Board hears legislative funding update as district forecasts enrollment decline and tight staffing

District staff told the Granite Falls School Board that state legislative outcomes and federal program changes could materially affect the district’s budget, while the district also forecast a near-term decline in student enrollment that may require staffing adjustments.

Marshall Cruz presented the legislative update and business report, describing a conflict between the Washington State Senate and House over K‑12 funding. Cruz said the Senate passed three education-related bills included in its operating budget — a local levy bill, a special education bill (referenced in the meeting as "Senate bill 52 63") and an MSOC funding bill (referenced in the meeting by the number cited in the presentation). The House, Cruz said, used a striking amendment that substantially reduced funding in those measures, and the two chambers were headed into reconciliation. Cruz warned the board the session could extend beyond the regular session, which would increase uncertainty for district budgeting and staffing timelines.

Cruz gave itemized examples of how the Senate bills would affect Granite Falls under the Senate versions discussed in the meeting: the local levy bill would create a per‑pupil levy floor and, as presented, could yield roughly $900,000 in state backfill for the district next year and about $725,000 the following year if enacted as written. Under the Senate version of the special education bill (referred to in the meeting as "Senate bill 52 63"), Cruz said the district would receive roughly $2,400,000 in additional revenue based on current enrollment, with a further roughly $700,000 available via a recalibrated safety‑net mechanism; the presentation described a net gain of about $1,200,000 for the district under this year's enrollment assumptions. Cruz described the MSOC bill as smaller in scale for Granite Falls but still meaningful; he said the district would receive about $175,000 annually under the bill as presented.

Cruz and other staff cautioned that the House had reduced these proposals and that final funding depended on reconciliation. Cruz also raised a separate federal funding risk: potential changes to the Community Eligibility Provision (CEP) for free school meals that could reduce federal reimbursements if federal rules change.

On local enrollment and staffing, Cruz presented the business report and a staffing forecast indicating an expected decline of roughly 90 students next year. He said that the district’s cooperative agreement with Lake Stevens — under which some students attend Granite Falls programs — expires after next year and contributes materially to the projected drop. As part of staffing preparations, the district introduced a prototypical staffing process and live staffing sheets designed to align building-level staffing with the OSPI prototypical funding model. The staff described a multi-step process: building administrators receive deliverables and live staffing sheets, balance allocations against endorsements and projected enrollments, meet with central office staff to review plans, and submit final staffing plans for HR processing.

Staff warned that the prototypical model can produce allocations that do not precisely match local operational needs, especially at secondary levels where periods, course bundles and endorsement mixes complicate assignments. The district said it would use the process to increase transparency, reduce ad hoc decision‑making and help administrators plan staffing while HR converts approved plans into hires.

No formal board action to approve staffing cuts or hires was recorded in the transcript; Cruz said staffing meetings and final plans would move forward under the district's timeline.