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Financial Health & Oversight

Financial Health and Oversight

School financing is a complex issue because various programs are funded from different sources of money and each of these sources may include its own system of reporting, accounting and audits. Public schools and their funding must operate within the constraints of:

  • Laws passed by the U.S. Congress
  • U.S. Department of Education regulations implementing federal law
  • Laws and budgets passed by the Washington State Legislature (RCW)
  • OSPI and State Board of Education regulations implementing state and federal law (WAC)
  • Professional Educator Standards Board (PESB)

Funds Within Our Budget

Washington's public schools manage their finances through five distinct funds. The majority, roughly 80%, is directed towards daily operations and maintenance, tracked within the General Fund. Typically, these funds cannot be mixed. Each fund has its own rules for spending money. There are exceptions, but, it's important to note that mixing funds without proper authorization or violating legal restrictions can lead to financial mismanagement, audit findings, and potential legal consequences.

This fund caters to daily operations and maintenance expenses. It's primarily utilized for operating costs such as salaries, supplies, utilities, and anything not recorded in another fund.

This fund is exclusively reserved for constructing or renovating school facilities. It cannot be utilized for daily operations or other unrelated purposes.

Funds in this category are solely allocated for repaying debt, typically bonds, incurred by the school district for capital projects or other approved endeavors.

These funds are designated for purchasing or maintaining school buses or other transportation vehicles and cannot be repurposed.

The Associated Student Body (ASB) fund is managed by students. This fund supports student-related activities and expenses like clubs, events, and student organizations. These are non-curricular, optional activities. They are cultural, athletic, social, or recreational.

It is important to note that educational programs supplied by the Chehalis School District at the Green Hill Academic School and Lewis County Juvenile Detention Center are funded through restricted state and federal funding that is tracked separately from the funding for the rest of the Chehalis School District's programs. These funds cannot be used for any other purpose within the school district. Conversely, the district’s main budget funds cannot be used to support the Green Hill Academic School or Lewis County Juvenile Detention Center. Bond and levy funds also cannot be used for Green Hill Academic School or Lewis County Juvenile Detention Center.

  • This fund caters to daily operations and maintenance expenses. It's primarily utilized for operating costs such as salaries, supplies, utilities, and anything not recorded in another fund.

  • This fund is exclusively reserved for constructing or renovating school facilities. It cannot be utilized for daily operations or other unrelated purposes.

  • Funds in this category are solely allocated for repaying debt, typically bonds, incurred by the school district for capital projects or other approved endeavors.

  • These funds are designated for purchasing or maintaining school buses or other transportation vehicles and cannot be repurposed.

  • The Associated Student Body (ASB) fund is managed by students. This fund supports student-related activities and expenses like clubs, events, and student organizations. These are non-curricular, optional activities. They are cultural, athletic, social, or recreational.

  • It is important to note that educational programs supplied by the Chehalis School District at the Green Hill Academic School and Lewis County Juvenile Detention Center are funded through restricted state and federal funding that is tracked separately from the funding for the rest of the Chehalis School District's programs. These funds cannot be used for any other purpose within the school district. Conversely, the district’s main budget funds cannot be used to support the Green Hill Academic School or Lewis County Juvenile Detention Center. Bond and levy funds also cannot be used for Green Hill Academic School or Lewis County Juvenile Detention Center.