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Home » Education funding gap threatens future of Spokane's workforce
The Journal's View

Education funding gap threatens future of Spokane's workforce

April 9, 2026
Journal of Business Editorial Board

Washington’s long-standing commitment to educational equity is currently under threat following a legislative decision to bridge a multibillion-dollar budget deficit by targeting students at private, nonprofit colleges. But cutting higher education funding is a step backward, not a way forward.

Last year, legislators, faced between maintaining financial aid parity for all students and managing a $2.3 billion budget deficit, ultimately decided to spare those at public universities while slashing the Washington College Grant and College Bound Scholarships for thousands of learners at private institutions. A proposal to restore $17 million in annual funding for private college students failed to pass before the latest session ended and its future remains uncertain.

These selective cuts — slated to hit the WCG in the 2026-27 school year and College Bound in 2027-28 — threaten to pull the rug out from under students who primarily use the programs; those who are typically from low-income, marginalized, and first-generation backgrounds.

While we recognize the state's primary responsibility is funding its public universities first amid a budget deficit, we have to wonder why penalizing students for choosing an education that aligns with their personal values became a priority over other types of cuts, as every graduate is needed if we want to build and sustain a skilled workforce here.

In the Spokane area, this financial shift has already escalated from a concern to a full-blown crisis. At Whitworth University, the maximum WCG award is set to plummet from approximately $9,700 to just $6,000. This creates a staggering $3,700 gap per student, a deficit that Whitworth President Scott McQuilkin warns "no institution or family will be able to fill."

For many students, this funding gap is a barrier to attend the institution that best fits their geographic and programmatic needs. To mitigate the immediate damage, Gonzaga University has authorized $4.5 million in bridge funding to protect 800 currently enrolled students. However, President Katia Passerini noted that this is merely a temporary stopgap rather than a policy fix. Diverting such massive institutional resources to cover state-level shortfalls is not a sustainable long-term strategy, and not every private institution can absorb such an impact on their budgets.

This state-level crisis is compounded by a federal squeeze that's simultaneously dismantling research pipelines and tightening student aid. Gonzaga has already navigated the loss of $20 million in federal research grants, resulting in the termination of seven faculty-led projects. 

Furthermore, $48 million in funding for the aerospace materials manufacturing tech hub was rescinded, stalling critical partnerships and workforce development opportunities before they could mature. 

On the individual level, federal loan policies also are becoming more restrictive; starting July 1, Parent PLUS loans will face new annual and lifetime caps, and Graduate PLUS loans will be eliminated for new borrowers. 

The stakes for the community extend beyond campus borders. Deterring students from private institutions threatens to weaken Spokane's talent pipeline and diminish our economic vitality. 

Ultimately, the state faces a moral and economic choice: whether budgetary discipline should mean stripping opportunities from vulnerable students based on their choice to attend a not-for-profit higher education institution. As academic leaders suggest, balancing the state’s books shouldn't result in penalizing students for their educational choices.

    Opinion
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