wa-law.org > bill > 2025-26 > SB 6247 > Original Bill

SB 6247 - School financial management

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Section 1

In addition to other powers and duties as provided by law, each educational service district superintendent shall:

  1. Assist the school districts in preparation of their budgets, as provided in chapter 28A.505 RCW, and provide additional budget oversight and supports to school districts that are in binding conditions or showing indicators of financial distress, as provided in section 2 of this act;

  2. Enforce the provisions of the compulsory attendance law as provided in RCW 28A.225.010 through 28A.225.140, 28A.200.010, and 28A.200.020;

  3. Perform duties relating to capital fund aid by nonhigh districts as provided in chapter 28A.540 RCW;

  4. Carry out the duties and issue orders creating new school districts and transfers of territory as provided in chapter 28A.315 RCW;

  5. Perform the limited duties as provided in chapter 28A.193 RCW; and

  6. Perform all other duties prescribed by law and the educational service district board.

Section 2

  1. If, when reviewing a school district budget under RCW 28A.505.070, an educational service district determines that a school district's reserved fund balance has decreased significantly from the previous school year or identifies any other indicators of financial distress, the educational service district must provide financial oversight for the following school year to help identify irregular expenditures or budgeting behaviors that may be negatively affecting the district's financial health.

  2. If a school district enters binding conditions under RCW 28A.505.110, the educational service district must:

    1. Conduct a detailed review of the district's budget to ensure the accuracy of all budget assumptions and projections;

    2. Determine if irregular expenditures or acts of financial malfeasance, misfeasance, or nonfeasance have contributed to the district's financial distress. If suspected acts of malfeasance, misfeasance, or nonfeasance are identified, the educational service district must report the acts to the state auditor for transmittal to the office of the attorney general under RCW 43.09.260; and

    3. Attend all school board meetings while the district is in binding conditions to provide budget guidance and status updates.

  3. An educational service district providing support and oversight under this section may direct a school superintendent, or other school district administrator responsible for developing a school district budget and monitoring the financial health of the school district, to complete the governance training program provided to school directors under section 4 of this act.

Section 3

  1. Except as provided otherwise by this subsection (1), beginning with the 2027 calendar year, each member of a board of directors shall complete a governance training program once per term of elected office. If the director is appointed or elected to a first term of office, the director must complete a governance training required by this subsection (1) within two years of appointment or certification of the election in which they were elected.

  2. Governance training programs completed by directors in accordance with subsection (1) of this section must include the following:

    1. Training aligned with the cultural competency, diversity, equity, and inclusion standards for school director governance developed under RCW 28A.345.115 and provided by the Washington state school directors' association

pursuant to RCW 28A.345.120. For purposes of this subsection, "cultural competency," "diversity," "equity," and "inclusion" have the same meaning as in RCW 28A.415.443; and

b. Financial management training provided by the Washington state school directors' association pursuant to section 4 of this act.

Section 4

  1. The Washington state school directors' association shall identify or develop and periodically update governance training programs that address the fundamentals of district budgeting, accounting, and financial health.

  2. Beginning with the 2027 calendar year, the Washington state school directors' association shall provide the governance training program identified or developed under subsection (1) of this section at the frequency necessary for school directors to meet the requirement in RCW 28A.343.100.

  3. Upon request of an educational service district providing support and oversight under section 2 of this act, the governance training program identified or developed under subsection (1) of this section must be made available to school superintendents and school district administrators responsible for developing a school district budget and monitoring the financial health of the school district.

Section 5

Total budgeted expenditures for each fund as adopted in the budget of a school district shall constitute the appropriations of the district for the ensuing fiscal year and the board of directors shall be limited in the incurring of expenditures to the grand total of such appropriations. The board of directors shall incur no expenditures for any purpose in excess of the appropriation for each fund: PROVIDED, That no board of directors shall be prohibited from incurring expenditures for the payment of regular employees, for the necessary repairs and upkeep of the school plant, for the purchase of books and supplies, and for their participation in joint purchasing agencies authorized in RCW 28A.320.080 during the interim while the budget is being settled under RCW 28A.505.140: PROVIDED FURTHER, That transfers between budget classes may be made by the school district's chief administrative officer or finance officer, subject to such restrictions as may be imposed by the school district board of directors.

Directors, officers or employees who knowingly or negligently violate or participate in a violation of this section by the incurring of expenditures in excess of any appropriation(s) shall be held civilly liable, jointly and severally, for such expenditures in excess of such appropriation(s), including consequential damages following therefrom, for each such violation. If as a result of any civil or criminal action the violation is found to have been done knowingly, such director, officer, or employee who is found to have participated in such breach shall immediately forfeit his or her office or employment and be barred from future employment at any public school, school district, or educational service district, and the judgment in any such action shall so provide.

Nothing in this section shall be construed to limit the duty of the attorney general to carry out the provisions of RCW 43.09.260, as now or hereafter amended. If, pursuant to RCW 43.09.260, the attorney general institutes legal action for financial malfeasance, misfeasance, or nonfeasance by a school district director, officer, or employee, the state must reimburse any damages not recovered by the school district through a judgment or insurance claim. This reimbursement may not exceed $750,000.

Section 6

  1. Before hiring an applicant, a public school, school district, or educational service district shall request the applicant to sign a statement:

    1. Authorizing the applicant's current and past employers to disclose to the hiring school or district any knowing violation that would bar the applicant from employment pursuant to RCW 28A.505.150; and

    2. Releasing the applicant's current and past employers, and employees acting on behalf of that employer, from any liability for providing information described in (a) of this subsection, as provided in subsection (3) of this section.

  2. Before hiring an applicant, a school or district shall request in writing, electronic or otherwise, the applicant's current and past employers to provide the information described in subsection (1)(a) of this section, if any. The request must include a copy of the statement signed by the applicant under subsection (1) of this section.

  3. Not later than 20 business days after receiving a request under subsection (2) of this section, a school district shall provide the information requested and make available to the requesting school or district copies of all documents in the applicant's personnel record relating to a knowing violation that would bar the applicant from employment pursuant to RCW 28A.505.150. The school district, or an employee acting on behalf of the school district, who in good faith discloses information under this section is immune from civil liability for the disclosure.

  4. A school or district may not hire an applicant who does not sign the statement described in subsection (1) of this section.

  5. This section governs school operation and management under RCW 28A.710.040 and 28A.715.020, and applies to charter schools established under chapter 28A.710 RCW and state-tribal education compact schools subject to chapter 28A.715 RCW to the same extent as it applies to school districts.


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