ctcLink Accounting Manual | 20.10.50 Allocations to Districts

The State Board for Community and Technical Colleges is authorized under Chapter 28B. 50.090 RCW to receive and disburse funds for the maintenance, operation, and capital support of community and technical college districts and to establish guidelines for distributing those funds. The statute directs allocations to be made at the district level, not by college.

Funds are appropriated by the Legislature to the State Board. The State Board then allocates those funds to the college districts.

An allocation model, based on policies adopted by the State Board, determines each district’s share of funding. Using the results of the model, the State Board issues an allocation schedule that authorizes each district’s spending level by appropriation index.

The State Board, in collaboration with the college presidents and business officers, develops and reviews the allocation model, its processes, and distribution methodologies.

Workgroups with broad system representation evaluate the financial needs, challenges, and opportunities associated with various policies and methods.

Since the establishment of the community and technical college system, several allocation methods have been adopted, reviewed, suspended, and revised in response to changes in the state funding and the evolving needs of the system.

In partnership with community and technical college (CTC) leaders, the Washington State Board for Community and Technical Colleges (SBCTC) adopted a new allocation model in August 2025 following a two-year, college-led process. The model establishes the framework for distributing most state operating funds to college districts and includes the following key features:

• District Enrollment Allocation Base (DEAB): Provides base funding according to each district’s proportional share of system enrollments using a four-year rolling average of actual enrollments, included both headcount and full-time equivalent (FTE). Included enrollments are those in programs that lead to academic transfer, provide credited workforce training, and Basic Education for Adults programs.  International, corporate, and continuing education enrollments are excluded from the four-year averages.
• Performance Funding: Five percent of the state operating appropriation is distributed through the Student Achievement Initiative using academic momentum metrics.
• Minimum Operating Allocation (MOA): Provides each college with a minimum level of funding to support campus operations.
• Priority Enrollments: Five percent of the state operating appropriation is distributed based on enrollments in designated priority categories. Fifty percent of these funds are allocated based on Basic Education for Adults enrollments, and fifty percent are allocated based on designated skills gap enrollments.

Terms associated with this allocation methodology are defined as follows:

20.10.50.5.a Allocation Model

The primary mechanism through which most state operating appropriations are distributed to college district. The allocation model is governed by State Board policy and consists of four key components that use formulas and performance metrics to determine annual district allocations:

1. Minimum Operating Allocation (MOA): Fixed annual amount that is intended to provide a base level of funding to support campus operations.
2. Performance Funding / Student Achievement Initiative (SAI): Five percent of the annual state operating appropriation is distributed based on the Student Achievement Initiative metrics.
3. District Enrollment Allocation Base (DEAB): Distributes funding based on district enrollments.
4. Priority Enrollments: Distributes five percent of the annual state operating appropriations based on enrollments in designated priority categories.

Additional information on the formulas and college-level enrollment reports used in the model are available from the Operating Budget Team at SBCTC.

20.10.50.5.b Safe Harbor

Safe Harbor refers to funds distributed outside the allocation model. These funds are grouped into three categories;

• Legislative provisos
• State Board earmarks
• Compensation, maintenance and operations (M&O), leases, and local assessment earmarks

Allocation methodologies for Safe Harbor funds vary and are developed in collaboration with college presidents.

20.10.50.5.c Legislative Provisos

Legislative provisos are provisions in the budget bill enacted by Legislature that place conditions or limitations on the use of appropriated funds. Provisos remain in effect only for period of the enacted budget unless renewed in subsequent budgets.

When funding is no longer provided as a legislative proviso, the State Board determines whether it will remain outside the allocation model as a State Board earmark or distributed through the allocation model, based on the purpose and nature of the funding.\

20.10.50.5.d State Board Earmarks

Funds held outside the allocation model under State Board policy and designated for specific purposes or programs.

20.10.50.5.e Compensation, Maintenance and Operations (M&O), Leases, and Local Assessment Earmarks

This Safe Harbor category is commonly referred to as four-year Safe Harbor. Under State Board policy, funding provided for compensation increases, M&O, lease adjustments, and local assessment increases are held outside the allocation model for four years. After the four-year period, these ongoing funding increases are rolled into the allocation model and distributed through enrollment-based funding.

Compensation funding may include employee wage increases, health benefit rate changes, and pension rate changes.

Maintenance and operations (M&O) funding supports utilities, custodial services, and routine maintenance for newly occupied facilities, as well as adjustments to lease costs and local assessments.

20.10.50.5.f Allocation Schedule

The allocation schedule authorizes college districts to incur routine operating expenditures and certain program-specific expenditures up to the amounts approved by the State Board.

The initial allocation schedule, which includes most annual state funding, is typically issued in late June following enactment of the state operating budget by the Legislature and Governor. Additional allocation schedules are issued throughout the fiscal year as needed to provide additional expenditure authority or redistribute funds.