[Filed November 19, 2025, 12:48 p.m., effective December 20, 2025]

Effective Date of Rule: Thirty-one days after filing.

Purpose: The purpose of this amended WAC is to allow school districts in binding conditions to loan money from their transportation vehicle fund (TVF) to their general fund in order to maintain a positive cash flow in their general fund. When other binding condition efforts fail to resolve the district's financial issues and insolvency is imminent, and to ensure that the district will have a positive cash flow to meet obligations, the proposed rule enables school districts to borrow from TVF.

Citation of Rules Affected by this Order: Amending WAC 392-123-140.

Statutory Authority for Adoption: RCW 28A.150.290, 28A.710.220, and 28A.315.221.

Adopted under notice filed as WSR 25-15-119 on July 21, 2025.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 0, Amended 1, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.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: November 19, 2025.

State Superintendent of Public Instruction

AMENDATORY SECTION(Amending WSR 15-18-078, filed 8/28/15, effective 9/28/15)

WAC 392-123-140Interfund loans allowable.

(1) Loans are allowable to the general fund, the transportation vehicle fund, the capital projects fund, and the debt service fund of school districts.

(2) Loans are allowable from the general fund and the capital projects fund. For school districts subject to official binding conditions by the superintendent of public instruction and facing financial insolvency, loans are allowable from the transportation vehicle fund to the general fund, the capital projects fund, and the debt service fund.

(a) WAC 392-123-135 through 392-123-160 also apply to loans from the transportation vehicle fund.

(b) Loans from the transportation vehicle fund are subject to final approval by the superintendent of public instruction. Districts must submit approved copies of board resolutions with all required information to the superintendent of public instruction five working days prior to the planned interfund loan.

(3) Loans shall not be made to the detriment of any function or project for which the fund was established.