House Bill 1280 (69th Legislature, 2025) amends existing law by reenacting and modifying RCW 28A.150.260 and amending RCW 28A.150.265 to change how basic education and categorical program funding is allocated and used. The bill adds FTE-based funding for exploratory career and technical education (CTE) courses offered in grades 6–12 in middle or high schools, preparatory CTE courses in grades 9–12 in high school, and preparatory CTE courses for grades 11–12 offered through skill centers, while limiting middle school CTE funding to courses in a nonduplicative planned program of study. It also restricts CTE funding and enhancements to OSPI-approved courses and caps district indirect cost charges for state-funded approved CTE programs at the lower of 5 percent or the federal cap as of September 1, 2017. When CTE allocations exceed general education allocations, the bill confines the excess to specified CTE purposes (staff, materials, smaller class sizes, work-based learning, new/expanded programs in high-demand fields, certain coordinators/advisors, partnerships, and certain student fees), and requires that the CTE program funded under RCW 28A.150.260(4)(c) be treated as a single program for accounting. The reenacted and amended distribution formula provisions prescribe prototypical school sizes and minimum staffing and nonstaff allocations (for example, prototypical high school = 600 FTE, middle = 432 FTE, elementary = 400 FTE), specified class size averages and staffing ratios, per-student materials and operating cost allocations beginning 2023–24 (adjusted annually for inflation), and reporting requirements. The superintendent of public instruction must post state per-pupil allocations for several categorical programs on OSPI’s main website and districts must link to that report; the superintendent and governor must conduct a biennial review of the distribution formula with the legislature able to approve, amend, or reject it. The bill also imposes procedural controls on enrollment and FTE definitions (OSPI rules, inclusion in the biennial budget request, and prior approval of any revisions by the house and senate ways and means committees), requires a monthly OFM review of reported FTE counts, and directs OSPI rulemaking and data collection for specified staffing allocation limits and for a 2024–25 requirement that certain additional funding be used to support staffing, prevent layoffs, or increase salaries for paraeducators and specified aides. Some referenced details are not included in the extracted text: the full amended text of RCW 28A.150.265, the remainder of subsection text cut off in the provided material, and many specific adjustments and implementation details that are delegated to the omnibus appropriations act or to OSPI rulemaking. The bill was read for the first time on 01/14/25.

If enacted, districts would receive new state funding tied to student enrollment for exploratory CTE in grades 6–12 and preparatory CTE in grades 9–12 and in skill centers for grades 11–12, but middle school CTE funding would only flow for courses that are part of a planned, nonduplicative program of study approved by OSPI. Districts with qualifying high-poverty schools would get additional school-directed allocations, and statewide supplemental dollars for learning assistance, transitional bilingual services (including recently exited students), and highly capable programs are specified with minimum instructional-hour bases; students with disabilities get enhanced excess-cost support. Overall this likely increases funding for CTE and targeted student supports but narrows how some CTE dollars may be spent (only on enumerated CTE purposes) and caps district indirect charges on CTE at 5% or the older federal cap, which could reduce district overhead recovery for CTE programs. Operationally, OSPI and districts face more requirements and oversight: courses must be OSPI‑approved, OSPI and the governor must review the distribution formula biennially, OFM will review reported FTE monthly, and changes to the FTE definition need legislative committee sign-off. OSPI must adopt rules limiting certain support‑staff allocations to the extent districts demonstrate actual staff ratios and must collect data on how specified 2024–25 allocations are used, creating administrative work and some uncertainty because key implementation details and the specific amendments to RCW 28A.150.265 and omnibus act adjustments are not included in the provided text.