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Published on Friday, April 14, 2017

Data on impacts of House and Senate education funding proposals

The House and Senate budgets assumed very different approaches to education funding reform. It is our understanding that the two chambers continue to meet to reach a compromise on this priority issue for the session and a key piece of the overall budget negotiation process.

Data summarizing the impacts by school district was released last week here. The spreadsheets include a summary of the proposals; the House impacts; and the Senate impacts, including two scenarios with and without implementation of a 10 percent local effort levy.

The House proposal HB 2185:

  • Funds education initiative I-732 related to teacher cost of living adjustments;
  • Suspends I-1351 related to class size for grades 4-12;
  • Keeps the current school funding formula;
  • Makes a number of changes related to teacher salaries; and
  • Extends the local levy authority temporarily extended by ESB 5023, the levy cliff bill passed earlier this session and signed into law on March 15.

The revenue sources in the summary assume passage of HB 2186, the House revenue proposal, and HB 1764, changing the state and local property tax levy limit from one percent to a limit based on inflation and population.

The Senate proposal, reflected in SSB 5607 as amended by ESSB 5875, repeals both I-732 (but makes adjustments to teacher salaries based on inflation) and I-1351 permanently; changes the school funding formula to a per-pupil funding model; makes other changes to teacher salaries; and assumes ESB 5023 continues to be current law, including Office of the Superintendent for Public Instruction (OSPI) approval for school district M&O levies. The revenue source, which passed the Senate in SSB 5607 and was amended by ESSB 5875, includes a shift of local levy authority to the state (levy swap) that would not be subject to the one percent property tax levy limit.

For more information on what is at stake for cities in the budget negotiation process, see From the Director.

Categories: Budget & finance