wa-law.org > bill > 2025-26 > HB 2593 > Original Bill
By the 2030-31 school year and each fiscal year thereafter, each school district board of directors shall include a restriction for minimum fund balance within their general fund. This minimum fund balance restriction must be in addition to other fund balance amounts restricted to specific purposes externally imposed by creditors, grantors, contributors, or law or regulations of other governments, or other restrictions imposed by enabling legislation.
For school districts with 2,000 average annual full-time equivalent students or greater, the fund balance must be no less than six percent and no more than 12 percent of their prior year's state apportionment.
For school districts with an enrollment of fewer than 2,000 average annual full-time equivalent students, the fund balance must be no less than eight percent and no more than 34 percent of their prior year's state apportionment.
The office of the superintendent of public instruction shall calculate the actual minimum and maximum restrictions required by subsection (1) of this section for each school district for the school district board of directors' review and adoption. For purposes of the calculation, the prior year state apportionment must include total apportionment as calculated no later than April 30th.
A school district may not use minimum fund balance resources for ongoing salaries or benefits.
A school district may only use fund balance resources restricted in accordance with subsection (1) of this section for the following purposes:
To address costs associated with unanticipated actual changes in annual average full-time equivalent enrollment that exceed 2.5 percent from the prior school year;
For temporary cash flow needs in the general fund within the school year;
For emergencies or as necessary for the preservation of life, health, and safety; and
For one-time expenses as preapproved by the office of the superintendent of public instruction.
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A school district may temporarily spend below the minimum restricted fund balance levels calculated in subsection (2) of this section only if:
The school district's board of directors adopts a resolution to temporarily spend below its minimum fund balance identifying the specific reason for the use of funds from the allowable uses identified in subsection (4) of this section, the amount to be used, and the estimated remaining restricted fund balance amount;
The school district's board of directors submits to the office of the superintendent of public instruction, the resolution and a plan to restore the restricted fund balance to no less than the minimum calculation within 12 months of the end of the subsequent school year; and
The office of the superintendent of public instruction approves the school district's plan to restore its minimum fund balance.
A school district must restore the restricted fund balance to the minimum level calculated in subsection (2) of this section in accordance with the plan approved by the office of the superintendent of public instruction.
A school district may not be approved to spend below the minimum fund balance two years in a row, except for emergencies to or as necessary for the preservation of life, health, and safety.
The office of the superintendent of public instruction must include whether a school district has failed to replenish its minimum fund balance in the school district's financial health indicators.
The office of the superintendent of public instruction must require a school district who has failed to replenish its minimum fund balance in accordance with the approved plan to redirect apportionment funding monthly, in 12 equal installments totaling the amount necessary to restore the minimum restricted fund balance calculated in subsection (2) of this section.
The superintendent of public instruction shall adopt rules to implement this section and section 2 of this act.
Beginning in the 2028-29 school year and each fiscal year thereafter, school districts must submit monthly financial data to the office of the superintendent of public instruction no later than the last day of the subsequent calendar month.
The data must include, at a minimum, the following information for each fund: (a) Monthly expenditures; (b) monthly revenue; (c) end of month cash balance; (d) interfund loan activity; and (e) any other debt or borrowing transactions.
For any school district that fails to submit the required monthly financial data within 45 days of the end of the reporting month, the office of the superintendent of public instruction is authorized to withhold the subsequent monthly apportionment payment until the required data is submitted.