Washington school districts shift funding plans as bonds stall

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Washington school campus with construction, new classroom addition and bus loop reflecting levy-funded upgrades

Washington state, September 25, 2025

News Summary

Facing repeated failures of bond measures that require a 60% super‑majority, Washington school districts are pivoting to capital levies, grants and local partnerships to fund building repairs, safety upgrades and modest classroom additions. Levies, which need only a simple majority and run three to six years, provide phased cash flow that shapes project timing. Grants cover targeted, competitive needs and often require matching funds, while partnerships share costs and expand services. Districts are sequencing projects to levy receipts, tracking grant timelines and communicating visible results to build voter trust amid debate over property‑tax caps.

Washington school districts shift funding strategies as bonds stall

School districts across Washington are increasingly turning to capital levies, grants and local partnerships after repeated failures to pass large bonds that require a 60% super‑majority. With many bond measures falling short, districts are choosing funding paths that need only a simple majority, provide faster access to cash for urgent repairs and let communities see benefits sooner.

What’s changing and why it matters

Issuing a bond has long been the method for paying for big projects like new schools or full building replacements. Bonds typically last 20–30 years and provide a large lump sum. But bonds now face a higher bar with a 60% vote requirement, and many districts have lost multiple bond votes. In response, districts are using capital levies, grants and partnerships to handle pressing work such as safety upgrades, roofing, playground repairs and small additions.

How capital levies work

Capital levies usually run 3–6 years and need a simple majority to pass. They collect money twice a year rather than providing a single lump sum, so the timing of projects must match the steady cash flow. That makes levies better for smaller, quicker projects or staged work — a car‑loan style approach — while bonds are more like a home loan for big, one‑time projects. Levies are commonly used to pay for security cameras, secure entry vestibules, reroofing, technology and small classroom additions to handle growth.

Grants as a bridge and a tool

With fewer bonds passing, state matching dollars tied to bond requests have declined, which can free up some grant opportunities. Grants can pay for smaller capital needs without needing a public vote. Successful grant programs usually include a planning phase — to study needs and shape a budget — followed by capital or construction awards. Some grants focus on specific systems like HVAC replacement, seismic needs, environmental work, or lead testing and remediation. A separate urgent repair grant can help with immediate health and safety problems.

Why partnerships are growing

Districts are also forming local partnerships with libraries, parks departments and health providers to share space, lower costs and broaden services. Examples include co‑located health or dental clinics that keep students on campus and library partnerships that make borrowing easier for students. When districts share development or management with partners, they can qualify for different grants and spread construction costs.

Real local examples

One district in eastern Washington moved from a failed bond to successive capital levies. After a bond loss, the district used levy funds to make critical repairs and add small classroom spaces. A later levy paid for new bus loops to separate parent drop‑off from bus traffic, improving safety and showing voters a clear return on their tax dollars. Those visible projects helped build trust for future measures.

In contrast, several rural and small district levies on a special February ballot failed, costing nearly $10 million in planned local investment for programs, operations and safety work. Another district that has not passed a levy since 2019 cut staff and programs after multiple levy defeats, and officials say state budget increases do not fully make up the shortfall.

Policy limits and the broader picture

State policy on property tax growth affects local options. A long‑standing 1% annual cap on property tax growth limits how much local governments can raise without asking voters. Lawmakers recently shelved a proposal to loosen that cap after opposition from state leaders and public debate over who would shoulder higher property taxes. Without changes at the state level, districts that need larger investments must rely on voter approval of levies and bonds or seek grants and partners.

Practical tradeoffs for districts

  • Speed vs scale: Levies and grants can move faster but usually fund smaller, targeted work. Bonds fund big projects but are harder to pass.
  • Cash flow planning: Levies pay out over time, so projects must be scheduled around regular receipts.
  • Voter strategy: Communicating clear, tangible benefits — safety work, bus loop changes, classroom additions — helps voters see the immediate value.
  • Eligibility and matching: Grants often favor small, tribal or rural districts and may require a local match or in‑kind contributions.

Who can help design projects

Design and planning professionals experienced in school facilities can guide districts through project studies, budget development and grant applications. Local leaders say showing steady stewardship of funds and visible student benefits builds community trust for future votes.

Bottom line

Faced with tougher bond vote rules and contested state tax policy, Washington school districts are using a mix of capital levies, grants and local partnerships to keep buildings safe, adapt spaces to current learning needs and respond to growth. Each tool has limits and requires careful planning, but together they offer a pragmatic way to move projects forward when big bond measures fail.


FAQ

Q: What is the main difference between a bond and a capital levy?

A bond raises a large amount up front and pays it back over 20–30 years and needs a 60% vote. A capital levy collects money over a few years, usually needs a simple majority, and funds smaller or staged projects.

Q: Why are districts failing to pass bonds?

Many bond votes fail because they require a higher threshold to pass and voters can be cautious about long‑term tax commitments. Visible local projects and clear explanations of benefits can help.

Q: Can grants replace bonds?

Not usually. Grants can fund many targeted or urgent projects and planning work, but they are rarely large enough to replace full school replacements. Grants can complement levies and bonds.

Q: What are common levy projects?

Levies often pay for safety upgrades, reroofs, playground repairs, technology, classroom additions and bus loop improvements.

Q: How do partnerships help districts?

Partnerships can share costs, expand services (like on‑site health clinics), increase grant eligibility and improve facility use for both students and the community.

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Key features at a glance

Funding Tool Vote Threshold Typical Term Best For Cash Flow
Bond 60% super‑majority 20–30 years Full replacements, new schools Lump sum up front
Capital levy Simple majority 3–6 years Smaller projects, staged work, safety Collected twice yearly
Grants No public vote Varies; often multi‑phase Targeted upgrades, planning, system replacement Paid per grant schedule
Partnerships Depends on partners Shared or ongoing Shared facilities, clinics, libraries Shared costs and schedules

Deeper Dive: News & Info About This Topic

Additional Resources

Construction TX News
Author: Construction TX News

TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.

Article Sponsored by:

CMiC Global

CMIC Global Logo

Since 1974, CMiC has been a global leader in enterprise software for the construction industry. Headquartered in Toronto, Canada, CMiC delivers a fully integrated platform that streamlines project management, financials, and field operations.

With a focus on innovation and customer success, CMiC empowers construction firms to enhance efficiency, improve collaboration, and make data-driven decisions. Trusted by industry leaders worldwide, CMiC continues to shape the future of construction technology.

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