Hearing on allowing troubled districts to use transportation vehicle funds for budget relief
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Summary
A staff briefing and remote testimony supported Senate Bill 6,065, which would let school districts under binding conditions petition to borrow or transfer from their transportation vehicle funds, with safeguards and a small OSPI implementation cost estimate.
Staff briefed the committee on Senate Bill 6,065, which would allow school districts under binding conditions or enhanced financial oversight to take temporary interest‑free interfund loans from their transportation vehicle funds or petition the superintendent of public instruction for permission to transfer money to other district funds. James Maxson said the change parallels existing rules for capital projects funds and is intended to give districts facing insolvency a limited option with safeguards; OSPI estimated a small implementation cost (about $6,000 in senior staff time plus additional per‑petition costs).
Jim Krakowski, director of the Rural Education Center, testified remotely in support, saying the bill would help small rural districts such as Prescott, which recently faced insolvency and passed a supplemental levy near 90%. Krakowski said the measure simply allows districts to avoid repaying some or all borrowed funds with safeguards to protect the transportation vehicle fund.
Maxson and witnesses emphasized the measure is targeted and not a general fiscal bailout: it applies only to districts under binding conditions or under enhanced oversight and includes petition and oversight processes.
