Requires the Washington state institute for public policy to conduct a detailed study of the cost for the state to deliver, through the K-12 public school system, a basic education as defined by Title 28A RCW, the state Constitution, and various court decisions. The institute's study shall examine and provide cost information for four scenarios: (1) One where the definition of a basic education is as currently defined in statute by the legislature and supplemented by decisions of the courts;

(2) One where the definition of a basic education would include estimated average class sizes and average salaries for certificated instructional staff in public schools at or near the median compared to other states;

(3) One where the definition of a basic education would include estimated average class sizes and average salaries for certificated instructional staff in public schools in the top ten percent compared to other states; and

(4) One where the definition of a basic education would reflect a level of resources, including class sizes, staffing, salaries, and other resources, that would be equal to the resources available to public schools in the state with the top performing students, as measured by the national assessment of educational progress adjusted for student demographics.

Directs the institute to make a progress report to the fiscal committees of the legislature by January 15, 2008, and a final report by November 1, 2008.