In this series, we’re breaking down the why, how and how much of school finance, starting with where the money comes from. In Washington state, school funding usually comes from four sources:

State funding
This is money that comes from state taxes, like income and sales tax. The state decides how to send this money to schools based on their formula of what they believe an average school needs. The formula has been criticized, however, for not recognizing the unique circumstances of each school or reflecting the real cost of keeping a school open.

➡️ Unfunded state requirements cost the district more than it receives. For example, special education and substitute requirements cost more money than the funding that the state provides to BGPS. This state funding gap will cost BGPS $7.5 million in 2025-26.

Local taxes
Property owners within a district’s boundaries pay local taxes to fund local priorities that are not covered as part of the state funding formula. These local priorities could include things like additional safety staff, additional nurses or extracurricular activities, to name a few.

These taxes expire every few years and must be placed on a ballot for voter consideration to be renewed. The amount of money that voters approve is the maximum that a district can collect. Increased property values do not bring more money to a district.

➡️Battle Ground currently has two local taxes: A capital levy, which will expire at the end of 2027, and an education and operations levy, which will expire at the end of 2025. As of this writing, no new education and operations levy has been approved to take its place. Most Clark County school districts have an education and operations levy as well as one or two other types of levies.

Bonds
Districts sometimes sell bonds to pay for big projects like building new schools. The money from bonds is a loan the district has to repay, with interest, over time (usually 20+ years). Property taxes help repay this loan.

➡️As of 2025, Battle Ground does not have any bonds. The last bond expired in 2023.

Federal funding
Money from the federal government can be used for things like school meals, special education and helping schools with a large number of students from low-income households.

➡️BGPS receives about $14.5 million in federal funding. Federal dollars are primarily used for Title I, which serves high-poverty schools; a program that supports students who are developing English proficiency; and special education.

School finance 101: Where does the money come from?