K-12 Finance: Washington's Schools Are Underfunded

Compared with other states, Washington State's Constitution contains one of the strongest commitments to public education in the country. Our constitution states that "it is the paramount duty of the state to make ample provision for the education of all children." Our state legal system strengthened this commitment in the 1970s and 1980s by ruling the state had provided insufficient funding for K-12 education. Since then, the state has made some adjustments to K-12 funding formulas; however, Washington slipped from national leader to laggard.

K-12 Finance Structure: Where does the funding come from and how is it spent?

Our system is state driven, meaning the state contributes the largest share of K-12 funding. School districts also receive funding from the federal government, local taxes, and other miscellaneous sources.

State funding includes state property tax, which is dedicated to schools, and some sales and other taxes. The state share has been steadily declining in recent decades.

Local funding comes from voter-approved local levies. The local share of total funding has been steadily increasing over the past 15 years.

Federal funding is primarily for special education, children in poverty, and food services.

Other sources include field trip fees, school lunch charges, fundraisers, etc.

While there are many variables involved in student achievement, there is a correlation between more dollars in the classroom and more success for Washington students. In recent years, schools in Washington have become increasingly efficient. Currently, 70 percent of funding goes directly to the classroom-to teachers and teacher support. Only 12.2 percent of overall funding supports administration.

K-12 Finance Reform: Almost all agree change is needed, but where does Washington start?

Inadequate funding

Washington has run its average performing system with below average resources.
Despite our state's own constitutional mandate that education is the paramount duty of the state, we rank well below the national average and among the worst states in per-student funding for education.

In recent years, K-12 operating expenditures-expressed as a share of total personal income-have fallen below the U.S. average (see below). In 2005, expenditures stood at only 3.5 percent of personal income. If Washingtonians had invested the U.S. average of 4.1 cents per dollar of personal income in 2005, K-12's operating budget would have been $1.4 billion higher.

Inflexibility

The current system is too opaque and complex for all but a handful of school finance experts to understand. Washington State has some of the most burdensome reporting requirements in the nation, but the data collected does not provide district financial managers with tools to improve system performance or educators with useful feedback to improve student learning.

Our funding formula is based on seat-time and staff-per-student formulas. These inputs bear little relationship to the actual costs of educating students. An example of this is the state-funded five-period school day, when graduation requirements necessitate a six-period day. Needed supplemental (categorical) funding comes and goes, and is neither predictable nor protected, leading to instability.

The Basic Education Finance Joint Task Force (created by SB 5627) is charged to develop a new definition of basic education and K-12 funding structure that aligns with the final Washington Learns Report and provisions in current law.

Resources

Basic Education Finance Joint Task Force

Office of Superintendent of Public Instruction

2006 Organization and Financing of Washington Public Schools, January 2006

Washington Learns

League Of Education Voters Foundation

K-12 Finance: Washington's Schools Are Underfunded

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