Wahluke district finances in need of help

Mattawa schools expected to make cuts to get budget in order

MATTAWA — As soon as Education Services District 105 out of Yakima began conducting its regularly scheduled review of financial statements at the Wahluke School District a year ago, it was apparent the Mattawa district was heading for financial hardship.

Dave Curry, assistant superintendent/director of financial services with ESD 105, "noticed right away that they were experiencing quite a red in fund balance over the years."

Curry has worked with school districts for 25 years, the past two with ESD 105.

Documents released from the ESD to the Herald show that from school years 2001-2002 through 2004-2005, the fund balance in the WSD has decreased by $950,067 or 39.5 percent.

ESD 105 provides a variety of support, including professional development and financial services, for the 25 public school districts and 23 state-approved private and tribal schools in south central Washington it serves. The WSD is one of those school districts.

At the regularly scheduled board meeting of the WSD held in mid-April, board members heard a detailed report of the district's financial status.

The message from that meeting is similar to the one Curry's financial analysis reveals: The district has been spending more than it takes in.

"Rick Molitor and Cece Mahre, they're very aware that they need to sit back and reevaluate how they're using their resources," Curry said.

Molitor is the school district's associate superintendent of human resources and Mahre is currently serving as the interim superintendent following the resignation of superintendent Bill Miller in February.

Miller resigned under buy out terms in February of 2006.

Curry commented the completion of a brand new high school is also placing financial pressure on the district's budget.

The project was initially estimated to cost $18.8 million at more than 100,000 square feet in size, nearly double that of the existing school built in 1986.

In February of 2005 under then superintendent Miller, $1,545,000 was approved in addition to the $18.8 million.

Over the next 10 years that money is expected to be distributed from the district's general fund.

Additional state matching funds in the amount of $8,872,522 were used to pay for construction costs.

Mahre said the approval by the board to transfer $1,545,000 from the district's general fund over time became a concern to many in the community.

Mahre went on to say that people began to feel the cost to build the high school was placing financial pressure on the district.

"It has been a combination of overspending in different areas," Mahre said of the district's financial difficulties. "The high school is part of this but not the sole reason."

When the board approved that transfer it was not aware of any budget problems, Mahre said. The board based its decision on a presentation by then business manager Teri Michael who also resigned earlier this year citing personal reasons.

"At the time the decision was made we thought we had money in the account," Mahre said. "Since then we've realized there is a problem with the budget."

The cost of construction for the new high school is now at $20.4 million.

Right now the district is looking at potential cuts in several areas of the district from staffing and support positions, administration, travel and energy use.

Before further considering cuts in those areas the district said it will be looking closer at what programs are essential for students.

"I think we caught them at a time when if they watch what they're doing they'll be fine unless they don't turn it around," Curry said.