The 2026 Legislature was confusing, sending mixed messages to educators. Legislators passed fewer unfunded education mandates while also cutting and/or paring back education programs and services. “We value education…but…”
There was some success in terms of seeing some bills with fiscal impact to districts not advance. One example is SB 5883:  Concerning eligibility for membership in the school employees’ benefits board programs during the second school year of employment. This bill would have imposed unfunded and substantial additional costs to districts. It did not advance due to the objections raised by WASA and its coalition members. However, some actions created new education requirements. For example, ESHB 1295: Using evidence-based instructional practices in reading and writing literacy for public elementary students passed. It mandates that, beginning in September 2027, when districts update K-4 reading and writing curriculum, they must new requirements. Yet it was unfunded.
Even so, districts, employee groups and advocacy coalitions worked harder and more successfully this session to speak with one voice about the damage imposing unfunded mandates and adding further reductions would cause.
The review below highlights some of what was passed by the legislature. There are a number of bills, most notably the budget, that the Governor has yet to act on but these are before him for action.
Pensions
Members of TRS/PERS Plans 1 do not receive annual cost of living raises unlike all other  state retirement/pension plans. The hope was that due to a $4 billion projected surplus in the LEOFF 1 retirement plan, excess dollars could be used to reestablish a permanent 3% COLA for those plans. Instead, E2SHB 2034 was adopted, and a huge portion of those excess dollars ($888 million +) were transferred to the climate commitment account and to the general fund for use as determined. In fact, the budget has new language which allows the legislature to transfer dollars from many of the different funds into the general fund. Typical language: “During the 2025-2027 fiscal biennium, moneys in the named account may also be transferred into the state general fund.”
But, a COLA was approved. SSB 5862 was adopted. A one-time, 3 percent benefit increase is provided to PERS plan 1 and TRS plan 1 retirees, up to a maximum of $110 per month. The benefit increase goes into effect on July 1, 2026. To be eligible for the increase the member must be retired on or before July 1, 2025.Â
Health Care/ Insurance
The operating budget, ESSB 5998, continues the retiree health insurance subsidy at either $183/month or 50% of cost (whichever is less) for PEBB retiree offerings.
E2SSB 5395: A determination of medical necessity shall be made only by a licensed physician or a licensed health professional working within their scope of practice. Artificial intelligence shall not be the sole means used to deny, delay, or modify health care services.
The Budget
The monthly employer funding rate for insurance benefit premiums, public employees’ benefits board administration, and the uniform medical plan, shall not exceed $1,333 per eligible employee for fiscal year 2026 and for fiscal year 2027, the monthly employer rate shall not exceed $1,350 per eligible employee. The funded incremental other fringe benefits went from $1,307/month in 2025-2026 to $1,374/month for 2026-2027.
Additionally, the monthly employer funding rate paid by school districts (often referred to as the retiree remittance) and educational service districts to the health care authority includes $67.61 per month beginning September 1, 2025, and $77.56 beginning September 1, 2026.
Current funding allows for the school employees’ benefits board to adjust the employer paid long term disability benefit to a maximum monthly benefit of $450 within the current funding resources.
Substitute costs are funded at 4 days per formula staff at $151.86/day.
Other Benefit Changes
2SSB 5292: The ESD Commissioner must set the PFML (Paid Family and Medical Leave) premium rate based on the Office of Actuarial Services annual report. The total premium rate must still not exceed 1.2 percent. (Although capped at this point in time, the bill shifts rate recommended to the Actuary to project solvency. This projection will clearly exceed the 1.2% maximum now in place.) The Office of Actuarial Services report must provide for a rate with a four-month reserve in 2030, in addition to the current requirement to maintain a four-year solvency.Â
Other Bills Impacting Districts:
SHB 2411: Expands the types of events that qualify a state employee for the leave sharing program to include employees who are victims of a hate crime and employees whose absence from work is due to the involvement of that employee or that employee’s relative or household member in an immigration enforcement action.
ESHB 2557: Requires a school district to provide a student’s parent or guardian with a copy of the special education evaluation report no later than the thirty-fifth school day following receipt of consent to evaluate the student, unless an exception applies or the parent or guardian provides a written waiver. Requires the school district to convene a special education eligibility determination meeting no sooner than five school days after the evaluation report is provided and no later than the fortieth school day following receipt of consent. Provides that, absent a written waiver, a school district’s failure to provide the evaluation report within the required timeline constitutes a procedural violation.
SHB 2594: Codifies provisions and requirements in state law that align with the federal McKinney-Vento Homeless Assistance Act that are ensuring that homeless children and youths have equal access to the same free, appropriate public education as is provided to other children and youths.Â
Duties and Obligations of School Districts. School districts serving a homeless child or youth has certain specified duties including: continuing the homeless child’s or youth’s education in the school of origin for the duration of homelessness; determining the best interest of the homeless child or youth based on certain criteria; enrolling the homeless child or youth immediately even if records are missing or certain deadlines have been missed; providing services comparable to other services including transportation, educational services, career and technical education, highly capable programs, and school nutrition programs. School districts must designate an appropriate staff person as a liaison for homeless children and youths with specified duties.
SB 5272: Improving school safety by extending penalties for interference by, or intimidation by threat of, force or violence at schools and extracurricular activities and requiring schools to notify the public of such penalties.
SB 6134: Requires the Employment Security Department to notify a striking worker applying for unemployment insurance benefits of the potential to receive an overpayment assessment if the worker receives retroactive wages from the employer.
