WSR 25-15-119
PROPOSED RULES
SUPERINTENDENT OF
PUBLIC INSTRUCTION
[Filed July 21, 2025, 9:14 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 25-12-032.
Title of Rule and Other Identifying Information: WAC 392-123-140 Interfund loans allowable.
Hearing Location(s): On October 7, 2025, at 10:00 a.m., virtual public hearing via Zoom (call-in option also available). Participation link available on the office of superintendent of public instruction (OSPI) rules web page at ospi.k12.wa.us/policy-funding/ospi-rulemaking-activity. For participation questions, please email sirena.wu@k12.wa.us.
Date of Intended Adoption: October 9, 2025.
Submit Written Comments to: Shawn Lewis, OSPI, P.O. Box 47200, Olympia, WA 98504, email shawn.lewis@k12.wa.us, beginning July 22, 2025, 8:00 a.m., by October 7, 2025, 5:00 p.m.
Assistance for Persons with Disabilities: Contact Sirena Wu, OSPI rules coordinator, phone 360-480-9317, TTY 360-664-3631, email sirena.wu@k12.wa.us, by September 30, 2025.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: 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 the TVF.
Reasons Supporting Proposal: The proposed rule revision provides school districts on binding conditions an opportunity to borrow resources from their TVF to support efforts to meet financial obligations.
Rule is not necessitated by federal law, federal or state court decision.
Name of Agency Personnel Responsible for Drafting and Implementation: Shawn Lewis, OSPI, 600 South Washington Street, Olympia, WA; Enforcement: OSPI, 600 South Washington Street, Olympia, WA.
A school district fiscal impact statement is not required under RCW
28A.305.135.
A cost-benefit analysis is not required under RCW
34.05.328.
This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:
Explanation of exemptions: No small business economic impact statement has been prepared under chapter
19.85 RCW. The proposed amendment does not have an impact on small business and therefore does not meet the requirements for a statement under RCW
19.85.030 (1) or (2).
Scope of exemption for rule proposal:
Is fully exempt.
July 21, 2025
Chris P.S. Reykdal
State Superintendent of Public Instruction
RDS-6406.1
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.