Washington Schools:
Underfunded & Overburdened

Post McCleary “solution,” the state still hasn’t met its constitutional duty to fully fund public education and schools are being asked to do more now than ever before.

The Core Issues

A Smaller Piece of the Pie for K-12

As Washington State’s operating budget has increased, the percentage dedicated to funding K-12 education has not kept up. About five years ago, about 51.6% of the state’s general fund budget was dedicated to K-12 education. Now, it’s down to about 43.23%, even though costs continue to rise.

In 2019-21 51.6% of the state budget was allocated to K-12 Education while in 2025-27, the state budget allocation dropped to 43.23%

Washington State’s Operating Budget Over Time

Where State Funding Falls Short: The Big 3

Funding for at least three major components of basic education, including Special Education, Student Transportation, and Materials, Supplies, and Operating Costs (MSOC), continues to be dramatically underfunded.

Education Funding Deficits by Year

SPED Deficit is $524.3M in 2022–2023; $435.0M in 2023–2024; $531.0M in 2024–2025. MSOC Deficit is $157.1M in 2022–2023; $155.2M in 2023–2024; $199.7M in 2024–2025. Transportation Deficit is $85.9M in 2022–2023; $66.4M in 2023–2024; $62.9M in 2024–2025. The total combined deficit is labeled above each bar: $767.3M (2022–2023), $656.6M (2023–2024), and $793.6M (2024–2025).

Total underfunding of the Big 3 is almost $800 million in 2024-25:

1

Rising Operating Costs

Basic School Operating Costs Are Not Fully Funded by the State

Electricity to power classrooms, heat for school buildings, insurance for the unexpected, curriculum for classrooms. These “must-have” costs are categorized as Materials, Supplies & Operating Costs (MSOC). MSOC expenses continue to rise with inflation, yet state-provided funding has not kept pace.

While Washington’s 2025-27 Operating Budget included an attempt to add funding for MSOC expenses – an $80 million statewide increase spread across two years, it wasn’t nearly enough.

Food, fuel, and utility costs have soared since 2018

Daily household expenses are far more expensive today than they were just a few years ago. Schools are feeling the pinch of these rising costs, too and shouldn’t have to rely on local levies or reserves just to pay the electric bill or cover insurance costs.

MSOC Expenses were underfunded by 12.1% in 2024-2025

MSOC Funding Gap 2024-25 school year

The Core Issue

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The Core Issue

These expenses fit squarely within the definition of “basic education,” for which the state is required to provide ample funding.

0%

Average increase in the cost of milk since 2018
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Average increase in the cost of ground beef 2018
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Average increase in the cost of diesel fuel since 2018
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0%

Average increase in electricity costs since 2018
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Average increase in the cost of natural gas since 2018
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2

Special Education

Special Education is Still Not Fully Funded by the State

Serving students with disabilities is not optional – it’s a moral, legal and constitutional requirement. In the 2024-25 school year, $531 million in special education expenses were left unfunded by the state.

The state provided districts an average 6.16% increase in state funding in 2025-26, but that funding wasn’t nearly enough to account for the millions left unfunded. Further, this increase doesn’t account for inflation.

Example districts

Special Education is underfunded by 18.5%

Special Education Funding Gap 2024-25 school year

District Funding Example

School District in King County
(2024-25 Special Education)

$47.66 million (State funding)
– $78.63 million (Expenditures)


– $30.97 million
(Unfunded special education expenses)

District Funding Example

School District in Clark County
(2024-25 Special Education)

$63.5 million (State funding)
– $85.6 million (Expenditures)


– $22.1 million
(Unfunded special education expenses)

The Core Issue

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The Core Issue

School districts shouldn’t have to rely on local levies and reserves to cover basic education costs like special education staff and legally required student supports.

3

Student Transportation

Student Transportation is Not Fully Funded by the State

In the 2024-25 school year alone, $62.9 million in statewide school transportation expenses were left unfunded by the state.

State funding for student transportation follows a one-size-fits-all formula to hire and pay bus drivers, and pay for fuel, maintenance, and vehicle depreciation. Yet, transportation costs vary widely from district to district based on city/rural routes, number of bus stops, terrain, and number of students in need of specialized transportation.

Example districts

Student Transportation was underfunded by 7.9% in 2024-2025

Student Transportation Funding Gap 2024-25 school year

District Funding Example

School District in Spokane County
(2024-25 Transportation)

$16.4 million (State funding)
– $17 million (Expenditures)


– $600,000
(Unfunded transportation expenses)

District Funding Example

School District in Stevens County
(2024-25 Transportation)

$1.6 million (State funding)
– $1.73 million (Expenditures)


– $130,000
(Unfunded transportation expenses)

The Core Issue

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The Core Issue

School districts should not have to rely on local levies and reserves to cover the basic costs of transporting students to and from school. These expenses fit squarely within the definition of “basic education,” for which the state is required to provide ample funding.

4

State Mandates

State Mandates for Public Schools Are Not Fully Funded

Schools are required to do and report hundreds of things without resources to support these mandates. While these requirements are often well-intended, unfunded mandates strain district budgets and can pull resources away from other essential services. Some examples include:

State law (RCW 42.56) requires public agencies, including school districts, to make records available upon request. Staff time to locate, redact, and produce records can be costly, especially with enormous records requests that take months to fulfill.

The new law (RCW 28A.320.126) requires schools to install silent panic alarms, without the funding to do so.

State law (SB 5814) expanded the list of services subject to Washington’s retail sales tax. Districts must now pay taxes on some payment for services like professional development classes for teachers, without additional state dollars to support the mandate.

Substitute employee salaries, SEBB benefits costs, Paid Family & Medical Leave (PFMLA) premiums, and Family & Medical Leave Act (FMLA) costs are not fully funded by the state.

The state requires safe school facilities but doesn’t provide funding for upkeep or new facilities. Local communities are left to foot the bill by passing a bond measure that requires a 60% supermajority.

  • Specialized transportation and safety reporting
  • State-mandated committees
  • Dyslexia screening (SB 6162) requirements
  • Green Schools requirements

…And many more.

Source: Marie Sullivan Public Affairs Corporation

Fostering A More Sustainable Future for WA Public Education

  • Basic education is guaranteed by the state constitution.

    School districts rely on local levies and reserves to cover basic education costs, but access to basic education should not be reliant on the wealth or levy capacity of individual communities.

  • School funding isn’t “one-size-fits-all” and can’t be based on a prototypical average.

    The state must recognize that districts differ significantly in size, geography, student needs, and community priorities. School districts should receive funding that matches current realities.

  • Public education should be fully funded to meet student needs.

    MSOC, special education, and transportation funding allocations should be adjusted for inflation and fully funded by the state to meet local student and differing community needs.

Statewide Workgroups Are Tackling the Underfunding Problem

Their goal? Facing school underfunding head-on to shape a new shared vision for public education.

OSPI’s K12 Funding Equity Workgroup

Explores and suggests options for revising K-12 funding to more equitably and efficiently serve student needs.

UW Superintendents Unified in Partnership for Equitable Schools (UW SUPES)

A statewide collaboration of Washington superintendents and University of Washington education leaders to advance equitable K-12 school funding policy.

The Big Idea: Creating a 21st Century System of Public K12 Education in Washington state

A legislator-led group focused on modernizing and strengthening Washington’s K-12 education system.

Legislator Information

To find the legislators for your district, enter your address into the state’s Find My District online tool, or call 1-800-562-6000.

WASA

Sponsored by the Washington Association of School Administrators (WASA).