School financial management

AN ACT Relating to school district financial management; amending 1
RCW 28A.310.300, 28A.343.100, and 28A.505.150; adding a new section 2
to chapter 28A.310 RCW; adding a new section to chapter 28A.345 RCW; 3
and adding a new section to chapter 28A.400 RCW. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 28A.310.300 and 1998 c 244 s 13 are each amended to 6
read as follows: 7
In addition to other powers and duties as provided by law, each 8
educational service district superintendent shall: 9
(1) Assist the school districts in preparation of their budgets , 10
as provided in chapter 28A.505 RCW((.)), and provide additional 11
budget oversight and supports to school districts that are in binding 12
conditions or showing indicators of financial distress, as provided 13
in section 2 of this act;14
(2) Enforce the provisions of the compulsory attendance law as 15
provided in RCW 28A.225.010 through 28A.225.140, 28A.200.010, and 16
28A.200.020((.));17
(3) Perform duties relating to capital fund aid by nonhigh 18
districts as provided in chapter 28A.540 RCW((.));19
S-4063.1
SENATE BILL 6247
State of Washington 69th Legislature 2026 Regular Session
By Senators Dozier, Lovick, and Schoesler
Read first time 01/20/26. Referred to Committee on Early Learning &
K-12 Education.
p. 1 SB 6247
(4) Carry out the duties and issue orders creating new school 1
districts and transfers of territory as provided in chapter 28A.315 2
RCW((.));3
(5) Perform the limited duties as provided in chapter 28A.193 4
RCW((.)); and5
(6) Perform all other duties prescribed by law and the 6
educational service district board. 7
NEW SECTION. Sec. 2. A new section is added to chapter 28A.310 8
RCW to read as follows: 9
(1) If, when reviewing a school district budget under RCW 10
28A.505.070, an educational service district determines that a school 11
district's reserved fund balance has decreased significantly from the 12
previous school year or identifies any other indicators of financial 13
distress, the educational service district must provide financial 14
oversight for the following school year to help identify irregular 15
expenditures or budgeting behaviors that may be negatively affecting 16
the district's financial health. 17
(2) If a school district enters binding conditions under RCW 18
28A.505.110, the educational service district must:19
(a) Conduct a detailed review of the district's budget to ensure 20
the accuracy of all budget assumptions and projections;21
(b) Determine if irregular expenditures or acts of financial 22
malfeasance, misfeasance, or nonfeasance have contributed to the 23
district's financial distress. If suspected acts of malfeasance, 24
misfeasance, or nonfeasance are identified, the educational service 25
district must report the acts to the state auditor for transmittal to 26
the office of the attorney general under RCW 43.09.260; and27
(c) Attend all school board meetings while the district is in 28
binding conditions to provide budget guidance and status updates.29
(3) An educational service district providing support and 30
oversight under this section may direct a school superintendent, or 31
other school district administrator responsible for developing a 32
school district budget and monitoring the financial health of the 33
school district, to complete the governance training program provided 34
to school directors under section 4 of this act. 35
Sec. 3. RCW 28A.343.100 and 2021 c 197 s 7 are each amended to 36
read as follows: 37
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(1) Except as provided otherwise by this subsection (1), 1
beginning with the ((2022)) 2027 calendar year, each member of a 2
board of directors shall complete a governance training program once 3
per term of elected office. If the director is appointed or elected 4
to a first term of office, the director must complete a governance 5
training required by this subsection (1) within two years of 6
appointment or certification of the election in which they were 7
elected. 8
(2) Governance training programs completed by directors in 9
accordance with subsection (1) of this section must ((be aligned 10
with)) include the following:11
(a) Training aligned with the cultural competency, diversity, 12
equity, and inclusion standards for school director governance 13
developed under RCW 28A.345.115 and provided by the Washington state 14
school directors' association((.15
(3))) pursuant to RCW 28A.345.120. For purposes of this 16
((section)) subsection, "cultural competency," "diversity," "equity," 17
and "inclusion" have the same meaning as in RCW 28A.415.443; and18
(b) Financial management training provided by the Washington 19
state school directors' association pursuant to section 4 of this 20
act. 21
NEW SECTION. Sec. 4. A new section is added to chapter 28A.345 22
RCW to read as follows: 23
(1) The Washington state school directors' association shall 24
identify or develop and periodically update governance training 25
programs that address the fundamentals of district budgeting, 26
accounting, and financial health. 27
(2) Beginning with the 2027 calendar year, the Washington state 28
school directors' association shall provide the governance training 29
program identified or developed under subsection (1) of this section 30
at the frequency necessary for school directors to meet the 31
requirement in RCW 28A.343.100. 32
(3) Upon request of an educational service district providing 33
support and oversight under section 2 of this act, the governance 34
training program identified or developed under subsection (1) of this 35
section must be made available to school superintendents and school 36
district administrators responsible for developing a school district 37
budget and monitoring the financial health of the school district.38
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Sec. 5. RCW 28A.505.150 and 1990 c 33 s 423 are each amended to 1
read as follows: 2
Total budgeted expenditures for each fund as adopted in the 3
budget of a school district shall constitute the appropriations of 4
the district for the ensuing fiscal year and the board of directors 5
shall be limited in the incurring of expenditures to the grand total 6
of such appropriations. The board of directors shall incur no 7
expenditures for any purpose in excess of the appropriation for each 8
fund: PROVIDED, That no board of directors shall be prohibited from 9
incurring expenditures for the payment of regular employees, for the 10
necessary repairs and upkeep of the school plant, for the purchase of 11
books and supplies, and for their participation in joint purchasing 12
agencies authorized in RCW 28A.320.080 during the interim while the 13
budget is being settled under RCW 28A.505.140: PROVIDED FURTHER, 14
That transfers between budget classes may be made by the school 15
district's chief administrative officer or finance officer, subject 16
to such restrictions as may be imposed by the school district board 17
of directors. 18
Directors, officers or employees who knowingly or negligently 19
violate or participate in a violation of this section by the 20
incurring of expenditures in excess of any appropriation (s) shall be 21
held civilly liable, jointly and severally, for such expenditures in 22
excess of such appropriation (s), including consequential damages 23
following therefrom, for each such violation. If as a result of any 24
civil or criminal action the violation is found to have been done 25
knowingly, such director, officer, or employee who is found to have 26
participated in such breach shall immediately forfeit his or her 27
office or employment and be barred from future employment at any 28
public school, school district, or educational service district , and 29
the judgment in any such action shall so provide. 30
Nothing in this section shall be construed to limit the duty of 31
the attorney general to carry out the provisions of RCW 43.09.260, as 32
now or hereafter amended. If, pursuant to RCW 43.09.260, the attorney 33
general institutes legal action for financial malfeasance, 34
misfeasance, or nonfeasance by a school district director, officer, 35
or employee, the state must reimburse any damages not recovered by 36
the school district through a judgment or insurance claim. This 37
reimbursement may not exceed $750,000.38
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NEW SECTION. Sec. 6. A new section is added to chapter 28A.400 1
RCW to read as follows: 2
(1) Before hiring an applicant, a public school, school district, 3
or educational service district shall request the applicant to sign a 4
statement: 5
(a) Authorizing the applicant's current and past employers to 6
disclose to the hiring school or district any knowing violation that 7
would bar the applicant from employment pursuant to RCW 28A.505.150; 8
and 9
(b) Releasing the applicant's current and past employers, and 10
employees acting on behalf of that employer, from any liability for 11
providing information described in (a) of this subsection, as 12
provided in subsection (3) of this section. 13
(2) Before hiring an applicant, a school or district shall 14
request in writing, electronic or otherwise, the applicant's current 15
and past employers to provide the information described in subsection 16
(1)(a) of this section, if any. The request must include a copy of 17
the statement signed by the applicant under subsection (1) of this 18
section. 19
(3) Not later than 20 business days after receiving a request 20
under subsection (2) of this section, a school district shall provide 21
the information requested and make available to the requesting school 22
or district copies of all documents in the applicant's personnel 23
record relating to a knowing violation that would bar the applicant 24
from employment pursuant to RCW 28A.505.150. The school district, or 25
an employee acting on behalf of the school district, who in good 26
faith discloses information under this section is immune from civil 27
liability for the disclosure. 28
(4) A school or district may not hire an applicant who does not 29
sign the statement described in subsection (1) of this section.30
(5) This section governs school operation and management under 31
RCW 28A.710.040 and 28A.715.020, and applies to charter schools 32
established under chapter 28A.710 RCW and state-tribal education 33
compact schools subject to chapter 28A.715 RCW to the same extent as 34
it applies to school districts. 35
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