wa-law.org > bill > 2025-26 > SB 6247 > Substitute Bill
In addition to other powers and duties as provided by law, each educational service district superintendent shall:
Assist the school districts in preparation of their budgets, as provided in chapter 28A.505 RCW, and provide additional budget supports to school districts that are in binding conditions or showing indicators of financial distress, as provided in section 2 of this act;
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;
Perform duties relating to capital fund aid by nonhigh districts as provided in chapter 28A.540 RCW;
Carry out the duties and issue orders creating new school districts and transfers of territory as provided in chapter 28A.315 RCW;
Perform the limited duties as provided in chapter 28A.193 RCW; and
Perform all other duties prescribed by law and the educational service district board.
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 support for the following school year to help identify irregular expenditures or budgeting behaviors that may be negatively affecting the district's financial health. Financial support must include educational service districts meeting regularly with the school district superintendent, business manager, and school board chair to create mid-year action plans and plan for budget assumptions for the upcoming year to address indicators of financial distress and improve the district's financial position.
If a school district enters binding conditions under RCW 28A.505.110, the educational service district must:
Conduct a detailed review of the district's budget to ensure the accuracy of all budget assumptions and projections; and
Attend school board meetings, when pertinent budget information is on the agenda, to provide budget guidance and status updates.
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.
If, at any point, an educational service district employee knows or reasonably suspects a school board director, superintendent, financial manager, or other administrator has engaged or is engaging in malfeasance, misfeasance, or nonfeasance, or has otherwise violated the provisions of RCW 28A.505.150, the employee must report that suspicion to the state auditor and the state attorney general's office. The employee must also report the suspicion to the school district board of directors, unless a school director is suspected of being involved in the wrongdoing. This duty to report applies even if the employee believes the actions were not done with malintent.
By January 1, 2027, the office of the superintendent of public instruction must establish, by rule, a definition of "financial distress" that includes measurable indicators that can be identified by educational service districts. The office of the superintendent of public instruction must notify each educational service district when the definition is adopted and any time the definition is updated.
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.
Governance training programs completed by directors in accordance with subsection (1) of this section must include the following:
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. Funding and finance training provided by the Washington state school directors' association pursuant to section 4 of this act.
The Washington state school directors' association shall develop and provide a training program on school district funding and finance for all members of school district boards of directors. The training must be available for school district boards of directors within one year of the effective date of this section.
The training program must enhance school directors' understanding of:
State and local funding structures;
Budgeting practices; and
Fiscal accountability requirements applicable to school districts.
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All individuals serving as school directors on the effective date of this section must complete the training within one year of the effective date of this section.
All individuals elected or appointed as school directors after the effective date of this section must complete the training at least once during the first year of the director's term of office.
School directors are strongly encouraged to renew or retake the training at least once during each term of office to remain current with changes in state and local funding laws and fiscal accountability standards.
School directors may not be charged any fee for attendance and must be compensated for participating in the training under this section.
Upon request of an educational service district providing support under section 2 of this act, the governance training program developed under 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.
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.
Before hiring an applicant for a budget or accounting related role including, but not limited to, the role of business manager, superintendent, or assistant superintendent, a public school, school district, or educational service district shall request the applicant to sign a statement:
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
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.
Before hiring an applicant for a budget or accounting related role, 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.
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.
A school or district may not hire an applicant for a budget or accounting related role who does not sign the statement described in subsection (1) of this section.
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.
Section 4 of this act takes effect January 1, 2027.
If specific funding for the purposes of section 4 of this act, referencing section 4 of this act by bill or chapter number and section number, is not provided by June 30, 2026, in the omnibus appropriations act, section 4 of this act is null and void.