1. HOW SCHOOLS ARE FUNDED 4.4

2.  Educating all of America’s children is very expensive. Where does the money come from to operate schools?

3.  A very small amount comes from Washington D.C.  The U.S. Constitution limits national-level involvement in state government.

4.  The federal government helps pay for specific programs required by federal laws, such as:  Title I (1965) for low-income families  Vocational Education Act (1963)  Bilingual Education Act (1968)  Indian Education Act (1972)  Education for all Handicapped Children Act (1975).

5.  Washington State Constitution says it is “the paramount duty of the state” to provide for education.  What does paramount mean?

6.  The State Supreme Court has ruled that the state must “fully fund basic education.”  What do you think constitutes a basic education?

7.  The funding formula is “per pupil based on attendance.”  That means, the amount of money a district receives depends on the number of students they serve each day. That’s why teachers must keep accurate attendance records.

8.  The majority of funding comes from the state budget, which is established each year by the legislature.  Education K-20 is the biggest budget item in the state budget.

9.  The Educational Reform Act (1993), commonly called House Bill 1209, has created additional funding needs for schools as they train teachers, administer assessments, and develop programs to increase student learning.

10. Levy  Districts are allowed to ask local patrons to provide additional funding. This money is called a levy.

11. Levy  Levy money can only be spent on the day-to-day operations of schools, such as electrical bills, additional busing costs, teaching materials, and extra-curricular activities.  This is called Maintenance and Operation (M&O) money.

12. Levy  Levy funds are collected from property taxes.  The ballot must clearly state the exact amount and length of time the levy will be imposed – from one to four years.  If the ballot is confusing, the election may be invalidated.

13. Levy  When the levy expires, the money is gone, unless voters “renew” the funding in another election.  That is why voters often say, “We are always voting for schools!”

14.  The state has established a “levy lid,” which is a percentage of the district’s budget that can be levied (approximately 20%).  That way, schools retain some local control of programs, but budgets from district to district cannot be substantially different or inequitable.

15. Bonds  School districts can also raise tax dollars for capital improvements. These are called bonds.

16.  Bonds pay for buildings – either remodeling or building new facilities.  They do not fund salaries, textbooks, or other operational costs. (bonds may also be sold for technology equipment, a swimming pool, or other expensive, one-time needs.)

17.  Taxpayers pay for bonds over a long period of time, between 15 to 30 years.

18.  Local school funding elections require a 60% approval rate by voters.  This is called a super majority. Other elections in Washington require 50% voter approval to pass.

19. Where From?  People pay for levies and/or bonds based on their property value.  The higher the value of their home and other real estate, the more they pay.

20.  For renters, the tax is factored into their monthly rent.  Senior citizens often qualify for exemptions from property taxes.

21.  If a levy will cost a taxpayer 2.3 cents per $1,000 of assessed evaluation, what would an owner of a $100,000 home pay for one year?

22. Being an Informed Voter  The law requires school districts to provide citizens with factual information about the levy or bond request.  Schools cannot ask people to vote yes.

23.  Individuals may organize to support or oppose tax issues, and they must register with the state Public Disclosure Commission.

24.  Citizenship in a democracy requires that people seek information about election issues.  Becoming an informed voter is our responsibility.  Read and research issues in preparation for voting.  When voters have questions or concerns, they should seek accurate answers (i.e., call the district office or school).

25. How will my money be used?  It is illegal to spend tax dollars on anything that is not stated on the ballot.

26.  What would you say if someone told you a bond request was “just to increase administrator’s salaries?”

27.  Bonds can only be spent on buildings and equipment. The ballot will state the exact amount and describe the project.

28.  If citizens approve a bond request to build a new elementary school and, once the school was completed, construction costs were under budget, can the superintendent use the extra money to buy computers for other schools?

29.  No, the money can only be spent on what the voters specifically approved. The unused money would be rolled back to the taxpayer.

30. Funding Game  Divide into two teams. If there are an uneven number of students the extra person can be the “game show host.”  A person from each team comes to the front of the class and stands with the ball between them.  The host draws a “word strip” and reads it aloud. The first player who knows the answer rings the bell and responds.

31. Closure  Very few people know what you learned today. Although the schools depend on voter approval for the operation of their programs, educating citizens about school funding is very difficult.  Remember, the difference between a levy and a bond is that levy money is spent on the maintenance and operation of schools each day. It runs out. A bond is for something much more permanent and lasting – a building.

32. Assessment  Research and create a discussion or debate regarding another funding topics such as vouchers, charter schools, additional funding sources (lottery, income tax, etc.).  Should tax dollars be given to parochial schools and/or home schools?  How does the rate of inflation, size of tax base, and strength of the economy influence revenue?