Educational Programs & Operations Levy (EP&O)

Every four years, Mercer Island voters vote to renew MISD's Educational Programming and Operations (EP&O) Levy. The levy amount is collected through local property taxes to fund Educational Programming and Operations not funded by the state. For a renewal levy to be adopted, 50% of voters in the district must approve the levy in a election.  

The EP&O renewal levy will cost Mercer Island property owners $150 annually per million of assessed value, which is $12.50 a month. It will be $320 annually for a $2.2 million home, the average price on Mercer Island, or $27.50 per month.  

How does MISD utilize EP&O levy funding?

Right now, the EP&O levy makes up 15% of the MISD budget and is the only reason we are able to provide for:

• Students: 
  • Funding the 7-period day at MIHS. Most Washington high schools have 6-period days. A 7-period day enables students to take advantage of an additional class in the school day to broaden their knowledge and experience to help determine their post-secondary plans.
  • District wide music classes
  • Drama classes
  • MIHS and IMS Elective Courses
  • District wide art classes
  • Athletic teams (currently 50+ MIHS teams & 16 IMS teams) and Extra/Co-Curriculars
  • Special Education and Intervention Services
  • Enrichment programs 
  • MIPD School Resource Officer
    NOTE: Non-renewal of the EP&O Levy would mean the elimination of the seven period day at MIHS, fine arts classes and programs, numerous elective courses, and significant reductions to athletic teams and enrichment programs.
• Staff: Employing the necessary number of teachers, support staff, nurses, and counselors. Providing 

  24 hours of professional development for classified staff and 2.5 days of professional development for certificated staff and insurance not funded but required by the state. 

• Operations: Covering day-to-day costs, transportation, class size reduction, and building maintenance.
  Note: Class sizes would increase if the levy is not renewed.

• Materials: Purchasing textbooks, instructional materials, and technology. 

How is the EP&O levy amount calculated?

• Take the lesser of the following two calculations:
  • $2.50 per $1,000 of assessed property value
  • $2,500 multiplied by the student FTE in a district ($3,000 for districts with more than 40,000 FTE)

• Mercer Island uses the $2,500 per student calculation.
  • Adjusted for inflation
  • 2019- $2,500 per student
  • 2025- $3,247.33 per student
     

Changes to EP&O Levy Authority in 2025 - New Opportunities Ahead

• House Bill 2049
  • Increases the Per Pupil Allocation by $500
  • Signed into law May 20th, 2025
  • Starts in 2026 tax collection year.
     

How much does MISD collect from local taxpayers to fund schools?

There are three parts to your 2025 tax bill for schools and education. The renewal EP&O levy would take effect on residents 2027 tax bill. 

1. State Education Tax Collection (Majority of revenue is allocated to the state general education fund)

2. Bonds or Debt Service (All revenue stays in MISD) 

• Repays debt for construction
• Unless a new bond is approved, the current bond debt expires in 2029 and 2030
   

3. Levies (All revenue stays in MISD)

• Current EP&O
  • $12 million generated annually
  • 15% of MISD’s total budget
• Current Capital & Technology Levy
  • $8 million generated annually
  • 10% of MISD’s total budget   
     

2027-30 proposed EP&O levy renewal, revenue, and tax rate implications

Levies are a total amount to be collected that is limited and capped by Washington state. MISD cannot collect more than the total amount allowed by the state, which is currently $12 million.

2027

• Estimated levy amount $15,683,956 @ Tax Rate = $.70/$1,000

   

• Seeking Levy Authority = $16MM @ Tax Rate = $.72/$1,000
  • Ensures MISD collects allowable amount
  • Exact amount determined by student enrollment…cannot exceed 16MM regardless of enrollment
• Tax Implications for the individual property owner
  • Estimated EP&O rate increase of $.15/$1,000
    • Compared to current MI EP&O levy amount = +27%
    • Compared to all MI local school taxes = +15%
    • Compared to the entire individual MI tax bill = +3%
  • Annual cost on tax bill
    • $150 per million of assessed value or $12.50 a month
    • $320 for a $2.2 million home, the average price on Mercer Island, or $27.50 per month

2028

• 2028 potential to receive $16,619,999 // Tax Rate $.72
• Levy Amount/Authority = $17MM // Tax Rate $.75

  her student is also visible in the background.

   

2029

• 2029 potential to receive $17,512,027 // Tax Rate $.75
• Levy Amount/Authority = $18MM // Tax Rate $.77

2030

• Potential to receive $18,451,901 // Tax Rate $.77 
• Levy Amount/Authority = $19MM // Tax Rate $.80

Open Enrollment and EP&O Levy

(table represents non staff out of district students)

Open Enrollment Contextual Data

• MISD Staff Open Enrollment - 59
• City of Mercer Island Staff and other open enrollment - 10
• 1.8% of MISD enrollment is from MISD Staff, City of Mercer Island Staff, and other open enrollment
• 1.8% of MISD enrollment is from grades 6-12 open enrollment
• RCW 28A.225.225 provides that school districts shall accept applications from nonresident students who are the children of full-time certificated and classified school employees and those children shall be permitted to enroll. Note that MISD has expanded this definition to include part-time staff and eligible coaches, academic advisors, substitutes and contracted employees. These categories do not fall under the statute. The admission of children of eligible City of Mercer Island employees is governed under the Interlocal Agreement accessible here. Additionally, certain other categories of students are permitted to enroll under Section VII of BP 3141.
• The $12 million ceiling on our EP&O levy will be collected from island residents regardless if there is or isn't open enrollment. The number of open enrollment students could increase and it wouldn't impact the amount that can be collected. 

A closer look at the 2023-26 EP&O Levy Revenue

2027-30 EP&O Timeline

• October 9th – First Reading – EP&O Resolution No. 747
• October 23rd – Second Reading /Adoption – EP&O Resolution No. 747
• October 23rd - Pro & Con Committee Recruitment - Board Meeting Presentation
• November 13th – Board Appoints Committee to draft the “pro” and “con” statements for the local voters’ pamphlet
• December 12th – King County Filing Deadline for February 10, 2026, Election
• January 9, 2026 - Online voter guide available
• January 21, 2026 - Ballots and voters pamphlets mailed
• February 10, 2026 - Election Day