MARYSVILLE—Washington state Superintendent Chris Reykdal reveals his lack of confidence in the Marysville School District to straighten its financial situation in his August 28 notice to the district and Superintendent Zachary Robbins. He also placed the school district under additional financial monitoring.
“I have lost confidence that the district has the decision-making tools or current personnel necessary to fix its financial situation on their own,” Reykdal wrote.
His notice is a response to an August 26 recommendation made by OSPIs appointed financial oversight committee.
The committee, which met seven times since June, 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 multiple challenges at the district, including its failure to produce a reliable budget for the 2024-25 school year. The committee was unable to determine if the proposed budget meets OSPI’s binding conditions for several reasons:
- 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.
“Due to these issues,” writes Kelly, “the cash flow projections for the 2024-25 and 2025-26 school years are not reliable.”
As a result, the committee requires that the district present a list of all employees for the 2024-25 school year with their salaries by September 10, along with a list of any employee that received a raise of 7.4% or higher entering this school year, twice the rate of the legally required raise for inflation.
Another issue was the community’s lack of trust in the district. The committee found that many community members suggested OSPI move toward greater financial oversight, including overseeing the district’s day-to-day operations. Some also indicated they plan to withdraw their children from the school district entirely.
Community members cited the district’s inability to acknowledge its part in the current financial mess, an issue Kelly and Reykdal noticed, too.
“The district has shown it is unwilling and unable to take appropriate steps or accept responsibility for the current situation,” Reykdal added.
The Lynnwood Times reached out to the Marysville School District regarding the OSPI correspondence but did not receive a response.
On its Budget Information and Updates page, Marysville School District posted the following message regarding its current budget crisis:
[Marysville School District] has been good stewards of funds allocated to the district by the state and provided by local taxpayer dollars; has experienced flat enrollment for the past four years and anticipates a decline in enrollment;
Failed two consecutive levy measures in February and April 2022, which resulted in the loss of levy revenue for the 2023 – 2024 calendar year;
Will lose revenue from the Elementary and Secondary School Emergency Relief (ESSER) funds as they are non-recurring federal funds that expire in August 2023.
“Rather than prioritizing solving the budget deficit,” wrote Kelly, “the district continues to expend energy on, and publicly reference, state funding formulas, inflation, and levy equalization formulas as systemic challenges preventing progress.”
As a result of its findings, the financial oversight committee outlined 12 potential actions for immediate implementation. Reykdal implemented the following restrictions:
- 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
- Complete, accurate, and prompt responses to requests made by the special administrator (who will be appointed by Reykdal to carry out the financial conditions)
The district must respond to the notice by September 10 by providing a new list of 2024-25 employees and salaries. The committee will then reevaluate the budget.
It is unclear if the district will be able to present a feasible budget plan to OSPI by that time. What is clear is that without financial transparency and accountability, the situation cannot improve for the Marysville School District.
“In order for the district to fully resolve its financial situation, trust must exist between all of the parties involved,” says Reykdal. “It is the responsibility of district leadership to not only build trust but ensure that it remains.”
3 Responses
A double levy loss signals a huge lack of community trust in district leadership, and it should be the trigger for immediate, close OSPI oversight. Instead, there is no action until a district is facing bankruptcy. So, to OSPI and Reykdal, “Too little too late.” Totally broken system.
They’ve had two years, KNEW the money was running out AND multiple chances with intense help and guidance from OSPI and the NW Educational Service District. All/most of the staff who work at the administrative office currently who haven’t come in within the past 90 days need to be fired. All of them, including HR staff, “communications” (Jodi Runyon) and assistants. As well as the board of directors for allowing them to make a bad situation, worse.
Yes, exactly. OSPI offered so much assistance during the course of the last year. Glad they’re stepping in.