Jacob Dimond / jake@yelmonline.com
As Yelm Community Schools continues to navigate financial shortcomings due to quadruple levy failure, Chris Woods, superintendent, proposed some temporary help by transferring $1.1 million from the district’s capital fund to its general fund.
Four Yelm Community Schools Board of Directors members — including Casey Shaw, board president, Ryan Jewell, Denise Hendrickson and Bill Hauss — voted Feb. 12 to approve the resolution that would officially transfer $1.1 million from the capital fund to the general fund.
Woods said the source for this funding is from an allowable transfer of accumulated interest from revenue from years 2015 through 2025.
“That is going to help us because this year, we’re facing up to a $4 million deficit. That is just this year. How we finish this year is how we start next year,” Woods said. “If we end this year with a deficit, that is our beginning spot next year. Not only do we have this up to a $4 million deficit this year, we have an $8 million to $10 million deficit next year because of the loss of levy dollars.”
He added that the district was searching for a one-time relief for its financial situation. Though using the $1.1 million transfer might help now, Woods stated all it does is “kick the can down the road” for any future cuts while the district awaits levy dollars.
“This resolution allows us to move $1.1 million from our capital fund to our general fund. This is an allowable transfer of accumulated interest revenue from 2015 through 2025 and held in the capital fund. This is a one-time help,” Woods said. “It’s like your savings account. Once you spend those dollars they’re gone. They’re not recurring dollars. It helps us immediately with our deficit. It does not help us long term. It just buys time for us.”
Woods added that the district is allowed by law to transfer capital funds to the general fund, and noted that YCS has been discussing this transfer of money with the Office of the Superintendent of Public Instruction (OSPI) and the Educational Service District (ESD).
Additionally, the district will continue to look at other capital funds to transfer into the general fund to help with the district’s financial deficit in order to start the 2026-27 year off “in the positive.”
“I’ll be bringing more opportunities,” Woods said. “We’ll talk about that at the study session.”
Earlier in the meeting, before the school board approved the transfer of $1.1 million, Woods announced that $340,000 worth of expenditures have already been paid for through capital funds. He noted that capital funds are typically used to pay for technology, operations and repairs.
“Capital dollars are not replenished by the state,” Woods said. “Those are typically replenished through the bond, through interest and things like that. It’s kind of a one time thing we can do to help our budget situation.”
In other news, Woods said he’ll continue his bi-weekly communication with families and YCS staffing to provide updates and information about the budget, binding conditions and more.
His next email will come out on Friday, Feb. 20. Woods noted his most recent binding conditions meeting with ESD and OSPI was on Wednesday, Feb. 18.
“That (meeting) is where they’ll look at the adjustments we’ve made so far, including what we just did tonight with the resolution we made,” Woods said on Feb. 12. “They look at everything budget related and say, ‘OK, how are we doing? Are we making progress?’ If we’re not making progress, that’s when they say ‘we’re gonna put together a financial advisory committee to take a closer look’ or ‘hey, you’re on the right track. Good job. You’re staying in binding conditions. We’ll meet again next quarter.’ That meeting is happening this week.”
Additionally, YCS is set to look into 15 more policies and procedures during a study session on Thursday, Feb. 19. Woods noted that many of the policies and procedures require minor changes.
“They’re boilerplate language that when legislation changes, we have to make changes to policy,” Woods said. “Going back to my presentation I did at the high school around the different levels of policy, critical, recommended or policies that we as a district want to put in place because they’re important to us and our community. Some of the ones we’re bringing to you are critical and some are recommended.”
He added that more changes to policy and procedures are on the horizon as the conclusion of the state’s legislative session typically leads to extra adjustments.
“We never get finished with policy and procedures,” Woods said. “They’re always being changed and many of them are done to us, not necessarily with us. Keep that in mind.”
During the upcoming study session, the board will also take a look at the district’s budget and other capital transfers they’d be allowed to do in order to offset the financial deficit Yelm Community Schools is facing.
