Granite Falls board approves staff reductions as enrollment and revenue fall; audit finds no exit items

A majority of the Granite Falls School District Board approved staff reductions after district leaders told the board the district expects a drop of 90 to 100 students next school year and “nearly $1,000,000 less in enrollment-based revenue.”

The district’s superintendent, Dana Keesland, told the board the drop in enrollment is driven by smaller kindergarten cohorts following the pandemic, the sunsetting of an agreement with Lake Stevens School District that previously placed about 70 students at Crossroads High School, and a continued moratorium on new housing construction in Granite Falls. “This represents nearly 1,000,000 less in enrollment based revenue for the coming year,” Keesland said during her report.

Why it matters: enrollment drives staffing and general-fund revenue for the district. Board members and staff said they tried to limit the number of layoffs while balancing contract obligations tied to current staffing levels.

Board action and timing: The board approved a reduction-in-force resolution earlier in the spring; initial notices covered a larger number of positions (10 certificated staff, 10 classified staff and one administrator), but district staff reported that, as of the meeting, the list had been reduced to two certificated staff and one administrator. The board also approved the consent agenda and routine items at the meeting by unanimous consent.

Audit and fund balance context: District leaders said the state audit produced no exit items this year. During board comments a director noted the audit finding was “fantastic,” and staff said the district will publish the audit results publicly when available. At the same time, the board heard a warning about the district’s cash-on-hand. A board member described the district’s projected 5% fund balance as roughly 12 days of cash on hand and contrasted that with a 60‑day best practice standard. One board member said, “I want everybody to have that sink in. The school can operate for 12 days if funding, for some reason, was no longer coming in.” The board emphasized that low cash reserves increase the district’s vulnerability if revenues decline further.

Facilities and capital needs: Business manager Marshall Cruz told the board the district is on track to meet a 5% fund-balance target and noted an item later on the agenda seeking capacity in the capital projects fund in case a major HVAC grant is awarded. The board also heard that the district applied for a competitive state grant (up to $4.5 million for districts of this size) to replace antiquated HVAC systems; the grant would flow through the capital projects fund and the district asked the board to increase capacity to spend the funds if the grant is awarded.

Staff reductions and supports: Superintendent Keesland and board members stressed that reductions were not taken lightly. The superintendent said the board and staff aim to protect classroom instruction and to look for alternate models, including potential homeschool partnerships and reconfigured roles for some programs (for example, an ALE program manager position being reframed). Keesland said the district values every employee and that decisions are driven by the district’s “North Star” of student learning and success.

Next steps: District staff said they will continue to post vacancies and reconfigured roles (for example an ALE program manager), pursue the HVAC grant, and publish the audit report. The board asked staff to maintain transparent communication with impacted employees and the community.

Ending: Board members closed the meeting after approving routine business items. Several directors urged community members to contact board members directly with questions and to seek context before drawing conclusions on social media.