School finance in Washington is a complex subject. This brochure is an effort to explain the basics for parents, business and community members who wonder

• where their tax dollars are going,
• how much money the schools actually receive,
• why they’re being asked to contribute, and
• whether requests for local funding increases are justified.

Background

Following a lawsuit in 1977, the State of Washington assumed a major role in financing public education. The lawsuit required the state to fully fund basic education and, at the same time, limited the amount of special levy revenues local districts were allowed to collect. The primary sources of state school funding are the sales tax and the state property tax.

The major problem is that state basic funding — about $5,000 per student— is inadequate. More than 90 percent of the students in Washington are being educated in districts that use special levy funds to supplement the state’s basic funding level. Bellevue’s levy adds an additional $1,980 per pupil to state funding.

How our state compares to the nation

Three facts provided by the League of Education Voters show how school funding in Washington compares to the rest of nation.

• Washington is in the bottom half of the nation in per-student spending.
• Our national ranking in teacher salaries is 19th.
• Class sizes in Washington are the 4th highest in the country.
  

Primary sources of funds for Bellevue School District

Bellevue School District’s total operating budget for 2008-09 is about $173 million. The bulk of the money comes from a state per-pupil allocation. All school districts receive about the same per-pupil funding. In 2007, this is $4,658.

About 19.6 percent of the Bellevue budget comes from local levies, which must be renewed every two to four years. Levies enable the district to hire more teachers to reduce class sizes. They provide more textbooks and curriculum materials, extracurricular activities, quality music and art programs, a more complete program for gifted and special education students, teacher training, and seven, rather than five, class periods for all middle and high school students.

School districts also receive state and federal funds for students with special needs, such as gifted and special education students and those studying English as a Second Language. Just under seven percent of Bellevue’s budget comes from federal sources.

Funding limitations

Bellevue and other neighboring districts are limited in the amount of money local communities can provide. Even if local taxpayers want to support their schools at a higher rate, they are not allowed to do so.

• Teacher salaries are established by the state and are generally uniform across the state. Washington may be the only state that uses a statewide salary schedule and caps the amount that can be paid by all districts. A teacher in Bellevue earns about the same amount of money as a teacher in Moses Lake. Regional cost-of-living differences are not taken into account. The main way a teacher’s salary can increase is by working additional days beyond the 182 the state funds. In 2008-09, a beginning teacher in Bellevue earns $42,305 for working 206 days. A teacher with five years of experience and a masters degree earns $52,133.
  

How the money is spent

Like most school districts, Bellevue spends about 80 - 85 percent of its budget for salaries and benefits. The remaining 15 - 20 percent goes to the day-to-day operations of the district, schools and the programs that support them. The district funds go toward curriculum development, textbooks, professional development and classroom supplies, fuel for busses and other vehicles, heating, lighting and other utilities.

Each school within the district gets an allocation to be used for salaries of non-teaching staff, such as secretaries and classroom aides. The allocation is also to be used for classroom and office supplies, conference fees, copiers and replacement textbooks. Schools with larger populations of students with special needs also receive additional federal and state funds to provide extra services to these students.

Voters supported two school-funding related initiatives

In November 2000, voters approved two education initiatives, I-728 and I-732. Bellevue uses the latter to reduce class sizes, grades K-4, to reduce targeted class sizes in middle and high schools, to provide supplemental training days for teachers, and to provide extra support to students who are struggling academically.

As a result of I-732, school employees were to receive annual cost-of-living allowances. After a hiatus in 2004-05 when no raises were granted, the legislature granted an increase of 3.8%  for 2007-08 and 4.4% fro 2008-09.

Private Sources of Funds

In Bellevue, public funding is supplemented through private fundraising by PTAs and the Bellevue Schools Foundation.

Individual school PTAs often raise money for their schools, but the district does not track these donations. PTA funds are significantly less than one percent of the total district budget. PTA leaders work with the principal and staff at each school to set the priorities for the funds they raise. These priorities have ranged from technology labs to instructional assistants who help increase the adult-to-student ratio.

The Bellevue Schools Foundation – a grassroots community organization – was formed immediately following the 1977 lawsuit against the state to help fill the gap between the generous funding the district had received through local levy support and the reduction in funding that occurred as a result of the state taking over education funding.   Since 2002-03, the Foundation has been implenting a multi-year campaign aimed at three target areas: boosting academic standards and rigor for students, supporting professional development and classroom needs of teachers, and providing support to students who struggle academically.

Capital and Other Funds

In addition to the General Fund, which goes to staff salaries and day-to-day school operations, the district has other funds.

These funds are established for a specific purpose and cannot be used for classroom teacher salaries or school operations.

The Capital Projects Fund is supported by a combination of state matching funds, local levies, bond authorizations, investment earnings, and sales or rentals of school district properties. This fund is used for construction of new schools, systems replacements, such as heating or plumbing systems, other small facilities projects, and the purchase of techology and other equipment.

The Transportation Vehicle Fund is for the purchase of new school busses. Funding comes from local levies and state payments to offset part of the cost of replacing older busses.

When voters of a school district authorize a bond issue to finance a capital project, they also authorize property taxes to pay for the project. The Debt Service Fund is established to pay interest and pay the principal over the life of the bonds.

For more detailed information on school funding, call the Budget office at 456-4065.