AB 662

Under current law, a school district may establish community education,

training, recreational, cultural, or athletic programs and services. The school board

may collect fees to cover all or part of the costs of such community programs and

services. Current law excludes such costs from the school district's shared cost and

increases the school district's revenue limit by the amount of property taxes levied

for community programs and services. The Department of Public Instruction (DPI)

publishes guidelines regarding community service activities; see

http://sfs.dpi.w.gov/sfs_comm_serv_fund_info.

This bill directs DPI to promulgate rules defining eligible costs for community

programs and services and provides that only those expenditures that are eligible

costs under the rules are excluded from a school district's shared cost.

In addition, the bill requires each school board to submit an annual report to

the Department of Revenue (DOR) detailing the school board's expenditures in the

previous school year for community programs and services. DOR must determine

for each school district whether any such expenditures were ineligible under DPI's

rules and certify to DPI the total amount of ineligible expenditures for each school

district. The bill decreases a school district's revenue limit by the amount of its

ineligible expenditures.