Requires that, by June 1st of each year, each state university, regional university, state college, and the state board for community and technical colleges shall provide a report to the office of the superintendent of public instruction. The report shall contain the following information: (1) The number of students who, within three years of high school graduation, enrolled at the institution of higher education or at a community college or technical college in a state-supported precollege level class or laboratory in study skills, mathematics including intermediate algebra, reading, grammar, spelling, writing, or English;

(2) The types of precollege classes in which each student is enrolled; and

(3) The Washington high school from which each student graduated.

Requires that, by June 30th of each even-numbered year, the state board for community and technical colleges shall establish and report to the superintendent of public instruction an average per-student instructional cost for state-supported developmental and precollege classes and laboratories offered in the community and technical colleges. The classes shall include, but need not be limited to precollege classes in study skills, mathematics including intermediate algebra, grammar, reading, spelling, writing, and English. English as a second language classes shall not be included.

Provides that, beginning with the fall 2007 academic term, a charge shall be assessed to each Washington school district that, within the three years preceding the report required in this act, graduated a student attending any state-supported precollege class or laboratory in study skills, English, reading, spelling, grammar, or mathematics including intermediate algebra offered at a Washington institution of higher education.

Provides that, beginning with the 2010 fiscal year, the superintendent of public instruction shall subtract from the allotment of each such school district an amount equal to the average per-student instructional cost of each state-supported precollege class attended during the preceding fiscal year by each student who graduated from that school district during the preceding three years and who subsequently enrolled in a state-supported precollege class at an institution of higher education.