The facts on school district finances

 

Last updated 8/17/2022 at 4:31am



This letter is an effort to bring clarity and facts into the conversation about the financial operations of the Grand Coulee Dam School District rather than unsubstantiated opinions. This is the second installment of three total letters addressing issues related to the GCDSD. This installment will address financial management.

ISSUE: School District Fiscal Management

THE FACTS: Despite what some may suggest, the Grand Coulee Dam School District is not broke, but it is financially challenged. Public education in this country is a very, very expensive proposition. Washington state’s average cost per student for the school year 2021/22 was $18,175, and each year the cost is going up. The state’s per-student annual allocation (funding) for the GCDSD is roughly half that of the statewide average cost to educate a student. Therein lies the basis for the financial challenge — how to make up the difference between costs and state-provided revenues. Because this school district is located in an area with a small taxable footprint, due primarily to significant surrounding federal lands, the financial challenges are magnified. The district and board of directors are intentional about wisely stewarding a limited budget.

For example, the GCDSD superintendent is among the lowest-paid superintendents in the region and the state. A look at the eleven nearby school districts places the GCDSD superintendent’s salary in a tie for eighth (two from the lowest) this past budget year. Among those eleven districts, five have substantially smaller school populations. That is fact.

It’s important to note that the fiscal budget for the upcoming 2022/23 school year has programmed district expenses at $500,000 less than the recently concluded 2021/22 school year. In simple terms, that means the district will spend over $500,000 less this coming year. There has been consistent, prolonged pressure to keep district spending in check despite significant upward pressure to increase wages in general. Serious efforts have been made over time to balance the need to reward quality employees in salaries while dealing with real-life budget constraints. That is fact.

In order to keep class sizes manageable (15-20 students per teacher) and school services at current levels, the school district will again seek voter approval for an Educational Programs and Operation (EP&O) levy this coming November. The levy rate will be set at $2 per $1,000 of property valuation, reflecting a 52% decrease from the levy rates of the last several years. Restated, the levy cost for most property owners should be less than half of what has been asked for and approved over several previous levy cycles. Failure to pass this levy would result in a school district revenue shortfall of roughly $1.5 million per year. That loss of revenue for any similarly sized school district in the state would be traumatic. If not passed by voters this fall, the loss of this EP&O levy will have a major impact on succeeding budgets in the GCDSD. That is fact.

Finally, on the subject of fiscal responsibility, the community should know that a public records act request and eventual lawsuit filed against the school district was settled out of court this past spring at a cost of $16,000. To suggest the lawsuit was mishandled is in error. Here are some details. The suit was brought by an individual referred to in a state-wide newspaper as a “serial lawsuit filer.” In short, this individual submits requests for public information, then initiates a lawsuit claiming that insufficient information was forwarded to him per state law. Along with more than 30 other victimized small school districts across the state, the GCDSD was advised by an attorney to settle out of court because the cost of court and lawyer fees to fight the suit would be far greater than the cost to settle. In fact, no one on the school board wanted to pay this individual a cent, but legal professionals advised that the case was unwinnable in Washington state until or unless the law about public records requests was revised. This individual has filed suit against over 100 state-wide organizations and has accrued nearly $1 million in settlements. If you are concerned about saving education dollars, contact your state legislator and request the law be changed. Unless the law is changed, the fraud will continue and other, as yet untouched, school districts across the state could be held hostage as well. That’s a fact.

In sum, to suggest that the GCDSD is grossly mismanaging its finances is simply not true. Visit this column next week for the third in this series of articles which will address school discipline.

The Grand Coulee Dam School District

Board of Directors

George LaPlace

Rich Black

Ken Stanger

Shannon Nicholson

Alex Tufts

 

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