HB 2612
In CommitteeHouse
Workforce ed. inv. account
Protecting revenues devoted to the workforce education investment 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 and governs the workforce education investment account, which collects specific business taxes and uses the money exclusively for higher education and workforce training programs. It ensures those funds are used to add to — not replace — existing education funding.
- Creates the workforce education investment account in the state treasury to hold dedicated revenue.
- Requires revenue from the workforce investment surcharge (RCW 82.04.299) and specified business and occupation (B&O) tax revenues (RCW 82.04.290(2)(c)) to be deposited directly into the account.
- Limits spending from the account to higher education programs, operations, compensation, state-funded student aid, and workforce development, including career-connected learning.
- Prohibits using money from this account to replace or reduce existing state, federal, or local funding for higher education — money must be used to supplement, not supplant, other funds.
- Reaffirms legislative intent that appropriations from this account should provide additional, enhanced, and expanded support for education and workforce programs.
Who is affected
- Students and job seekers — Students and job seekers who receive state-funded financial aid (like the Washington College Grant) or participate in workforce development programs may benefit from increased or more stable funding for these services.
- Public higher education institutions — Public colleges, universities, and community/technical colleges may receive additional state funding to support academic programs, operations, staff compensation, and career-connected learning initiatives.
- Low- and middle-income families — Low- and middle-income families applying for state financial aid may benefit from expanded access to education and training programs funded through this account.
- Businesses and employers — Businesses and employers may benefit indirectly through a better-prepared workforce and expanded career-connected learning opportunities (e.g., apprenticeships, internships) supported by the account.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (4)
Creates a dedicated revenue stream for higher education and workforce development, which can stabilize funding for community/technical colleges and state-funded financial aid programs like the Washington College Grant — directly benefiting low- and middle-income students who rely on such aid to access and complete postsecondary education.
EducationPeopleRef: Sec. 1(1), RCW 43.79.195(1)The “supplement, not supplant” requirement reinforces legislative intent to expand education funding rather than substitute it for existing obligations — providing stronger long-term budget protection for public higher education than general fund allocations, which are more vulnerable to political pressure and economic cycles.
EducationPeopleRef: Sec. 1(2), RCW 43.79.195(2)By funding career-connected learning (e.g., apprenticeships, internships) and workforce development, the bill supports employer-education partnerships that help align training with regional labor market needs — improving job placement and wage outcomes for workers in high-demand fields, especially in manufacturing, healthcare, and tech-adjacent sectors.
Business & EmploymentPeopleRef: Sec. 1(1), RCW 43.79.195(1)The bill’s requirement that funds be used for “higher education compensation” may help retain and recruit qualified faculty and staff at public institutions, addressing chronic underfunding of wages in Washington’s higher education system — which in turn supports student success and degree completion.
EducationPeopleRef: Sec. 1(1), RCW 43.79.195(1)
Potential Concerns (3)
The bill dedicates revenue from specific business taxes (workforce investment surcharge and B&O tax on certain services) exclusively to higher education and workforce training, which may reduce legislative flexibility to allocate those funds to other pressing public needs (e.g., K–12, healthcare, housing) during budget shortfalls or emergencies.
EducationPeopleRef: Sec. 1(1), RCW 43.79.195(1)The prohibition on using account funds to supplant existing education funding may discourage local school districts or community colleges from reducing reliance on state funding (e.g., through efficiency measures), since doing so could risk losing state matching funds — effectively penalizing fiscal discipline.
Local GovernmentPeopleRef: Sec. 1(2), RCW 43.79.195(2)The bill imposes a new administrative requirement on businesses subject to the workforce investment surcharge and specified B&O tax categories to track and report contributions specifically to this account, increasing compliance burden for small businesses without offsetting support.
Business & EmploymentLean peopleRef: Sec. 1(1), RCW 43.79.195(1)
Who Is Most Affected
Low- and middle-income students benefit significantly from increased access to state-funded financial aid and career-connected learning programs; however, those not pursuing postsecondary education see no direct benefit.
Public higher education institutions gain more predictable and expanded funding for operations, staff compensation, and program expansion — especially community and technical colleges, which serve the majority of workforce training students.
Businesses in sectors with labor shortages (e.g., healthcare, construction, IT) benefit from a better-prepared workforce through funded apprenticeships and training; however, small businesses face increased compliance costs without direct reimbursement.
State and local governments benefit from reduced long-term public assistance costs due to improved workforce outcomes, but lose budgetary flexibility over the dedicated revenue streams.
High-income households and large corporations are not primary beneficiaries — the taxes funding this account are levied on business activity (not personal income or wealth), and benefits flow primarily to students and public institutions rather than private wealth holders.