Davenport School Board Meeting Ed. Funding Update – Part 2! *** Davenport School Board Meeting Nov. 27, 2017 Analyzing HB 2242 (Education Funding Bill) & Potential Impacts (Short & Long –Term) on the Davenport School District

Learning Targets… Learn more about HB 2242 & the impacts (short & long term) on our school district Learn about the 11/15/17 Supreme Court Order Continue to explore and study possible options regarding dealing with funding shortfalls Provide guidance to supt. & business manger regarding moving forward with Capital Projects Levy and Transportation Vehicle Levy

Nov. 17 Court Ruling

Recent Supreme Court Order “The court concludes that the State is adequately funding categorical components of the basic education program in accordance with ESHB 2261 & SHB 2776.” (p. 36) “At this point, the court is willing to allow the State’s program to operate and let experience be the judge of whether it proves adequate.” (p. 37) “As things stand today, the salary allocation model enacted in EHB 2242 complies with the State’s obligation to fully fund K-12 basic education salaries, but it will not be implemented by Septtember1, 2018. The State thus remains out of compliance with its constitutional duty…the court will retain jurisdiction to ensure full compliance by the established deadline, and it will maintain the sanction…” (p. 43)

HB 2242 - Impacts Local levy capacity reduced significantly $1,087,000 Changes to Levy Due to HB 2242 We will be required to “roll back” dollars in 2019 & 2010 Levy Collection Year Levy Amount   Tax Rate 2018 $1,087,000 $4.03est. 2019 $408,940 (estimate) $1.50 2020 $417,160 (estimate)

Davenport School District 20% of our revenues!

2017-18 Levy/LEA Budgeted Expenditures Davenport School District

Supt. Reflections Don’t expect too much from the 2018 legislative session in terms of increased ed. funding beyond what they have already committed to. “McCleary Fatigue” factor Our local patrons want to support their local schools. Most “new” money is going to be “categorical”. A Capital Projects Levy (Technology, Safety, Security, & Facilities Levy) and a Transportation Levy would help the District maintain current programs and minimize the negative impacts of 2242.

Supt. Recommendations Present a Capital Projects Levy – actually a Technology, Safety, Security, and Facilities Improvement Capital Projects Levy and run it for 6 years. Put this on the February, 2018 ballot Present a Transportation Vehicle Levy and run it for 2 years. Put this on the February, 2018 ballot Enlist the assistance of Attorney Jim McNeil to ensure the wording on each resolution is correct and legal Considerable work needs to be done on educating our community on why this is important At the end of the day, ensure that the overall tax rate is lower then it currently is and that it stays as “level” as we can make it

Possible Combined Levy Tax Rates Current “M & O” Levy Expires in 2020 Tax Impact History & Projected –mil rate/$1,000 2017 2018 2019 2020 2021 2022 2023 2024 M & O Levy 4.01 4.03 1.50 Proposed Technology, Safety, Security & Facilities Improvement Capital Projects Levy .90 Proposed Transportation Vehicle Levy .45 Totals 2.85 2.40

Possible Overall Tax Rates Tax Impact History & Projected –mil rate/$1,000 2017 2018 2019 2020 2021 2022 2023 2024 M & O Levy 4.01 4.03 1.50 Proposed Capital Projects Levy .90 Proposed Transportation Vehicle Levy .45 K-8 & HS Construction Bonds 2.80 2.83 3.18 2.71 2.75 2.72 2.70 2.62 State Tax Rate for K-12 Schools 1.88 Totals 8.69 8.74 8.73 8.26 7.85 7.82 7.80 7.72

Review Mil Rates 2009-2029(assuming 3% property value growth)

Mil Rates with State Tax Included(assuming 3% property value growth)

Timelines Election Date February 13 April 24 August 7 November 6 Deadline to File December 15 February 23 May 11 Board Approves Resolution including amounts December 11 January 30 April 30 July 30 Newsletter mailed to public Mid-January Early April Mid-July Mid-October Public Hearing March 26 October 29

Questions?