Bill > SB5412

This bill provides temporary financial relief mechanisms for school districts experiencing financial challenges. Specifically, the bill allows school districts that are either under binding financial conditions or enhanced financial oversight to take temporary interfund loans from their capital projects fund, subject to strict conditions. These conditions include repaying the full loan amount within one calendar year, without interest, and ensuring the loan does not negatively impact the capital projects fund's original purpose. The school district's board of directors must adopt a resolution detailing the loan's exact amount, funds involved, repayment source, and schedule. For districts under enhanced financial oversight, the special administrator must also approve the loan. Additionally, the bill permits school districts under binding conditions to request authorization from the superintendent of public instruction to sell real property, but only if the sale is necessary to restore financial stability and the proceeds will be used to alleviate financial burdens or for authorized interfund loans. The bill also amends several existing statutes to facilitate these financial management strategies, including clarifying rules about fund transfers, sale of district property, and financial oversight. The legislation aims to provide school districts with more flexible tools to manage financial challenges while maintaining accountability and transparency.

Education

https://app.leg.wa.gov/billsummary?BillNumber=5412&Year=2025&Initiative=false