Washington Gov. Christine Gregoire signed a lean budget yesterday that closed a $5.1 billion deficit, but also contained investments in early learning that put the state in position to compete for tens of millions of dollars in new federal grants.

At a time when education programs are getting cut around the country, early learning fared well in the Washington budget. There is money to expand state-funded preschool by 165 spots, a fresh investment in the kindergarten assessment initiative, known as WaKIDS and more money for full-day kindergarten. It also contains new public funds to match private grants for home visiting programs.

The home visiting investment means the state can now compete for a grant from the Department of Health and Human Services worth between $9 million and $10 million. While Washington must compete for that money, its investment ensures it will receive a different home visiting grant worth $1.8 million.

The new preschool and kindergarten assessment money should help Washington compete in another high profile contest for federal funds, the Education Department’s new $500 million Race to the Top, which will support high-quality investments in early learning. While the department hasn’t announced guidelines for the competition, authorizing legislation highlighted the importance of increasing the number disadvantaged infants, toddlers and preschoolers in high quality programs, according to Laura Bornfreund, a policy analyst at New America Foundation’s Early Education Initiative. Washington’s budget accomplished this goal during a period when other states cut spending on pre-kindergarten.

Overall, Washington appears set to make serious runs at both federal grants. Over the last six years, the state moved from closer to the back of the pack in early learning to the front. Among the steps that helped were:

• Construction of a comprehensive Early Learning Plan and a working partnership among Washington’s leading education agencies - The Department of Early Learning, the Office of Superintendent of Public instruction and Thrive by Five Washington – that implemented the plan.
• Creation of a cabinet-level Department of Early Learning. This governance structure is not found in many states. The department has a good track record of creating new programs and preserving funding during a difficult budget era.
• Development of a Quality Rating and Improvement System for child care providers.

"A lot of the things that they want in place we either have in place or are putting in place," said Nina Auerbach, president and chief executive officer of Thrive by Five Washington. "I think we are in a really good spot."

How competitive will be clearer by the end of the summer, when the Education Department is expected to release guidelines for Race the Top. It will announce the winners by Dec. 31.