Local Education Funding News - It's Not Good

The following may sound like a litany of problems that SPS is part of but it's also the truth.

First up, a rather tepid (and somewhat damning) endorsement by The Seattle Times of the City's Families, Education, Preschool, and Promise levy.

Its aim is worthy: creating a $1.3 billion fund that would help young people from infancy through young adulthood. It includes more subsidized child care, more free preschool, more mental health services for K-12 students (and beyond) and more free college tuition for graduates of Seattle Public Schools.

And they note that $1.3B is doubling the levy from last time it was on the ballot.

What's the damning part?

- During a time of economic contraction, when local corporations are laying off workers every month, the mayor’s push to double the spending level voters approved just seven years ago warrants a pause for serious reflection.

- Only seven months ago, voters agreed to foot the bill for two levies floated by Seattle Public Schools for $2.5 billion. Between those funds and the mayor’s, which will add about $400 to the median property tax bill, most homeowners can expect to shell out at least $800 more each year.

You know, the first time I saw Gone with the Wind, I didn't understand why Scarlett went on and on about "property taxes are going to be sky high." Well, now I do. People, especially seniors, could lose homes they worked their lives for with ever-larger property taxes.

- In that light, some of the projections shaping the mayor’s proposal raise questions. For instance, he is asking to cover 600 more children in Seattle’s free preschool program, though there is no waiting list indicating that level of demand.

-Along the same lines, this levy, which was developed in consultation with Seattle Public Schools, would collect $46.6 million for safety improvements without delineating exactly how that money will be spent. The aim is to be flexible enough to meet the needs of different school communities, Harrell told the editorial board.

Well, hell's bells, SPS can't even get a pilot program for an SEO going at one high school. And you want to hand them even more money for safety improvements?

- The city’s education levy operates like a competitive grant. Individual schools apply for the money. But last time, by design, only 30 of Seattle’s 105 schools — those serving more low-income students — received direct funding. That means homeowners living in affluent neighborhoods may never see the new money in their own schools, though all Seattle students are eligible for free tuition at the city’s two-year colleges.

Just like SPS, the City is putting ever-larger levies on the ballot. It almost feels like a dare.

Would I vote for this? I would not.



Next, let's look at what is happening in King County. Via The Seattle Times:

The county’s Department of Community and Human Services failed to properly oversee the grant money it was sending out, resulting in unapproved payments and possible fraud. The audit (by the King CountyAuditor) found DCHS consciously took on more risk as it worked to give grants to smaller organizations and those with limited experience or less fiscal oversight capability. 

“Both the previously reported and revised data support the same conclusion that DCHS manages a high volume of community grants and that this volume has increased in recent years,” Waltmunson wrote. 

“I was alarmed by the level of internal control failure,” King County Auditor Kymber Waltmunson told the Metropolitan King County Council on Tuesday. DCHS Deputy Director Amber Green said the internal investigations should be wrapped up by the end of October. 

According to the new report, auditors looked specifically at four county programs all intended to serve youth, by offering counseling, keeping them out of the criminal legal system or offering other services. The four programs, which, in turn, worked with 37 contractors were: Family Intervention and Restorative Services, Liberation and Healing from Systemic Racism, Restorative Community Pathways and Stopping the School-to-Prison Pipeline. 

Restorative Community Pathways, which offers diversion programs for youth offenders, has been beset by concerns regarding its use of funds and failure to meet its goals and has paused all felony diversions. However, the audit noted fewer issues that have occurred with Restorative Community Pathways grants compared to the two other programs funded by the Best Starts for Kids levy.

Via KUOW:

The audit found that DCHS, which handles nearly 90% of county grants, failed to conduct basic, routine financial and contract monitoring of grantees as its awards climbed from a combined $922 million in 2019 and 2020 to $1.87 billion in 2023 and 2024.A major source of grant funds is the county's 10-year-old Best Starts for Kids levy, which funded three of the audited youth programs. 

Although DCHS policy is to conduct in-depth fiscal reviews of 33% of its grantees per year, auditors found that, in 2023, the department only examined 1% of its grantees’ financial records and practices, and 2% in 2022.

What the heck? 

The Best Starts for Kids levy comes up again next year and yet they are not overseeing those dollars well?




Lastly, there's some reporting out of the Audit Committee meeting agenda. That meeting occurred on September 16th. If you look at the agenda, it's quite a dry affair of "annual reviews," "audit response updates," and "corrective action plan updates." There are 18 items on the agenda and I went through most of them, just to look. And look what I found.

Under Corrective Action Plan Update – SAO Financial Statement and Single Audits 2021-2022, 2022-2023

This is a corrective action plan around the federal "Emergency Connectivity Fund" that came about during COVID. 

- FCC "demand for payment of debt owed to the United States" - $10,440. Why? Apparently the FCC believes they overpaid the district from the Emergency Connectivity Fund. The FCC did give the district 30 days to appeal and the district did not file one.

- FCC again demanding payment for "improperly disbursed funds" from the Emergency Connectivity Fund in the amount of $106,000. Again, the district filed no appeal.

- FCC again, same issue, this time the amount is $70,560.

For all three demands, the FCC says the reasoning is "failure to support unmet needs, student count, or patron count."

Altogether that makes $187,000 that the district has to pay back to the feds.

For a district low on funds, this is not good news.

Also of interest at the meeting:

- A draft procedure on "Field Trips and Excursions" that makes it pretty clear:

The District no longer sponsors, organizes or approves schools-affiliated international field trips or exchange programs.

Also:

The district "disclaims any responsibility" for privately arranged trips. No district resources can be used to organize any such trip including planning on school grounds and funds can't be run through ASB funds. "There is no approval for role for any District staff, including Principals, in approving international travel."

- I had a chuckle at the Corrective Action Plan for the Communications Audit.

"Build trust by nurturing a culture of two-way communication throughout the district."

As an example, they mentioned the "Well-Resourced Schools" engagement and we know how that turned out.