The bill amends RCW 28A.150.260 to improve the allocation of state funding for school districts, specifically targeting basic education programs. It introduces a distribution formula for instructional allocations that will be recommended to the legislature by the governor and the superintendent of public instruction. While the funding is based on prototypical school models, the bill clarifies that it does not impose specific instructional methods, teacher-student ratios, or restrictions on how funds are utilized. A significant change includes establishing a minimum allocation of $1,614.28 per full-time equivalent student for materials, supplies, and operating costs, which will be adjusted for inflation starting in the 2026-27 school year. Additionally, school districts are required to report all expenditures related to these categories to ensure transparency and accountability.

The bill also focuses on funding allocations for educational programs that assist students from low-income backgrounds and those learning English as a second language. It sets a minimum allocation for prototypical school resources that guarantees a specific number of hours of extra instruction per week, with class sizes capped at 15 students per teacher. The definition of "qualifying schools" is based on the percentage of students eligible for free or reduced-price meals, and guidelines for funding allocations for schools providing meals at no charge are established. The distribution formula for basic education funds will be reviewed biennially, with the legislature having the authority to approve or amend the recommendations. If the legislature rejects the proposed formula, the previous year's formula will remain in effect. The provisions of this act are set to take effect on September 1, 2025.