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Tax rates by island

San Juan School District lowers
amount of levy requested

posted 01/14/02
Last month, San Juan Island School Board repealed its Nov. 2001 M&O levy resolution and approved a new one which asks for $260,000 less. Instead of asking for a 36 percent increase over four years the districty are asking for a 31 percent increase.

Maintenance and operations levies provide 20 percent of the district's funding. School districts in Washington can ask for one, two, three or four year levies. In 1997, the district asked for a four-year levy which was approved by 80 percent of the voters who turned out for the election.

According to Superintendent Steve Enoch the district's attorney recommended minor changes in language to the original resolution. The new amount resulted from changes made to the error factor, it was reduced from 6 percent to 2 percent. The levy amount assumes a 12 percent increase in assessed values over the four year period. A 3 percent increase in basic education funding from the state and the continuation of funding from Initiatives 728 and 732 are also part of the assumptions.

When calculating the levy amount, the district estimates the amount of funding it expects to receive from the state and federal government. Under state law it can collect up to 24 percent of that amount through property taxes. The levy rate is calculated by taking the dollar amount and dividing it by the assessed value of the property in the school district. If assessments increase, the levy rate needed to collect that amount goes down. The dollar amount collected remains the same.

Four-year school levies will be on March ballot

By Sharon Kivisto

posted 12/03/01
In 1998, voters approved a four-year maintenance and operations levy for San Juan Island School District. Last week (Nov. 28, 2001) the school board approved a recommendation by superintendent Steve Enoch to ask voters for another four year levy in 2002. Voters will be asked to approve a 36 percent increase in the tax dollars collected over the four years. The amount increases from the current $1,208,444 to $1,652,904 in 2006. Enrollment is expected to increase 2 percent during the same period.

Maintenance and operation levies are used by school districts to supplement the tax money received from the state. Prior to 1998 districts could only ask for one- or two-year levies. Legislators gave districts the option of placing one-, two, three- or four-year levies on the ballot. A 60 percent approval rate is required for passage of a levy. The turnout must be at least 40 percent of the most recent election for the vote to be validated. Orcas Island and Lopez Island school districts will also be asking voters to approve four-year levies on March 12, 2002. Neither of those districts have set the amount yet.

Enoch explained his recommendation to the board which included newly elected members Emily Orr and Robert Mancuso. "It is not a new tax. It is not an increase," he said. "The levy rate is almost identical to what was approved four years ago."

The levy rate asked for in the 2002 request ranges from $.83 per thousand dollars of assessed value in 2003 to $.93 cents per thousand in 2006. in the 1998 vote, a levy rate of $.89 cents for 1999; $.92 for 2000; $.92 for 2001; and $.93 for 2002 was approved.

The art of calculating levy rates

San Juan Island School District Business Manager Terry Coulter explained the intricacies of school district finances during the Nov. 28 meeting.

While the amount per FTE (full-time equivalent) student is often referred to, the state actually funds the schools based on the number of teachers and their place on the state salary chart. Unlike many other states, school districts in Washington are not penalized for hiring more experienced teachers. The state pays districts more if they have a more experienced staff.

Because property tax assessments increased 29 percent in 1999, the actual levy rate assessed this year was $.75 per thousand. If the 2002 M&O passes, next year property owners will pay $.83 per thousand of assessed value, an increase of 10 percent.

To set a levy rate, the school district adds up the amount of funds it expects to collect from the state and the federal government. School districts can ask voters to approve taxes equal to 24 percent of that amount. Business Manager Terry Coulter told the board, "Traditionally this district used 60 percent of its taxing ability (before 1998). I got the definite impression from the board that you want to take 100 percent of the tax available."

Coulter noted the complicated process of computing the tax levy is an art. The district estimates the amount of funding it expects to receive from the state and federal government. It multiplies that amount by 24 percent to calculate the highest amount allowed. The levy rate is calculated by taking the dollar amount and dividing it by the assessed value of the property in the school district. If assessments increase, the levy rate needed to collect that amount goes down. The dollar amount collected remains the same.

If the school district over estimates the amount it will receive from the state, the dollar amount it is allowed to collect will be less than estimated. Coulter noted the district has an excellent record of estimating the highest amount that can be collected and "not leaving dollars on the table."

Coulter estimates the amount collected from the state and federal governments will increase from the current $$4,816,264 to $6,587,662 in 2006. If voters approve the 2002 levy and the school district's estimates hold up, the total funding would increase from $5,878,764 in the current year to $8,240,556 in 2006.

When asked if it will be difficult to pass a tax increase in the current economic climate and in light of county voters recent approval of Initiative 747, board members expressed confidence the voters want to fully fund the school district.

Enoch said, "I stayed out of your discussion of the M&O levy to fully fund the schools as allowed by law. To take any other position would be irresponsible. There is nothing to be tiptoeing about."