WashingtonOversight districts may borrow from school transportation funds
Washington law lets districts facing financial oversight borrow temporarily from school funds, while districts under enhanced oversight may seek state approval for permanent transfers.
What it does
A district in financial trouble may borrow from its capital projects fund or transportation vehicle fund. It must repay the loan within a year, and districts under enhanced oversight need an additional approval.
A district under enhanced financial oversight may ask to move transportation vehicle money to another school fund, including to make a temporary loan permanent. The state superintendent may approve only transfers that do not harm the vehicle fund’s purposes or projects.
Argument forA district under financial strain could use a short-term loan to meet other needs while following a repayment plan and required oversight checks.
Argument againstUsing transportation fund money for other needs could leave less for vehicles or repairs, even though transfers must not harm the fund’s purposes.
More detail
A district may borrow temporarily from its capital projects fund or transportation vehicle fund. This applies to school districts in binding conditions or under enhanced financial oversight. The district must be in binding conditions or under enhanced financial oversight. The loan may not charge interest or harm a purpose or project for which the lending fund was established. The school board must approve the loan by resolution and state its amount, the funds involved, the repayment source, and the repayment schedule. Enhanced financial oversight also requires approval by the special administrator. The borrowing fund must repay the full loan within one calendar year.
A district under enhanced financial oversight may ask the state superintendent of public instruction to approve a transfer from its transportation vehicle fund to another school fund. This applies to school districts under enhanced financial oversight. The superintendent may approve the transfer only if it would not harm a purpose or project for which the transportation vehicle fund was established. The district may ask to make a temporary loan from that fund permanent, with no repayment required.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 24Effective date 6/11/2026.Latest
- Mar 24Chapter 182, 2026 Laws.Major
- Mar 24Governor Bob Ferguson signed.Became Law
- Mar 12Delivered to Governor.To Governor
- Mar 11Speaker signed.Major
- Mar 11President signed.Passed House
- Mar 10Passed final passage; yeas, 49; nays, 0; absent, 0; excused, 0.Passed Senate
- Vote recorded Final Passage as Amended by the House (#10). Result: pass.Upper
- Mar 10Senate concurred in House amendments.
- Mar 4Third reading, passed; yeas, 97; nays, 0; absent, 0; excused, 1.Minor
- Vote recorded Final Passage as Amended by the House (#5). Result: pass.Lower
- Mar 4Rules suspended. Placed on Third Reading.Minor
- Mar 4Committee amendment(s) adopted with no other amendments.
- Mar 3Rules Committee relieved of further consideration. Placed on second reading.Minor
- Mar 2Referred to Rules 2 Review.Minor
- Feb 27APP - Majority; do pass with amendment(s).Minor
- Feb 27Executive action taken in the House Committee on Appropriations at 10:30 AM.
- Feb 18Public hearing in the House Committee on Appropriations at 4:00 PM.
- Feb 14First reading, referred to Appropriations.Minor
- Feb 11Third reading, passed; yeas, 49; nays, 0; absent, 0; excused, 0.Minor
- Vote recorded 3rd Reading & Final Passage (#4). Result: pass.Upper
- Feb 11Rules suspended. Placed on Third Reading.Minor
- Feb 6Placed on second reading consent calendar.Minor
- Feb 4Passed to Rules Committee for second reading.
- Feb 3EDU - Majority; do pass.Minor
- Feb 3Executive action taken in the Senate Committee on Early Learning & K-12 Education at 8:00 AM.
- Jan 22Public hearing in the Senate Committee on Early Learning & K-12 Education at 10:30 AM.
- Jan 12First reading, referred to Early Learning & K-12 Education.Minor
- Jan 9Prefiled for introduction.Introduced
Education