Requires the joint legislative audit and review committee to conduct a broad performance audit of school boards of directors in Washington and analyze the roles, responsibilities, costs, and compensation of school boards of directors. In addition to the standard items reviewed in a performance audit, the committee shall examine the efficiency and effectiveness of school district boards of directors, including the following: (1) In light of state and federal demands for student achievement and school reform, what is the appropriate role for school boards to assist in improving student and school's performance?

(2) Should school boards primarily authorize and monitor the operations of schools or should they be involved more directly with school operations?

(3) Should a new system be considered with most of the decision-making authority vested in a different entity?

(4) What is the appropriate compensation for school boards in light of their duties and under any recommendations for revised duties?

Provides that, in conducting the performance audit, the committee may also use performance measures or standards used by other states or school districts in developing its findings. The committee shall report the findings to the legislature by December 1, 2008.