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 educational service districts to offer financial support to districts showing indicators of financial distress, including regular meetings with district leadership to create action plans. 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 governance training requirements for school board directors, emphasizing cultural competency, diversity, equity, and finance training. It mandates that all school directors complete this training within a specified timeframe and encourages ongoing education. Furthermore, the bill outlines hiring protocols for budget and accounting-related positions, requiring applicants to authorize the disclosure of any past violations that would disqualify them from employment. The legislation includes provisions for civil liability for directors or employees who violate budgetary restrictions and establishes a reimbursement mechanism for damages related to financial malfeasance. The effective date for certain provisions is set for January 1, 2027, with a stipulation that funding must be provided by June 30, 2026, for the training program to remain valid.

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