MARYSVILLE, Wash. — The Washington state Office of the Superintendent of Public Instruction (OSPI) is imposing strict oversight over the finances of the Marysville School District following months of debate over a projected budget deficit.
OSPI says without intervention, the district could face a catastrophic deficit within the next few years.
OSPI Superintendent Chris Reykdal issued a letter on June 18 to the Marysville School District superintendent and school board vice president announcing that it will convene a "Financial Oversight Committee" to review district documents and make recommendations about financial solvency.
"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," Superintendent Chris Reykdal wrote in the letter.
According to OSPI, the agency approved a plan by the district to address a budget deficit in May that included "the closure of two schools and eliminating some educational programming," but at a public meeting leadership said "nothing has been finalized." This, paired with several high profile staffing changes -- precipitated the decision.
The staffing changes included the recent resignation of the school board president and executive director of human resources. In a letter, former school board president Wade Reinhardt wrote that he was stepping down after "significant collaboration...between the unions, citizens and employees that wish to bully leadership and cause harm to the district," noting that the last straw was a "recall effort from these same people" and at this time his family and career are taking precedence in his life.
The district also made the decision not to renew the contract of the Chief Financial Officer. Shortly after the CFO was put on leave, she issued a letter alleging the district of "cronyism," inaccurate reporting to the state and breaking the law. In response, the school board issued this statement and requested a third-party investigation.
Next, OSPI will select representatives to form the Financial Oversight Committee, which will review MSD's financial condition and provide the state superintendent with recommendations. The process will include one or more public hearings.
The Marysville School District was closed for Juneteenth Wednesday, but released a statement in response to questions about what this means for the campus community.
It said in part that, "these are unchartered waters, and we will need some time to process and receive more information from OSPI on the next steps. We understand one of the next steps is for State Superintendent Reykdal to convene a committee and let us know who will serve. It is just too early to know until we learn more about the process."
J. Hooman is a parent and co-founder of the Marysville Community Coalition, an organization of parents and community members concerned about what they cite as a lack of transparency and mismanagement regarding the district budget. She says she is pleased to see the state take a more direct role.
"Otherwise I don't know if we're gonna be in a better shape in two to three years," Hooman said. "It's just gonna get worse if they don't step in and do anything about it. So I'm really happy about it."
Hooman says she is hopeful this intervention will bring clarity and spark policy changes providing more forums for communication between the campus community and the board and administration. The group will hold a public meeting June 25th to facilitate discussion.