Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Education Finance topic
No spam. Unsubscribe anytime.
Bill would let struggling school districts sell property with OSPI approval; Tacoma endorses measure
Summary
House Bill 2,551 would allow school districts with an estimated ending fund balance at or below 3% of revenues to request superintendent approval to sell district real property as a one-time tool to restore solvency; Tacoma School District testified in support, emphasizing fiscal pressure on districts.
OLYMPIA — The Capital Budget Committee heard a briefing and public testimony on House Bill 2,551, which would permit school districts with severely constrained ending fund balances (3% or less of estimated revenues) to request authorization from the state superintendent of public instruction to sell district real property to restore financial stability.
John Wilson, committee staff, summarized the bill’s mechanics: boards retain ownership and control of district property but districts in or nearing binding conditions could request OSPI authorization to sell real property if they demonstrate the sale is necessary to restore financial stability and prevent adverse impacts to student learning; OSPI must adopt implementing rules that ensure transparency and accountability and may not allow the authorization more than once in a five-year period. Staff said OSPI estimated one-time rulemaking costs of about $16,500 and that the fiscal note is indeterminate regarding the number and value of sales.
Representative Fey (sponsor) said the bill was brought by the Tacoma School District as a narrow tool to help districts weather short-term fiscal crises under OSPI oversight. Charlie Brown, testifying for Tacoma, emphasized rising operational costs (utilities, insurance) and district cuts in recent years; he said the bill mirrors parameters of existing statute for districts in binding conditions and urged support.
Members questioned whether local jurisdictions had any oversight over future land use after a sale; testifiers clarified that school districts operate without local government oversight for property sales and that prospective buyers would follow standard permitting processes. Representatives asked about potential unintended consequences in urban neighborhoods; the sponsor said she was open to amendments to prevent misuse.
What happens next: The hearing record was left open for amendments and the committee may consider the bill during upcoming executive action.
