District leaders warn of shrinking revenue, rising costs and propose technology investments to reduce administrative strain

District leaders told the board the district faces a worsening fiscal picture: monthly fund-balance swings, reduced state funding for some school-improvement grants, rising insurance costs and growing salary-related expenses. Administrators proposed process changes and technology investments (recruiting/hiring and time-and-attendance modules) to reduce staff workload and transactional errors.

Kevin Gilmer, the district’s director of grants, said funding availability is changing weekly and that recently released funds were limited to “tier 3 plus” OSSI awards; he said the district is not eligible for tier 3 OSSI and estimated the district is losing about $100,000 in school-improvement funds previously available to some buildings. Kevin described last year’s OSSI-funded activities — professional learning communities, coaching, math professional development and teacher release time — that will not be available without the funds.

Elise (staff member) presented April and May financials and said the district’s fund balance jumped by approximately $426,000 in April (property-tax timing) and then the district drew down about $1.5 million in May, illustrating large monthly swings. She said spending trends show monthly expenses outpacing revenue: staff payroll alone runs roughly $3.2–$3.5 million per month, and other costs are rising. She said insurance costs rose from about $500,000 to about $1 million in recent years and may rise again. The district is drawing on fund balance monthly and must consider deeper cuts to avoid an unsustainable trajectory, she said.

Elise and other staff described administrative burdens: payroll and HR processes rely on paper timesheets and manual entry, producing long processing times (one staffer said bus-driver timesheets took three days to process). The district is evaluating Frontline modules for recruiting/hiring and time-and-attendance. Staff estimated combined recurring licensing in the $20,000 range and a one-time implementation fee in the $15,000–$18,000 range; implementing both modules could cost roughly $40,000 up front with yearly licensing thereafter. Staff said if funding is constrained, the district could implement one module first and phase in the second.

Board members discussed stricter controls on overtime, progressive discipline when staff violate overtime rules, and clearer administrative approval for extra hours. Staff said some departments (maintenance) have already reduced overtime significantly, but others still need tighter controls and supervisory follow-through.

Administrators also raised program-funding issues: the district’s migrant-funded positions are at risk because the district will not receive migrant funding this year; staff warned that without a staff member to certify migrant eligibility the district could lose Direct Certification counts that contribute to Community Eligibility Provision (CEP) eligibility for free school meals. Staff said losing the CEP would return the district to charging for meals and could increase unpaid meal debt; the transcript records staff urging further conversation and noting possible enrollment and certification impacts.

The board scheduled additional budget study sessions in August and asked staff to report back promptly as state apportionment information becomes available. Staff said an updated apportionment report from OSPI is expected soon and that district leaders will notify the board when the state reconciliation is posted.