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One of the final actions of the 2026 session of the Washington State Legislature before adjournment on March 12 was approval of the state’s 2025–27 supplemental operating budget. Democratic budget writers released their final negotiated plan on March 11.

While lawmakers reduced some of the proposed cuts to K-12 schools and higher education, the final budget will still have real impacts on school districts, colleges, and education workers across Washington.

K-12 schools take funding cuts

In total, the Legislature cut $80.4 million from K-12 public schools. All of these reductions come from programs outside the state’s Basic Education funding formula.

K-12 education will now make up 42% of the state operating budget — the lowest share since the Great Recession and the McCleary school-funding lawsuit.

The following chart shows the major reductions to K-12 programs as reflected in the Supplemental Operating Budget, SB 5998:

School districts will feel these cuts. Less state funding could push more districts into financial distress or even state oversight. At a minimum, some districts may reduce Education Support Professional (ESP) jobs or work hours.

No bargaining rights or health benefits take-aways

There were no changes to collective bargaining rights, health benefits, or negotiated contracts for school employees this year.

State-funded wage increases tied to inflation will move forward for the 2026–27 school year at 2.6%.

Unlike 2025, when unions fought proposals to cut health insurance benefits and bargaining rights, no similar attacks emerged during the 2026 session. However, our sister SEIU Local 925 did experience a direct attack on collective bargaining for unionized child care providers. (Like us, SEIU 925 fought back vigorously and defeated the proposal.) 

The Legislature ultimately dedicated $33.8 billion to public schools out of an approximately $80 billion state operating budget.

Higher education largely protected

Funding news for higher education is somewhat better. Budget writers used all sorts of "smoke-and-mirrors" budget gimmicks to preserve most existing funding levels for colleges and universities and financial aid programs.

Unfortunately, all regional universities — including Central Washington University, Eastern Washington University, and Western Washington University — must absorb a a $175,000 "administrative" cut to non-faculty exempt staff.

At Eastern Washington University, this reduction could directly affect PSE-represented exempt employees, potentially leading to layoffs or other staffing changes.

Higher education funding overall will remain mostly flat next year, with about $6 billion allocated to colleges, universities, and financial aid programs.

PSE worked closely with a growing coalition of higher education partners to protect funding for regional universities and student financial aid, especially after major cuts hit higher education in 2025.

Community colleges avoid campus closure mandate

One positive change: lawmakers softened a proposal that would have required the Washington State Board for Community and Technical Colleges to recommend closing at least one campus. That requirement was removed from the final budget.

K-12 policy changes in SB 6260

In addition to the budget itself, lawmakers passed companion legislation that outlines program changes. SB 6260 includes adjustments to:

• Transition to Kindergarten
• Running Start
• School bus depreciation schedules
• Local Effort Assistance (levy equalization)

The bill also changes bus replacement timelines. Smaller Type A school buses (36 passengers or fewer) will now depreciate over 10 years, while larger Type C and D buses will depreciate over 15 years.

Bottom Line

The final budget avoided some of the deepest proposed cuts, but schools and colleges will still face tight budgets and difficult decisions in the coming year. For education workers across Washington, the impact of these reductions will likely be felt in staffing, hours, and services for students.