SHB 2159
In CommitteeHouse
PreK promise account
Establishing the preK promise account.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill establishes the preK promise account to accept and manage private donations, grants, and gifts to support the Early Childhood Education and Assistance Program (ECEAP) for young children across Washington. It also ensures the account earns investment income like other state trust funds and keeps leftover funds for future use.
- Creates the preK promise account in the state treasury, funded only by gifts, grants, or donations (not tax dollars), to support the Early Childhood Education and Assistance Program (ECEAP).
- Requires the state treasurer to keep track of funds by donor and allows only the secretary (of the Governor’s office, overseeing early learning) to approve spending from the account.
- Allows investment of funds in the account, with earnings distributed proportionally to the account based on its average daily balance — similar to other dedicated state accounts.
- States that leftover funds in the account at the end of the biennium do not revert to the general fund but are carried forward.
- Adds the preK promise account to the list of accounts that receive investment earnings (under RCW 43.79A.040), ensuring it shares in interest and investment income generated by the state’s pooled cash management fund.
Who is affected
- Families of young children — Families and caregivers of young children (ages 0–5) who qualify for the Early Childhood Education and Assistance Program (ECEAP) may receive expanded access to high-quality early learning opportunities through private donations and grants managed through this account.
- Donors and private funders — Nonprofits, foundations, and other organizations that wish to support early childhood education can make tax-deductible donations directly into the account to fund ECEAP services.
- State agencies (specifically early learning leadership) — The Washington State Department of Early Learning (DEL) — now part of the Office of the Secretary of the Governor — administers the account and determines how funds are used to support eligible children.
- State banking partners — Financial institutions that provide banking services (e.g., depository, safekeeping, disbursement) may receive compensation from investment income generated by the account.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The bill creates a dedicated channel for private donations, grants, and gifts to support ECEAP—Washington’s flagship early childhood education program—which directly expands access to high-quality early learning for low-income families without using taxpayer dollars.
EducationPeopleRef: Sec. 1(1), Sec. 1(2)By allowing leftover funds to carry forward rather than revert to the general fund, the bill supports long-term planning and sustainability for ECEAP, enabling multi-year program expansions or stabilization of services—benefiting children who might otherwise face waitlists or program gaps.
EducationPeopleRef: Sec. 1(3)The preK promise account now qualifies for investment earnings based on average daily balance, meaning private contributions will generate additional earnings that stay within the account—enhancing the purchasing power of donations over time and supporting more children per dollar raised.
EducationPeopleRef: Sec. 2(4)(b), Sec. 1(1)The bill may stimulate demand for early learning services and related support industries (e.g., childcare providers, early intervention specialists), especially in underserved communities, by increasing program capacity through private funding.
Business & EmploymentPeopleRef: Sec. 1(1)Investing in high-quality early childhood education is strongly associated with long-term reductions in crime, incarceration, and public assistance reliance—making this a preventive public safety investment with strong ROI for at-risk children and communities.
Public SafetyPeopleRef: Sec. 1(1), Sec. 2(3)
Potential Concerns (4)
By keeping leftover funds in the account rather than returning them to the general fund, the bill reduces biennial revenue recycling, which may limit flexibility for future public investments—including those in public safety—if the account underperforms or donor interest wanes.
Public SafetyPeopleRef: Sec. 1(3)The bill authorizes investment of account funds and distribution of earnings to the state general fund *except* for designated accounts—including the new preK promise account—which receive proportionate earnings based on average daily balance. This may divert investment income that would otherwise flow to the general fund, potentially reducing general-fund revenue available for broader public services, including local government and public safety.
Business & EmploymentLean peopleRef: Sec. 1(1), Sec. 2(4)(a)While the bill does not impose new mandates on local governments, it centralizes control of private donations over ECEAP spending in the Governor’s office (via the secretary), potentially reducing local school districts or community-based providers’ discretion in how private early learning funds are used.
Local GovernmentLean peopleRef: Sec. 1(2), Sec. 1(1)The bill adds the preK promise account to the list of accounts receiving proportionate investment earnings, but because earnings are distributed based on *average daily balance*, accounts with larger balances (e.g., larger scholarship or college savings accounts) will receive more in absolute terms—potentially reinforcing resource disparities among early learning and higher education programs.
EducationPeopleRef: Sec. 2(4)(b)
Who Is Most Affected
Families of young children—especially those qualifying for ECEAP—gain expanded access to early learning services through increased private funding, potentially reducing waitlists and improving school readiness.
Foundations, corporations, and high-net-worth donors gain a new, transparent vehicle for tax-deductible contributions that directly support ECEAP, with visibility into fund usage and impact tracking by donor.
The Governor’s Office (via the secretary) gains administrative control over private donations, centralizing decision-making over ECEAP spending—potentially reducing local discretion but increasing strategic alignment with state early learning goals.
Financial institutions providing banking services to the state may benefit from increased transaction volume and fees related to managing the new account, though this is likely a minor source of revenue relative to other state banking contracts.
Local school districts and community-based early learning providers may benefit from increased program capacity and stability, but lose some autonomy in how private funds are allocated, as spending approvals rest with the state secretary.