Financial oversight committee to review Marysville situation

Budget woes raise uncertainty for Marysville School District parents

A week ago, state officials sent a letter to the Marysville Superintendent, putting the district on notice that officials were convening a financial oversight committee to review the district's budget situation.

MARYSVILLE, Wash. - A multi-million dollar budget deficit, whistleblowers and resignations. Amid all of this, parents, educators and residents in the Marysville School District filled a local grange on Tuesday to find out more about what's been happening with the district's finances.

Community leaders called the decision by the state "historic."

"My understanding is, it’s never been done before in the state. They’ve never gotten this far of having to be this involved at this level through OSPI," said Theresa Hart, a district Food Service Employee who attended Tuesday's meeting.

In the letter, state officials said that the committee will make recommendations on a path towards financial stability.

Meanwhile, folks at Tuesday's meeting said they were concerned about the future of the schools, with three recently proposed for closure in order to help balance budgets.

"We are in a very precarious situation," said Courtney Ramirez, UniServ Director with the Washington Education Association.

The gathering comes on the heels of the recent departures of the district's Executive Director of Finance Lisa Gonzales and Director of Human Resources Alvin Cooper. It also follows the resignation of Board President Wade Rinehardt about a week ago.

"Part of me is grateful that there are going to be more eyes to see what is going on, but then there is frustration that it’s gotten this bad," said Hart.

A letter from the Chris Reykdal, Washington Superintendent of Public Instruction, dated June 18th, reads;

"Dear Superintendent Robbins and Board Vice President Krebbs:

This letter is to notify you that I will be convening a Financial Oversight Committee in accordance with Revised Code of Washington (RCW) 28A.315.221 to review the financial situation of the Marysville School District (MSD) and make recommendations on a path forward for financial stability.

In accordance with RCW 28A.315.025, I have determined that the district is financially insolvent because it is reasonably foreseeable that unless action is taken, MSD’s financial situation will result in a deficit general fund balance within three years and the district is unable to prepare and execute a satisfactory financial plan.

On May 23, 2024, my office notified you that the district’s revised comprehensive financial plan was in compliance with the original binding conditions agreement dated August 18, 2023. At the same time, we said "[t]o be in compliance with the August 2023 binding conditions agreement, the district must now implement the budget reductions and adjustments described in the revised plan."

Since that letter, the district’s actions have not been consistent with the plan submitted. It has not met fund balance targets and has lost personnel in key leadership positions leaving gaps that cannot quickly be filled. These facts lead me to the conclusion that MSD is unable to fully comply with its plan to regain financial stability."

"This is the first time, in Washington state history, that a financial oversight committee has been placed on a school district from OSPI due to binding conditions," said Ramirez. "Most that are in binding conditions have exited within their first year, of being in binding conditions. Unfortunately, that’s not the case for Marysville."

"I feel like a lot is going to be set straight once they do dig into things," said J. Hooman. "I’m thrilled they are coming in. I think they’ve given the school district quite a few chances to set the ship right."

Despite the historical nature of the decision, J. Hooman, co-founder of the Marysville Community Coalition, says she welcomes a second set of eyes on district finances.

"The only thing I’m a little nervous about right now is the timeline. We don’t really know exactly when that is supposed to happen and until we have a firm timeline and the state knows what steps it has to take, we are operating as status quo and that’s not good for us," said Hooman.

OSPI says the decision to move the district to the financial oversight committee is not related to a recent complaint made by Gonzales, but instead, a spokesperson went on to say a review found her complaints are related to personnel matters, falling under the district's authority.