Subject of Possible Rule Making: Chapter 392-125 WAC, Educational service districts (ESD).

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 28A.310.280 and 28A.310.330.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Revision of the WAC is needed to address the effect of changes with the repealing of RCW 28A.310.380 which required the ESDs to have only a general expense fund. This will allow ESDs authority to establish other funds as required under budgeting and accounting regulations.

     These changes also incorporate guidance for the use of interfund loans used by ESDs. The guidance is modeled under the school district budgeting process as prescribed in RCW 28A.505.130.

     Process for Developing New Rule: Early solicitation of public comments and recommendations respecting new, amended or repealed rules, and consideration of the comments and recommendations in the course of drafting the rules.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by sending written comments to Rules Coordinator, Legal Services, Office of Superintendent of Public Instruction, P.O. Box 47200, Olympia, WA 98504-7200, fax (360) 753-4201, TTY (360) 664-3631. For telephone assistance contact Ron Stead, Director, School Financial Services, (360) 725-6302.

February 4, 2005

Dr. Terry Bergeson

Superintendent of

Public Instruction

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