A new audit from the State of Washington shows Vancouver Public Schools spent more money than it brought in last fiscal year — raising concerns from members of the community.
The report points to several reasons for the shortfall in the last fiscal year (which ended in August) including declining enrollment, rising operating costs, and decreases in state and federal funding.
Community members say they’re frustrated and want answers.
“Where’s our money going, and why haven’t they made the necessary adjustments. They’re literally going bankrupt with our money,” said Valerie Anderson, a former VPS parent.
According to the audit, the district has been using a series of short-term financial measures to keep operating, including apportionment advances, interfund loans, and registered warrants to meet cash flow obligations and continue operations.
The audit also shows the district’s savings have been steadily declining since 2022 — a trend that’s raising red flags to folks in the community.
“I don’t know how they don’t do some sort of projection and business modeling it’s just a poorly run business model. And we’ve all been screaming about it,” said Anderson.
READ MORE | Layoff notices ‘in flux’ as Vancouver Public Schools weigh hundreds of cuts
We reached out to Vancouver Public Schools Tuesday morning requesting an interview to better understand how the district got to this point.
We also asked why the district did not better prepare, despite enrollment declines being an ongoing issue.
In a statement, the district said rising costs and funding challenges exceeded expectations.
We have been very open about the fact we are in a budget crisis and that our current situation is not at all sustainable. This is why we are now in the midst of a $24 million budget reduction for the 2026-27 school year, which includes a large reduction in force and a plan to begin rebuilding our fund balance. Rebuilding fund balance is not something most people look forward to doing, but without a stronger fund balance to help us with cash flow we risk things like struggling to be able to pay people on time.
Our plan is to continue rebuilding our fund balance until we meet the goal of 5-8 percent of our overall projected costs to run the school district. However, this level of fund balance will take many years to achieve. Exactly how many years is hard to precisely predict or plan. Even though we budget for unexpected expenses (things like inflation, enrollment drop, and student needs for supports), these expenses have outpaced those predictions in recent years. These higher-than-expected increases were compounded by challenges with both state and federal funding. With this many hard-to-predict uncertainties, it would be irresponsible to commit to a definite amount we will be able to save each year – as oversaving comes with its own consequences in the form of unmet student needs. However, we are committed to making responsible budgeting decisions each year and contributing as much as possible to our fund balance, within the confines of our responsibilities, to eventually return our fund balance to the goal level. More in-depth information about our budget has been shared in recent board meetings and can also be found on our 2026-27 budget webpage,” said a district spokesperson.
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Last week, VPS sent out potential lay-off notices to teachers in order to help balance the budget.