and for 1999 and thereafter calculated pursuant to WAC 392-139-661.

[Statutory Authority: RCW 28A.150.290(2) and 84.52.0531(10). 93-21-092 (Order 93-20), 392-139-670, filed 10/20/93, effective 11/20/93. Statutory Authority: RCW 28A.41.170 and 84.52.0531(10). 89-23-121 (Order 18), 392-139-670, filed 11/22/89, effective 12/23/89; 88-03-007 (Order 88-6), 392-139-670, filed 1/8/88.]

AMENDATORY SECTION (Amending Order 93-20, filed 10/20/93, effective 11/20/93)

WAC 392-139-676 Monthly payments of local effort assistance--1993, 1996 and thereafter. For ((1993, 1996)) 1998 and thereafter, the superintendent of public instruction shall distribute local effort assistance moneys pursuant to the schedule provided in RCW 28A.500.010 (4)(((b))).

[Statutory Authority: RCW 28A.150.290(2) and 84.52.0531(10). 93-21-092 (Order 93-20), 392-139-676, filed 10/20/93, effective 11/20/93; 92-19-124 (Order 92-07), 392-139-676, filed 9/21/92, effective 10/22/92.]

REPEALER

The following sections of the Washington Administrative Code are repealed:

WAC 392-139-120 Definition--4121 Special education.

WAC 392-139-122 Definition--4155 Learning assistance.

WAC 392-139-126 Definition--4165 Transitional bilingual.

WAC 392-139-128 Definition--4174 Highly capable.

WAC 392-139-129 Definition--4175 Local education program enhancement.

WAC 392-139-130 Definition--4198 School food services.

WAC 392-139-132 Definition--4199 Transportation--Operations.

WAC 392-139-134 Definition--4499 Transportation reimbursement--Depreciation.

WAC 392-139-150 Definition--5200 General purpose direct federal grants, unassigned.

WAC 392-139-152 Definition--6100 Special purpose, OSPI, unassigned.

WAC 392-139-154 Definition--6124 Special education, supplemental Part B.

WAC 392-139-156 Definition--6127 Special education, deinstitutionalized.

WAC 392-139-158 Definition--6138 Secondary vocational education.

WAC 392-139-160 Definition--6146 Skills center.

WAC 392-139-162 Definition--6151 Remediation, ESEA, Chapter 1.

WAC 392-139-164 Definition--6153 Migrant, ESEA, Chapter 1.

WAC 392-139-168 Definition--6164 Bilingual, P.L. 93-380.

WAC 392-139-170 Definition--6167 Indian education, JOM.

WAC 392-139-172 Definition--6176 ESEA, Chapter 2, P.L. 100-297.

WAC 392-139-174 Definition--6177 Mathematics and science.

WAC 392-139-176 Definition--6198 School food services.

WAC 392-139-178 Definition--6200 Direct special purpose grants.

WAC 392-139-180 Definition--6246 Skills center, direct federal grant.

WAC 392-139-182 Definition--6264 Bilingual, P.L. 93-380.

WAC 392-139-184 Definition--6268 Indian education, ED.

WAC 392-139-186 Definition--6998 USDA commodities.

WAC 392-139-611 Definition--District twelve percent levy rate.

WAC 392-139-616 Definition--State-wide average twelve percent levy rate.

WAC 392-139-621 Definition--Eligible district--1994 and 1995.

WAC 392-139-626 Definition--State matching ratio--1994 and 1995.

WAC 392-139-680 Determination of maximum local effort assistance--1994 and 1995.

WAC 392-139-681 Determination of local effort assistance allocations--1994 and 1995.

WAC 392-139-685 Determination of safety net allocations.

WAC 392-139-690 Determination of proration percentages.