[Filed June 20, 2019, 11:55 a.m., effective June 20, 2019, 11:55 a.m.]

Effective Date of Rule: Immediately upon filing.

Purpose: Districts received a one-time legislative salary and benefit increase included in the transportation operations allocation for the 2018-19 school year to reflect the compensation increase with the passage of E2SSB 6362 (2018). Districts will likely not have time to utilize the increase in funds in the current school year and will therefore face recovery of transportation funds not expended. A new subsection to WAC 392-141-410 will allow a one-year-only carryover of unspent funds for the 2019-20 school year to prevent the recovery of 2018-19 allocation.

Citation of Rules Affected by this Order: Amending WAC 392-141-410.

Statutory Authority for Adoption: RCW 28A.150.290.

Under RCW 34.05.350 the agency for good cause finds that immediate adoption, amendment, or repeal of a rule is necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements of notice and opportunity to comment upon adoption of a permanent rule would be contrary to the public interest.

Reasons for this Finding: Immediate adoption of this rule is necessary to preserve general welfare. If this one-year-only amendment to WAC 392-141-410 does not go into effect before the beginning of the next school year, school districts will likely be subject to the recovery of unexpended transportation funds that districts received to reflect compensation increases under E2SSB 6362. The office of superintendent of public instruction filed a preproposal statement of inquiry, WSR 19-11-112, on May 21, 2019, indicating the agency's intent to initiate rule making to adopt this amendment in a permanent rule.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 0, Amended 1, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: June 20, 2019.

State Superintendent

of Public Instruction

AMENDATORY SECTION(Amending WSR 13-17-110, filed 8/21/13, effective 9/21/13)

WAC 392-141-410Recovery of transportation funds.

The superintendent of public instruction shall recover (take back) state pupil transportation allocations that are not expended for the allowable student transportation program costs under the accounting guidance provided by the superintendent. The amount of the recovery shall be calculated as follows:

(1) Determine the district's state allocation for student transportation operations for the school year.

(2) Determine the district's allowable student transportation costs as follows:

(a) Sum the following amounts:

(i) The district's direct expenditures for general fund program 99 pupil transportation, and for educational service district student transportation operations expenditures in program 70 transportation excluding expenditures associated with the regional coordinator and bus driver training grants;

(ii) Allowable indirect charges equal to the expenditures as calculated pursuant to (a)(i) of this subsection times the state recovery rate as calculated in the district annual financial report;

(b) Subtract the district's revenues for the school year for revenue account 7199 (transportation revenues from other districts).

(3) If the allowable program costs are less than the state allocation, OSPI shall recover the difference.

(4) Special rule for the 2019-20 school year only. School districts may carry over state pupil transportation allocations that were not expended for allowable student transportation program costs from the 2018-19 school year to the 2019-20 school year.

Funds transferred into the transportation vehicle fund shall not be included as allowable transportation program costs for recovery calculations.