This paper provides current information about the funding of Washington's K-12 school finance system. Schools in Washington State derive most of their revenues from state sources. In response to a 1977 court ruling, 'Seattle v. State of Washington', the state assumed responsibility for funding "basic education" for a "uniform system of K-12 public schools." According to the court, the legislature is responsible for defining a basic education. The court also declared that financial support for basic education must be provided through state, not local sources. For the 1997-98 school year, total state, local, and federal revenue for operating purposes exceeded $5.85 billion. State revenue composes 74.7 percent of operating revenue, local property taxes 14.3 percent, federal revenue 6.8 percent, and other 4.1 percent. Currently, school districts receive a state allocation for teacher salaries and benefits based on a statewide salary-allocation schedule that is set by the legislature for each biennium. Several proposals are being considered by the legislature, some of which would allow for an approximate 6-7 percent raise for teachers over the next biennium (1999-2001), with an approximate 12 percent pay hike for beginning teachers. It is likely that any substantive increases in Washington's operating budget for the next biennium will be devoted to increases in the statewide salary-allocation schedule. (Author/MLF)