wa-law.org > bill > 2025-26 > HB 2593 > Second Substitute
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 fund balance thresholds calculated under subsection (2) of this section on formal financial monitoring for a period of one year. Formal financial monitoring may be reimposed by the office of the superintendent of public instruction for additional one-year increments for school districts with general fund balance thresholds that remain below those calculated under subsection (2) of this section.
The office of the superintendent of public instruction shall calculate the fund balance thresholds as provided in this subsection (2) for each school district.
If a school district has 2,000 or more average annual full-time equivalent students, the general fund year ending balance threshold is six percent of its prior year's state apportionment.
If a school district has fewer than 2,000 average annual full-time equivalent students, the general fund year ending balance threshold is no less than eight percent of its prior year's state apportionment.
School districts placed under formal financial monitoring must comply with the reporting requirements in section 2 of this act.
The office of the superintendent of public instruction shall:
Provide technical assistance to each school district placed under formal financial monitoring to support the school district and help it avoid the imposition of binding conditions under RCW 28A.505.110; and
Specify whether a school district has failed to meet the applicable fund balance threshold calculated under this section in the school district's financial health indicators.
The office of the superintendent of public instruction may 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 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.
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.