SB5412 allows financially insolvent school districts to take temporary interfund loans from their capital projects fund.

SB5412 provides that a school district in binding conditions or under enhanced financial oversight may take a temporary interfund loan from its capital projects fund. The loan must be repaid within one year and cannot charge interest. The loan cannot harm other functions or projects of the capital projects fund. The bill also establishes a financial oversight committee to review the financial condition of insolvent districts and recommends actions to the superintendent of public instruction. The committee can recommend dissolution of the district or enhanced financial monitoring.

SB5412 allows financially insolvent school districts to take temporary interfund loans from their capital projects fund.

SB5412 provides that a school district in binding conditions or under enhanced financial oversight may take a temporary interfund loan from its capital projects fund. The loan must be repaid within one year and cannot charge interest. The loan cannot harm other functions or projects of the capital projects fund. The bill also establishes a financial oversight committee to review the financial condition of insolvent districts and recommends actions to the superintendent of public instruction. The committee can recommend dissolution of the district or enhanced financial monitoring.