(The Center Square) – Moses Lake School District announced Tuesday that it will not proceed with a forensic audit before pushing another levy in February following massive budget shortfalls this past year.
The district’s financial situation derailed last spring after voters failed two levies in February and April. The school board thought it would lead to a shortfall of $4 million, but an external review showed the delta totaling more than $20 million due to accounting errors and other issues.
Board members voted unanimously last week to take another shot at passing a levy in February, expressing support for the district’s new fiscal direction. All five went further to issue a press release on Tuesday, casting aside any doubts about future shortfalls unless another levy fails.
“Initially, concerns were raised about the accuracy of our financial records and management practices, prompting calls for a forensic audit,” the board wrote in the release. “Those concerns recognized the need for a thorough, independent review to ensure responsible oversight.”
The North Central Education Services District helped dig through MLSD’s finances as the shortfalls came to light, with the district taking further action to replace its superintendent.
According to the release, Superintendent Carol Lewis and Mitch Thompson, MSLD’s executive director of business and operations, also reviewed the district’s financial practices. Both took leadership positions as the board grappled with the consequences of the shortfalls last spring.
Lewis, Thompson and the board are confident in their ability to manage the finances moving forward. According to the approved resolution, if voters pass this next levy, it’ll cost them $1.50 per every $1,000 of assessed value in property taxes from 2026 through 2029.
The levy would generate approximately $11.2 million in the first year, inflating to $14.2 million by 2029; the total collection is estimated to bring in roughly $51.3 million over four years. If voters fail the levy again, it will likely lead to more cuts as MLSD rushes to bridge the gaps.
During last week’s meeting, Lewis noted that another failure would lead to additional shortfalls of around $5 million. The previous two failures and the accounting errors led to the district cutting over 250 personnel on top of other operational and supply reductions.
She said the $5 million is enough for 35 certified teachers or 65 classified positions, but outside of staffing, could support the operations for all of MLSD’s secondary schools combined.
“As we prepare for our upcoming levy, the board and administration remain fully committed to transparency, accountability and prudent financial stewardship,” the board wrote in release’s closing. “Maintaining the trust of our community is a priority, and we will uphold this trust through continued oversight and transparency.”
