K-12 funding

AN ACT Relating to K-12 funding; amending RCW 84.52.0531, 1
28A.500.015, 84.55.005, 84.55.100, 28A.150.390, 28A.150.392, and 2
28A.150.560; adding a new section to chapter 28A.150 RCW; creating 3
new sections; providing effective dates; and providing an expiration 4
date. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
PART I7
ENRICHMENT LEVIES8
AND LOCAL EFFORT ASSISTANCE9
Sec. 101. RCW 84.52.0531 and 2022 c 108 s 3 are each amended to 10
read as follows: 11
(1) Beginning with taxes levied for collection in 2020, the 12
maximum dollar amount which may be levied by or for any school 13
district for enrichment levies under RCW 84.52.053 is equal to the 14
lesser of ((two dollars and fifty cents )) $2.50 per ((thousand 15
dollars)) $1,000 of the assessed value of property in the school 16
district or the maximum per-pupil limit. This maximum dollar amount 17
shall be reduced accordingly as provided under RCW 43.09.2856(2).18
(2) The definitions in this subsection apply to this section 19
unless the context clearly requires otherwise. 20
H-0515.2
HOUSE BILL 1356
State of Washington 69th Legislature 2025 Regular Session
By Representatives Bergquist, Berg, Ramel, Ormsby, Gregerson, Macri,
Obras, Ryu, Berry, Scott, Ortiz-Self, Alvarado, Nance, Pollet,
Salahuddin, and Hill
Read first time 01/17/25. Referred to Committee on Appropriations.
p. 1 HB 1356
(a) ((For the purpose of this section, "inflation" )) "Inflation" 1
means the percentage change in the seasonally adjusted consumer price 2
index for all urban consumers, Seattle area, for the most recent 12-3
month period as of September 25th of the year before the taxes are 4
payable, using the official current base compiled by the United 5
States bureau of labor statistics. 6
(b) "Inflation enhancement" means:7
(i) $500 in the 2026 calendar year; and8
(ii) 3.33 percentage points added to inflation each year from the 9
2027 to 2030 calendar years.10
(c) "Maximum per-pupil limit" means: 11
(i) ((Two thousand five hundred dollars )) Through the 2030 12
calendar year:13
(A) $2,500, as increased by inflation , plus inflation 14
enhancements defined in (b) of this subsection, beginning with 15
property taxes levied for collection in 2020, multiplied by the 16
number of average annual full-time equivalent students enrolled in 17
the school district in the prior school year, for school districts 18
with fewer than ((forty thousand)) 40,000 annual full-time equivalent 19
students enrolled in the school district in the prior school year; or20
(((ii) Three thousand dollars )) (B) $3,000, as increased by 21
inflation plus the inflation enhancement defined in (b)(i) of this 22
subsection, beginning with property taxes levied for collection in 23
2020, multiplied by the number of average annual full-time equivalent 24
students enrolled in the school district in the prior school year, 25
for school districts with ((forty thousand )) 40,000 or more annual 26
full-time equivalent students enrolled in the school district in the 27
prior school year. 28
(((c) "Open for in-person instruction to all students" means that 29
all students in all grades have the option to participate in at least 30
40 hours of planned in-person instruction per month and the school 31
follows state department of health guidance and recommendations for 32
resuming in-person instruction to the greatest extent practicable. )) 33
(ii) Beginning with the 2031 calendar year, $5,035, as increased by 34
inflation beginning with property taxes levied for collection in 35
2032, multiplied by the number of average annual full-time equivalent 36
students enrolled in the school district in the prior school year.37
(d) "Prior school year" means the most recent school year 38
completed prior to the year in which the levies are to be 39
collected((, except as follows:40
p. 2 HB 1356
(i) In the 2022 calendar year, if 2019-20 school year average 1
annual full-time equivalent enrollment is greater than the school 2
district's 2020-21 school year average annual full-time equivalent 3
enrollment and the school district is open for in-person instruction 4
to all students by the beginning of the 2021-22 school year, "prior 5
school year" means the 2019-20 school year.6
(ii) In the 2023 calendar year, if 2019-20 school year average 7
annual full-time equivalent enrollment is greater than the school 8
district's 2021-22 school year average annual full-time equivalent 9
enrollment and the school district was open for in-person instruction 10
to all students by the beginning of the 2021-22 school year, "prior 11
school year" means the 2019-20 school year)). 12
(3) For districts in a high/nonhigh relationship, the enrollments 13
of the nonhigh students attending the high school shall only be 14
counted by the nonhigh school districts for purposes of funding under 15
this section. 16
(4) For school districts participating in an innovation academy 17
cooperative established under RCW 28A.340.080, enrollments of 18
students attending the academy shall be adjusted so that each 19
participant district receives its proportional share of student 20
enrollments for purposes of funding under this section.21
(5) Beginning with propositions for enrichment levies for 22
collection in calendar year 2020 and thereafter, a district must 23
receive approval of an enrichment levy expenditure plan under RCW 24
28A.505.240 before submission of the proposition to the voters.25
(6) The superintendent of public instruction shall develop rules 26
and regulations and inform school districts of the pertinent data 27
necessary to carry out the provisions of this section.28
(7) Beginning with taxes levied for collection in 2018, 29
enrichment levy revenues must be deposited in a separate subfund of 30
the school district's general fund pursuant to RCW 28A.320.330, and 31
for the 2018-19 school year are subject to the restrictions of RCW 32
28A.150.276 and the audit requirements of RCW 43.09.2856.33
(8) Funds collected from levies for transportation vehicles, 34
construction, modernization, or remodeling of school facilities as 35
established in RCW 84.52.053 are not subject to the levy limitations 36
in subsections (1) through (5) of this section. 37
Sec. 102. RCW 28A.500.015 and 2022 c 108 s 4 are each amended to 38
read as follows: 39
p. 3 HB 1356
(1) Beginning in calendar year 2020 and each calendar year 1
thereafter, the state must provide state local effort assistance 2
funding to supplement school district enrichment levies as provided 3
in this section. 4
(2)(a) For an eligible school district with an actual enrichment 5
levy rate that is less than ((one dollar and fifty cents )) $1.50 per 6
((thousand dollars)) $1,000 of assessed value in the school district, 7
the annual local effort assistance funding is equal to the school 8
district's maximum local effort assistance multiplied by a fraction 9
equal to the school district's actual enrichment levy rate divided by 10
((one dollar and fifty cents )) $1.50 per ((thousand dollars)) $1,000 11
of assessed value in the school district. 12
(b) For an eligible school district with an actual enrichment 13
levy rate that is equal to or greater than ((one dollar and fifty 14
cents)) $1.50 per ((thousand dollars )) $1,000 of assessed value in 15
the school district, the annual local effort assistance funding is 16
equal to the school district's maximum local effort assistance.17
(c) Beginning in calendar year 2022, for state-tribal education 18
compact schools established under chapter 28A.715 RCW, the annual 19
local effort assistance funding is equal to the actual enrichment 20
levy per student as calculated by the superintendent of public 21
instruction for the previous year for the school district in which 22
the state-tribal education compact school is located, up to a maximum 23
per-student amount of ((one thousand five hundred fifty dollars )) 24
$1,550 as increased by inflation , plus inflation enhancements, from 25
the 2019 calendar year, multiplied by the student enrollment of the 26
state-tribal education compact school in the prior school year.27
(d)(i) Subject to (d)(iii) of this subsection, beginning in 28
calendar year 2026, for charter schools established under chapter 29
28A.710 RCW, the annual local effort assistance funding is equal to 30
the actual enrichment levy per student as calculated by the 31
superintendent of public instruction for the previous year for the 32
school district in which the charter school is located, up to a 33
maximum per-student amount of $1,550 as increased for inflation, plus 34
inflation enhancements, from the 2019 calendar year, multiplied by 35
the student enrollment of the charter school in the prior school 36
year.37
(ii) The legislature must appropriate annual local effort 38
assistance funds for charter schools from the Washington opportunity 39
pathways account in accordance with RCW 28A.710.270.40
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(iii) Funding per pupil under (d)(i) of this subsection may only 1
be provided to the extent that the sum of (d)(iii)(A) and (B) of this 2
subsection does not exceed the per-student amount used for the 3
maximum per-pupil limit defined in RCW 84.52.0531 plus revenues per 4
pupil for the school district in which the charter school is located 5
in the previous school year from gifts, private foundations, and 6
donations.7
(A) Per-pupil funding under (d)(i) of this subsection.8
(B) Per-pupil revenue in the previous school year from gifts, 9
private foundations, and donations.10
(3) The state local effort assistance funding provided under this 11
section is not part of the state's program of basic education deemed 12
by the legislature to comply with the requirements of Article IX, 13
section 1 of the state Constitution. 14
(4) The definitions in this subsection apply throughout this 15
section unless the context clearly requires otherwise.16
(a) "Eligible school district" means a school district where the 17
amount generated by a levy of ((one dollar and fifty cents )) $1.50 18
per ((thousand dollars )) $1,000 of assessed value in the school 19
district, divided by the school district's total student enrollment 20
in the prior school year, is less than the state local effort 21
assistance threshold. 22
(b) ((For the purpose of this section, "inflation" )) "Inflation" 23
means, for any school year, the rate of the yearly increase of the 24
previous calendar year's annual average consumer price index for all 25
urban consumers, Seattle area, using the official current base 26
compiled by the bureau of labor statistics, United States department 27
of labor. 28
(c) "Inflation enhancement" means:29
(i) $200 in the 2026 calendar year; and30
(ii) $300 in the 2027 calendar year.31
(d) "Maximum local effort assistance" means the difference 32
between the following: 33
(i) The school district's actual prior school year enrollment 34
multiplied by the state local effort assistance threshold; and35
(ii) The amount generated by a levy of one dollar and fifty cents 36
per thousand dollars of assessed value in the school district.37
(((d))) (e) "Prior school year" means the most recent school year 38
completed prior to the year in which the state local effort 39
assistance funding is to be distributed((, except as follows:40
p. 5 HB 1356
(i) In the 2022 calendar year, if 2019-20 school year average 1
annual full-time equivalent enrollment is greater than the school 2
district's 2020-21 school year average annual full-time equivalent 3
enrollment, "prior school year" means the 2019-20 school year.4
(ii) In the 2023 calendar year, if 2019-20 school year average 5
annual full-time equivalent enrollment is greater than the school 6
district's 2021-22 school year average annual full-time equivalent 7
enrollment, "prior school year" means the 2019-20 school year)).8
(((e))) (f) "State local effort assistance threshold" means ((one 9
thousand five hundred fifty dollars )) $1,550 per student, increased 10
for inflation , plus inflation enhancements, beginning in calendar 11
year 2020. 12
(((f))) (g) "Student enrollment" means the average annual full-13
time equivalent student enrollment. 14
(5) For districts in a high/nonhigh relationship, the enrollments 15
of the nonhigh students attending the high school shall only be 16
counted by the nonhigh school districts for purposes of funding under 17
this section. 18
(6) For school districts participating in an innovation academy 19
cooperative established under RCW 28A.340.080, enrollments of 20
students attending the academy shall be adjusted so that each 21
participant district receives its proportional share of student 22
enrollments for purposes of funding under this section.23
PART II24
REVISING LIMITATIONS ON STATE PROPERTY TAXES25
IN SUPPORT OF COMMON SCHOOLS26
27
Sec. 201. RCW 84.55.005 and 2014 c 97 s 316 are each amended to 28
read as follows: 29
The definitions in this section apply throughout this chapter 30
unless the context clearly requires otherwise. 31
(1) "Inflation" means the percentage change in the implicit price 32
deflator for personal consumption expenditures for the United States 33
as published for the most recent ((twelve)) 12-month period by the 34
bureau of economic analysis of the federal department of commerce by 35
September 25th of the year before the taxes are payable((;)).36
(2) "Limit factor" means: 37
p. 6 HB 1356
(a) For taxing districts with a population of less than ((ten 1
thousand)) 10,000 in the calendar year prior to the assessment year, 2
((one hundred one)) 101 percent; 3
(b) For taxing districts for which a limit factor is authorized 4
under RCW 84.55.0101, the lesser of the limit factor authorized under 5
that section or ((one hundred one)) 101 percent; 6
(c) For all other districts, except for the state, the lesser of 7
((one hundred one )) 101 percent or ((one hundred )) 100 percent plus 8
inflation; and 9
(((3))) (d) For the state, 100 percent plus population change and 10
inflation, not to exceed 103 percent.11
(3)(a) "Population change" means the annual percent increase in 12
the population of a taxing district between the two most recent years 13
as provided in the official population estimates published by the 14
office of financial management for April 1st of the year before taxes 15
are payable. If the office of financial management estimates a net 16
decrease in a taxing district's population, for the purposes of this 17
section, the population change is zero. For a county, the "population 18
of a taxing district" means the population within the county's 19
incorporated and unincorporated areas, unless the county taxing 20
district boundaries are limited to the unincorporated county areas, 21
in which case the "population of a taxing district" means the 22
population of the unincorporated county areas only. For taxing 23
districts that are not coterminous with one or more cities, towns, 24
counties, or unincorporated county areas, or any combination thereof, 25
as provided in the official population estimates published by the 26
office of financial management in April of the year before the taxes 27
are payable, "population change" means:28
(i) The population change for the city or town within which the 29
taxing district is wholly located;30
(ii) The population change for the county in which the taxing 31
district is wholly located, when the taxing district is not wholly 32
located within a city or town; or33
(iii) For taxing districts located in more than one county, the 34
county population change for the county in which the greatest total 35
taxable assessed value of the taxing district for the prior 36
assessment year is located.37
(b) For the purposes of this subsection (3), the annual percent 38
increase in population is calculated to the nearest tenth of one 39
p. 7 HB 1356
percent, rounding up to the next tenth of one percent if the second 1
decimal place of the annual percent increase is five or greater.2
(4) "Regular property taxes" has the meaning given it in RCW 3
84.04.140. 4
Sec. 202. RCW 84.55.100 and 1983 c 223 s 1 are each amended to 5
read as follows: 6
(1) The property tax limitation contained in this chapter shall 7
be determined by the county assessors of the respective counties in 8
accordance with the provisions of this chapter: PROVIDED, That the 9
limitation for any state levy shall be determined by the department 10
of revenue and the limitation for any intercounty rural library 11
district shall be determined by the library district in consultation 12
with the respective county assessors. 13
(2) By September 1, 2025, and by September 1st every year 14
thereafter, the department of revenue must provide county assessors 15
the limit factors necessary for the county assessor to comply with 16
this section.17
NEW SECTION. Sec. 203. Sections 201 and 202 of this act apply 18
to taxes levied for collection in 2026 and thereafter.19
PART III20
FUNDING FOR SPECIAL EDUCATION ENROLLMENT21
Sec. 301. RCW 28A.150.390 and 2024 c 229 s 1 are each amended to 22
read as follows: 23
(1) The superintendent of public instruction shall submit to each 24
regular session of the legislature during an odd-numbered year a 25
programmed budget request for special education programs for students 26
with disabilities. Funding for programs operated by local school 27
districts shall be on an excess cost basis from appropriations 28
provided by the legislature for special education programs for 29
students with disabilities and shall take account of state funds 30
accruing through RCW 28A.150.260 (4)(a), (5), (6), and (8) and 31
28A.150.415. 32
(2) The excess cost allocation to school districts shall be based 33
on the following: 34
(a) A district's annual average head count enrollment of students 35
ages three and four and those five year olds not yet enrolled in 36
p. 8 HB 1356
kindergarten who are eligible for and receiving special education, 1
multiplied by the district's base allocation per full-time equivalent 2
student, multiplied by 1.2; 3
(b)(((i) Subject to the limitation in (b)(ii) of this subsection 4
(2), a)) A district's annual average enrollment of resident students 5
who are eligible for and receiving special education, excluding 6
students ages three and four and those five year olds not yet 7
enrolled in kindergarten, multiplied by the district's base 8
allocation per full-time equivalent student, multiplied by the 9
special education cost multiplier rate of((:10
(A) Beginning in the 2020-21 school year, either:11
(I) 1.0075 for students eligible for and receiving special 12
education and reported to be in the general education setting for 80 13
percent or more of the school day; or14
(II) 0.995 for students eligible for and receiving special 15
education and reported to be in the general education setting for 16
less than 80 percent of the school day;17
(B) Beginning in the 2023-24 school year,)) either:18
(((I))) (i) 1.12 for students eligible for and receiving special 19
education and reported to be in the general education setting for 80 20
percent or more of the school day; or 21
(((II))) (ii) 1.06 for students eligible for and receiving 22
special education and reported to be in the general education setting 23
for less than 80 percent of the school day. 24
(((ii) If the enrollment percent exceeds 16 percent, the excess 25
cost allocation calculated under (b)(i) of this subsection must be 26
adjusted by multiplying the allocation by 16 percent divided by the 27
enrollment percent.))28
(3) As used in this section((:29
(a) "Base)), "base allocation" means the total state allocation 30
to all schools in the district generated by the distribution formula 31
under RCW 28A.150.260 (4)(a), (5), (6), and (8) and the allocation 32
under RCW 28A.150.415, to be divided by the district's full-time 33
equivalent enrollment. 34
(((b) "Basic education enrollment" means enrollment of resident 35
students including nonresident students enrolled under RCW 36
28A.225.225 and students from nonhigh districts enrolled under RCW 37
28A.225.210 and excluding students residing in another district 38
enrolled as part of an interdistrict cooperative program under RCW 39
28A.225.250.40
p. 9 HB 1356
(c) "Enrollment percent" means the district's resident annual 1
average enrollment of students who are eligible for and receiving 2
special education, excluding students ages three and four and those 3
five year olds not yet enrolled in kindergarten and students enrolled 4
in institutional education programs, as a percent of the district's 5
annual average full-time equivalent basic education enrollment.))6
Sec. 302. RCW 28A.150.392 and 2024 c 127 s 2 are each amended to 7
read as follows: 8
(1)(a) To the extent necessary, funds shall be made available for 9
safety net awards for districts with demonstrated needs for special 10
education funding beyond the amounts provided through the special 11
education funding formula under RCW 28A.150.390. 12
(b) If the federal safety net awards based on the federal 13
eligibility threshold exceed the federal appropriation in any fiscal 14
year, then the superintendent shall expend all available federal 15
discretionary funds necessary to meet this need. 16
(2) Safety net funds shall be awarded by the state safety net 17
oversight committee subject to the following conditions and 18
limitations: 19
(a) The committee shall award additional funds for districts that 20
can convincingly demonstrate that all legitimate expenditures for 21
special education exceed all available revenues from state funding 22
formulas. When determining award eligibility and amounts (([,])), the 23
committee shall limit its review to relevant documentation that 24
illustrates adherence to award criteria. The committee shall not make 25
determinations regarding the content of individualized education 26
programs beyond confirming documented and quantified services and 27
evidence of corresponding expenditures for which a school district 28
seeks reimbursement. 29
(b) In the determination of need, the committee shall consider 30
additional available revenues from federal sources.31
(c) Differences in program costs attributable to district 32
philosophy, service delivery choice, or accounting practices are not 33
a legitimate basis for safety net awards. 34
(d) In the determination of need, the committee shall require 35
that districts demonstrate that they are maximizing their eligibility 36
for all state revenues related to services for students eligible for 37
special education and all federal revenues from federal impact aid, 38
medicaid, and the individuals with disabilities education act-Part B 39
p. 10 HB 1356
and appropriate special projects. Awards associated with (e) ((and 1
(f))) of this subsection shall not exceed the total of a district's 2
specific determination of need. 3
(e) The committee shall then consider the extraordinary high cost 4
needs of one or more individual students eligible for and receiving 5
special education. Differences in costs attributable to district 6
philosophy, service delivery choice, or accounting practices are not 7
a legitimate basis for safety net awards. 8
(f) ((Using criteria developed by the committee, the committee 9
shall then consider extraordinary costs associated with communities 10
that draw a larger number of families with children in need of 11
special education services, which may include consideration of 12
proximity to group homes, military bases, and regional hospitals. 13
Safety net awards under this subsection (2)(f) shall be adjusted to 14
reflect amounts awarded under (e) of this subsection.15
(g))) The committee shall then consider the extraordinary high 16
cost needs of one or more individual students eligible for and 17
receiving special education served in residential schools, programs 18
for juveniles under the department of corrections, and programs for 19
juveniles operated by city and county jails to the extent they are 20
providing a secondary program of education. 21
(((h))) (g) The maximum allowable indirect cost for calculating 22
safety net eligibility may not exceed the federal restricted indirect 23
cost rate for the district plus one percent. 24
(((i))) (h) Safety net awards shall be adjusted based on the 25
percent of potential medicaid eligible students billed as calculated 26
by the superintendent of public instruction in accordance with 27
chapter 318, Laws of 1999. 28
(((j))) (i) Safety net awards must be adjusted for any unresolved 29
audit findings or exceptions related to special education funding. 30
Safety net awards may only be adjusted for errors in safety net 31
applications or individualized education programs that materially 32
affect the demonstration of need. 33
(3) The superintendent of public instruction shall adopt such 34
rules and procedures as are necessary to administer the special 35
education funding and safety net award process. By December 1, 2018, 36
the superintendent shall review and revise the rules to achieve full 37
and complete implementation of the requirements of this subsection 38
and subsection (4) of this section including revisions to rules that 39
provide additional flexibility to access community impact awards. 40
p. 11 HB 1356
Before revising any standards, procedures, or rules, the 1
superintendent shall consult with the office of financial management 2
and the fiscal committees of the legislature. In adopting and 3
revising the rules, the superintendent shall ensure the application 4
process to access safety net funding is streamlined, timelines for 5
submission are not in conflict, feedback to school districts is 6
timely and provides sufficient information to allow school districts 7
to understand how to correct any deficiencies in a safety net 8
application, and that there is consistency between awards approved by 9
school district and by application period. The office of the 10
superintendent of public instruction shall also provide technical 11
assistance to school districts in preparing and submitting special 12
education safety net applications. 13
(4)(a) On an annual basis, the superintendent shall survey 14
districts regarding their satisfaction with the safety net process 15
and consider feedback from districts to improve the safety net 16
process. Each year by December 1st, the superintendent shall prepare 17
and submit a report to the office of financial management and the 18
appropriate policy and fiscal committees of the legislature that 19
summarizes the survey results and those changes made to the safety 20
net process as a result of the school district feedback.21
(b) By December 1, 2024, the office of the superintendent of 22
public instruction must develop a survey requesting specific feedback 23
on the safety net application process from school districts with 24
3,000 or fewer students. The survey must include, at a minimum, 25
questions regarding the average amount of time school district staff 26
spend gathering safety net application data, filling out application 27
forms, and correcting application deficiencies. The survey must also 28
include questions to help identify which application components are 29
the most challenging and time consuming for school districts to 30
complete. By December 1, 2025, the office of the superintendent of 31
public instruction must use this feedback to implement a simplified, 32
standardized safety net application for all school districts that 33
reduces barriers to safety net funding. 34
(5) The safety net oversight committee appointed by the 35
superintendent of public instruction shall consist of:36
(a) One staff member from the office of the superintendent of 37
public instruction; 38
(b) Staff of the office of the state auditor who shall be 39
nonvoting members of the committee; and 40
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(c) One or more representatives from school districts or 1
educational service districts knowledgeable of special education 2
programs and funding. 3
(6)(a) ((Beginning in the 2019-20 school year, a high-need 4
student is eligible for safety net awards from state funding under 5
subsection (2)(e) and (g) of this section if the student's 6
individualized education program costs exceed two and three-tenths 7
times the average per-pupil expenditure as defined in Title 20 U.S.C. 8
Sec. 7801, the every student succeeds act of 2015.9
(b))) Beginning in the 2023-24 school year, a high-need student 10
is eligible for safety net awards from state funding under subsection 11
(2)(e) and (((g))) (f) of this section if the student's 12
individualized education program costs exceed: 13
(i) 2 times the average per-pupil expenditure, for school 14
districts with fewer than 1,000 full-time equivalent students;15
(ii) 2.2 times the average per-pupil expenditure, for school 16
districts with 1,000 or more full-time equivalent students.17
(((c))) (b) For purposes of (((b))) (a) of this subsection, 18
"average per-pupil expenditure" has the same meaning as in 20 U.S.C. 19
Sec. 7801, the every student succeeds act of 2015, and excludes 20
safety net funding provided in this section. 21
Sec. 303. RCW 28A.150.560 and 2023 c 417 s 6 are each amended to 22
read as follows: 23
(1) It is the policy of the state that for purposes of state 24
funding allocations, students eligible for and receiving special 25
education generate the full basic education allocation under RCW 26
28A.150.260 and, as a class, are to receive the benefits of this 27
allocation for the entire school day, as defined in RCW 28A.150.203, 28
whether the student is placed in the general education setting or 29
another setting. 30
(2) The superintendent of public instruction shall develop an 31
allocation and cost accounting methodology ((that ensures state 32
general apportionment funding for students who receive their basic 33
education services primarily in an alternative classroom or setting 34
are prorated and allocated to the special education program and 35
accounted for before calculating special education excess costs )) to 36
account for expenditures beyond amounts provided through the special 37
education funding formula under RCW 28A.150.390. This method of 38
accounting must shift 30 percent of a school district's base 39
p. 13 HB 1356
allocation as defined in RCW 28A.150.390 for students eligible for 1
and receiving special education to the school district's special 2
education program for expenditure. 3
(3) To the extent that a school district's special education 4
program expenditures exceed state funding in a school year provided 5
under RCW 28A.150.390 and 28A.150.392, and redirected general 6
apportionment revenue under subsection (2) of this section, the 7
school district must use the remaining portion of the school 8
district's base allocation as defined in RCW 28A.150.390 for students 9
eligible for and receiving special education for the expenditures 10
prior to using other funding sources.11
(4) Unless otherwise prohibited by law, nothing in this section 12
prohibits school districts from using other funding and state 13
allocations above the amounts provided under RCW 28A.150.390 and 14
subsections (2) and (3) of this section to serve students eligible 15
for and receiving special education. 16
(5) Nothing in this section requires districts to provide 17
services in a manner inconsistent with the student's individualized 18
education program or other than in the least restrictive environment 19
as determined by the individualized education program team.20
(((3))) (6) The superintendent of public instruction shall 21
provide the legislature with an accounting of prorated general 22
apportionment allocations provided to special education programs 23
broken down by school district by January 1, 2024, and then every 24
January 1st of odd-numbered years thereafter. 25
NEW SECTION. Sec. 304. Sections 301 and 302 of this act take 26
effect September 1, 2027.27
NEW SECTION. Sec. 305. Section 303 of this act takes effect 28
September 1, 2025.29
PART IV30
IMPROVING EQUITY IN K-12 FUNDING FORMULAE31
NEW SECTION. Sec. 401. The superintendent of public instruction 32
shall convene a K-12 funding equity work group to analyze K-12 33
funding formulas and explore options for revisions to the funding 34
formula that are responsive to student needs, including economic, 35
demographic, and geographic differences in student and community 36
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populations. The office of the superintendent of public instruction 1
may contract with institutions of higher education and public, 2
nonpartisan research entities to support the work group's analysis.3
(1) At a minimum, the work group's analysis must include:4
(a) Impacts of changes to per-pupil funding formulas and local 5
revenue; 6
(b) Compensation factors described in RCW 28A.150.412;7
(c) Funding distribution trends resulting from the prototypical 8
school funding formula; and 9
(d) Current formulas that benefit specific populations of 10
students including, but not limited to, the learning assistance 11
program, local effort assistance, and small school funding.12
(2) The superintendent of public instruction must use the work 13
group's analysis conducted under subsection (1) of this section to 14
consider options for revising state and local school funding 15
formulas. By November 1, 2025, and annually thereafter through 2027, 16
the superintendent of public instruction shall report the work 17
group's progress and any proposed options to the education and fiscal 18
committees of the legislature. The reports must include, but are not 19
limited to, the following topics: 20
(a) Options for revisions to the funding formula that address 21
system and resource inequities; 22
(b) Options that address state, local, and regional needs;23
(c) The potential adoption of student weights to direct 24
additional funding to students most in need; and 25
(d) Metrics for monitoring and accountability related to 26
equitable access to resources. 27
(3) The superintendent of public instruction may determine the 28
size, membership, and meeting frequency of the work group. The work 29
group must include representation from education and community 30
partners that are demographically and geographically diverse 31
including, but not limited to, groups representing educators, school 32
and district administrators, labor unions, families, students, 33
community partners who support groups disproportionately impacted by 34
inequities, and legislators. 35
(4) The estimated cost of an option or group of options proposed 36
by the superintendent of public instruction under subsection (2) of 37
this section must not exceed the estimated additional state revenue 38
provided under section 201 of this act when combined with the 39
estimated additional state funding allocated in this act. The 40
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department of revenue shall make available relevant data and analyses 1
to the superintendent of public instruction to support the 2
calculations under this subsection (4). 3
(5) This section expires December 1, 2027. 4
PART V5
OTHER PROVISIONS6
NEW SECTION. Sec. 501. A new section is added to chapter 7
28A.150 RCW to read as follows: 8
Beginning in the 2027-28 school year, the state shall allocate 9
funding for substitute costs for prototypical school staff as 10
follows: 11
(1) Substitute costs for classroom teachers must be based on five 12
funded substitute days per classroom teacher unit generated under RCW 13
28A.150.260(4) at a daily substitute rate of $200 adjusted for 14
inflation from the 2027-28 school year; and 15
(2) Substitute costs for classified staff must be based on two 16
funded substitute days per classified staff unit generated under RCW 17
28A.150.260(5) at a daily substitute rate of $150 adjusted for 18
inflation from the 2027-28 school year. 19
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