Levy: Frequently Asked Questions

Funds for schools come from three main sources:

  1. State funding for basic education

  2. Bonds

  3. Levies

The state of Washington is required to supply school districts with state funding for “basic education.”

Funding for basic education is based on a “prototypical school model” which represents the Legislature’s allocation of resources required to provide the program of basic education.

Outside of state funding, schools may receive money for facilities, programs, and services from voter-approved bonds and levies. Because the funding provided by the state does not cover the actual costs of operating a school district, districts often utilize bonds and levies to bridge the gap.

These Frequently Asked Questions (FAQ) aim to help explain the primary ways that school districts in the state of Washington receive funding and why local, voter-approved bond and levy measures are critical to funding education.

What is the difference between a bond and a levy?

Levy

A Levy is a local property tax passed by the voters of a school district that generates revenue to fund programs and services that the state does not pay for as part of basic education.

Because the funding provided by the state does not cover the actual costs to operate a school district, districts often use levy funds to hire additional staff, or for student programming and services that are underfunded or not funded by the state.

Some of the many things that levies help to fund may include:

  • Extracurricular activities

  • Special education

  • Transportation

  • Foodservice

  • Operations

  • Grounds and maintenance

  • Preschool

  • Other activities

Educational Programs and Operations (EP&O) levies (formerly called Maintenance and Operations levies) allow a school district to provide things like:

  • Teachers

  • Support Staff

  • Supplies

  • Materials

  • Services that the state only partially funds.

Funding provided by the state does not fully cover the actual costs of operating a school district, so levies fill in the gap.

A replacement levy is the renewal of an existing school levy that is about to expire.

Typically, if a district is asking for a replacement levy to be approved by voters, it means that it is simply the continuation of an existing tax.

Bonds

A Bond is a long-term investment that authorizes the district to purchase property for schools, construct new schools, or modernize existing schools.

Bonds are sold to investors who are repaid with interest over time from property tax collections, generally between 12-20 years.

Both bonds and levies require voter approval, but in Washington, bonds require a higher majority of voter approval than levies.

Bonds require a supermajority to pass (60%).

Levies require a simple majority to pass (50% + 1).

How are bonds and levies approved?

What is a levy rate?

A levy rate is the amount of property tax per $1,000 of assessed property value to fund a voter-approved levy amount.

A levy rate of $1.00 means that for every $1,000 of property value, the owner of the property will have to pay $1.00 in taxes.

Voters can approve an EP&O levy for up to four years.

After the allotted number of years, the levy expires. Districts typically then go back to their voters and ask for a continuation, replacement, or enrichment levy.

How often can school districts run levies?

Is there a limit on the dollar amount a district may propose for an enrichment levy?

Yes. This maximum dollar amount is known as the “levy lid.”

As part of the changes the Legislature made to the way the state funds education in Washington, also known as the “McCleary decision,” levy rates are capped at $2.50 per $1,000 of assessed property value.

A levy may not collect more than $2,500 per student maximum ($3,000 per student in Seattle only), a dollar threshold that is adjusted annually based on inflation.

Yes! Washington State law provides two tax benefit programs for senior citizens and individuals who are disabled: property tax exemptions and property tax deferrals.

For more information on qualifications, please contact your local county assessor's office.

Is there a tax break for senior citizens?

What About State Funding?

Do all public schools receive state funding?

Yes, but the amount that districts receive varies based on a number of factors.

For example: Enrollment, regional cost of living differences, poverty rates, and the number of special needs or non-English speaking students are all factors in the amount of state funding a district receives.

Most districts also receive additional federal funding, which is mostly determined by levels of poverty and special needs populations within a district.

Yes, but the funding does not cover the actual costs of operating a school district.

The Washington State Supreme Court decision on the McCleary lawsuit resulted in public school districts seeing a net funding increase in 2018.

Even though the state increased the amount of funding it was providing to school districts, it also capped the amount of funding school districts could raise from local levies.

The Legislature also applied restrictions to how funding can be used.

For local school districts, this means that levies have been significantly impacted, causing widespread confusion in communities across the state.

Didn’t Washington schools already receive money from the state because of the McCleary decision?

What are “state match dollars?”

Many school districts can qualify for additional financial assistance from the state of Washington to help build or modernize facilities.

The state determines the amount of square footage that each student needs (the amounts are different for elementary, middle, and high schools) and assigns a dollar amount per square foot based on current average construction cost estimates.

Both new construction and remodeling projects can be eligible for state assistance.

While these matching funds are helpful for bond projects, only a limited percentage of actual costs are typically covered using this formula, leaving the rest of the cost to the school district and the local community (via a bond or capital levy).

Please call the district office at (509) 775-3173

What do I do if I have more questions or concerns?