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Bill would let some districts use impact fees for modernization or limited O&M under oversight
Summary
Senate Bill 5943 would permit limited new uses of school impact fees: modernization projects when fees would revert to owners within four years, and up to 25% for operations and maintenance for districts in binding conditions (with administrator approval); builders and business groups warned it risks shifting costs to housing purchasers and raised legal concerns.
Senate Bill 5943, presented to the committee, would expand two limited uses for school impact fees. Under the first circumstance, if impact fees collected by a district are set to revert to property owners within four years, those fees could be used for certain modernization projects to comply with state and federal standards for student safety, campus security, emergency response and energy efficiency. Under the second circumstance, a district in binding conditions or enhanced financial oversight could use up to 25% of impact-fee balances for operations and maintenance, with approval from an appointed special administrator.
Sponsor Senator Cortez said the measure is narrowly tailored to provide an additional tool for districts in crisis and stressed that the bill targets a small number of districts in binding conditions. Supporters — including district superintendents and a remote superintendent from Washougal — described aging facilities, compliance with statutes such as Alyssa’s Law and the Clean Buildings Act, and declining enrollment that leaves impact fees tied to unused capacity. Aaron Hanson, superintendent of the Washougal School District, said his district holds about $5 million in impact fees but cannot use those funds under current law for mandatory safety and energy projects.
Opponents, including the Building Industry Association of Washington and the Association of Washington Business, argued impact fees are intended to fund growth-related capital costs and warned that allowing operating uses would effectively raise housing costs and could have constitutional nexus concerns. Panelists urged broader discussion of impact-fee policy and some proposed a sunset amendment to limit long-term shifts in fee use.
Committee members asked technical questions about when fees revert and whether limits apply; staff clarified that the four-year reversion circumstance is separate from the 25% exception for districts in binding conditions. The sponsor suggested a possible sunset amendment and the chair closed the short session.
