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What are the tax implications for Open Enrollment?

Open Enrollment:  What about non-resident students and their impact on Mercer Island taxpayers?​
Here’s the short version.  There are two types of nonresident students:
  • Required:  Children of full-time certificated and classified school employees are permitted to enroll per RCW 28A.225.225. MISD expanded the required definition to include part-time staff and eligible coaches, academic advisors, substitutes and contracted employees.  City of Mercer Island employees also qualify under the Interlocal Agreement.  As of 2025-2026, there are 69 students across K-12.
  • Optional:  Per MISD School Board Policy Section VII of BP 3141, discretionary enrollment of nonresident students may be permitted.  As of 2025-2026, this is 69 students across 6-12.

​This financial evaluation will include the optional discretionary enrollment of the 69 students and their impact on the Mercer Island taxpayer. 

The 69 students accepted under the discretionary enrollment represent 1.8% of the 3,805 students enrolled in 2025-2026.


  • Since Mercer Island already collects the capped $12MM for EP&O revenue through 2026, the 69 students do not impact the amount that can be collected.  No additional EP&O funds are currently collected for these students.
  • If the replacement EP&O levy is approved, it will cost the Mercer Island taxpayers an estimated $288,000 in 2027 (1.8% of the maximum 16MM), which is $28.33 per year for a $2.2MM home (1.8% of $1,574). 
  • However, note that Washington State provides $11,513 per student in 2025-2026, so those same 69 students bring over $794,397 to the district.

The number of discretionary nonresident students varies from year to year, and these students round out the class sizes in an intentional way so that a variety of science classes and electives can be offered and staffed.
​
 69 students would cost the Mercer Island taxpayers a maximum of $28.33/year for a $2.2MM home in 2027 with the replacement EP&O Levy.  
Washington State would provide $11,513 per student or more in 2027, so 
those same 69 students would bring over $794,397 to the district.

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  • CMIPS Home
    • EP&O Tax Impact
    • Open Enrollment Tax Impact
  • School Finance 101
  • Did You Know?
    • Highlights
    • Community Engagement
    • Open Letters to our Community
  • About CMIPS
  • Join / Donate
  • Endorsements