Vancouver Public Schools’ financial situation has been steadily worsening for years, according to a recent audit, which digs into the rising costs and dropping revenue that have left district leaders preparing for layoffs and other cuts next school year.

The report from the Washington State Auditor shows the extent of Vancouver Public Schools’ declining revenue over the past four years, as student enrollment dropped and the costs of meeting student needs and paying for insurance and utilities climbed.

As the district’s expenses steadily outpaced revenues, the routine audit notes, VPS went from having 37 days’ worth of cash on hand in 2022 to just four days of funds last year.

To pay for unexpected costs and emergencies, it would be ideal to have 60 days’ cash on hand for operating expenses, according to Adam Wilson with the Washington State Auditor’s office.

“You can see that this school is operating on a thin margin,” he said.

There were other signs of financial trouble at VPS, as well, the audit notes.

“What you’re seeing is that the school is trying to manage the difference in its expenses and its income by pulling down on the bank account,” Wilson said. “But that obviously cannot continue forever.”

The district got an $18.5 million emergency advance from the state in 2024. Last year, the board approved a resolution allowing the district to borrow between $6 million and $16.5 million per month from the Clark County Treasurer’s office, akin to a line of credit.

“The analogy is we’re living paycheck to paycheck,” said Jessica Roberts, a spokesperson for VPS.

The Columbian first reported on the state audit.

VPS is poised to cut the equivalent of nearly 200 full-time positions ahead of next school year as it attempts to close a $24 million deficit. About 100 of those will be teaching positions, according to Roberts. The district employs a total of about 3,000 people.

While the budget problems at VPS are significant, it is far from the only school district facing cuts. In Clark County, Evergreen Public Schools is planning to make a smaller cut, the equivalent of 82 full-time positions, next school year. Next month, Battle Ground Public Schools will finalize how many staff it will have to cut in order to close a $20 million budget gap.

Cuts are also on deck for Seattle Public Schools, which is facing a $100 million budget gap. Another eight districts around the state are under stricter “binding” financial oversight from the Washington Office of Superintendent of Public Instruction.

The causes behind the budget problems vary between districts. They include decreased student enrollment, lower state support amid increased school requirements that districts must pay for, and failed levy votes.

Vancouver Public Schools has identified a corrective action plan that includes addressing the auditor’s concerns. That process began in 2023 when the board approved a $34 million spending reduction.

After district staffing cuts are finalized this summer, VPS also expects to shutter the pool at the Jim Parsley Community Center. It then plans to begin rebuilding its fund balance by depositing $7 million back into its general fund during the 2026-27 school year, and by making additional deposits in future years.

News Source : https://www.opb.org/article/2026/03/31/washington-state-audit-vancouver-public-schools-cash-staffing/