School Construction Assistance Program.  The School Construction Assistance Program (SCAP), administered by the Office of the Superintendent of Public Instruction, provides school districts with financial assistance to construct new schools and modernize existing facilities.  Through SCAP, the state contributes funding, as well as technical assistance, for facility planning, construction, and contracting.  State funding assistance is determined using a funding formula based on three main factors—eligible area, construction cost allocation, and the funding assistance percentage.

The eligible space for new construction is calculated by comparing the current district-wide capacity, in square feet, to the district’s projected enrollment growth and future space needs.

The construction cost allocation is the maximum cost per square foot of construction that the state will recognize—as of July 1, 2025 the construction cost allocation is $386.66 per square foot.

The state applies a funding assistance percentage, formally known as the match ratio, to equalize state funding assistance.  The percentage accounts for differences across school districts in wealth and the ability to generate revenue through property taxes.  Districts experiencing rapid growth in student enrollments may receive extra growth points.  The minimum percentage is 20 percent of recognized project costs, and can be as much as 100 percent of the recognized costs, depending on district wealth and growth.

Federal Impact Aid Program. Through the Impact Aid Program, Congress provides financial assistance to local school districts that include, within their boundaries, lands owned by the federal government. The program was designed to assist local school districts that have lost property tax revenue due to the presence of tax-exempt federal property, or that have experienced increased expenditures due to the enrollment of federally connected children such as those residing on military bases, tribal lands, or low-rent housing properties.

Impact aid payments are provided for the following:

• payments to school districts in which the federal government has acquired real property with an assessed valuation of at least 10 percent of all real property in the district;
• basic support payments to help local school districts that educate federally connected children;
• payments for children with disabilities to educate federally connected children who are eligible for services under the Individuals with Disabilities Education Act; and
• construction grants to local school districts that educate high percentages of federally connected children, to help pay for the construction and repair of school buildings.

When determining eligibility for state funding assistance under SCAP, school district instructional facilities located on military bases must be excluded from a district's inventory of available instructional space.

The computed state funding assistance percentage developed under SCAP must be increased by an additional 15 percent for any project located on a military base.

• Removes language requiring state funding assistance to be equal to the total approved project cost minus the amount of federal funding received for the project.
• Provides that the computed state funding assistance percentage must be increased by an additional 15 percent for any project located on a military base.

The committee recommended a different version of the bill than what was heard. PRO: Sometimes school buildings on military bases are designed to serve additional purposes and districts do not have a choice in how they are constructed or how the square footage is used. This extra space currently counts against the district when calculating SCAP eligibility and amounts. This bill would ensure that the extra space doesn't count against them. Current federal impact aid is insufficient and not guaranteed so districts have to over-rely on local funds. Michael Anderson Elementary in the Medical Lake School district is located on Fairchild Airforce Base. It was constructed in 2003 for 600 students and, after a change in base housing, now serves 400 students. It looks like it has excess capacity but it is behind a security fence on a federal installation and isn't accessible to the general student population. However, that excess inventory prevents the district from receiving SCAP funds.

PRO: Schools with facilities on military bases often lack access to federal impact aid, and SCAP funding alone does not cover construction costs. As a result, these districts rely more heavily on local resources. Current eligibility rules assume the availability of federal funding and limit state support even when federal aid is unavailable. This structural issue was highlighted during the federal government shutdown, when districts faced potential federal funding gaps without clear authority for additional state backfill.

The district needs to modernize Hallet Elementary in the town of Medical Lake, but SCAP’s funding formula renders the district ineligible. The formula counts the square footage of Michael Anderson Elementary, located on Fairchild Air Force Base, as available capacity, even though that space is on federal land and cannot serve off-base students. Because SCAP includes on-base inventory in its capacity calculations, the district is effectively disqualified from receiving state matching funds for modernization or new construction. As a result, local taxpayers would be required to fully fund a project that would otherwise qualify for a state partnership. The proposed bill would exclude on-base inventory from SCAP capacity calculations, ensuring that districts serving military families are not financially penalized.