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Committee advances bill to monitor districts with low fund balances, authorizes OSPI technical assistance
Summary
A proposed substitute to House Bill 2,593 would place districts with year‑end general fund balances below required minimums on formal financial monitoring, require monthly reporting for monitored districts, and authorize OSPI to withhold apportionments for reporting failures; the committee reported the substitute (11–3, 5 excused).
The House Education Committee reported substitute House Bill 2,593 after debate over how best to monitor district financial health. Staff described a proposed substitute (H3376.1) that removes calendar‑based minimums and instead directs the Office of Superintendent of Public Instruction (OSPI) to place low‑balance districts on formal financial monitoring beginning in the 2027–28 school year.
Staff outlined that the substitute: - Removes maximum allowable general‑fund balance caps and certain restrictions on the use of restricted fund balances. - Requires districts placed under formal financial monitoring to meet specified monthly reporting requirements and authorizes OSPI to withhold monthly apportionment payments if reporting requirements are not met within 45 days of the end of the reporting month. - Requires OSPI to provide technical assistance to monitored districts and to indicate in financial‑health indicators whether a district failed to meet minimum general‑fund balance requirements.
Members debated amendments including a null‑and‑void clause and technical fixes; Representative Rood moved an amendment to fix apportionment withholding language. Representative Root said the bill responds to district concerns and offers support, while others flagged the need for continued collaboration. The clerk recorded 11 ayes, 3 nays, and 5 excused; the committee reported substitute House Bill 2,593 with a due‑pass recommendation.
