Opinion: School district levies – What they are and aren’t

Dick Rylander explains the complexities of school district levies, breaking down how they work, what they fund, and their impact on taxpayers.
Dick Rylander explains the complexities of school district levies, breaking down how they work, what they fund, and their impact on taxpayers. File photo

Dick Rylander does his best to explain and clarify

Dick Rylander 
for Clark County Today

There appears to be a vast difference in what people think they know and what is actually true about school district levies. In today’s article we’ll do our best to explain and clarify. 

Search inquiry AI output: 

Dick Rylander
Dick Rylander

A school district levy in Washington State is a local property tax that is passed by voters to generate revenue for the local school district. This revenue is used to fund enhancements to the state-funded basic education, such as hiring additional staff, providing student programming and services, and covering other expenses that are not funded by the state. There are different types of levies, including enrichment, capital (which includes technology), and transportation levies, each with varying durations and purposes. 

Enrichment levies, also known as School Programs and Operations (SP&O) or Maintenance and Operations (M&O) levies, allow a district to provide additional resources like teachers, support staff, supplies, materials, or services. These levies can be approved for up to four years. 

Capital levies, which include technology levies, are used to fund technology, enhanced building security, and smaller renovation projects. They can be approved for up to six years. 

Transportation levies fund new buses or major repairs to older buses to prolong their useful life and can be approved for up to two years. 

Since 2019, the levy rate has been capped at $2.50 per $1,000 of assessed property value or a rate that would generate $2,603 per student, whichever is lower. The exact levy rate a district can pass depends on the average property value in the district. 

Levy elections require a simple majority (50% plus one vote) to pass. 

We posted in the Facebook Group: Battle Ground WA asking for questions about levy’s. After sifting through 150 comments the following questions appear to cover most everything. Some can only be answered by the district (a list of Qs was sent). 

What types of levies can be run? 

Answer: Almost anything the district thinks it can deliver and the voters will approve; enrichment; transportation, tech…anything they want to ask for. Recent additions are called Capital Levies. In the past there was one type of levy: M&O (Maintenance and Operations). Most school districts used the M&O money for personnel costs for basic education, in violation of the intent and law. This changed when the legislature created the EP&O Levy (Educational Programs and Operations) which is now essentially money going into the general budget to be used as a district chooses. 

What can the money be used for? 

Answer: The topic of the levy defines the general intent. However, the text of current levies rarely limit the spending; words like “such as” and “could be” give the district the latitude to address the spending that they identify as the highest priority. Make sure to ask for exact details and whether they can move money to different uses or not. 

Are there different durations of levies? 

Answer: Yes, the legislature allows for 2,3,4,5, and 6 year durations for basic levies. Most levies go for the maximum. Capital levies can go for up to 6 years while other levies can go up to 4 years. 

What does it take to pass a levy? 

Answer: 50% +1 of those who vote must say yes.  

Is there a limit on the number of levies that can be in place at any one time? 

Answer: No. 

Is a “renewal levy” really a renewal even if it has an increase in requested funds? 

Answer: That’s a matter of interpretation. Calling a levy a “renewal levy” is really just a reminder that the most recently approved levy is ending. The Pro levy people say if the expiring levy has the same title as the next levy that it’s NOT new but a renewal. For those supporting the CON side if more money is being asked for, regardless of using the same title, then it’s a “NEW” levy. 

How much money can be collected for any given levy? 

Answer: Any levy is actually a request for a specific number of dollars; the cost for each property owner will vary as the value of all property in the district changes over the years.. Regardless of the change in value of assessed value of real estate the amount of money collected stays the same. 

What is the levy “rate” and what does it mean? Why does it change? 

Answer: Every property is assigned an “assessed value” by the county assessor. In the case of levies a fixed amount of money is to be collected on an annual basis. Allocating that money to the assessed value produces a “rate” per $1,000 of value. That number may go up or down based on the value of a given property. As values increase the rate generally goes down…but…the amount of money collected stays the same regardless of the value change. Levy proponents frequently focus on the “rate” to attempt to show the impact is low. 

How many times can a levy be run? 

Answer: 2x per year. February, April, August or November. It’s worth noting that school districts have agreed in their contracts to notify the Unions if there is any possible “reduction in force” by mid May of each year. For the next school year budget planning process that’s why they use February and April. 

What’s the difference between a Levy and a Bond? 

Answer: In the past the difference was stark. Levies raised money for maintenance and operations. Bonds were money borrowed from investors with repayment over 20+ years for major projects (usually buildings); bonds are essentially a mortgage on our school buildings. Bonds require a 60% approval. Levies require 50% +1 to pass. However, there is now a “Capital Levy” which can have a duration of up to 6 years. The money is intended for large projects (like buildings and other capital intensive projects). Bonds have an interest charge but levies do not. 

Why do school districts in Washington need levies if the state funds public education, specifically when there is a prototypical school model.  

Answer: This is a complex problem for our school district administrators.  In 2017, the legislature came up with a state-wide property tax rate and the Washington Supreme Court agreed that we were then amply funding a basic education.  However, the Washington Legislature, the U.S. Congress, the courts, and our school districts have continued to expand the definitions of a basic education and the expectations that any parent can have for the services to be provided by our local school districts.  The local operations levies are being used to cover the difference between a basic education, as defined in 2017, and what the districts assess that they need to provide.  The districts across our state have to choose between asking for more money or asking for legislative support for limitations on their expenditures.  They are currently asking for more money (which, if supplied will require increases in taxes). 

The prototypical school model and all of the local-level adjustments to it are merely a method to allocate the money that the state can afford for K-12 education amongst the 295 school districts in Washington.  This model is not the reason that six out of every seven students in Washington are enrolled in districts with poor financial health.  

Detailed description of where our current levy funds are going. What exactly is our current levy paying for with actual dollar amounts shown.  

Answer: This information must be provided by the school district.  If you are interested in finding out how money was spent on enrichment, ask your elected school district director to review the audit data required by the legislature (RCW 43.09.2856: School district audits—School district compliance with RCW 28A.150.276 and 28A.505.240—Report of findings.). 

New construction impact fees – why don’t they pay the bills? 

Answer:  BGSD has the 2nd highest impact fee in Clark County as of 2023. It was $10,760. school impact fees.pdf Apartments pay $3,845. Impact fees can only be used for capital projects that respond to growth. A district can purchase portable classrooms, add classrooms, create facilities for programs that need more room. The follow on question is how much has the district collected in the past 5 years and how specifically have they spent it? We are waiting for the district to answer the question. 

Why isn’t lottery or cannabis money being used to support schools? 

Answer: Because the legislature chooses to use the money for other programs 

Is the State meeting its “paramount duty” to fully fund K-12 education? 

Answer: The simple answer is yes it is. It’s complex. The supreme court (McCleary ruling) set certain requirements for the state to meet. They have done that. There is a significant misunderstanding on what “paramount duty” is and means. There is a completely separate report available for those who are interested. 

Do apartments and businesses pay the Levies? 

Answer: Yes but indirectly. Renters pay the cost as part of their rent because the property owners pay the tax. Business owners who own their own land and buildings also pay the levy tax. Most of us think of houses as paying the taxes but it’s much bigger than that.  As a comparison, the Seattle School District just passed their operations levy with a rate of $0.78/$1,000-Assessed-Value as compared to Battle Ground’s $1.95/$1,000-Assessed-Value.  The difference is a result of the property value of businesses in the Seattle School District. 

What does it cost the school district for the Feb and Apr ballot costs? What is the cost of creating a brochure, setting up a website, mailing a brochure, etc.? 

Answer: According to the Clark County WA Elections Dept it cost the BGSD about $180,000 for the February special election and a projected $240,000 for the April special election. This totals about $420,000. On top of this is the mailer and postage plus personnel time. Past estimates to create, print and mail a brochure was north of $15,000. 

How do school levies affect local property taxes? 

Answer: When a levy is passed the amount of money to be collected is defined per property and a tax bill generated. The more money approved in the levy the cost is passed on to the property owner. 

What happens if a levy does not pass? 

Answer: Given that levies constitute 12-18% of the operating budget, the loss of that money means fewer services and personnel. Given that 80-85% of school district budgets are for personnel, that’s the major way to trim costs. 

Why is the operations levy rate ever changed?  

Answer: The “rate” shows as an amount per $1000 of assessed value. It is an estimate. As the collective value of all properties in the levy jurisdiction increases the “rate” declines…even though the amount of money collected is defined. If property values declined the “rate” would rise. So, the rate is a snapshot in time but has no impact on the tax money collected. 

Summary 

Hopefully this provides more answers and is helpful. Please reach out to the school district you live in and ask specific questions. In the end make an informed decision as to how to vote. 


Also read:

Receive comment notifications
Notify of
guest

3 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
3
0
Would love your thoughts, please comment.x
()
x