The Senate bill would end the system under which Washington guarantees to match state contributions to poor mothers with children.
The state contribution of $3.5 million has barely grown in recent years.
That would bring the total state contribution to more than $8.5 billion.
The assets were recycled back into the main body of the pension fund - and labeled a state contribution.
Typically, the Legislature would increase the state contribution, allowing taxes to fall.
They have instead proposed their own plan that would reduce state contributions and pay by $150 million.
"Nobody can deny that the state contribution to education had to get much higher."
Pilot Field, for example, could not have been built without a $22 million state contribution.
Shortly after taking office in 1994, the state made various changes to the pension system, reducing state contributions by $3.5 billion over five years.
The committee also voted to increase the state contribution to the project to compensate for the smaller student fees.