Bill would let struggling districts use transportation vehicle funds short‑term under OSPI oversight
Summary
SB 6,065 would allow districts in binding conditions or under enhanced financial oversight to take temporary interest‑free loans from their transportation vehicle fund and petition OSPI to convert those loans to permanent transfers if not detrimental to the fund. Sponsors and rural district representatives said the change could help districts avoid insolvency; safeguards and limits were discussed.
Senate Bill 6,065 would expand authority that previously allowed temporary interest‑free interfund loans from capital projects to also permit such loans from a district’s transportation vehicle fund for school districts in binding conditions or under enhanced financial oversight. The bill also allows districts to petition the Office of Superintendent of Public Instruction to convert a temporary loan to a permanent transfer without repayment if the transfer would not be detrimental to the transportation fund.
Sponsor Senator Dozier said the bill is intended as a one‑time, short‑term fix to help districts avoid insolvency and get back on a sustainable path, not to fund ongoing operating expenses. He stressed OSPI oversight, ESD involvement, and the need for a district to show a plan that protects bus fleet maintenance.
Supporters representing small and rural districts, including Jim Kolkowsky (Bridal Lehi Center, representing over 110 small districts), said the bill imposes no additional state cost and could be critical for districts like Prescott that faced insolvency. Kolkowsky said safeguards were in the bill to protect the transportation vehicle fund.
Committee members discussed whether districts could take loans from multiple funds at once and how conversion petitions to OSPI would be evaluated. The hearing included proponent testimony and ended with an executive session later in which other bills were considered; no public committee action on SB 6,065 is recorded in the transcript.
