Cutbacks For Schools: How Deep? Local Property Tax Lid Reverts To ‘93 Level Without Extension

Even though state legislators have agreed that education is their top priority, local school districts are bracing for staff and program cuts.

Landowners, meanwhile, may get at least a temporary break on their property tax bills.

Some cutbacks are certain, and more will occur unless legislators vote to extend districts’ ability to collect local property tax levies equal to 24 percent of what they collect from the state and federal governments.

Without an extension, the local property tax lid will decrease to 20 percent, the level before the Legislature temporarily raised it in 1993.

Spokane School District 81 may get $6 million less per year. The Mead and Central Valley school districts will each have about $1.4 million less per year, East Valley $900,000 and West Valley $500,000.

“Emotionally, it’s going to have a great impact,” said West Valley Superintendent Dave Smith. “It’s pretty traumatic.”

For schools to levy any local property tax, they must gain approval from district voters. But under no circumstances can a local operating levy exceed the state-imposed lid.

Even if the higher lid is restored, it won’t be in time for the 1997-98 school year, but “if it’s just for one year, you have a lot more flexibility than if it’s permanent,” said District 81 Superintendent Gary Livingston.

Local levy money helps to pay for teachers and such programs as music, advanced placement, special education and sports.

“They would be the targets” if cutbacks occur, Livingston said.

Livingston and other local school administrators argue school levies are a local-control issue and that district taxpayers should be allowed to decide for themselves how much they want to spend on schools. Voters overwhelmingly approved District 81’s 1997-98 local tax levy.

“That indicated the public is willing to pay for the services the levy provides,” Livingston said.

But others argue the original increase in the state-imposed lid was intended to be temporary and shouldn’t be made permanent. Rep. Larry Crouse, R-Spokane Valley, said he has received letters from constituents who are frustrated with rising property taxes.

“If you set it at 24 percent, the schools go to 24 percent and in a couple of years they’ll ask for 26 percent,” Crouse said. “They have good arguments and I understand that. But there comes a time when you have to say no.”

Gov. Gary Locke has proposed increasing the state-imposed lid to 22 percent in 1998-99, then permanently back to 24 percent in 1999-2000.

The House is expected to vote today on a proposal to establish a permanent 24 percent lid in 1999-2000, with the Senate expected to follow suit.

Under Locke’s plan, more money would be devoted to levy equalization, which sets aside additional state money to boost revenues for poorer school districts that are less likely to supplement their budgets with voter-approved local levies. Locke proposes increasing the rate from 10 percent of a district’s state and federal money to 12 percent by 1999.

In the Riverside School District, that would provide an extra $150,000.

House and Senate lawmakers want to study the distribution of levy equalization money. In the meantime, the proposed House budget would increase the rate to 12 percent only for those districts in the poorest 25 percent, including Riverside.

The proposed Senate budget doesn’t include any increases for levy equalization.

“We don’t have that kind of money,” said Sen. Jim West, R-Spokane, chairman of the Ways and Means Committee.

, DataTimes