Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Allocation topic
No spam. Unsubscribe anytime.
State board approves FY27 operating budget and new allocation model; sets aside safe-harbor and performance funds
Summary
The board approved a $1.243 billion FY27 operating budget and adopted the first-year allocations under a new model that sets aside $188.2 million for a four‑year safe harbor, excludes international/corporate/continuing-ed enrollments from formula counts, and earmarks roughly $61.6 million for performance funding and $61.6 million for priority enrollments.
The State Board approved the fiscal year 2027 operating budget and the enrollment allocation resolution (26‑06‑26), adopting the new allocation model staff presented for first-year implementation. Staff said the total operating funds available were $1,243,000,000 and that, after set‑asides for provisos, earmarks and safe‑harbor, $761,300,000 flows through the allocation model.
At the meeting, a staff presenter explained how legislative changes in the 2026 supplemental budget produced a one‑time higher‑education adjustment, replacing $71,200,000 of state appropriations with building‑fee revenue. The presentation outlined that earmarks and provisos remove specific purpose dollars from the model (for example, disability accommodations and student emergency assistance grants), and that the policy for a four‑year safe‑harbor will hold $188,200,000 to smooth multi‑year cost adjustments and new building maintenance and operation costs.
The new model distributes enrollment funding using a four‑year rolling average of eligible FTE and headcount (academic years 2021–22 through 2024–25). Staff said the formula allocates 50% of funding based on pro‑rata share of eligible FTE and 50% based on headcount; the model explicitly excludes international, corporate and continuing‑education enrollments from the enrollment counts used for the allocation.
To advance policy priorities, the board set aside 5% of operating appropriations for performance funding ($61,600,000) and another 5% for priority enrollments ($61,600,000), split between basic education for adults and the designated skills‑gap programs. Staff enumerated targeted enrollments that are distributed outside the model (examples listed in the packet included aerospace, cybersecurity, I‑BEST, nursing and worker retraining allocations).
Board members asked about geographic and industry concentration. Staff said the skills‑gap list is built by workforce development area and currently shows a higher density of employment opportunities — and therefore funding — in the Seattle/King County region; the board also approved a calendar to reevaluate the skills‑gap list beginning in FY28 to assess distribution effects. Staff noted the primary driver of funding shifts is replacing an older enrollment "target" methodology (set in 2016) with current enrollment averages, which will cause some colleges to gain and others to lose funding relative to the prior model.
After a brief discussion and a friendly amendment to reference attachment A in the resolve, the board approved the resolution to adopt FY27 allocations. The motion passed by voice vote; no formal roll‑call tallies were recorded in the transcript.
Looking ahead, staff told the board they will provide more granular analyses of winners and losers under the model and that a reevaluation of skills‑gap components is planned for the next fiscal year.
