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Committee reports bill allowing some school districts to sell property, amid calls for more local review

Capital Budget Committee · February 9, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The committee reported House Bill 2,551 out of committee with a due-pass recommendation after debate. Supporters said districts need tools to address financial strain; opponents, including Rep. Walsh, warned against selling capital assets to cover operating costs.

House Bill 2,551, which allows school-district boards meeting fund-balance and other requirements to sell real property if authorized by the superintendent and subject to conditions, was reported out of the Capital Budget Committee with a due-pass recommendation.

During executive session, Representative Parsley urged members to support the bill while stressing that "there needs to be a little more work" to coordinate with local jurisdictions such as cities and counties to ensure the measure serves the broader interests of housing and infrastructure. Representative Walsh urged a no vote and said, "Try not to sell valuable assets in order to cover your operating costs," arguing that liquidating capital assets to cover operating budgets is poor financial management.

The committee paused its initial consideration and later reopened the executive session on HB 2,551 to complete further conversation and take a final roll call. Staff recorded the final tally as 10 yeas, 8 nays, and 1 excused. By that vote, HB 2,551 was reported out of committee with a due-pass recommendation. The committee recorded that additional local consultation and technical work would be desirable as the bill moves forward.