Subject of Possible Rule Making: Chapter 392-139 WAC, finance -- Levies, school district maintenance and operation levy authority and eligibility for local effort assistance (LEA).

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 84.52.0531(9), 28A.150.290.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: 1. Rules are updated to reflect changes in state and federal revenues in the levy base.

     2. Changes are proposed to prevent an M&O levy from qualifying for LEA then being transferred to the debt service fund to also qualify for state school construction matching money.

     3. Changes are proposed to prevent moneys received by a school district as a fiscal agent from substantially increasing a district's LEA eligibility and reducing LEA eligibility for other school districts.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Early solicitation of public comments and recommendations respecting new, amended or repealed rules, and consideration of the comments and recommendations in the course of drafting rules.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by sending written comments to Rules Coordinator/Legal Services, Office of Superintendent of Public Instruction, P.O. box 47200, Olympia, WA 98504-7200, fax (360) 753-4201, TDD (360) 664-3631. For telephone assistance contact Allen Jones, (360) 753-6708.

Dr. Terry Bergeson

Superintendent of

Public Instruction

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