HB 2562

In Committee

House

Local effort assistance

Increasing local effort assistance to align with enrichment levies.

Introduced

Committee

Floor Vote

Opposite Chamber

Governor

Signed

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.

Introduced: January 18, 2026

Last Action: January 19, 2026

Status: H Approps

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AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.

People & CommunitiesPeople-leaningCorporate & Wealthy Interests

This bill raises the state’s matching support for local school levy revenue by increasing the benchmark levy rate used to calculate state assistance from $1.50 to $2.50 per $1,000 of assessed value, and significantly raising the per-student funding threshold. It also adds inflation enhancements for several years and extends assistance to state-tribal education compact schools.

Starting in 2027, the state will provide local effort assistance to eligible school districts to help supplement enrichment levies, with the goal of aligning state support with higher local levy rates.
The maximum local effort assistance is now calculated using a $2.50 per $1,000 assessed value levy rate (instead of $1.50) as the benchmark for full assistance.
School districts with actual enrichment levies below $2.50 receive a prorated amount of assistance; those at or above $2.50 receive full assistance.
State-tribal education compact schools receive funding equal to the prior-year per-student levy in their host district, up to the state local effort assistance threshold.
The state local effort assistance threshold is set at $3,838.26 per student through 2030, increasing annually by inflation plus an extra 3.33 percentage points, and then $5,035 per student starting in 2031 (with inflation adjustments from 2032 onward).
Enrollment calculations for funding exclude certain alternative learning experience students under specific conditions to avoid overcounting.

Who is affected

Public school districts in Washington — School districts whose enrichment levies are below the state threshold may receive increased state funding to help supplement local levy revenue; districts with levies at or above $2.50 per $1,000 assessed value receive full state assistance.
State-tribal education compact schools and their students — Students and staff at state-tribal education compact schools (e.g., tribal-run schools operating under state-tribal agreements) gain access to state funding tied to local levy levels in their host district.
Local governments and property taxpayers — Local governments and property owners may see modest changes in school funding distribution, as the state adjusts how much it supplements local levy revenue based on levy rates and enrollment.
School districts offering alternative learning experience programs — School districts with alternative learning experience programs may see adjusted funding calculations due to enrollment adjustments for those programs.

Effective: 2027-01-01Fiscal impact: The state will increase funding for local effort assistance to help school districts supplement enrichment levies, with funding tied to a new state local effort assistance threshold of $3,838.26 per student through 2030 (adjusted for inflation plus an additional 3.33 percentage points annually from 2027–2030) and $5,035 per student starting in 2031 (adjusted for inflation beginning in 2032). This increases state spending on K–12 education, though exact costs depend on enrollment, levy rates, and inflation.

Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 19, 2026 at 8:06 PM

Pro/Con Analysis

Stronger case for benefits

Potential Benefits (5)

The bill significantly increases state support for districts with lower local levy capacity by raising the benchmark levy rate from $1.50 to $2.50 per $1,000 assessed value and setting a high per-student assistance threshold ($3,838.26 in 2027, rising to $5,035 in 2031), reducing reliance on local property taxes and narrowing funding gaps between wealthy and low-wealth districts.
EducationPeopleRef: RCW 28A.500.015(2)(a), (4)(c)
By extending state local effort assistance to state-tribal education compact schools and tying funding to host-district levy levels, the bill advances educational equity for Native students and supports tribal sovereignty in education — a historically underfunded population.
EducationPeopleRef: RCW 28A.500.015(2)(b), (4)(c)
The inflation enhancement of 3.33 percentage points annually through 2030 — in addition to CPI — provides meaningful real-terms growth in per-student funding at a time when education costs are rising faster than general inflation, helping districts retain staff and maintain programs.
EducationPeopleRef: RCW 28A.500.015(4)(b)(ii)
The per-student funding threshold ($3,838.26 in 2027, $5,035 in 2031) is substantially above current average per-pupil state and local funding (~$15,000 total), indicating a strong commitment to closing the gap between local levy capacity and actual educational costs — especially helpful for districts in high-need communities.
EducationPeopleRef: RCW 28A.500.015(4)(c)
The shift to a $2.50 levy benchmark aligns state assistance more closely with current local levy norms — many districts already levy at or near $2.00–$2.25 — reducing the disincentive to levy at higher rates and encouraging more stable local revenue planning.
EducationLean peopleRef: RCW 28A.500.015(1), (2)(a)

Potential Concerns (5)

The bill increases state funding for school districts with enrichment levies below $2.50 per $1,000 assessed value, but excludes districts that have already levied at or above that rate — effectively rewarding districts that have historically maintained lower local tax effort and penalizing those that have invested more locally, potentially disincentivizing higher local levy rates in future years.
EducationPeopleRef: RCW 28A.500.015(2)(a), (4)(a), (4)(c)
The definition of 'eligible school district' ties state assistance eligibility to a per-student threshold ($3,838.26–$5,035), which may exclude districts with high-cost student populations (e.g., special education, English learners, or high-poverty districts) unless their enrichment levy is low enough to qualify — potentially worsening inequities for districts serving the most vulnerable students.
EducationPeopleRef: RCW 28A.500.015(4)(a), (4)(c)
The alternative learning experience (ALE) enrollment adjustment — which reduces funding for districts with ALE enrollment above 33% of total FTE — may disproportionately harm districts that rely on ALE for at-risk youth, juvenile justice, or rural distance-learning programs, potentially reducing access to flexible learning options for vulnerable students.
EducationLean peopleRef: RCW 28A.500.015(4)(f), alternative learning experience adjustment
The explicit exclusion of local effort assistance from the state’s ‘basic education’ funding means this money does not count toward the state’s constitutional duty to fully fund basic education, potentially undermining long-term equity goals and leaving districts dependent on volatile local levies.
EducationLean peopleRef: RCW 28A.500.015(3)
The inflation enhancement of 3.33 percentage points from 2027–2030 is generous but temporary; after 2030, funding growth reverts to standard CPI-based inflation, which may fall short of actual education cost increases (e.g., healthcare, pensions, special education), risking underfunding in the long term.
EducationLean peopleRef: RCW 28A.500.015(4)(b)(ii)

Who Is Most Affected

Public school districts in Washington (especially low-wealth districts)Positive Impact

Low-wealth school districts with enrichment levies below $2.50 per $1,000 assessed value will receive significantly increased state funding, reducing their reliance on local property taxes and improving resource equity.

State-tribal education compact schools and their studentsPositive Impact

These schools gain access to state funding tied to local levy levels, supporting program continuity and staff retention — a major improvement over prior underfunding of tribal education initiatives.

Local governments and property taxpayersMixed Impact

Property taxpayers in districts with levies below $2.50 may see less pressure to raise local levies, but those in high-levy districts may see no direct benefit — overall, modest net effect on property tax burden.

School districts offering alternative learning experience programsNegative Impact

Districts with high ALE enrollment (e.g., for at-risk, rural, or alternative education) may face reduced funding due to the 33% cap adjustment, potentially limiting program access for vulnerable students.

High-wealth school districtsMixed Impact

Wealthy districts that already levy at or above $2.50 receive no additional state support, preserving their existing advantage — the bill does not reduce inequity between high- and low-wealth districts, only between districts below the levy threshold and the state average.