Three Washington school districts serving more than 74,000 students are laying the groundwork to sue the state, arguing it has failed to meet its constitutional obligation to fully fund basic education. The school boards of Lake Washington, Tacoma and Yakima contend that state funding shortfalls are forcing them to lean on local levy dollars just to cover day-to-day expenses that should be the state's responsibility.
According to the Washington State Standard, Lake Washington and Tacoma passed resolutions on October 22 directing staff to assemble materials for a potential lawsuit, and Yakima followed with its own resolution on November 2 that effectively declares its participation in a future legal challenge. No filing date for the lawsuit has been disclosed by any of the three districts, per the same report.
Lake Washington Superintendent Jon Holmen wrote that his district must bridge funding gaps for legally required student services using local resources, and that local levy support cannot substitute for the state's constitutional obligation to fund basic education, the Standard reported. Lake Washington School District plans to allege that the state violates its constitutional duty to fully fund basic education for all children residing in Washington, a duty the state constitution imposes as a mandatory affirmative obligation, according to the outlet's reporting.
A Legal Fight With McCleary-Era Roots
The planned lawsuit would not be the first time Washington courts have weighed in on this fight. The Washington Supreme Court ruled in 2012 that the state had violated its constitutional duty to provide ample public education funding and ordered it to fix the problem, a history detailed in Washington State Supreme Court records from the McCleary case. That 2012 order called for full compliance with the state constitution by 2018 and directed the state to lay out a plan for implementing its school funding overhaul legislation, according to the court filing.
When the state still hadn't complied by 2014, the court issued a contempt order and imposed a fine of $100,000 per day, the Standard reported. The court eventually ruled in 2018 that the state had come into compliance. Now, Washington Superintendent of Public Instruction Chris Reykdal has warned that a McCleary-like lawsuit could arise again, and he supports the three districts' efforts to sue the state, per the Standard's reporting.
Rising Costs And Shrinking Enrollment
The districts point to a familiar list of financial pressures: rising transportation, utility and insurance costs, declining student enrollment, and in some cases failed local levies, according to the Standard. Lake Washington School District has said separately that it's experiencing enrollment shifts driven by demographic changes, declining birth rates and evolving housing patterns, per its own realignment materials.
Yakima School District's own figures illustrate the strain. The district says state funding gaps have cost it $202.5 million since 2021, according to its 2026 legislative priorities document, which also states that utilities, insurance, technology and curriculum costs have risen far faster than state allocations since 2021. Yakima's legislative priorities also call on the state to codify its Local Effort Assistance program in statute rather than leave it tied to a temporary two-year budget cycle.
That assistance program, as described by the Washington Office of Superintendent of Public Instruction, provides direct and flexible state funding to eligible districts to match voter-approved enrichment levies. OSPI describes local levies more broadly as a way for voters to support their schools beyond the basics the state Legislature funds. The state also estimates total local levy funding per FTE for calendar year 2026.
Tacoma's Budget Crunch
Tacoma Public Schools has been candid about its own numbers. The district says it's facing a $30 million budget shortfall for the 2025-26 school year, according to its own budget materials. The News Tribune reported that the district's reserves fell from $11.1 million at the end of the 2023-24 academic year to zero since then, and that the district has already started cutting staff positions and eliminating programs, including elementary counselors and bilingual specialists.
Statewide funding gaps extend well beyond these three districts. Washington districts had $531 million in unfunded special-education expenses in the 2024-25 school year. The same report found that districts spent $253 million on substitute costs for classified staff that year but received only $28 million in state funding for those costs — a gap Yakima School District says it feels directly, reporting it receives $500,000 to $600,000 from the state for substitute costs while spending $7 million to $8 million.
Disputed Counts Of Districts Under Oversight
The Washington State Standard reported a record 11 districts under binding financial conditions.
Washington ranks 40th in K-12 investment as a share of the state economy. Yakima School District separately projects a $14.5 million disparity in materials, supplies and operating costs and a $15 million special-education funding gap of its own.
State Officials Respond
Per the Washington State Standard's reporting, the Legislature has made slight improvements to school funding, but districts statewide still spend roughly $800 million per year in local and federal funds to cover obligations the state is supposed to fund. That underfunding, the outlet reported, has driven districts to lay off staff, increase class sizes and consider closing schools.
Katy Payne, chief strategy officer in Reykdal's office, said OSPI and school districts have warned about underfunding for several years, and she urged the governor and Legislature to close the funding gap during the upcoming legislative session, according to the Standard. Reykdal's office has also requested budgets intended to address the shortfalls, the outlet reported.
