This bill introduces new accounting, budgeting, and reporting requirements for school districts in Washington State. It mandates that by the 2030-31 school year, each school district's board of directors must establish a minimum fund balance restriction within their general fund, which is separate from other externally imposed restrictions. For districts with 2,000 or more average annual full-time equivalent students, the fund balance must be between six and twelve percent of the prior year's state apportionment, while for smaller districts, it must be between eight and thirty-four percent. The bill also specifies that these funds cannot be used for ongoing salaries or benefits and outlines permissible uses for the restricted fund balance, such as addressing unexpected enrollment changes and temporary cash flow needs.

Additionally, starting in the 2028-29 school year, school districts are required to submit monthly financial data to the office of the superintendent of public instruction, including expenditures, revenue, cash balances, and any interfund loan activity. If a district fails to submit this data within 45 days of the reporting month, the superintendent's office can withhold subsequent apportionment payments until compliance is achieved. The bill emphasizes the importance of maintaining financial health and accountability within school districts, with provisions for oversight and restoration of fund balances as necessary.