Committee advances substitute to close Rainier School by June 30, 2027; amendment to prioritize transfer withdrawn

The Senate Ways & Means Committee on April 18 gave substitute Senate Bill 5,393 a due‑pass recommendation to the rules committee after debate about client transitions, possible transfers of the Rainier School campus, and fiscal impacts.

The proposed substitute directs the Department of Social and Health Services (DSHS), subject to appropriations, to transition current residents to state‑operated living alternatives, supported living facilities, adult family homes or other residential habilitation centers according to client preferences and closes Rainier School by June 30, 2027. Committee staff presented multiple fiscal estimates: staff briefings and the Senate budget produced different net savings and costs across the 2025‑27 biennium and the four‑year outlook, and staff noted capital costs for “warm closure” and campus security measures.

Senator Kaufman offered Amendment 22 to require DSHS to explore transferring ownership and operations of the Rainier School to a third party and to prioritize transfer over closure; the amendment would have required exploration of transfer options and delayed closure proceedings if enabling legislation authorizing transfer was not enacted by July 1, 2026. Senator Kaufman later withdrew Amendment 22, saying she hoped the state would consider transfers where feasible and that she intended to continue negotiations on related budget language.

Committee members expressed divergent perspectives. Some senators said closure was necessary because of the state’s broader care strategy; others said moving residents would risk loss of continuity of care and that community capacity to absorb residents—especially in some counties—was limited. Senator Conway said she would vote no, citing the difficulty of finding placements in Pierce County; Senator Behnke and others expressed similar concerns about rural placement and continuity of care. Senator Torres noted the committee’s decision to keep at least one regional school open and emphasized the cottage model used at Yakima Valley School.

Fiscal context: committee staff briefed estimated operating and capital costs and projected net savings in some budget versions; staff also noted an estimated general fund revenue loss tied to the intermediate care facility tax. Staff said the Senate budget assumes a mix of transitions (50% to other RHCs, 25% to supported living, 15% to state‑operated living alternatives via three new homes, and 10% to adult family homes).

Outcome: After debate and the withdrawal of the transfer amendment, the committee adopted proposed substitute 21 and forwarded substitute Senate Bill 5,393 to the rules committee with a due‑pass recommendation.

Why it matters: The bill directs closure and client transitions for a state residential habilitation center and carries both capital and operating budget implications as well as questions about placement capacity and continuity of care for residents.

What happens next: The substitute bill moves to the rules committee; staff and members indicated additional budget language discussions could continue during subsequent budgeting processes.