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Ways & Means weighs raising levy caps and property‑tax growth limits to shore up K‑12 funding
Summary
Senate Bill 5812 would raise local per‑pupil levy caps, adjust local effort assistance, remove the enrollment cap on special‑education excess‑cost calculations beginning in 2028, and raise the property‑tax revenue growth limit formula (capped at 3%), staff told Ways & Means.
Senate Bill 5812 would adjust local‑levy authority for school districts, change special‑education counting rules, and revise the property‑tax revenue growth limit for state and most local governments, staff told the committee at a briefing and public hearing on April 16.
Committee staff described K‑12 elements: increase the maximum per‑pupil levy limit for enrichment levies above inflation, raise local effort assistance (LEA) threshold in staged increases, require OSPI to convene a funding‑equity work group, and remove the enrollment cap for calculating excess special‑education costs beginning in September 2028. OSPI’s fiscal estimate noted state general‑fund impacts and increased local levy capacity; the briefing put OSPI’s general‑fund impact at roughly $193 million in the 2025‑27 biennium and larger totals in the four‑year outlook, with local levy impacts also shown.
On property taxes, staff explained the bill would change the annual revenue growth limit (currently the lesser of 1% or inflation) to 100% plus population and inflation (using the CPI or IPD) subject to a 3% maximum annual increase. Staff presented an $818 million four‑year state revenue estimate tied to the property‑tax change.
Supporters — including superintendents from Bellevue and Yakima, the Washington Education Association, the Association of Washington Cities and county officials — argued the measures provide local flexibility to fund schools and preserve essential services. Bellevue Superintendent Kelly Aramaki and Yakima Superintendent Trevor Green testified the measures would help districts facing severe shortfalls from declining federal funding, enrollment changes, and rising costs.
Opponents included taxpayers and groups worried about increased property taxes and effects on homeowners, renters and housing costs. Speakers urged the legislature to prioritize basic education funding increases like MSOC and special‑education multipliers rather than shifting funding to levies.
Why it matters: SB 5812 combines local‑levy changes and a structural change to property‑tax growth limits that could produce hundreds of millions in additional local and state revenue if local governments exercise the new options. Supporters said the changes avert cuts to education and local services; opponents warned of higher property tax bills and affordability impacts.
The committee requested additional details and tables from staff and accepted public testimony; no final action occurred at the hearing.
