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Senate bill would raise MSOC per‑student allocations 10% and use three‑year enrollment average; districts cite rising insurance and utility costs
Summary
Senate Bill 5192 would collapse MSOC categories into a single per‑student allocation, increase MSOC amounts by 10% and calculate enrollment with a three‑year rolling average. District leaders told the committee that MSOC shortfalls force levies to pay for core operations and cited large increases in insurance and utilities.
Senate Bill 5192, presented to the Senate Early Learning & K‑12 Education Committee, would change how school districts receive state funding for materials, supplies and operating costs (MSOC). The bill removes distinct MSOC categories from the prototypical funding model and consolidates them into a single per‑student allocation, increases the per‑student MSOC amounts by 10%, and sets district enrollment for MSOC calculations on a three‑year rolling average.
Committee staff summarized the proposal and the bill’s projected cost. A staff fiscal note attached to the bill estimates roughly $298 million in additional expenditures in the 2025–27 biennium for the proposed MSOC changes.
District administrators and statewide associations testified in strong support. Kelly Aramaki, superintendent of Bellevue School District, said Bellevue faces an MSOC funding gap of about $9 million this year and has cut MSOC spending by roughly 30% in school budgets, affecting arts and music. Rob Bryant, chief financial officer for Federal Way Public Schools, cited a 168% increase in property and liability insurance premiums over four years and said Federal Way’s MSOC gap has forced the district to divert levy funds.
Other superintendents offered similar examples: Lake Stevens reported $16 million spent from general funds on MSOC in the last five years; Kennewick and Highline described insurance and utility increases that outpace MSOC adjustments. Witnesses asked the committee to add inflation indexing for categories such as insurance and utilities and to consider options—like insurance pools—that might constrain premium growth.
Sen. T’wina Nobles, sponsor of SB 5192, said the bill aims to stabilize district budgets, reduce reliance on local levies for core operations and provide a predictable funding base. She described the proposal as a step toward full funding of basic education by recognizing that costs of running buildings and providing materials have outpaced current allocations.
Education stakeholders, including the Washington Education Association and regional ESD representatives, supported the bill as a high‑value investment that would benefit every student. Several witnesses recommended tying future adjustments to clear inflation measures for specific MSOC categories to avoid recurring shortfalls.
No committee vote was taken at the hearing. Supporters asked the Legislature to consider additional inflationary adjustments and to prioritize MSOC changes alongside special‑education and transportation funding in the broader budget conversation.
Ending note: The committee heard widespread testimony from districts about large, ongoing MSOC deficits driven by insurance, utilities and technology costs; sponsors and witnesses urged action to reduce levy reliance and stabilize district operating budgets.
