SB 5412 Washington Senate · 2025-2026 Regular Session

Providing temporary interfund loans for school districts.

Senate Bill 5412 provides financial tools for Washington school districts facing severe financial difficulties, specifically those in "binding conditions" or under "enhanced financial oversight." It allows these districts to take temporary, interest-free loans from their capital projects funds, which must be repaid within one year and not detriment existing projects. Additionally, districts in binding conditions may request authorization from the Superintendent of Public Instruction to sell real property. Proceeds from such sales must be used to restore financial stability or fund an authorized interfund loan, with this authorization limited to once every ten years.

Issues: ✓ Education

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

Senate Passage

Apr 2025

House Passage

Apr 2025

Signed into Law

May 2025

Introduced Jan 22, 2025 Signed May 20, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Substitute Bill → Substitute Passed Legislature · 4 edits

MODERATE

This bill expands financial relief tools for Washington school districts facing binding conditions or enhanced financial oversight. It adds a new mechanism allowing these districts to sell real property with superintendent approval to restore stability, while also clarifying rules for temporary loans and property sale proceeds.

Scope change

The bill's scope expanded to include a new authorization for school districts in financial distress to sell real property, in addition to the existing temporary interfund loan provisions.

FISCAL

Added a new section authorizing school districts in binding conditions to request permission from the Superintendent of Public Instruction to sell real property if necessary to restore financial stability.

Modified the rules for where proceeds from real property sales can be deposited, adding an exception for funds used for temporary interfund loans authorized under this act.

REQUIREMENT

Added a 10-year limit on how often a school district can receive authorization to sell real property under the new provision.

Updated the language regarding the sale of real property to reference the new authorization process in Section 2 alongside the existing financial oversight committee approval.

Floor votes · Senate Apr 17, 2025 · House Apr 14, 2025

How they voted

31–20

Passed

Total votes 51

Apr 17, 2025

D Democratic31

30 Yea 1 Nay

96% Yea

R Republican20

1 Yea 19 Nay

95% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 20, 2025

Signed into law

Governor signed.

executive

Apr 22, 2025

Lower · Passed

Speaker signed.

lower

Apr 19, 2025

Upper · Passed

President signed.

upper

Apr 17, 2025

Upper · Passed

Passed final passage; yeas, 29; nays, 20; absent, 0; excused, 0.

upper

Apr 17, 2025

Upper · Passed

Senate concurred in House amendments.

upper

Apr 14, 2025

Lower · Passed

Committee amendment(s) adopted as amended.

lower

Apr 14, 2025

House · Passed

House Vote: pass (61-37-2)

house

Apr 2, 2025

Committee

Referred to Rules 2 Review.

lower

Mar 31, 2025

Lower · Passed

Minority; do not pass.

lower

Mar 31, 2025

Lower · Passed

ED - Majority; do pass with amendment(s).

lower

Mar 31, 2025

Lower · Passed

Executive action taken in the House Committee on Education at 1:30 PM.

lower

Mar 24, 2025

Lower · Passed

Public hearing in the House Committee on Education at 1:30 PM.

lower

Feb 12, 2025

Upper · Passed

Minority; do not pass.

upper

Feb 12, 2025

Upper · Passed

Executive action taken in the Senate Committee on Early Learning & K-12 Education at 10:30 AM.

upper

Feb 5, 2025

Upper · Passed

Public hearing in the Senate Committee on Early Learning & K-12 Education at 10:30 AM.

upper

1 primary · 3 co-sponsors