EVERETT — The Marysville School District announced Tuesday that the Washington state superintendent released the district from enhanced financial oversight and will dissolve the oversight committee that has been in place since August 2024.
The state’s superintendent of public instruction, Chris Reykdal, sent a letter to Marysville School District Superintendent Deborah Rumbaugh on Friday that cites success in staffing and process changes that resulted in “dramatic improvement” in the district’s projected financial situation.
“The Financial Oversight Committee recognizes that the district has worked to establish a much stronger foundation upon which to build financial success,” the letter says. “This stronger foundation is evidenced by a combination of improved financial performance and better internal controls over staffing, budgeting, and expenditures.”
The Marysville School District will remain under state oversight for at least 12 to 18 months, under “binding conditions,” the letter says. “Binding conditions” are financial targets and requirements the district must meet before state oversight is completely withdrawn.
The district will receive an updated letter with new financial conditions for the remainder of the 2025-26 school year, the letter says.
“I am pleased to act upon both recommendations of the FOC by releasing MSD from Enhanced Financial Oversight and replacing those restrictions with a more limited number of binding conditions,” the letter says, referencing the financial oversight committee. “Should those conditions be met, my office will consider the formal release of MSD from state financial oversight in November 2026.”
The district has been operating under significant state financial oversight since 2023 after an audit of the 2022-23 school year’s finances included a “going concern” finding. This rare finding indicates doubt over an organization’s ability to exist 12 to 15 months after the end of its fiscal year.
After an audit of the 2023-24 school year, the state removed the “going concern” finding, but said the district’s status still warranted significant oversight. The district closed schools, moved from a K-5 to a K-6 education model, cut staffing and limited non-essential spending to improve its financial situation.
In August 2024, the district began operating under the supervision of the financial oversight committee. District leaders met monthly with the committee, spokesperson Jeanie Lindsay said in an email.
The district’s fund balance ended the 2024-25 school year with $5.4 million. Also, Rumbaugh became the interim superintendent at that time. Before the start of the 2025-26 school year, a new budget was approved that increased the fund balance by $2 million.
Then, Rumbaugh was sworn in as the permanent superintendent Dec. 1.
“The improved financial position is a direct result of clear, proactive financial leadership from the current superintendent,” Reykdal’s letter says.
In a statement, Rumbaugh recognized the members of the Marysville School Board for their leadership.
“Their commitment to transparency, responsible decision-making, and the long-term health of our district has provided stability during an exceptionally challenging period,” she said. “Binding conditions underscore the seriousness of our situation and the need for disciplined, coordinated action. But we also have a plan, committed leadership, and a community that has already shown its resilience.”
Taylor Scott Richmond: 425-339-3046; taylor.richmond@heraldnet.com; X: @BTayOkay
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