March 23, 2025

WEEK 10 LOOK BACK & WEEK 11 LOOK AHEAD

Week 10 of the 2025 Legislative Session in is the rearview mirror and delivered a lot of budget-related news. When paired with events at the national level, there is a lot for us to know and digest. Below is a high-level overview of what happened in order to prepare you for the very important week of budget hearings ahead:

In Washington State:

On March 18, the Economic & Revenue Forecast Council reported that projected revenues are approximately $844 M below the previous November forecast, with a slight increase for 2023-25 but significant declines for 2025-27 and 2027-29, while overall revenues are still expected to grow, reaching $66.445 B in 2023-25, $70.952 B in 2025-27, and $76.425 B in 2027-29. Therefore, the shortfall stands at about $4.9 B in 2025–27, for a total of $8.7 B over four years. (So, it's not good news, but not that much worse than what we knew before.)
On the good news front, WSSDA's board officers Sandy Hayes, immediate board past-president, Nikki Otero Lockwood, board vice president, and Melissa Beard, board president-elect, delivered expert and coordinated testimony in strong support of the MSOC (SSB 5192) and SPED (E2SSB 5263) bills during House Appropriations on Wednesday, March 19th. This is worth a watch - a kind of master class on collective testimony.
Proposed budgets from the Senate and House will be released tomorrow (March 24). The Senate will hear the proposed substitute SB 5167 in Ways and Means on Tuesday, March 25th at 4 pm. The House will hear the proposed substitute for HB 1197 in House Appropriations on the same day at the same time. Where are those cloning capabilities when you need them?
We'll know more tomorrow, but state democrats so far look to prefer a budget that recoups revenue through new taxes instead of making deep cuts to state programs based on some of the proposals released last Thursday and Friday. Those proposals include some of the following revenue/tax ideas:
A Financial Intangible Assets Tax (FIT) to impose a property tax of $8 on every $1,000 of assessed value on certain assets, such as stocks, bonds, mutual funds, and index funds, with the first $50 million in assessed value exempt from the tax.
A property tax of $10 on every $1,000 assessed value on the assets, impacting around 4,300 wealthy state residents.
An increase to education funding by modifying the state and local property tax authority and school funding formula by maintaining the 1% cap on property tax growth but allowing increases based on inflation and population, never to exceed 3%. (This proposal also prioritizes funding for underinvested areas of the state, like rural schools.)
A 1% Business & Occupation (B&O) tax surcharge on businesses with taxable income over $250 million.
The list goes on, like what you see here (Senate) and here (House).
The Senate's Majority Leader, Jamie Pedersen, indicated his belief that the House and Senate democrats overlap in much of their thinking here, but Gov Ferguson's proposed budget leaned toward government program cuts as opposed to tax increases. His budget proposals have included asking all state agencies to cut their budgets by 6%, and a mandatory furlough day for all state employees once a month, including other impacts to state funding. Not much of an overlap in thinking here.
To avoid a special session, the House, Senate, and Governor will need to agree by April 27, the last scheduled day of the legislative session.

The Other Washington:

On March 15, President Trump signed a continuing resolution (CR) that maintains U.S. Department of Education funding at $79.1 billion for FY 2025, while reducing overall non-defense discretionary funding by $13 billion, but raises concerns about potential unilateral cuts by the Department of Government Efficiency and lacks detailed funding allocations, leaving uncertainty for certain education programs.
Funding for Statewide Family Engagement Centers and Supporting Effective Educator Development (SEED) grants, which have been targeted for recent unilateral cuts by the Trump Administration, remains uncertain because these programs were not explicitly detailed in the new continuing resolution.
To see programs without funding levels specified in the CR, please see this chart from the Committee for Education Funding.

EXTENDING OPPORTUNITIES THROUGH CTE AND DUAL CREDIT PROGRAMS

In recent years, the demand for skilled workers in various industries has grown significantly, highlighting the need for effective educational pathways that prepare students for high-skill, high-wage jobs. One promising solution is the expansion of Career and Technical Education (CTE) dual credit programs, as proposed in the newly introduced bill 2SHB 1273. This legislation aims to extend a pilot program designed to increase participation and improve credential attainment in professional and technical fields by covering certain expenses for secondary and postsecondary schools.

The Role of CTE Dual Credit Programs

CTE dual credit programs allow students to earn both high school and college credits simultaneously, offering a significant advantage in their educational and career pursuits. In 2023, approximately 56,000 students participated in these programs, highlighting their importance and the growing demand for such opportunities. These programs serve as essential pathways for students who may not be inclined to pursue a four-year degree but are eager to enter the workforce equipped with relevant skills and knowledge.

Furthermore, CTE dual credit programs promote equity by serving a diverse student population, including those from underserved communities. By extending these programs, 2SHB 1273 directly addresses workforce needs while fostering an inclusive educational environment.

Addressing Challenges and Reducing Barriers

Despite the clear benefits of CTE dual credit programs, challenges remain. Complex administrative processes and limited awareness of credit eligibility can hinder students' access to these vital opportunities. The funding proposed in 2SHB 1273 aims to tackle these barriers head-on. The bill will support outreach initiatives, curriculum alignment, professional development for educators, and enhancements in credit transcription and advising. These measures ensure that students can fully benefit from CTE dual credit programs without facing unnecessary obstacles.

WSSDA’s platform advocates for reducing barriers to post-secondary education while promoting academic rigor and equity in public education. The provisions outlined in 2SHB 1273 directly align with these goals, reinforcing the need for a comprehensive approach to educational reform.

Comprehensive Evaluation and Future Improvements

An essential component of 2SHB 1273 is its emphasis on accountability and continuous improvement. The bill mandates that the State Board for Community and Technical Colleges and the Office of the Superintendent of Public Instruction report to the Legislature on the implementation of the bill. This includes recommendations for improvements to dual credit policies, ensuring that the program remains responsive to the needs of students and the workforce.

Supporting Testimony from WSSDA

Levon Williams, the advocacy and policy analyst for the Washington State School Directors’ Association (WSSDA), shared support for 2SHB 1273 this past week, emphasizing its alignment with the organization’s vision for equitable and accessible education. Williams stated, "We are committed to ensuring that Washington’s students graduate prepared for the future, regardless of their post-secondary trajectory." This commitment is crucial as the state seeks to foster a system that provides every student with the tools needed for post-secondary readiness.

Conclusion: A Call to Action

2SHB 1273 represents a critical step forward in expanding access to Career and Technical Education dual credit programs in Washington State. By increasing opportunities for students, regardless of their background or location, this bill prepares them for success in higher education and the workforce.

As Levon Williams stated, "Consider this bill as a way to increase student opportunities." The potential impact of 2SHB 1273 on the lives of countless students and the overall workforce cannot be overstated.

WSSDA ADVOCACY THIS WEEK

At this point in the session, only a small percentage of the total bills that were introduced continue to progress through the legislative process. Senate policy bills are being heard in the House policy committees and vice versa. As such, our bill watch list is shorter than ever and our advocacy is more laser-focused. WSSDA most often weighed in on the bills that are either of priority importance (school funding) or that we continue to have concerns about, such as:

ESSB 5041 - Concerning unemployment insurance benefits for striking or lockout workers.

Signed in CON and submitted written testimony – Marissa Rathbone, WSSDA Staff

ESSB 5192 - Concerning school district materials, supplies, and operating costs.

Testified PRO – Sandy Hayes (Northshore), Nikki Otero Lockwood (Spokane), and Melissa Beard (Tumwater)

E2SSB 5263 - Concerning special education funding. Testified PRO – Sandy Hayes (Northshore), Nikki Otero Lockwood (Spokane), and Melissa Beard (Tumwater)

SHB 1543 - Increasing compliance pathways for the clean buildings performance standard with alternative metrics and extensions for reporting. Signed in Other and submitted written comments

2SHB 1273 - Improving student access to dual credit programs. Signed in Pro and submitted written testimony

If you have any questions about the status of these or any other bills, please email strategicadvocacy@wssda.org.