Financial outlook for Cascade School District sees improvement

LEAVENWORTH — While Cascade School District (CSD) continues to operate with a tight financial margin, its 2024-2025 fiscal year-end report shows the district has made meaningful progress toward stabilizing its budget.

As with many others across the state, Cascade School District has spent the last few years grappling with declining enrollment, inflationary pressures, and decreased pandemic support, resulting in budgetary constraints and depleted reserves. The district has tried to mitigate by reducing spending, increasing grant revenue, attracting and retaining students, and increasing efficiency, which may be paying off.

For the first time in recent years, the district ended the year with revenues exceeding expenditures. The general fund balance rose to 4.9 percent, marking progress even as the reserve remains below recommended levels.

“To see where we actually ended up is huge. The efforts that have been put forth by the staff, by the families, by the community, for and on behalf of this district over this last fiscal year is incredible,” said CSD Board member Trey Ising.

According to CSD Business and Finance Director Brenda Grabski, a number of factors played into the positive outcome. Grant funding played a significant role in the overall picture, with Grabski describing the year as “the season of the grants,” which included both a Career and Technical Education (CTE) grant as well as a grant for the Certified Nursing Assistant (CNA) program. The district was also successful in the renewal of two levies, and refinanced a bond.

“There's just too many grants to name,” said Grabski. “There was grant after grant, after grant.”

Enrollment, which is a major driver for district revenue, continues to be an uncertainty with ongoing downward trends. District administrators said it was too early to know whether the dip was temporary or part of a longer-term shift. However, the budget’s conservative enrollment estimates enabled actual numbers to be higher than anticipated, playing a small part in higher revenue. The district also received a one-time state apportionment to offset the anticipated loss of federal dollars, which didn’t materialize, providing another boost.

Grabski also noted that spending stayed close to the budget, particularly with staffing, calling it a “sight to celebrate.” Staffing costs were reduced from 88 percent of the budget to 84 percent, making progress towards its goal of 80 percent.

The news prompted the CSD board to forecast lifting its state of financial emergency earlier than scheduled. According to district policy, 10 percent is the recommended general fund balance, which provides a cushion for financial stability and signals fiscal health; a financial emergency is declared if it falls below 5 percent.

“We worked really hard as an entire district to end last year in the black, and we did,” said CSD Superintendent Tracey Edou. “That was a massive achievement, but to now end in the black at a point where I'm like, ‘Should we suspend the emergency?’ That's really great. And we are a little bit ahead of schedule.”

With 4.9 percent, the district is not only nearing the 5 percent threshold, but also has more reserves to cover operational costs. That translates to about 18 days on hand, moving closer to Grabski’s goal of maintaining a full month.

Taylor Caldwell: 509-433-7276 or taylor@ward.media