This bill introduces new requirements for school district accounting, budgeting, and reporting in Washington State. It mandates that by the 2030-31 school year, each school district must maintain a minimum fund balance within their general fund, with specific percentages based on student enrollment: six percent for districts with 2,000 or more average annual full-time equivalent students, and eight percent for those with fewer. The bill outlines permissible uses for these fund balances, prohibits their use for ongoing salaries or benefits, and establishes a process for districts to temporarily spend below the minimum balance under certain conditions, including board approval and a restoration plan.

Additionally, starting in the 2028-29 school year, school districts will be required to submit monthly financial data to the office of the superintendent of public instruction, detailing expenditures, revenue, cash balances, interfund loans, and other transactions. 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 aims to enhance financial accountability and transparency within school districts while ensuring they maintain adequate reserves for operational stability.