MARYSVILLE—State Superintendent Chris Reykdal announced the appointment of Dr. Arthur Jarvis as the special administrator to oversee and carry out the financial conditions imposed on the Marysville School District through binding conditions by OSPI’s financial oversight committee.
Reykdal wrote that the appointment of a special administrator is “an unprecedented step” but is necessary for the Marysville School District to “regain financial stability.”
In a letter dated Monday, September 16, to Superintendent Dr. Zac Robbins and Board President Connor Krebbs, State Superintendent Reykdal stated that Dr. Jarvis is authorized to direct changes to any and all business practices within the Marysville School District.
“Although impacted by the loss of $26.5M in levy funding, the district’s funding challenges are further complicated by the loss of state funding as we work to meet the growing needs of students while balancing the increasing costs associated with those needs,” Connor Krebbs, President of the Marysville School District Board of Directors released in a statement. “Many Washington school districts find themselves in a similar, difficult financial position – with costs and needs exceeding funding from the state,”
“The Marysville School District will work diligently with Dr. Jarvis to provide him with the information and resources he needs to complete his work in our district” added Marysville School District Superintendent Dr. Robbins. “We look forward to learning from his experience and the knowledge he brings to the K – 12 education system,”
The Marysville School District entered into binding conditions one year ago when it could not submit a balanced budget. It then entered into binding conditions with the state and OSPI’s financial oversight committee.
Washington state Superintendent Reykdal revealed his lack of confidence in the Marysville School District to straighten its financial situation in his August 28 letter to Superintendent Robbins, placing the school district under additional financial monitoring. The finance committee determined that “the district currently lacks the process, structure, and tools needed to effectively execute and routinely monitor a budget plan.”
Amongst the committee’s findings, Chief Financial Officer T.J. Kelly outlined the district’s failure to produce a reliable budget for the 2024-25 school year:
- The district insurance policy will cost more than the expected $600,000 increase.
- The district is unable to quantify its 2024-25 staff and unable to report a budget for salaries.
- Its estimated material costs do not align with previous years after adjusting for inflation and enrollment changes.
- The district continues to borrow money to account for budgeting issues.
As a result of its findings, the financial oversight committee outlined 12 potential actions for immediate implementation. Reykdal implemented the following restrictions:
- Complete, accurate, and prompt responses to requests made by the special administrator (who will be appointed by Reykdal to carry out the financial conditions)
- A district-wide hiring freeze of all non-certified staff, with business-critical exemptions needing approval by the special administrator
- A freeze on all employee awards and incentives not currently outlined in collective bargaining agreements
- A freeze on all discretionary school building budgets (non-personnel costs)
- Postponement of any planned curriculum adoption until the district exits binding conditions
- No new or renewal of contractual agreements with vendors more than $25,000 without prior approval of the FOC or special administrator
- No new technology purchases
- No new stipends for administrative staff until the district exits binding conditions
- No state or local funded travel for administrative staff
- No state or local funded travel for school board members
- Class size overage expenditures for 2024-25 must not exceed the amount spent on this purpose for the 2023-24 school year
- Consultation with the Tulalip Tribes Board of Directors about the impacts of budget reductions
Duties of Special Administrator Dr. Arthur Jarvis
Special Administrator Jarvis will be provided a physical work area within the district and MSD phone line to perform the duties of carrying out the conditions imposed on the district which include:
- Reviewing and analyzing the district’s annual operating budget.
- Developing a detailed plan and process for implementation of financial conditions imposed on MSD.
- Reviewing, approving, and setting limitations on MSD’s authority to enter into contracts.
- Reviewing, approving, and setting limitations on MSD’s hiring and personnel actions.
- If reasonably necessary to avoid filing a dissolution petition, liquidating, or disposing of fixed assets and contractual liabilities by any reasonable and documented method.
- Reviewing and strengthening or developing financial and operational policies, procedures, and practices.
- Reviewing and strengthening or developing compliance policies, procedures, and practices to ensure leadership (Board, Superintendent, Finance, etc.) and key constituents are appropriately involved in the review of financial reports, audits, financial compliance requirements, accountability, and conflicts of interest, and that succession processes and structures are in place that maintain compliance long-term.
- Work in partnership with the OSPI Financial Oversight Committee.
Dr. Jarvis is also authorized to visit any school district location and conduct meetings with school district staff and constituents without notice; but will operate within “collectively bargained provisions.” All materially adverse personnel action (including changes in terms and conditions, termination, or discipline) must be first discussed with Dr. Jarvis. He will also direct any retaliatory behavior to “the appropriate venue.”
In addition to the appointment of Dr. Jarvis as the special administrator, Reykdal clarified that the district will remain on enhanced financial oversight which include the following:
- The Financial Oversite Committee (FOC) will continue to meet and be permitted to work with the special administrator and the school district to answer outstanding questions regarding the current MSD budget.
- By October 15, 2024, MSD must submit a revised budget to OSPI. The budget should fully address all the questions from the FOC and establish a common understanding of the district’s current financial position.
- The FOC shall develop an alternative financial plan that returns the district to financial sustainability by the end of the 2025–26 school year. If proposed for adoption, the alternate plan would be subject to a public hearing.
Author: Mario Lotmore
