Superintendent warns Granite Falls on watch list as board weighs staff reductions

Superintendent Doctor Middleton told the Granite Falls School District board that the district remains on a state watch list for fiscal distress and urged caution in spending as enrollment and special-education costs rise. "Granite Falls has been and continues to be on a watch list. And right now, I think we're at number 28," Middleton said during the superintendent’s report.

Middleton outlined an increasing gap between funding and expenditures driven by special-education costs, transportation inflation and higher insurance premiums. She said the district’s beginning fund balance had been planned at 10% but current projections show it ending the fiscal year near 3% and that legal counsel advises targeting a 5% fund balance as a prudent minimum.

To manage the shortfall, Middleton proposed a time-sensitive reduction in administrative staff and asked the board to suspend board policy 6022 for the 2023–24 fiscal year while district leaders develop a revised policy and a longer-term plan. Board members pressed for alternatives to a full suspension: one director recommended modifying policy dates and running changes through a first and second reading rather than an immediate suspension.

Board members repeatedly emphasized minimizing impacts in classrooms and asked administrators for additional data about special-education identification, preschool funding, and the drivers of a recent increase in preschool and special-education counts. The board approved a reduction in force affecting three assistant-principal positions after discussion and a voice vote. The superintendent said cabinet-level reassignments and future staffing plans will be presented at a later date.

Next steps: district staff will prepare the proposed policy revision for first reading and supply supplemental data on special-education counts and projected fund-balance trajectories before the summer retreat.