Committee hears testimony on bill to let small education agencies arrange separate administrative services

The House Education Committee on Monday heard testimony on House Bill 16 62, which would remove statutory requirements that several small education boards be administratively housed within the Office of Superintendent of Public Instruction and direct those entities to secure separate administrative services by July 1, 2027.

Ethan Moreno, nonpartisan committee staff, told the committee the proposed third substitute removes provisions requiring the State Board of Education, the Professional Educator Standards Board (PESB), the Financial Education Public Private Partnership (FEP), and the Washington State Charter School Commission to reside within OSPI for administrative purposes and authorizes each to contract for any or all of their administrative services. He said the substitute largely reflects the language previously advanced by the Appropriations Committee but advances the implementation dates.

Supporters said the change would let smaller agencies tailor procurement, travel and hiring processes to their scale and mission. Randy Spalding, executive director of the State Board of Education, said the current framework "adds unnecessary and duplicative layers of approval" that burden small staffs and takes time away from core duties. Veronica Maria Gallardo, interim executive director of PESB, described a "dissonance" between OSPI’s scale and the smaller board’s needs and cited delays in contracting and budgeting under the current arrangement.

Financial oversight and transparency were recurring themes. Tracy Godat, executive director of the Financial Education Public Private Partnership, said "boards and commissions pay currently around 15%, indirect fees, up from about 10% from last year," and that there is little clarity on what the fees cover; she warned that unanticipated transitions to more expensive platforms have required budget adjustments that could reduce resources for students and educators. Dr. Bridal Hernandez Scott, an education advocate, said OSPI was expected to earn approximately $600,000 from PESB in the fiscal year while service quality declined, and urged the committee to adopt measures that "strengthen [accountability] by allowing independent agencies to secure administrative services that are appropriately scaled, transparent, and responsive."

The bill would also direct the Office of Financial Management to coordinate with OSPI and the affected agencies to support the transition and specify procedures for transferring physical and financial assets and affected employees. Committee members asked clarifying questions about the differences between this third substitute and last year’s version; staff said the differences are primarily timing. The committee closed the public hearing on HB 16 62; no vote was taken. The bill is scheduled for the executive session agenda next Thursday.