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The 2007 Washington State Legislature created the Joint Task Force on Basic Education Finance (Task Force). The Task Force must review and propose changes to the definition of basic education and current funding formulas. The legislative goals include: (a) realigning the basic education definition with the “new expectations of the state’s education system” and, (b) developing a funding structure “linked to accountability for student outcomes and performance.” The Legislature directed the Washington State Institute for Public Policy (Institute) to provide staff support to the Task Force. In addition to general staff services, the legislation requires the Institute to provide three reports to the Task Force: an initial report by September 15, 2007, a second report by December 1, 2007, and a final report by September 15, 2008. This document is the Institute’s second report.