The Prosser School District Board of Directors on Aug. 27 declared a general fund financial emergency and adopted the district’s 2025–26 budget, approving a series of austerity measures that limit some athletic travel and change how certain extracurricular costs may be covered.

The action followed a staff presentation that said district operating costs substantially exceed state-provided materials, supplies and operating costs (MSOC) funding; board packets show the district plans to spend about $8.7 million on MSOC items while the state’s allocation is about $3.4 million. The board approved Resolution 13-25 by roll call vote.

Board leaders and district administrators framed the measures as temporary steps to stabilize finances. Superintendent Kim Casey described the athletics compromise as “a great compromise. It was a way to say to the community, students matter, kids matter,” and said the measures will be reviewed if revenue or enrollment improves.

Most of the austerity measures affect athletics. The board approved language that limits district-paid coaching positions to two coaches per team in most sports; a third coach is allowed only when coaches enter a one‑year memorandum of understanding (MOU) to reduce or forgo part of their pay to cover the additional coaching cost. The district also said C‑team squads may not receive district-funded extra bussing to separate tournaments when that travel adds mileage and cost; students may still travel on district buses when schedules allow. Administrators and board members said booster groups, ASB funds or targeted fundraising can cover equipment and travel if those groups follow rules on student activity funds and Title IX parity.

The board also approved a broader implementation plan described in staff materials as short-, mid- and long‑range steps to reduce expenditures and restore the district reserve targets. Business‑office staff answered questions about specific line items and said they will return with additional detail as needed.

The board took the budget vote immediately after the austerity discussion. In the roll call on Resolution 13-25 the board recorded aye votes and the motion carried.

The district will publish steps for families and teams to request exceptions or to propose alternate funding sources. Administrators cautioned that salaries cannot be paid from ASB funds and that donations and boosters must be managed to meet Title IX parity requirements.

What the board did not change at the meeting were student activity accounts (ASB) and categorical program funds; staff said those remain under local control for student activities and for programs that are restricted by state rules. Board members said they will reassess the austerity measures in the spring if district finances improve.