Gov. Bob Ferguson’s first budget proposal includes small but concerning cuts to K–12 education, while asking regional public universities to absorb another round of reductions.
The Governor’s staff has described the K–12 approach as “sustaining” current funding—neither growing nor shrinking it. But for schools already struggling with rising costs, flat funding often functions as a cut. The proposal reduces support for early learning, levy equalization, and school bus depreciation payments. On the positive side, it largely preserves investments in special education and instructional materials approved earlier this year.
Regional universities, however, would be required to cut their budgets by an additional 1.5% across the board, continuing a pattern of reductions that strain access and affordability for students across the state.
The 2025–27 supplemental operating budget is Gov. Ferguson’s first official budget proposal of his administration. Below are key highlights that education workers should know:
What’s in the Governor’s budget proposal?
- K–12 education would continue to receive just 41.9% of the operating budget, well below the 50% share the Governor has pledged to restore.
- Overall, K–12 funding would increase by $170 million, an increase of just 0.005%, far below inflation.
- Inflation-based compensation increases for K–12 employees are set at 2.7% for the 2026–27 school year, which may not keep pace with rising living costs.
- School districts would receive the same total amount of school bus depreciation funding, but payments would now be spread over 15 years instead of 8 or 13, delaying districts’ ability to replace aging buses.
- Paraeducator professional development funding would remain unchanged from levels approved in April 2025, although millions of dollars were previously in jeopardy.
- Higher education would see $50 million in cuts, including another 1.5% reduction for regional universities and a larger 3% cut for UW and WSU.
- The total budget would be $79.4 billion over two years, about $1 billion more than the current budget.
- The Governor proposes a new “Millionaire’s Tax” to address Washington’s regressive tax system, but it would not take effect until 2030.
- The budget relies on $1 billion from the Budget Stabilization Account, also known as the Rainy Day Fund.
The Governor’s proposal comes as the state faces a $2.3 billion budget shortfall, driven by inflation, lower-than-expected tax revenue, and increased demand for public services.
Ferguson’s budget is only the starting point. The state House and Senate will release their own budget proposals during the legislative session, which begins Jan. 12.