New Brief: Education Funding Plans: The Governor and House Want Significant New Spending

In a new policy brief we discuss Gov. Inslee's plan to comply with the McCleary decision on school funding as well as HB 1843, which was passed by the House Appropriations Committee earlier this month.

Briefly:

  • The Legislature must fully comply with the McCleary decision on school funding by September 2018.
  • Both Gov. Inslee’s education funding proposal and HB 1843 would increase state allocations for teacher compensation within the current funding structure, with some changes.
  • HB 1843 would adjust salaries for regional differences, and salaries would be rebased every six years based on a comparable wage analysis.
  • HB 1843 would include the I-732 cost-of-living adjustments and I-1351 class size reductions in the definition of basic education.
  • The bill would gradually lower the amount school districts could levy until reaching 24 percent of their revenues in 2021.
  • The bill would increase spending by $1.763 billion in 2017–19, $5.822 billion in 2019–21, and $7.005 billion in 2021–23.
  • Some funding options suggested by Democrats on the Education Funding Task Force are: four-tier nexus, tax preference closures, changes to the B&O tax and the state property tax, a capital gains tax, and carbon pricing.

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