The Legislature may act this year to increase local levy limits for school districts.

The state is responsible for paying for basic education, but school districts may ask local voters to approve enrichment (formerly maintenance and operations) levies to pay for non-basic education programs. The amount that districts can levy has been limited since the 1970s, when a major school funding case found that districts were too reliant on local levies (we wrote about the history in a 2016 report). For calendar years 2011 through 2018, districts could not levy more than 28 percent of their revenues. Statewide actual enrichment revenue as a percent of total revenue is shown in the chart below.

Under current law, beginning in 2019, districts may levy up to the lesser of $1.50 per $1,000 of assessed value or $2,500 per pupil. This reduction to the limit was part of the Legislature’s response to the McCleary decision on school funding. The state property tax was increased, and the ability of local districts to ask for local levy increases was reduced.

The House-passed 2019–21 operating budget assumes passage of PSHB 2140, which would increase the limit beginning in 2020 to either 20 percent of district revenues or the lesser of $1.50/$1,000 or $3,000 per pupil. (The House Office of Program Research estimates that this would increase statewide local levies by $698.2 million in 2020 over what they would be in that year under current law, subject to voter approval.)

Last night, the Senate Ways and Means Committee approved P2SSB 5313, which would also increase the limit beginning in 2020. (Amendments are available here.) For districts with fewer than 40,000 students, the limit would be the lesser of $2.50/$1,000 or $2,500 per pupil. For districts with 40,000 or more students, the limit would be the lesser of $2.50/$1,000 or $3,000 per pupil. (Seattle Public Schools is the only district with 40,000 or more students.)