Washougal schools’ finances improve

The Washougal School District no longer falls in the state’s “financial warning” category, a measure used to determine the financial health of a school district.

Under the Office of Superintendent of Public Instruction’s School District Financial Health Indicators Model, a perfect score is 4.0. Schools that drop below a 1.75 receive a warning.

Washougal received a score of 1.55 for the 2022-23 school year but raised that to 2.26 for the 2023-24 school year.

The Washougal district attributed the improvement in its score to its “commitment to sound financial management, using community feedback to guide budget adjustments,” according to a Wednesday statement.

“We recognized the urgency of addressing our financial situation and took deliberate steps to stabilize our budget,” Washougal Superintendent Aaron Hansen said. “We asked for community feedback to guide reductions, and led with reductions in areas furthest from the classroom. While challenges remain, we are on a positive trajectory and committed to being strong stewards of public resources.”

OSPI assigns financial health scores to each school district in the state based on four benchmarks: ending fund balance-to-revenue ratio, expenditures-to-revenue ratio, cash on hand and four-year budget summary plan.

After the warning, if a district enters the second phase it will lose local control over finances. If solutions cannot be found, the district could be disbanded.

Districts with higher scores generally have more ability to adapt to unforeseen budget cuts, revenue losses, unexpected expenditures or other “extraordinary items,” according to OSPI.

Vancouver Public Schools was the only Clark County district to receive a financial warning from OSPI in the latest update with a score of 1.50, down from 1.90 in 2023-2024.

Mount Pleasant received a 4.0 score for the 2023-2024 school year (identical to 2022-23); Battle Ground, 3.35 (up from 3.05); Camas, 2.60 (down from 3.35); Evergreen, 2.60 (up from 2.25); Green Mountain 4.0 (up from 3.90); Hockinson, 2.95 (down from 3.35); La Center, 2.6 (up from 2.30); and Ridgefield, 3.30 (up from 2.95).

Previous cuts

The Washougal district announced a series of staff and program eliminations in spring 2024 to reduce expenditures by about $4 million for the 2024-25 school year.

“We clearly made adjustments,” Hansen said at an October board meeting. Because of the cuts the district made earlier in 2024, the fund balance grew.

The district’s year-end fund balance shrank from a high of 18 percent in 2017-18 to 5 percent in 2022-23 but increased slightly to 5.71 percent at the end of the 2023-24 school year. The fund balance provides
operational cash flow to pay bills and handle unexpected financial challenges.

At the beginning of the 2024-25 school year, Washougal school board members asked the district to streamline and increase the frequency of its financial reports to better inform them of the district’s financial situation.

Board member Jim Cooper said during a Nov. 26 meeting that district administrators knew about the financial warning in February 2024 but didn’t tell the board until October.

“The board is being provided with financial information in a clear, concise format to support our governance and decision-making,” board President Sadie McKenzie said in the statement from the district. “The board appreciates the ideas shared by the community and has worked closely with the superintendent to make sure we are preserving excellent programs for students as we create a sustainable budget.”

The district said it wants to increase its year-end fund balance to 6 percent, build a multiyear financial strategy that ensures long-term stability, reduce the risk of budget deficits and sustain educational programs, according to the news release.

“As WSD continues working toward long-term financial stability, district leaders remain committed to collaborating with the board, staff, and community to make informed, responsible financial decisions that support student success,” the news release states.

Doug Flanagan: 360-735-4669; [email protected]