This bill authorizes the office of the superintendent of public instruction in Washington State to act as a guarantor for counties providing loans to school districts that are under binding conditions and experiencing long-term financial distress. A new section is added to chapter 28A.505 RCW, outlining the processes the office must adopt to determine its role as a guarantor and to implement enhanced financial oversight in the event of a school district defaulting on its loan. The oversight measures include requiring the school district to submit a viable two-year financial plan and may involve restrictions on contract approvals and the appointment of a special administrator by the office.

Additionally, the bill appropriates $10,000,000 from the general fund for the fiscal year ending June 30, 2025, to support the contingent guarantor funding when the office acts as a guarantor and a school district defaults. The funding is contingent upon a request from the affected county, which must detail the circumstances of the default and the financial distress of the school district. The bill also establishes notification requirements for counties seeking these funds during legislative sessions and mandates that the office of financial management keep relevant legislative committees informed about the approval of funding levels.