Diane Hodge provided a financial status update to the Finance Committee. She reviewed a presentation from Office of Superintendent of Public Instruction (OSPI) that highlighted a significant decline in state funding for K–12 education. According to OSPI data, the state funded education at 51.6% during the 2019–21 biennium, compared to 43.2% in the 2025–27 biennium, representing a reduction of approximately $6.5 billion statewide. Diane noted that this reduction has substantial implications for school district budgets across Washington.

The OSPI information also indicated that birth rates and kindergarten enrollment are declining statewide, further impacting future enrollment projections and state revenue allocations to school districts.

Bob shared information from a recent OSPI webinar featuring State Superintendent Chris Reykdal. During the webinar, districts were advised that the current funding environment is unlikely to improve in the near future. Districts were encouraged to budget conservatively and prioritize building and maintaining fund balance. Bob reported that the state will not be providing loans, advances, or other short-term financial assistance to school districts, and that county treasurers are tightening cash flow practices, increasing the importance of strong local fiscal reserves.

Diane discussed the importance of increasing the district’s ending fund balance and indicated that a proposal will be brought to the Board of Directors in the near future. She stated that the district should aim to end the 2025–26 fiscal year with at least a 10% ending fund balance. Additionally, Diane recommended that the district update board policy to establish a 10% ending fund balance target within three years to support long-term financial stability and cash flow needs.

Diane Hodge led a discussion regarding student fees, fines, and unpaid food service meal balances, with a focus on compliance with board policy and state and federal requirements related to free and reduced-price meal eligibility.

Diane reviewed the direct certification process for students who may be eligible for free and reduced-price meals. She explained that the Finance Office currently has a stack of unpaid meal charges that are ready to be sent to collections. However, the committee emphasized that students who may qualify for free or reduced-price meals should not be sent to collections unless the district has completed due diligence to directly certify families for eligibility.

The committee discussed the importance of collaboration between schools, the Food Service Department, and the Finance Office to ensure that all available direct certification options are exhausted before unpaid meal charges are referred to collections. As part of this discussion, the committee considered providing administrators with access to the OSPI Education Data System (EDS) to support timely and accurate direct certification efforts through the Office of Superintendent of Public Instruction.

Diane stated that she will be creating a comprehensive guide outlining the roles and responsibilities of Food Services, school administrators, and the Finance Office related to direct certification and unpaid meal charges, aligned with board policy, board procedure, and applicable state and federal laws.

The committee also discussed Board Procedure 6700P and the current threshold for sending unpaid meal charges to collections. Members agreed to bring Procedure 6700P to the next Board of Directors meeting as an informational item, with a recommendation to increase the collection threshold from $25.00 to $100.00, along with minor wording adjustments for clarity and consistency.

Diane shared information from a recent Washington Association of School Business Officials (WASBO) webinar she attended regarding future federal funding considerations. During the webinar, districts were advised to implement robust direct certification practices before potential changes result in stricter eligibility rules for federal programs such as Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), and Medicaid.

The direct certification process and its importance in protecting eligible families and ensuring compliance were discussed in detail. Consensus was reached among committee members to include the proposed amendments to Procedure 6700P in the next Board meeting packet.

The Finance Committee discussed the implementation and pilot of Red Rover for employee timesheet tracking. Diane Hodge presented the proposal, noting that the annual cost is $6,750.

Diane shared that the Red Rover timesheet tracking system was presented to all administrators at Tuesday’s administrative team meeting, and administrators were supportive of moving to a paperless timesheet process. The committee discussed the benefits of increased efficiency, consistency, and accountability associated with electronic time tracking.

Cameron Grow volunteered to pilot the Red Rover timesheet tracking process, allowing the district to evaluate implementation, workflow, and effectiveness before broader rollout.

Ryan Mulvey shared experiences from his previous district at West Valley School District, where a different electronic timesheet system was used. While the system differed from Red Rover, Ryan noted several positive outcomes, including:

Staff completing timesheets accurately and only for approved activities

• Consistent building administrator review and signatures
• Elimination of lost or missing paper timesheets
• Time savings for staff, administrators, and the Finance Office

Following discussion, Diane Hodge requested a motion to move forward with the implementation and pilot of Red Rover timesheet tracking. A motion was made by Bob and seconded by Jerrod. The motion passed unanimously.

The Finance Committee discussed the current method of paying substitute teachers. Diane Hodge explained that the district currently pays substitutes in full- or half-day increments, regardless of the actual hours worked. For example, a substitute covering a 0.6 FTE teacher (4.5 hours) is currently paid a full day (7.5 hours) because the hours worked exceed a half-day threshold.

Diane proposed changing substitute pay to quarter-day increments to more accurately reflect hours worked. This change is intended to provide more equitable compensation and better align payroll with actual substitute service. Everyone was in agreement to the change.

Bob suggested piloting the new pay structure in March or April to assess the process and potential impacts before full implementation in the 2026–27 school year. He also noted that he will bring the proposal to the Pullman Education Association (PEA) in January to obtain feedback and ensure collaborative input from the union.

The committee discussed logistics and agreed that piloting in late spring would allow adequate time for evaluation, adjustments, and communication with staff prior to full implementation.

Juston provided an update to the Finance Committee on recent and upcoming property transactions:

Aquatic Center

Juston reported that Bob signed off on the aquatic center purchase today. The transaction is expected to be completed by the end of the week.

Johnson Property

The Johnson Property is scheduled to be sold in January. The property was discussed at the December Board meeting and will go to the Board for action in January. The property appraised at $117,000, and the district received a bid of $125,000.

30 Acre Property

The committee discussed the district’s acquisition of a 30-acre property, which is expected to be finalized in January. The purchase price is $600,000, while the property appraised at $767,000, representing a favorable acquisition for the district.

Diane Hodge highlighted the significance of the sale to the current property owners, noting that their grandparents were educators and it was very important to them that the land be used for educational purposes. Ryan Mulvey proposed honoring the Quist family by naming a feature or facility on the property after them once it becomes developed, recognizing their contribution and connection to the district.

The committee expressed support for moving forward with the acquisition and for considering ways to honor the property owners’ legacy in future development plans.

Jerrod led a discussion regarding the de minimis amount for Associated Student Body (ASB) funds. He noted that the district is currently meeting the existing maximum and expressed a desire to increase the total amount available to the school. It was also noted that the student constitution does not include any guidance regarding a de minimis amount.

Diane Hodge recommended increasing the de minimis amount to $15,000. Ryan Mulvey referenced that Central Kitsap School District sets a de minimis of $50,000, but acknowledged that it is a much larger school. Jerrod questioned why the maximum amount matters. Diane explained that ASB funds remain public funds and are audited accordingly, and it is important for the district to exercise fiscal stewardship. She emphasized that the intent is not to allow students to spend $50,000 on themselves annually.

Ryan and Jerrod agreed to research other school districts of comparable size to determine the amounts they allow for gifts and de minimis expenditures. Bob suggested three additional comparable school districts as examples for reference.

Diane concluded that she would like the committee’s recommendation to be forwarded to the Board at the next meeting, with the goal of implementing the revised de minimis amount.

The committee discussed Board Procedure 6700P related to student fees, fines, and unpaid meal charges, as previously reviewed under the Student Fees and Food Service discussion.

Diane Hodge confirmed that the proposed amendments—including increasing the threshold for sending unpaid meal charges to collections from $25.00 to $100.00 and making minor wording adjustments for clarity—would be included in the next Board of Directors packet as an informational item.

Committee members reaffirmed their support for the amendments and agreed that presenting it as an informational item would allow the Board to review prior to any action at a future meeting.