Public education at risk: What a veto of HB 2081 could mean for education
I want to call your attention to a growing debate in Olympia that could have significant implications for public education funding.
At the center of the controversy is House Bill 2081, part of a major tax package passed by the Legislature last month to help plug a projected multi-billion-dollar shortfall in the state budget.
The bill includes modest increases in the state’s business and occupation (B&O) tax, along with a temporary 0.5% surcharge on the largest, highest-grossing corporations in the state – companies with more than $250 million in annual revenue.
HB 2081 is under fire from many business groups, especially hospitality and food industry lobbyists, who are pressuring Gov. Bob Ferguson to veto the provision before the budget goes into effect. But make no mistake: removing this provision could blow a $1.86 billion hole in the budget – money that’s already been counted on to sustain core public services, including K–12 schools and regional universities.
What's at stake
If the governor caves to pressure from lobbyists and vetoes this section of the bill:
- Hundreds of millions of dollars for public education could disappear overnight.
- A special legislative session would have to be called to fill the revenue gap, creating uncertainty just as schools are finalizing budgets and staffing for next year.
- Programs that help reduce class sizes, fund special education, and expand access to higher education could face delays, cutbacks, or outright elimination.
Who’s really paying?
Some critics claim the surcharge will drive up food prices, but what they don’t mention is that this tax targets only the wealthiest corporations—not neighborhood grocery stores or local restaurants.
In fact, the surcharge is aimed at about 300 of the state’s most profitable businesses, including large wholesalers, major health systems, and national retailers. Meanwhile, several of the state's corporate giants – Boeing, Marathon Petroleum, and big tech firms like Amazon and Microsoft – have been granted carve exemptions.
A fairer path forward
HB 2081 is not perfect but it’s an essential step toward fiscal stability in Washington and protecting our public education system.
Lawmakers made difficult decisions to ensure fairness, shield small businesses and consumers, and generate the revenue needed to avoid deeper, more devastating cuts. That includes preserving funding for positions, wage increases, student mental health, classroom resources, and financial aid.
As education professionals, we know that every budget decision is ultimately a reflection of our state’s values. If we believe in strong, well-funded public schools and colleges, we must speak up now.
Take Action
PSE union members can contact Gov. Ferguson today and urge him to support House Bill 2081 in its entirety – including the temporary surcharge on the state’s wealthiest corporations. Our students, our schools, and our communities are counting on it.