S-3572.1
SENATE BILL 5789
State of Washington 68th Legislature 2024 Regular Session
By Senators Mullet, Schoesler, Dozier, Nobles, Pedersen, and Torres
Prefiled 12/04/23. Read first time 01/08/24. Referred to Committee
on Ways & Means.
1 AN ACT Relating to the sales and use tax for school construction
2 assistance program capital projects; and amending RCW 28A.525.166.
3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
4 Sec. 1. RCW 28A.525.166 and 2015 3rd sp.s. c 3 s 7018 are each
5 amended to read as follows:
6 Allocations to school districts of state funds provided by RCW
7 28A.525.162 through 28A.525.180 shall be made by the superintendent
8 of public instruction and the amount of state funding assistance to a
9 school district in financing a school plant project shall be
10 determined in the following manner:
11 (1) The boards of directors of the districts shall determine the
12 total cost of the proposed project, which cost may include the cost
13 of acquiring and preparing the site, the cost of constructing the
14 building or of acquiring a building and preparing the same for school
15 use, the cost of necessary equipment, taxes chargeable to the
16 project, necessary architects' fees, and a reasonable amount for
17 contingencies and for other necessary incidental expenses: PROVIDED,
18 That the total cost of the project shall be subject to review and
19 approval by the superintendent.
20 (2) The state funding assistance percentage for a school district
21 shall be computed by the following formula:
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1 The ratio of the school district's adjusted valuation per pupil
2 divided by the ratio of the total state adjusted valuation per pupil
3 shall be subtracted from three, and then the result of the foregoing
4 shall be divided by three plus (the ratio of the school district's
5 adjusted valuation per pupil divided by the ratio of the total state
6 adjusted valuation per pupil).
7 District adjusted Total state
8 3-valuation ÷ adjusted valuation
9 Computed per pupil per pupil State
10 State = ———————————————— = - % Funding
11 Ratio District adjusted Total state Assistance
12 3+valuation ÷ adjusted valuation
13 per pupil per pupil
14 PROVIDED, That in the event the state funding assistance percentage
15 to any school district based on the above formula is less than twenty
16 percent and such school district is otherwise eligible for state
17 funding assistance under RCW 28A.525.162 through 28A.525.180, the
18 superintendent may establish for such district a state funding
19 assistance percentage not in excess of twenty percent of the approved
20 cost of the project, if the superintendent finds that such additional
21 assistance is necessary to provide minimum facilities for housing the
22 pupils of the district.
23 (3) In addition to the computed state funding assistance
24 percentage developed in subsection (2) of this section, a school
25 district shall be entitled to additional percentage points determined
26 by the average percentage of growth for the past three years. One
27 percent shall be added to the computed state funding assistance
28 percentage for each percent of growth, with a maximum of twenty
29 percent.
30 (4) In computing the state funding assistance percentage in
31 subsection (2) of this section and adjusting the percentage under
32 subsection (3) of this section, students residing outside the school
33 district who are enrolled in alternative learning experience courses
34 under RCW 28A.232.010 shall be excluded from the count of total
35 pupils. In lieu of the exclusion in this subsection, a district may
36 submit an alternative calculation for excluding students enrolled in
37 alternative learning experience courses. The alternative calculation
38 must show the student head count use of district classroom facilities
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1 on a regular basis for a reasonable duration by out-of-district
2 alternative learning experience students subtracted by the head count
3 of in-district alternative learning experience students not using
4 district classroom facilities on a regular basis for a reasonable
5 duration. The alternative calculation must be submitted in a form
6 approved by the office of the superintendent of public instruction.
7 The office of the superintendent of public instruction must develop
8 rules to define "regular basis" and "reasonable duration."
9 (5) The approved cost of the project determined in the manner
10 prescribed in this section excluding taxes chargeable to the project
11 multiplied by the state funding assistance percentage derived as
12 provided for in this section, plus state sales and use taxes levied
13 through the state of Washington and local option sales and use taxes
14 levied by political subdivisions chargeable to the project, shall be
15 the amount of state funding assistance to the district for the
16 financing of the project: PROVIDED, That need therefor has been
17 established to the satisfaction of the superintendent: PROVIDED,
18 FURTHER, That additional state funding assistance may be allowed if
19 it is found by the superintendent, considering policy recommendations
20 from the school facilities citizen advisory panel that such
21 assistance is necessary in order to meet (a) a school housing
22 emergency resulting from the destruction of a school building by
23 fire, the condemnation of a school building by properly constituted
24 authorities, a sudden excessive and clearly foreseeable future
25 increase in school population, or other conditions similarly emergent
26 in nature; or (b) a special school housing burden resulting from
27 projects of statewide significance or imposed by virtue of the
28 admission of nonresident students into educational programs
29 established, maintained and operated in conformity with the
30 requirements of law; or (c) a deficiency in the capital funds of the
31 district resulting from financing, subsequent to April 1, 1969, and
32 without benefit of the state funding assistance provided by prior
33 state assistance programs, the construction of a needed school
34 building project or projects approved in conformity with the
35 requirements of such programs, after having first applied for and
36 been denied state funding assistance because of the inadequacy of
37 state funds available for the purpose; or (d) a condition created by
38 the fact that an excessive number of students live in state owned
39 housing; or (e) a need for the construction of a school building to
40 provide for improved school district organization or racial balance;
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1 or (f) conditions similar to those defined under (a), (b), (c), (d),
2 and (e) of this subsection, creating a like emergency.
3 (6) For the 2015-2017 biennium, schools determined to have a lack
4 of sufficient space to provide science classrooms or labs, to meet
5 the requirements of law, have a special housing burden condition
6 similar to those defined under subsection (5)(b) of this section,
7 creating a like emergency. For the 2015-2017 biennium, school
8 districts are entitled to additional percentage points for school
9 construction projects that have a special housing burden condition
10 only and have received private donations in the form of cash, in-
11 kind, or equipment of more than one hundred thousand dollars. The
12 additional percentage points are determined by (a) school district
13 student enrollments in the free and reduced-price meals program, (b)
14 school district class as defined by RCW 28A.300.065, and (c) the
15 funding assistance percentage as calculated in subsection (2) of this
16 section. The additional percentage points under (a) of this
17 subsection are twenty percent of the percent of student enrollments
18 eligible and enrolled in the free and reduced-price meals program.
19 The additional percentage points under (b) of this subsection are ten
20 for second class school districts. The additional percentage points
21 under (c) of this subsection are ten for school districts with
22 funding assistance percentages of more than fifty percent.
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Statutes affected: Original Bill: 28A.525.166