This bill seeks to enhance funding for K-12 education and improve community safety in Washington State by modifying property tax authority and adjusting the school funding formula. It proposes increasing the levy authority for state and local property tax limits from one percent to three percent, which aims to provide adequate funding for schools and public safety services. Key amendments include raising the maximum dollar amount for school district enrichment levies from $2.50 to $2.50 per $1,000 of assessed property value and establishing a new local effort assistance funding structure for school districts, increasing the threshold for assistance from $1,550 to $1,550 per student, adjusted for inflation. The bill also revises definitions related to "inflation" and "limit factor" to better align with current economic conditions.

Additionally, the bill mandates that by September 1, 2025, the Department of Revenue must provide county assessors with necessary limit factors annually, and by October 1, 2025, county assessors must notify taxing districts of applicable limit factors. It repeals previous provisions related to limit factors for taxing districts and establishes that new regulations will apply to taxes levied for collection in 2026 and beyond. The bill also revises funding allocation for special education programs and requires the superintendent of public instruction to convene a K-12 funding equity work group to analyze and propose revisions to funding formulas. This work group is tasked with reporting its findings annually through 2027. Furthermore, the bill introduces a framework for the superintendent to propose options that do not exceed estimated additional state revenue, with certain provisions set to take effect on September 1, 2028, allowing for a phased implementation.

Statutes affected:
Original Bill: 84.52.0531, 28A.500.015, 84.55.005, 84.04.140, 28A.150.390, 28A.150.392, 28A.150.560