wa-law.org > bill > 2025-26 > HB 2593 > Substitute Bill

HB 2593 - School district accounting

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Section 1

  1. Beginning in the 2027-28 school year and each fiscal year thereafter, the office of the superintendent of public instruction must place school districts with general fund balances at the end of the year that are below the minimum amounts required by subsection (2) of this section on formal financial monitoring.

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    1. The office of the superintendent of public instruction shall calculate the actual minimum fund balance thresholds specified in this subsection (2) for each school district for review and adoption by their board of directors.

      1. If a school district has 2,000 or more average annual full-time equivalent students, the general fund year ending balance must be no less than six percent of their prior year's state apportionment.

      2. If a school district has fewer than 2,000 average annual full-time equivalent students, the general fund year ending balance must be no less than eight percent of their prior year's state apportionment.

    2. For purposes of the calculation, the prior year state apportionment must include total apportionment as calculated no later than April 30th.

  3. School districts placed under formal financial monitoring must comply with the reporting requirements in section 2 of this act.

  4. The office of the superintendent of public instruction shall:

    1. Provide technical assistance to each school district placed under formal financial monitoring to support the school districts and avoid the imposition of binding conditions under RCW 28A.505.110; and

    2. Specify whether a school district has failed to meet the minimum general fund balance threshold required by this section in the school district's financial health indicators.

  5. The office of the superintendent of public instruction may adopt rules to implement this section and section 2 of this act.

Section 2

  1. Beginning in the 2028-29 school year and each fiscal year thereafter, school districts placed under formal financial monitoring under section 1 of this act 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.

  2. 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.

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