This bill adds a new section to chapter 28B.10 RCW and expresses legislative intent to eliminate the existing "fund split" approach by restoring state funding for prescribed increases in employee compensation and central services at public higher education institutions so tuition can be used for other educational needs. It creates a new statutory funding requirement that, beginning in the 2029-2031 biennium, state funds must cover specified percentages of compensation and central services cost increases paid from appropriated state funds or tuition, with different initial percentage shares set for named institutions and community and technical colleges. The state-funded share must increase by 10 percentage points each subsequent biennium until fully state-funded. The bill also specifies that if compensation increases are funded with dedicated funds that lack sufficient revenue, no additional funding from other sources will be provided. The bill requires the Washington State Institute for Public Policy (WSIPP), in consultation with public four-year institutions and the State Board for Community and Technical Colleges, to conduct a comprehensive study defining and evaluating essential higher education student services standards. The study must address academic support, wellness and basic needs infrastructure, instructional quality metrics, career and workforce readiness, and funding alignment including per-student cost, solicit input from a range of stakeholders, and propose a "student service adequacy index" for future budget requests. WSIPP must submit a report to the legislature by December 1, 2026, the study requirement expires August 1, 2027, and the report must comply with RCW 43.01.036. The bill defines "compensation" to include salaries, wages, and pension contribution costs as reported to the Office of Financial Management and defines "employee" to include graduate teaching assistants but exclude graduate research assistants primarily engaged in dissertation research. It identifies affected agencies and groups (WSIPP, public four-year institutions, State Board for Community and Technical Colleges, the higher education legislative committees, student associations, faculty and staff organizations, and others) and references RCW 28B.10.423 for pension cost treatment. The text provided does not define "central services," does not specify the baseline dollar amounts or methodology for calculating per-student costs or the transition mechanics from the 2023-2025 baseline to the 2029-2031 funding start, and does not include the text of RCW 28B.10.423.

If enacted, the state will start picking up a defined share of future increases in employee pay and central services costs for public colleges and universities beginning in the 2029–31 biennium, with institution-specific shares (University of Washington 60%, Washington State University 66%, Eastern 70%, Central 70%, Evergreen 85%, Western 70%, and community and technical colleges 100%), and the state-funded share rising by 10 percentage points each subsequent biennium until those increases are fully state-funded. That will likely reduce pressure on institutions to cover those specific cost increases with tuition or local funds — immediately eliminating that pressure for community and technical colleges and partially for four‑year schools — but institutions will still need to pay their remaining share and face financial risk if their dedicated revenue sources are insufficient because the bill does not provide additional backstop funding. The Washington State Institute for Public Policy must also produce a time-limited study, due December 1, 2026, to define student services standards and propose a student service adequacy index after consulting students, faculty, unions and community partners; the study authority expires August 1, 2027. Important implementation details are missing from the provided text — notably how "central services" and baseline dollar amounts are defined and how per-student costs will be calculated — so the exact dollar effects on state budgets, tuition decisions, and institutional operations are not yet clear.