School districts to potentially lose millions from levy cliff

A levy cliff would decrease funding by 4 percent for most school districts

The state Legislature made a number of changes to the school districts’ maximum levy authority that was set to expire in 2018. The changes are meant to address what the districts were calling a fiscal crisis.

The Legislature declared its intent to implement a new funding formula for Washington state schools, according to a document sent by the Business Service Analyst of the Kent School District.

As of now, a new formula has not emerged. Without a new formula, the districts contend there will be a levy cliff.

Three components make up the levy cliff: rolling the levy lid back by 4 percent, the loss of ghost money and the loss of local effort assistance (LEA).

With the levy lid rolling back 4 percent, the Kent School District would lose $10 million for the 2018 fiscal year. Tahoma School District would lose $4.2 million. The loss of ghost money adds up to an additional $5.2 million and the loss of LEA would another $5.8 million for the Kent School District. The total for the Kent School District is about $22 million, according to district officials.

While the Tahoma School District isn’t losing as much as the Kent schools, both districts will be impacted significantly. School districts are hoping the Legislature will extend the levy authority by at least one year, said Kevin Patterson, Tahoma School District director of communications.

The impact would not be seen immediately in the Tahoma School District, like it would be in the Kent School District. The Tahoma School District would make up for the loss by using reserve funds for the 2018 school year, Patterson said.

The Kent School District will see immediate changes, and it would require changes in programs and further reductions from those currently underway. It will require much tighter staffing in all of our schools and programs.