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In the fall of the 2024-2025 school year, the Washington Association of School Administrators (WASA) published the resource www.waschoolfunding.org to put the scope of Washington State’s K-12 education challenges into context, explaining the issues creating financial pressure on school districts and the need the for state funding allocations to reflect these increasing costs. 

The website highlights that as Washington State’s operating budget has increased, the percentage dedicated to funding K-12 education has not kept up. Five years ago, about 52.4% of the state’s general fund budget was dedicated to K-12 education. As of 2024, it’s down to about 43.1% even though it is the state’s constitutional responsibility to provide adequate funding to support basic education services. 

Along with growing student support needs and higher operating costs, WASA identifies insufficient Special Education funding as a major factor “taking big bites out of school district budgets across the state.”

Special Education is a state and federal requirement and is important and necessary to support all students. School districts receive funding from both state and federal sources to support Special Education in their districts. Districts have a legal obligation to serve all students with disabilities in Washington, regardless of cost of services, yet they do not have the necessary resources to provide those services, WASA outlines in its 2025 Legislative Priorities. 

In Washington State, each student receiving Special Education services is first considered a basic education student, generating basic education funding. In addition to this, the state provides Special Education funding through a formula that includes two main components:

In addition, the state puts a cap on the percentage of students in a district covered by state and federal Special Education funding. Currently the state’s cap funds Special Education services for up to 16% of a district’s total K-21 student enrollment.

Darcy Johnson, North Central ESD’s Executive Director of Student Success, further explains: “If a district’s Special Education population exceeds this percentage, the additional students do not generate state Special Education funding, potentially leading to financial shortfalls. This cap is intended to control costs but can disadvantage districts with higher-than-average Special Education needs.”

Over recent years, many districts have reported that the actual costs of providing Special Education services have outpaced the funding received through state and federal sources. Although the Legislature raised the funding cap to 16% this year, that increase amounts to an investment of only $19.6 million for 2024-25. In the 2022-23 school year, Special Education expenses that were unfunded amounted to $529.8 million. This growing gap can be attributed to: increasing numbers of students requiring Special Education, rising costs of specialized services, and the limitations imposed by the funding cap. 

North Central ESD works closely with school districts in the region and provides technical assistance and numerous resources to assist with the education of students with disabilities. Johnson explained that the current funding model poses challenges for many districts. Funding shortfalls can lead to increased caseloads for Special Education teachers, reduced availability of specialized services, or delays in service delivery.

“For instance, a district facing a budget deficit might be unable to hire additional staff needed to support students with high needs, potentially affecting the quality of education and necessary support these students receive,” Johnson added. “In some cases, districts may need to reallocate funds from other programs or cut extracurricular activities to cover Special Education costs.”

To support districts that are facing these funding challenges, North Central ESD hosted a Safety Net Application workshop in January 2025. During the workshop, attendees were introduced to different elements of the application process and provided time to work on their application with the support of Johnson and her team.

The Safety Net program provides additional funding to districts that demonstrate a need for Special Education funding beyond what is provided through standard state and federal allocations. 

“Safety Net funding is designed as a supplementary resource to address extraordinary or unforeseen Special Education costs,” Johnson said. “Relying on it long-term is challenging.”

To access these funds, districts must apply and provide evidence of high-need individual students whose Special Education costs exceed a certain threshold, and community impact factors that result in extraordinary costs beyond the district’s control. 

However, Safety Net funds are not guaranteed and are subject to specific criteria and availability. The application process is thorough, requiring districts to provide comprehensive financial and programmatic information to justify their need for additional funds. Applications are reviewed by a state oversight committee, and awards are made based on demonstrated need.

During the workshop, Trisha Schock, North Central ESD’s Assistant Superintendent of Administrative Services, shared a recently released online dashboard tool for districts to strategically plan and advocate for necessary resources by accessing financial insights and overall funding. 

“The goal was to create a resource that would help districts, policymakers, and advocates quickly assess financial trends to drive informed discussions,” Schock shared. 

One of the trends identified from the data is the persistence of the Special Education funding gap. The additional strain on school district budgets forces them to cover the shortfall with local levy dollars, Schock added, which was next the intent of state funding formulas.

Many education associations and partners are advocating for adjustments to the Special Education funding models during the 2025 legislative session. WASA’s priorities call for the Legislature to fully find the cost of Special Education services, specifically to increase Special Education tiered multipliers and remove the enrollment funding cap.

By fully funding Special Education services, districts would be able to save their BEA dollars for basic education requirements, as defined by the prototypical funding model, Johnson further explained. Full funding could also enable districts to:

If you want to learn more about school funding issues in Washington State, head over to WASA’s website: Issues at the Core of Washington State’s School Funding Dilemma