Washington State faces the challenge of balancing a number of conflicting economic and political conditions that impact K-12 education either directly or indirectly. These include reduced vehicle license fees, an existing statewide spending limit, a state revenue surplus, proposals to provide property-tax relief, proposed voter initiatives to alter school funding, and significant public support for increasing investments in education. This paper provides a discussion of these issues and a description of the general features of school finance in the state. (DFR)