This bill aims to enhance financial management within school districts in Washington State by amending existing laws and introducing new provisions. Key amendments include the requirement for educational service district superintendents to assist school districts in budget preparation and provide additional support to those in financial distress. A new section mandates that if a school district's financial indicators show distress, the educational service district must offer financial support, conduct budget reviews, and ensure compliance with budget assumptions. Additionally, the bill establishes a duty for educational service district employees to report any suspected financial misconduct to the appropriate authorities.

The bill also introduces a governance training program for school district board members, which must be completed once per term starting in 2027. This training will cover cultural competency, diversity, equity, inclusion, and financial management. Furthermore, it requires school districts to obtain disclosures from applicants for budget-related positions regarding any past violations that would disqualify them from employment. The bill includes provisions for civil liability for directors or employees who violate budgetary restrictions and outlines the state's obligation to reimburse damages in cases of financial misconduct. The effective date for the governance training section is set for January 1, 2027, with a provision that it will be null and void if specific funding is not provided by June 30, 2026.

Statutes affected:
Original bill: 28A.310.300, 28A.343.100, 28A.505.150
Substitute bill: 28A.310.300, 28A.343.100, 28A.505.150
Engrossed substitute: 28A.310.300, 28A.343.100, 28A.505.150