As I wrote a few weeks ago, the Legislature passed a bill (EHB 1823) that makes changes to the state’s not-yet-implemented student loan program. The details are still to be determined by the Washington Student Achievement Council, and loans will not be awarded until school year 2025–26. (The bill has not yet been signed by Gov. Inslee.)

Last year, the state appropriated $150 million from funds subject to the outlook (NGFO) to the Washington student loan account (WSLA). Then, it appropriated $150 million from the WSLA to implement the student loan program.

This year, the Senate and House had different ideas about what to do with the $150 million. (See this post for more.) As passed by the Legislature, the 2023 supplemental repeals the WSLA appropriation to implement the program in 2021–23.

Then, here’s how the 2023–25 budget uses the $150 million:

• It transfers $40 million from the WSLA to the general fund–state.
• It appropriates $90 million from the WSLA to implement EHB 1823 (plus $1.5 million from the workforce education investment account).
• It appropriates $10 million from the WSLA for the behavioral health loan repayment program account.
• It appropriates $10 million from the WSLA for the health professional loan repayment and scholarship program fund.

As passed by the Legislature, EHB 1823 allows the Legislature to appropriate $50 million from the WSLA over five years. Thus, given the operating budget, the WSLA would retain $40 million for the student loan program to use after its fifth year.