In most years, the Yelm Community Schools (YCS) Board of Directors would learn about the ins and outs of the upcoming school year’s budget on the day of adoption.
With the school district facing a budget shortfall of over $8 million and still making cuts after the failure of its educational programs and operations levy, the board took part in a budget study session Thursday, Aug. 15, one week before it is expected to vote for adoption.
During the meeting, YCS Chief of Finance and Operations Jennifer Carrougher presented a look at the district’s financial situation, including its revenues and expenditures as well as its plans to replenish its depleted fund balance.
Carrougher described how the district’s funding model compares to the state funding model, which is based on enrollment, and revealed that YCS pays more for fewer staff than the state allocates. For example, per the state basic education funding model, the district is allocated about 278 full-time equivalent teachers in the amount of $29.28 million, but it pays $32.45 million for 15 fewer teachers.
On the contrary, YCS also pays for 15 more paraeducators than it is allocated because the state only allocates for 14 paraeducators. Overall, the district pays $5.7 million more for basic education teachers, principals, paraeducators and custodians than the state allocates. Those extra funds would typically be paid for through levy dollars.
“We’ve got districts right now that are having financial challenges, and they’ve passed their levy. They’re even beyond the capacity of their levy collection to make up that difference,” YCS Superintendent Chris Woods said. “That’s going to keep happening because there’s no lid there. When you’re negotiating [with the state], you’re being compared to your neighbors and like-sized districts, so you’re always competing. It just continues to rise, and our funding has not. At some point, something’s gonna have to give because districts will not be able to continue at this pace.”
Carrougher said the district projects to collect $88,617,555 in revenues in the 2024-25 school year, down $9.4 million than projected in 2023-24. The biggest difference from last year is the loss of local taxes and LEA (Local Education Agency) funds, which are down $7.8 million. In terms of expenditures, the district anticipates spending $95,553,782 in 2023-24, which is due to increased costs for class overages, utilities, salaries, special education, food, fuel, insurance and more.
YCS’s total cuts to staffing and programs have saved approximately $10.2 million, which Director Casey Shaw pointed out only reduces the district’s expenses by $7 million.
Carrougher explained the district’s plan to replenish its depleted fund balance, which is a negative $1.3 million. YCS is still working through its negotiations with collective bargaining groups and recalling staff affected by the reduction in force in the spring, and it will have additional cuts to make in the spring.
The district will monitor revenues and expenditures to avoid any potential recovery of funds, including limits to carryovers, class-size reduction compliance for kindergarten through third grade and transportation allocation. It also plans to continue analyzing all expenditures and staffing to identify potential reductions and expenditure trends that need to be addressed.
YCS will also meet with the Office of Superintendent of Public Instruction (OSPI) this week to discuss the details of its binding conditions, which gives OSPI the authority to help YCS balance its budget.
The board of directors is expected to vote on the budget measure at 6 p.m. Thursday, Aug. 22, at the district office.
