In the State of Washington, public school funding comes from several sources, each with different rules governing how the money may be spent.
The state provides the largest share, with allocations calculated through formulas that account for factors like enrollment and student needs. This model pays for what the Legislature defines as basic education, although the amount doesn’t necessarily equal the actual cost of staffing classrooms, operating buildings and providing student services for each of Washington’s 295 districts, especially when considering increasing costs and inflation.
Federal funding makes up a smaller portion of the overall system, most restricted to a specific purpose, such as services for students from low-income families, multilingual learners, and those receiving special education.
Local revenue is one component of the district’s funding. Educational Programs and Operations (EP&O) levies are local property-tax measures submitted to voters to fund programs, staffing, and services not fully funded through state allocations. In Spokane Public Schools, the EP&O levy currently accounts for 15.2% of the annual district budget.
A levy proposal specifies the maximum amount the district may collect each year. If voters approve the measure, Spokane Public Schools may collect up to those amounts. While rising property values, new homes and businesses can expand the district’s tax base, they do not increase the voter-authorized levy amount. Instead, the cost is distributed across a larger tax base.
Two funding sources for public schools are commonly misunderstood: lottery and cannabis revenue. Although both contribute some money to education, neither is very large.
The Office of Superintendent of Public Education (OSPI) reports that approximately 75% of Washington Lottery revenue is distributed as prize payments. During the 2023-25 biennium, less than 20% of lottery proceeds went to the Opportunity Pathways Account for education, and approximately half of that amount supported public schools.
Cannabis revenue contributes even less to K-12. OSPI estimates that it makes up approximately 0.09% of the statewide public-school budget, directed primarily to limited programs and grants.
School districts might also receive smaller amounts of revenue through fees, grants, donations, and other sources.
To sum it up, district funding comes from several sources: primarily state allocations, federal funding for designated programs, and local levy revenue for specified programs and operations.
On Nov. 3, 2026, voters within Spokane Public Schools boundaries will consider a three-year replacement EP&O levy. If approved, it would collect no more than $107 million in 2028, $111 million in 2029 and $115 million in 2030 to support an improved student experience. The estimated rate is $2.50 per $1,000 of assessed property value each year. For more information, visit Learn About the Levy.