State budget solution will save Tri-City homeowners money — eventually

The state’s new education budget offers eventual relief to Tri-City taxpayers, but they are likely to see a property tax increase before they get there.

The dust is settling on an 11th-hour compromise budget that was approved June 30, narrowly averting a partial shutdown of state services.

Next year the state is instituting an 81 cent per $1,000 of assessed value increase in the state property tax, with the revenue going to schools.

The switch is part of a long-term plan aimed at shifting the burden of paying teachers away from local districts and onto the state.

Accompanying the change is a decrease in the local levies for the local districts.

The problem for local property owners is that decrease will come one year after a property tax hike in 2018 across almost every district in the state, according to Office of Financial Management numbers.

The Tri-Cities are not an exception. The median house in Kennewick is worth $185,000, and a typical homeowner will pay $160 more next year.

In Pasco, the numbers are similar, with a $189,000 home costing $160 more, and in Richland, a $212,000 home will cost $180 more.

State Sen. Sharon Brown, R-Kennewick, explained the shift has less to do with the Legislature and more to do with the timing. The current local maintenance and operation levies expire at the end of 2018.

When 2020 rolls around, the amount allowed for local levies will drop to $1.50 per $1,000 of assessed value.

In both Richland and Kennewick, a median homeowner’s taxes will drop by $193, according to the Office of Financial Management.

In Pasco the decrease is more dramatic, with the median homeowner paying $345 less per year.

All of the figures are based on no other changes, and local levies being approved at the full amounts.

The new money for school districts comes with additional state oversight. Before putting a levy on the ballot, districts will need to present a plan to the Office of the Superintendent of Public Instruction detailing how the money would be used.

Pasco, Richland and Kennewick are slated to ask voters to approve levies in February. Those ballot measures will be subject to the new rules.

In the end, Brown and Gov. Jay Inslee called the new budget a victory for education in the state.

Inslee called the plan historic, saying it will provide full funding for schools for the first time in more than 30 years.

“This budget, at long last, meets our constitutional obligations to fully fund basic education, and addresses the responsibilities we have under the McCleary decision to equitably fund our schools,” he said after signing the budget.

Brown said overall Tri-City residents will see lower taxes, and more money going to its schools.

“I’m very happy with the overall solution,” she said. “It’s a win-win for the district. ... I believe this is a significant investment in education for the state of Washington. We’re adding $3.8 billion between 2017 and 2019.”

The Office of the Superintendent of Public Instruction is sorting through how much money local school districts will actually get from the $7.3 billion education package.

Nathan Olson, the OSPI communications manager, said officials will likely have a better handle on the numbers later in the week.

Kennewick and Pasco school officials echoed Olson, saying they are continuing to investigate how the budget will impact them. Richland officials did not respond to an interview request.

The state Office of Financial Management did say the three school districts will receive roughly $2,000 more per student when the full plan is put into place in 2020. They received about $10,000 per student for the 2016-2017 school year.

This story was originally published July 12, 2017 at 6:37 PM with the headline "State budget solution will save Tri-City homeowners money — eventually."