School district accounting

AN ACT Relating to school district accounting, budgeting, and 1
reporting requirements; and adding new sections to chapter 28A.505 2
RCW. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. A new section is added to chapter 28A.505 5
RCW to read as follows: 6
(1) By the 2030-31 school year and each fiscal year thereafter, 7
each school district board of directors shall include a restriction 8
for minimum fund balance within their general fund. This minimum fund 9
balance restriction must be in addition to other fund balance amounts 10
restricted to specific purposes externally imposed by creditors, 11
grantors, contributors, or law or regulations of other governments, 12
or other restrictions imposed by enabling legislation.13
(a) For school districts with 2,000 average annual full-time 14
equivalent students or greater, the fund balance must be no less than 15
six percent of their prior year's state apportionment.16
(b) For school districts with an enrollment of fewer than 2,000 17
average annual full-time equivalent students, the fund balance must 18
be no less than eight percent of their prior year's state 19
apportionment. 20
Z-0604.2
SENATE BILL 6326
State of Washington 69th Legislature 2026 Regular Session
By Senators Nobles, Wellman, Conway, Cortes, Lovick, Robinson,
Valdez, and C. Wilson; by request of Superintendent of Public
Instruction
Read first time 01/28/26. Referred to Committee on Early Learning &
K-12 Education.
p. 1 SB 6326
(2) The office of the superintendent of public instruction shall 1
calculate the actual minimum restriction required by subsection (1) 2
of this section for each school district for the school district 3
board of directors' review and adoption. For purposes of the 4
calculation, the prior year state apportionment must include total 5
apportionment as calculated no later than April 30th.6
(3) A school district may not use minimum fund balance resources 7
for ongoing salaries or benefits. 8
(4) A school district may only use fund balance resources 9
restricted in accordance with subsection (1) of this section for the 10
following purposes: 11
(a) To address costs associated with unanticipated actual changes 12
in annual average full-time equivalent enrollment that exceed 2.5 13
percent from the prior school year; 14
(b) For temporary cash flow needs in the general fund within the 15
school year; 16
(c) For emergencies or as necessary for the preservation of life, 17
health, and safety; and 18
(d) For one-time expenses as preapproved by the office of the 19
superintendent of public instruction. 20
(5)(a) A school district may temporarily spend below the minimum 21
restricted fund balance levels calculated in subsection (2) of this 22
section only if: 23
(i) The school district's board of directors adopts a resolution 24
to temporarily spend below its minimum fund balance identifying the 25
specific reason for the use of funds from the allowable uses 26
identified in subsection (4) of this section, the amount to be used, 27
and the estimated remaining restricted fund balance amount;28
(ii) The school district's board of directors submits to the 29
office of the superintendent of public instruction, the resolution 30
and a plan to restore the restricted fund balance to no less than the 31
minimum calculation within 12 months of the end of the subsequent 32
school year; and 33
(iii) The office of the superintendent of public instruction 34
approves the school district's plan to restore its minimum fund 35
balance. 36
(b) A school district must restore the restricted fund balance to 37
the minimum level calculated in subsection (2) of this section in 38
accordance with the plan approved by the office of the superintendent 39
of public instruction. 40
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(c) A school district may not be approved to spend below the 1
minimum fund balance two years in a row, except for emergencies to or 2
as necessary for the preservation of life, health, and safety.3
(6) The office of the superintendent of public instruction must 4
include whether a school district has failed to replenish its minimum 5
fund balance in the school district's financial health indicators.6
(7) The office of the superintendent of public instruction must 7
require a school district who has failed to replenish its minimum 8
fund balance in accordance with the approved plan to redirect 9
apportionment funding monthly, in 12 equal installments totaling the 10
amount necessary to restore the minimum restricted fund balance 11
calculated in subsection (2) of this section. 12
(8) The superintendent of public instruction shall adopt rules to 13
implement this section and section 2 of this act. 14
NEW SECTION. Sec. 2. A new section is added to chapter 28A.505 15
RCW to read as follows: 16
(1) Beginning in the 2028-29 school year and each fiscal year 17
thereafter, school districts must submit monthly financial data to 18
the office of the superintendent of public instruction no later than 19
the last day of the subsequent calendar month. 20
(2) The data must include, at a minimum, the following 21
information for each fund: (a) Monthly expenditures; (b) monthly 22
revenue; (c) end of month cash balance; (d) interfund loan activity; 23
and (e) any other debt or borrowing transactions. 24
(3) For any school district that fails to submit the required 25
monthly financial data within 45 days of the end of the reporting 26
month, the office of the superintendent of public instruction is 27
authorized to withhold the subsequent monthly apportionment payment 28
until the required data is submitted. 29
--- END ---
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