Ways & Means advances broad slate of bills, moving major education, juvenile justice, housing and environmental measures to rules

The Washington State Senate Ways & Means Committee met in executive session Jan. 27 and advanced a wide package of bills to the Rules Committee, approving substitute versions and several amendments on major measures affecting special education funding, school operating costs, juvenile rehabilitation, housing finance and producer responsibility for packaging.

The committee — chaired by Senator Lisa Robinson — voted to give “due pass” recommendations to a long list of bills after staff briefings and brief floor discussion. Several bills with substantial fiscal notes were amended before receiving recommendations; a few items were held or not acted on as announced at the meeting.

Why it matters: the packet includes multi‑hundred‑million dollar education funding changes, proposals that change juvenile corrections and review procedures, and local revenue options for housing and public safety that would shift how state and local governments collect and distribute hundreds of millions of dollars. Committee action sends these measures to the Rules Committee for possible floor consideration by the full Senate.

Most significant approvals and debate

Special education funding (Substitute Senate Bill 5,263): The committee adopted a proposed substitute that aligns excess cost multipliers, directs OSPI to use the higher of a district’s BEA rate or the statewide average when computing excess cost allocations, and raises the expenditure threshold for safety net awards. Staff estimated the underlying bill’s fiscal impact at about $1.1 billion in the 2025–27 biennium and $2.4 billion over four years; staff estimated the adopted substitute would reduce the four‑year fiscal impact by roughly $400–$500 million. An amendment (Sen. Gildan) to require a state auditor performance audit of special education was moved and defeated; the chair said committee members would try to address audit concerns via proviso language rather than adopting the amendment on the bill. Senator Hanson urged rejection of an MSOC‑related amendment on a separate bill because of concerns it would disrupt prior MSOC budgeting changes.

School materials, supplies and operating costs (Senate Bill 5,192): The committee approved a proposed substitute that reduces the per‑pupil MSOC increase compared with the underlying bill and adds reporting requirements; staff estimated the underlying bill at $297 million in the 2025–27 biennium and $644 million over four years, with the proposed substitute lowering the four‑year fiscal effect by about $173 million. Senator Hanson argued the substitute better protects districts from disruptive retroactive constraints.

Extending special education through the school year a student turns 22 (Substitute Senate Bill 5,253): The committee gave the substitute a due pass recommendation. Staff reported DSHS fiscal impacts in the 2025–27 biennium (about $2.6 million) and multiyear estimates including indeterminate caseload impacts; members did not adopt any amendments.

Transportation funding for passenger vans (Substitute Senate Bill 5,009): Committee approved a substitute to allow passenger vans and other vehicle types to be treated in the student transportation formula; staff estimated near‑term impacts of roughly $236,000 in 2025–27 and $260,000 over the four‑year outlook, with additional indeterminate impacts tied to changes in the transportation funding model.

Juvenile rehabilitation, oversight and sentencing bills: Several bills affecting juvenile policy and review were advanced after amendment. Notable actions included adoption of Amendment 8 to Sub. SB 5,278 (juvenile rehabilitation capacity, community placement, and related facility standards) and approval of Sub. SB 5,032 (expanding duties of the Office of the Family and Children's Ombuds to include juvenile facilities). The proposed second substitute for SB 5,266 (allowing petitions to the Indeterminate Sentence Review Board for crimes committed before age 18) was amended (Amendment 14) to limit the number of petitions acted on annually from 70 to 35, which staff said would roughly halve the bill’s fiscal impact; an earlier Amendment 12 (which would have barred eligibility for murder convictions) failed on a roll call (division recorded: 9 ayes, 15 nays on that amendment). Senator Frahm, opposing Amendment 12, noted ISRB review is intended to consider rehabilitation and risk before granting relief.

Behavioral health accreditation and standards for corrections (Senate Bill 5,388): The committee adopted an amendment replacing a mandated NCCHC accreditation requirement with a requirement that the Department of Corrections and Department of Health jointly adopt behavioral health standards, with DOH conducting annual inspections and DOC reimbursing DOH for inspection and technical assistance costs; the committee approved the amended measure to the Rules Committee.

Housing and revenue bills

Short‑term rental excise tax for affordable housing (Senate Bill 5,576): The committee adopted a proposed substitute that allows local legislative authorities to impose a short‑term rental excise tax (up to 4% in the substitute; underlying bill proposed 6%) with proceeds dedicated to acquiring, rehabilitating or operating affordable workforce or supportive housing and related programs. Staff estimated the revenue increase at roughly $175 million over the four‑year outlook for the state/local system under the original bill; the substitute reduces the statutory ceiling but keeps the measure’s structure and reporting and administrative provisions.

Primary residence property tax exemption and implementing bill (Senate Joint Resolution 8,203 / Senate Bill 5,770): The committee forwarded the constitutional amendment (which would let voters consider a primary residence property tax exemption) and advanced implementing legislation that would create an exemption with procedural and data safeguards in the proposed substitute. Staff briefers described no net state revenue change (the state property tax rate would be adjusted to offset the removed base) but noted shifts to other property taxpayers and significant implementation and county assessor support costs estimated in the tens of millions over multiple years.

Working Families Tax Credit adjustments (Senate Bill 5,771 and related measures): The committee advanced a substitute that would add an additional refundable credit for eligible renters (estimated $48 million per year in increased payouts); members adopted amendments clarifying eligibility for mobile‑home lot renters, allowing self‑attestation to reduce DOR staffing needs and adding contingency language tying program implementation to budget appropriations and the passage of the constitutional amendment in some versions.

Solid waste, producer responsibility, and beverage container programs (Sub. SB 5,284; Sub. SB 5,502): The committee advanced an extended producer responsibility structure for packaging and paper products with initial receipts estimated at $7 million across the first two years and an expanded redemption program for covered beverage containers with receipts and outlays noted in staff estimates. A detailed amendment (No. 29) added procedures for voluntary alternative collection plans, community engagement and a more detailed needs assessment.

PFAS testing in biosolids and broadband infrastructure loans (Sub. SB 5,033; SB 5,188): The committee advanced a substitute requiring PFAS sampling and analysis in biosolids with estimated operating costs in the hundreds of thousands and moved forward an expansion to the Public Works Board broadband program to allow loans for middle‑ and last‑mile repair and replacement; Commerce flagged indeterminate capital costs subject to appropriation.

Committee process and items held

Committee members and staff repeatedly noted items that would not be taken up during the session: Senate Bill 5,007 (chronic absenteeism grants) and Substitute Senate Bill 5,522 (State Capitol Committee changes) were announced as not being taken up in packet 1. At several points the chair directed caucus breaks; vote boards were held and signatures processed in the workroom as staff announced.

What members said (selected quotes)

"I would totally sympathize with the desire to make sure the new MSOC money is limited to MSOC...that's gonna create some practical problems for districts," said Senator Mark Hanson, urging rejection of a Braun amendment on use‑restricted MSOC funding.

"Folks who work in industrial or light industrial area need childcare just like everybody else," said Senator Braun while arguing for an amendment to expand zones where childcare centers can be outright permitted.

Next steps

Bills receiving due pass recommendations now move to the Rules Committee for potential placement on the Senate floor calendar; those moved without recommendation still proceed to Rules but without the committee’s endorsement. Because multiple measures carry large fiscal notes or create new ongoing programs, the Governor’s budget office and fiscal staff will incorporate updated estimates as the bills are amended in later stages.

Ending

The committee concluded its evening with the last packet; the chair adjourned the executive session after votes and indicated processing of signature sheets and workroom pickup for boards.