At Highline School District, our approach to school funding is designed to ensure equitable resource distribution while meeting the diverse needs of our students and staff. We allocate staffing based on a combination of contract language, state guidelines, and key factors such as safety requirements and Individualized Education Plans (IEPs). In addition to staffing allocations, we provide schools with separate categorical dollars, which they can utilize to address specific needs—either through additional staffing or non-staffing expenditures. We also allocate centrally designated staffing to support districtwide priorities and ensure consistent services across all schools. This model ensures that each school has the flexibility to tailor its resources to best support student success while maintaining fiscal responsibility.

General Education Funding

To ensure equitable resource distribution, we allocate funding to our general education elementary, middle, and high schools at different staffing ratios. These ratios are tailored to the distinct needs and structures of each grade level.

Schools receive general education dollars, providing them with the autonomy to allocate funds in ways that best meet the needs of their students and school community. This flexibility allows schools to spend on a variety of non-staffing needs, including classroom supplies and materials, program development, additional professional development for staff, and other activities. By directly allocating these dollars to schools, we empower them to tailor their spending to enhance the learning experience and address specific challenges or opportunities within their school.

Categorical Funding

In addition to general education staffing, we allocate categorical dollars to schools to address specific needs. These funds are provided separately from general funding and can be used for either staffing or non-staffing purposes, depending on each school's priorities. Schools have the flexibility to plan how these dollars are spent based on factors such as program needs, student services, or other specific initiatives. This approach ensures that schools have the resources they need to address the unique challenges and opportunities within their communities.

Title 1 Part A, OSSI, Learning Assistance Program Base (LAP Base), LAP High Poverty (LAP HiPOV) and Transitional Bilingual Instructional Program (TBIP) are supplemental funding sources to provide equity, learning acceleration, and a well-rounded education for all. In service to students, categorical formula grants are allocated as an additional layer for districts and schools to meet their Strategic District and school Annual Action Plan goals. Budget expenditures are supplemental to basic education and expected to meet the program's intent.

Schools that qualify for categorical funds receive a per pupil dollar amount. School leaders have the responsibility to plan funds to best meet their school needs in alignment with their Annual Action Plan (AAP). Schools receiving these funds are expected to follow evidence-based practices that demonstrate improvements in student performance.

Inclusive Model

At Highline School District, we are committed to implementing a continuum of services at every school and eliminate segregated programming, cognizant of the past and present disproportionate displacement of students due to disciplinary action, language learning status, disability, and any other label we have assigned our students. The district aims to create a system where all students receive the support they need without being separated from their peers.

Centrally Allocated Resources

In addition to school-based allocations, Highline School District provides centrally designated staffing to support districtwide priorities and ensure equitable access to essential services across all schools. These centrally funded positions are strategically allocated to address areas such as instructional support, mental health services, language access, and academic interventions. By managing certain staffing resources at the district level, we can ensure that every school—regardless of size or individual budget constraints—benefits from consistent levels of support and expertise. This approach promotes system-wide alignment, fosters equity, and helps maintain a strong foundation of services that are critical to student success.

What is meant by “enrollment”?

The term “Enrollment” can have several different meanings as it applies to various aspects of K-12 school funding. Some of the most basic definitions are as follows:

Headcount Enrollment

Headcount is the total number of students calculated by counting each individual student enrolled as “1” (e.g., the total number of individual students), as of a specific point in time, such as the first school-day of each month. Headcount is useful for determining classroom capacity.

Full Time Equivalent (FTE) Enrollment

Each student’s Full Time Equivalent (FTE) enrollment is based on a state-mandated minimum number of hours averaged per year. This minimum is 1,000 annual instruction hours for students enrolled in grades K-8, and 1,080 annual instruction hours for students enrolled in grades 9-12. A student enrolled for less than the minimum shall be counted as a partial full-time equivalent student. As an example, a secondary student enrolled in a course of study covering 1,388 minutes per week would be enrolled as a 0.83 FTE.

Annual Average FTE (AAFTE) Enrollment

The Office of Superintendent of Public Instruction (OSPI) averages the monthly FTE reported over ten months, from September to June, and uses the resulting Annual Average FTE (AAFTE) as the basis for funding school districts.

How enrollment generates funding from the state

Annual Average Full Time Equivalent (AAFTE) is the major variable that determines each district’s funding from the state. Because districts update enrollment monthly, AAFTE changes each month, and the state recalculates district revenue. The district’s 10-month AAFTE determines final state funding for that school year. Each district must also report specific enrollment sub-sets that may be included in, or be in addition to, the total enrollment.

The table below reflects the AAFTE for students enrolled in regular education, career and technical education (CTE), skills center programs, and alternative learning education (ALE). This number is the basis on which basic education funding is allocated by the state.

How enrollment is used for schools’ allocations

School allocations are calculated on projected October FTE enrollment. These projections are based on an estimated October headcount for the upcoming year, adjusted by individual grade-by-grade FTE factors for each school. As historic FTE factors for grades kindergarten through five are generally negligible, FTE for these grades mirror headcount at the school level. FTE factors for grades 9-12 averages between 90% and 94%, and between 99% and 100% for middle school grades.

Highline Public Schools contracts annually with a professional demographer to provide updated enrollment projections. These projections analyze both historical data and forecasted regional change variables, such as birth rates, population trends, and new housing developments, that influence student enrollment numbers. The demographer generates three possible trajectories—low, medium, and high—which help guide decision-making. For budgeting and staffing purposes, the district uses the medium trajectory to allocate resources, ensuring that funding for both staff and non-staff needs is distributed appropriately across schools. This data-driven approach enables the district to anticipate changes in student populations and make informed decisions about resource allocation, ensuring schools receive the necessary support based on projected enrollment trends.

Cohort Survival

King County live birth data is used to predict future kindergarten enrollment. Actual King County live births through 2024 are used to project kindergarten enrollment through the 2029-30 school year. After 2030, the number of live births is based on King County projections. Historical data is used to estimate the future number of kindergarten students that will be generated from county births.

For other grade levels, cohort survival trends compare students in a particular grade in one year to the same group of students in prior years. From this analysis, a cohort survival trend is determined. This historical trend is applied to predict future enrollment.

Development Tracking

To ensure the accuracy and validity of enrollment projections, a major emphasis has been placed on the collection and tracking of data of known new housing developments within the district. This information is obtained from the cities and county. It provides the foundation for a database of known future developments and assures the district’s plan is consistent with the comprehensive plans of the local permitting jurisdictions.

Regional Trends

We also consider regional population and K-12 population trends, making sure that the district projections align with expected population growth within King County and the Puget Sound.

"It is the paramount duty of the state to make ample provision for the education of all children residing within its borders, without distinction or preference on account of race, color, caste or sex."

—Washington Constitution, article IX, section 1

This constitutional provision is unique to Washington. While other states have constitutional provisions related to education, no other state makes K-12 education the "paramount duty" of the state.

The following fall under the Legislature’s definition of basic education:

• General Apportionment
• Special Education
• Pupil Transportation
• Learning Assistance Program
• Transitional Bilingual Instruction Program
• Highly Capable Program

General Apportionment

The General Apportionment formula provides foundational state funding to school districts and funds basic education as well as some non-basic education adjustments. The amount received by each school district varies based on certain characteristics of the district with enrollment being the largest factor.

Generally, enrollment drives the number of staff, and the associated salaries and benefits, allocated to the district as well as the allocation of funds for other non-employee related costs.

As of May 2026, the average allocation to Highline Public Schools through the General Apportionment formula is estimated to be $12,059 per student in the 2026-27 school year.

Prototypical School Formula

General Apportionment funding is calculated using what is called the Prototypical School Formula. The prototype illustrates a level of state allocated resources provided to operate a school of a particular size with types and grade levels of students. Allocations to school districts are based on actual full-time equivalent (FTE) student enrollment in each grade in the district.

Funding is for allocation purposes only (except for the categorical, or dedicated programs), and it is up to the school district to budget the funds at the local level.

Class Size

The number of funded teachers is derived from class size and teacher planning time. Class sizes vary from those allocated by the State because the district must also use these resources to hire other teaching positions like music and arts teachers, physical education teachers, interventionists and specialists.

Other School Staff

Other staff types are derived by using staff ratios for each school type: elementary, middle, and high school. Each prototype has a theoretical number of students and designated levels of staffing. For example, an elementary school is assumed to have 400 students in the prototypical model. If a district has 800 elementary-grade students, it will receive funding for double the number of staff positions.

Districtwide Support and Central Administration

District-wide support is funded under the prototypical model in addition to the staffing levels presumed to be needed for individual school buildings, since these services need to be provided across the district. Funding is based on overall student enrollment levels.

Central administration is funded as an additional 5.3 percent of other staffing units generated by the formula. These general staffing units on which the 5.3 percent is calculated include K-12 teachers, school-level staffing, and district-wide support; it does not include additional staffing for vocational programs, specialized classes, or categorical programs such as programs for highly capable students, special education, or the learning assistance program.

Materials, Supplies, and Operating Costs (MSOC)

The Prototypical School Funding Formula for General Apportionment includes an allocation for Materials, Supplies, and Operating Costs (MSOC), which is funded on a per-pupil, full-time equivalent (FTE) basis. The general education MSOC is $1,656.25 allocated per pupil.

For students enrolled in Career and Technical Education (CTE) courses or Skills Centers, the portion of student FTE generates $1,876.68 per student, which is higher than the general education MSOC allocation. This increased allocation reflects the unique needs and costs associated with CTE and Skills Center programs, including instructional materials, specialized equipment, and supplies required for technical courses. The additional MSOC funding helps cover operational expenses, ensuring that both CTE programs and Skills Centers have the resources needed to deliver high-quality, industry-relevant education.

Total MSOC per Student

• Materials Grades K-12: $1,656.25
• Grades 9-12 Enhancement: $220.43

Comparison of Highline to State Funding

Approximately $16.8 million above state funding is budgeted for non-staffing Materials, Supplies, and Operating Costs (MSOC) to support school and district operations. These expenditures include utilities, curriculum and instructional materials, technology licensing and infrastructure, custodial and maintenance supplies, insurance, communications, and other operational expenses required to maintain district facilities and programs.

Special Education

Every student qualifies for basic education services first, and the state funding formula for special education is based on the additional “excess costs” of educating students receiving special education services. For students ages 5 to 22, the state special education allocation is a multiplier of the district’s average per-student General Apportionment allocation. The formula, originally implemented in 1995, remained unchanged until the 2018 legislative session, when the excess cost multiplier was increased from 0.9309 to 0.9609. Beginning with the 2022–23 school year, the formula shifted to a tiered multiplier: 1.12 for students spending 80 percent or more of their time in a general education setting, and 1.06 for those spending less than 80 percent in such settings.

Starting in the 2025–26 school year, the state eliminated the 16% enrollment funding cap and replaced the tiered multiplier system with a single multiplier of 1.16, applied to the district’s average per-student General Apportionment allocation. Additionally, the Office of Superintendent of Public Instruction (OSPI) may reserve up to 0.006 of the excess cost allocations for statewide special education activities, including data reviews, technical assistance, and required self-assessments for districts with disproportionate identification rates.

In addition to these per-student allocations, the special education funding structure includes safety net funding for districts that can demonstrate extraordinary program costs beyond what is covered by state and federal resources. For example, Highline Public Schools applied for $7.7 million in safety net funding for the 2025-26 school year.

Pupil Transportation

A revised transportation funding formula was introduced on September 1, 2011, and fully implemented in the 2014–15 school year. This formula phased in funding for the transportation of students “to and from school” as part of basic education. It uses a regression analysis to calculate allocations based on cost factors such as basic and special education student ridership, district land area, roadway miles, average distance to school, and other statistically significant variables.

For the 2026-27 school year, the Student Transportation Allocation Reporting System (STARS) continues to use this regression-based model, applying updated coefficients derived from 2025–26 school year data. These coefficients are calculated using statewide transportation expenditures and district-reported data, including counts of students in basic and special programs, students in early education, bilingual programs, and those experiencing homelessness or in foster care.

Additionally, the state provides funding for school bus replacement through a depreciation schedule, with annual payments made from the year a bus is purchased until the end of its scheduled lifecycle. These funds are deposited into each district’s Transportation Vehicle Fund, which may only be used for purchasing new buses or making major repairs.

Learning Assistance Program (LAP)

LAP is a state-funded program designed to enhance educational opportunities for students not yet meeting academic standards through supplemental academic and nonacademic services. LAP services are delivered within Multi-Tiered System of Supports, targeting students with tiered interventions to accelerate learning and remove barriers that prevent students from fully benefiting from universal instruction. LAP aids students scoring below grade level in English Language Arts or Math. Districts receive LAP allocations based on the number of students in poverty, as measured by eligibility for free and reduced-price lunch.

As with other categorical programs, the prototypical funding formula provides a designated number of hours of instruction per week. A categorical program is one in which funds may be used for only the dedicated program and may not be re-allocated for use elsewhere in the school district. State law provides 2.3975 hours of LAP instruction per week, assuming class sizes of 15 students per certificated instructional staff.

In 2017 a new program was created within LAP. It is a high-poverty, school-based allocation for schools with a three-year rolling average of 50% poverty. The additional allocation is a statewide average of 1.1 hours per week in extra instruction with a class size of 15. School districts must distribute this high-poverty LAP allocation to the school buildings that generate the allocation. The funding must supplement and not supplant the district’s expenditures for LAP for these schools.

Transitional Bilingual Instructional Program (TBIP)

State TBIP funding supports students whose primary language is other than English. TBIP funds may also be used to provide training for staff in TBIP. As with other categorical programs, the funding formula provides a designated number of hours of instruction. For students in grades K through 6 and assuming class sizes of 15 students per certificated instructional staff, the formula provides 4.778 hours of bilingual instruction per week. Two additional hours of instruction per week is provided for students in grades 7 through 12, increasing the minimum allocation to a total of 6.778 hours, with a class size of 15 students. Funding for transitional support for up to two years after a student has exited the TBIP is also provided to assist students who have met the proficiency standards. 3.0 hours of additional instruction are provided for students who exited the program in the immediate prior two years.

Highly Capable Program

The Highly Capable, or gifted students, program is funded for up to 5.0 percent of a school district's basic education student enrollment. As with other categorical programs, the funding formula for the Highly Capable Program provides a designated number of hours of instruction per week, in this case 2.159, assuming class sizes of 15 students per certificated instructional staff.

Property taxes collected by Washington state are distributed to individual school districts based on guidelines set by the state legislature. School districts may choose to augment state funding by asking voters to approve excess taxes levied on taxable property within the district.

Highline Public Schools (HPS) has historically had strong support from the community in renewing the Enrichment (operations) Levy and approving construction financing bonds. In November 2025, Highline voters approved the expiring enrichment levy. The enrichment levy supports the critical day-today HPS operations and needs of students while the bond helps alleviate partial funding from the state on construction and additions for new schools, major maintenance, and repairs. In 2026-27, the enrichment levy will contribute $69.9 million to supplement education services not fully funded by the state.

The school levy rate is based on the assessed value of property in the district, the overall amount approved by voters, and any limits set by state law.

• Prior to 2019, the state set the limit that school districts could collect as a percentage of the state and federal funding received by the school district in the prior year.
• In 2019 the maximum enrichment levy changed to the lesser of $2,500 per pupil or a rate of $1.50 per $1,000 of assessed value.
• Beginning in 2020, the maximum enrichment levy increased to the lesser of $2,500 per pupil or a rate of $2.50 per $1,000 of assessed value. The $2,500 per pupil cap is increased yearly by inflation.
• Beginning in 2026, under new legislation passed in 2025 (HB 2049-S.E), the per-student cap will gradually increase, reaching $5,035 by 2031. This change allows districts to generate more local revenue to support educational services.

Washington State Auditor's Office

Each year, the Washington State Auditor’s office performs an audit of Highline School District’s financial statements and reviews its compliance with state and federal laws. This independent review helps ensure that the district is following appropriate accounting standards and has financial control over the use of taxpayer dollars.

This independent audit reviews the district’s internal control over financial reporting and major programs for which the district receives federal funding. The auditor obtains reasonable assurance about whether the district’s financial statements are free from material misstatement. The audit is performed in accordance with government auditing standards. The independent audit also reviews the district’s accountability and compliance with state laws and regulations as well as its own policies and procedures. Reports are available on Washington State Auditor.

For the second year in a row, Highline's Federal and Financial audits were "clean" and finding free. The auditors now consider the district "low-risk" and the Federal programs audited as part of the next fiscal year audit (2025-26) will be reduced by half, and the associated costs of the audit will likewise be reduced.

Moody's Rating: Credit Opinion

Moody's provides credit ratings for school districts based on their financial health, stability, and overall creditworthiness. These ratings are assigned using a combination of letter grades and numbers, reflecting the district’s financial position.

Highline Public Schools was rated Aa3 negative maintaining a strong credit rating from Moody's, reflecting generally sound financial management and low long-term credit risk. While the district’s financial position has weakened due to rising special education and transportation costs and slower state funding growth, stable enrollment, renewed local levy support through 2030, and planned expenditure reductions are expected to help stabilize finances in future years.