School District Bonds.
School district boards of directors (school boards) may borrow money and issue bonds for any capital purpose. The amount that may be borrowed is limited by the Washington Constitution and state statutes.
School boards may submit the question of voter-approved indebtedness to voters residing in the school district. Prior to doing so, the school board must adopt a resolution validating and ratifying the proposed indebtedness, and the school district superintendent must notify the county auditor of the suggested time and purpose of the election.
If the indebtedness proposal is approved by 60 percent of the voters voting at the election, the school board may borrow money and issue and sell negotiable bonds. Voter approval requirements differ if the proposal before the voters would result in exceeding a constitutionally established debit limit of 1.5 percent of the assessed value of the property in school district.
Washington State School Directors' Association.
Established by statute, the Washington State School Directors' Association (WSSDA) is the state agency that provides advice and assistance to local school boards. The WSSDA is charged with coordinating policymaking, control, and management of the state's school districts. Among other actions, the WSSDA adopts model policies and procedures, often in response to legislative directives, that school districts may adopt.
Any member of a school district board of directors voting to approve a bond authorization for voter consideration, must, prior to approving the authorization, receive training in basic legal requirements and opportunities of public sector capital projects. The training must have been in the six-year period preceding the school director's vote. At a minimum, the training must include:
School districts and educational service districts are encouraged to provide the training using a regional model with assistance and materials provided by the Washington State Department of Labor and Industries (L&I), labor organizations, and associations representing general contractors.
The WSSDA, in partnership with the L&I, labor organizations, and associations representing general contractors, must draft a model policy and procedure that satisfy the training requirements.
The substitute bill makes the following changes to the original bill:
(In support) The bill was requested by the Office of the Superintendent of Public Instruction. School boards that authorize contracts after bond authorizations do not always understand legal requirements and this can create project implementation challenges. The training required in the bill for school boards can be provided easily by the L&I and others. An amendment is forthcoming regarding labor agreements language in the bill.
Bond issues and public works construction projects are some of the most complicated issues school boards address. The September 2022 implementation date in the bill is a good provision, as are the training requirements.
The legislation takes an important first step in making sure that communities understand contracting and other requirements before beginning capital projects. The legislation will help schools and small communities.
(Opposed) None.
(Other) The idea of requiring additional training for capital works public works projects is supported, but there is some concern about the labor and community workforce agreement provisions in the bill. If that language is removed, the bill will be supported.