This bill creates a new state grant program for small, financially distressed school districts to comprehensively modernize or replace instructional buildings. It adds a new section to chapter 28A.525 RCW and amends RCW 28A.525.159 to set eligibility, application, prioritization, coordination, disbursement, and reporting rules for planning and construction grants. Eligible districts are those with student headcount enrollment of 1,000 or fewer; projects must address instructional buildings at least 30 years old and recorded by OSPI as in poor or unsatisfactory condition. Project cost per square foot is capped at 110 percent of the statewide average cost per square foot as estimated by an advisory committee and approved by OSPI. Required building inventory and condition information must be provided by an OSPI-certified independent consultant and seismic assessments must be performed by a Washington-licensed structural engineer. Districts lacking required inventories or assessments are ineligible for construction grants but may apply for planning grants. The bill establishes procedural changes for prioritizing and awarding grants. An advisory committee (identified as the committee created under RCW 28A.525.159) scores construction applications with criteria that include remaining debt capacity, facility condition, and enrollment, and may award additional points for severe financial constraints. OSPI must propose a prioritized list of planning and construction grants to the governor by September 1 of even-numbered years beginning in 2028, coordinate this program with the existing school construction assistance program so total state funding does not exceed project costs minus the district’s required share, and provide technical assistance and planning grants subject to appropriations. The district local share is generally tied to remaining debt capacity under RCW 39.36.020, but OSPI must reduce the required share if the resulting property tax rate increment would exceed $1.75 per $1,000 assessed value; federal, other nonstate grants, and private donations may be used to meet the district share. Grant recipients must update inventory and condition data, submit final project reports, and implement an asset preservation program as required by OSPI. Section 2 of the act takes effect January 1, 2028. Important details are missing from the extracted text. The full text of subsection (10) that defines the school district’s required share calculation is not included, the exact membership or statutory basis of the advisory committee is not provided, the specific amendments to RCW 28A.525.159 are not shown, the bill’s funding sources and appropriation amounts are not included, the new section number added to chapter 28A.525 RCW is not specified, and one provision ends mid-sentence. These missing elements are necessary to fully understand certain eligibility, funding, and procedural mechanics.

If enacted, small school districts (those with 1,000 students or fewer, including state-tribal compact schools) that have instructional buildings at least 30 years old and rated in poor or unsatisfactory condition would gain a targeted route to state funding for comprehensive modernization or replacement. Districts must provide up-to-date building inventories, independent condition reports, and seismic assessments to be eligible for construction grants (districts lacking those can get planning grants). The Office of the Superintendent of Public Instruction (OSPI) will prioritize projects and coordinate awards with the existing school construction assistance program so combined state aid does not exceed project costs minus the district’s required share, and grants will not be released until districts show they have local and other resources to finish the project; recipients must also update inventories, file final reports, and maintain asset preservation plans. The people most affected are small, financially distressed districts and their taxpayers: districts would gain a new funding option but must meet stricter planning, reporting, and engineering requirements and generally must cover a significant local share based on remaining debt capacity (subject to reduction if a required share would raise property tax rates above $1.75 per $1,000 assessed value); federal grants and private donations can count toward that share. OSPI faces new certification, prioritization, and technical assistance duties. Important details remain unclear from the provided text, including how much money will be available, the exact formula in subsection (10) for calculating the district share, and the advisory committee’s membership and specific procedures.