The Tumwater School District Board has authorized a $4 million loan from the Capital Projects Fund to its General Fund, responding to a financial crisis marked by the lowest cash balance since 2018, which currently stands at $909,700. This decision is driven by a significant drop in enrollment, resulting in reduced funding that has made it necessary to implement cost-saving measures, including the termination of 27 staff positions. The Reduction in Educational Program Resolution #1 specifically targets roles within the district office and support services, while most school site staff will not be affected immediately. Director Jill Adams acknowledged the difficulty of these decisions, stating, “We have no choice because we're short about $4 million. ” The district's financial strain is compounded by the fact that it only receives 80% of its program costs from the state, leading to a reliance on the interfund loan as a temporary cash solution.

Assistant Superintendent Ben Rarick warned that without these measures, the district could run out of cash by March. The resolutions passed aim to ensure financial stability while navigating these challenging times. Further staff reductions may be considered in the future as the district continues to assess its financial situation.