MLSD holds second community forum on finances

MOSES LAKE — Interim Superintendent Carol Lewis convened the second of four community meetings with 19 attendees at Endeavor Middle School to discuss financial miscalculations that have plagued the Moses Lake School District. The district had a budget shortfall as a result of multiple factors including accounting errors, levy failures and lack of oversight of former Finance office staff. 

Lewis said she felt the presentation and discussion with community members had gone well.  

“I think this second meeting was a success,” Lewis said.  

Financial problems 

One major contributor was the double levy failure this past spring, which resulted in a loss of around $4 million when voters rejected two levies in early 2024. This setback prompted a reevaluation of spending priorities. Additionally, the district lost $4.2 million in local effort assistance — state funds contingent on successful levies based on property values; lower property levels bring in more money to the district. 

“For the calendar year of 2025, we will have no tax collection for the school district, not the $1.50, and not the additional 50 cents. And I think that's a really important question because I think some people thought it was just not approving of the increase and that we would keep the $1.50,” Lewis said.  

Another issue was a miscalculation of student enrollment, leading to an overestimation of 207 students and a resultant loss of $2.1 million. This discrepancy arose from a mistaken double-counting of students, revealing a need for more rigorous financial oversight. 

Lastly, Lewis detailed problematic accounting practices, illustrating how discrepancies between reported balances and actual accounts led to a shortfall of $9.9 million. The combination of these financial missteps resulted in severe budgetary challenges for the school district. 

For a more detailed breakdown of these numbers, please visit: https://bit.ly/3XWuQwv.  

Solutions  

One essential measure implemented is the monthly balancing of MLSD accounts in alignment with the County Treasurer's report. This information will soon be made available on the MLSD website, allowing the public to view the district's financial dealings.  

“We are publishing Accounts Payable every two weeks, so any person can go on our website and look at where they spend their money,” Lewis said. 

In response to the financial challenges MLSD has faced, significant staffing reductions were made, Lewis said. While the loss of staff was painful, it was necessary to ensure long-term viability.  

“The hope is that we can make these short-term, really tough decisions that are going to get us into a better place,” Lewis said. 

Laying off employees has saved the district about $1.7 million per month, Lewis said during a prior meeting. 

This strategy includes adopting a goal-based budget, requiring MLSD to budget exclusively with incoming funds, thereby avoiding the pitfalls of overspending that previously impacted the district. 

“We are saving money already,” Lewis said. 

Additionally, MLSD has established stricter purchasing policies. Notably, any single purchase exceeding $25,000 now requires prior school board approval. Lewis explained that this will reinforce accountability at all levels.  

“The purchase order needs to be first; the proper people need to approve it,” Lewis said. 

Finally, Lewis emphasized communication with the community remains a priority as they navigate the current fiscal crisis. Through regular updates and open forums for questions, Lewis said MSLD aims to foster a culture of trust that had gone away in recent years.  

Lewis said as the district continues implementing these solutions and more along with their commitment to financial responsibility and community engagement, she hopes it will guide them toward a stable future. 

More meetings:  

There will be two more community meetings and Lewis said she plans on recording a presentation and uploading it to the MLSD website.

The following meetings are Oct. 14 at Vanguard Academy and Oct. 22 at Frontier Middle School. Both are from 6 to 7 p.m.