Tukwila School District faces fiscal crisis; state steps in

The state education department has stepped in to help Tukwila School District avoid insolvency. The 2,700-student district south of Seattle ended its fiscal year with a negative fund balance and faces an estimated budget shortfall as large as $4.5 million.

The district on Friday entered into binding conditions with the state that will allow the district to borrow money and receive guidance about how to meet its obligations to students while cutting costs.

Tukwila’s situation is largely due to vulnerabilities many Washington school districts currently share, said Adam Wilson, spokesperson for the State Auditor’s Office.

“You have declining enrollment, which means declining funding from the state. You have increased costs in terms of personnel and increased cost of living. And then you have the disappearance of some of those pandemic funds from the federal government. That's the trifecta,” Wilson said.

In Tukwila, enrollment is down 11% from the 2019-20 school year, one of the largest declines in the region. Seattle Public Schools enrollment has dropped 9% in the same time period.

In a letter to Tukwila Interim Superintendent Concie Pedroza, the Office of Superintendent of Public Instruction noted that the district's superintendent and chief finance officer recently left for other districts in the midst of the financial problems.

Pedroza declined an interview request, but in a message to families wrote: "In the challenging economic climate, our district faces certain constraints, yet we remain dedicated to delivering the best possible education for our students."

Marysville and La Conner have also entered into binding conditions with the Office of Superintendent of Public Instruction. The state oversight of district budgets typically lasts one or two years.

Wilson said the state expects to learn later this year as it completes routine audits of districts statewide how many others may face similar crises.