Bill > SB6326

This bill, by adding new sections to chapter 28A.505 of the Revised Code of Washington (RCW), establishes new requirements for school districts regarding their financial management, specifically focusing on fund balances and reporting. Starting with the 2030-31 school year, school district boards of directors must set aside a minimum amount in their general fund, separate from funds already restricted for specific purposes. This minimum fund balance is calculated as a percentage of the prior year's state apportionment, with larger districts (2,000 or more full-time equivalent students) needing to maintain at least six percent, and smaller districts needing at least eight percent. The Office of the Superintendent of Public Instruction (OSPI) will determine these required minimums. These restricted funds cannot be used for ongoing salaries or benefits but can be accessed for specific, limited purposes such as covering costs from significant enrollment changes, temporary cash flow needs, emergencies, or one-time expenses pre-approved by OSPI. School districts can temporarily spend below these minimums only if they adopt a resolution, submit it with a plan to restore the balance within 12 months to OSPI for approval, and OSPI approves the plan; however, districts generally cannot be approved to spend below the minimum for two consecutive years, except in emergencies. Failure to replenish the fund balance will be reflected in a district's financial health indicators, and OSPI can redirect apportionment funding to ensure the minimum is restored. Additionally, beginning in the 2028-29 school year, school districts must submit monthly financial data, including expenditures, revenue, cash balance, and borrowing activity, to OSPI by the last day of the following month, with OSPI authorized to withhold apportionment payments if this data is not submitted within 45 days.

Education

https://app.leg.wa.gov/billsummary?BillNumber=6326&Year=2025&Initiative=false