Superintendent's Office

Dear Yelm Community Schools Families,

We are just over four weeks from the start of school, and there is already a lot happening across the district. This is an important year as we continue to navigate significant financial challenges, including operating without levy dollars, remaining on Binding Conditions with the state, and making difficult reductions to staffing and programs. Thank you for staying informed, engaged, and supportive as we work together to navigate these challenges and continue to prioritize our students and schools. 

Special Board Meeting Update: Monday, August 3, 2026

At a special meeting on Monday, August 3, the Yelm Community Schools Board of Directors voted 4–1 to place an Educational Programs and Operations (EP&O) Levy on the November 3 General Election ballot.

• The levy rate approved by the Board is $1.50 per $1,000 of assessed property value. If approved by voters, the district could collect up to:

• $11,194,449 in 2027
• $12,278,072 in 2028

• Levy funds would help support staffing, programs, and services that are not funded or are only partially funded by the state. These funds are important in helping Yelm Community Schools maintain programs and services for students that would otherwise be reduced or eliminated due to insufficient state funding.

Community Feedback Forum Update: Thursday, July 16, 2026

On Thursday, July 16, Yelm Community Schools held a Community Feedback Forum to hear from community members about a possible Educational Programs and Operations (EP&O) Levy. We shared information about the levy and asked participants three questions:

1. What do you like about the levy considerations?
2. What concerns do you have about the potential levy?
3. What questions do you have?

Below is a summary of the feedback we heard from participants.

What Do You Like About the Levy Considerations?

Participants expressed support for using levy funding to restore programs and opportunities that have been reduced or eliminated because of budget challenges. Athletics, arts, and other student programs were specifically mentioned. Participants also emphasized the importance of clearly explaining how levy dollars would be spent and showing how those investments benefit students and the community.

There was also support for stronger collaboration among the district, employee groups, boosters, and community members. Participants felt that working together and sharing consistent, positive information could help the community better understand the district's needs and the potential impact of a levy.

What Concerns Do You Have About the Potential Levy?

The biggest concerns centered on community trust and confidence in the district and School Board. Participants raised questions about financial transparency, administrative compensation during staffing reductions, and past financial decisions. They also identified the potential tax impact, the proposed levy rate and length of the levy, voter turnout, and whether additional budget reductions could still be necessary if the levy passes.

Participants also noted that misinformation and misunderstandings shared through social media could make it more difficult for community members to have accurate information when making their decisions.

What Questions Do You Have?

Participants asked whether the community climate has changed enough to improve the likelihood of a levy passing and what the district could do to increase voter participation and support. They also asked how the district could better engage military-connected families and residents who live in Pierce County.

Other questions focused on how levy dollars would be used, including which programs and services would receive funding and what savings might be possible through alternatives such as a four-day school week. Participants also asked how the district could more effectively address misinformation, explain the impact of previous levy failures, demonstrate the value and return on investment of levy dollars, and identify trusted community members who could help share accurate information.

We appreciate everyone who participated and shared their thoughts. The feedback provided valuable insight into the questions, concerns, and priorities that are important to our community as we consider the future of funding for Yelm Community Schools.

Binding Conditions Meeting Update: Wednesday, June 24, 2026

On Wednesday, June 24, Yelm Community Schools met with representatives from ESD 113 and the Washington State Office of Superintendent of Public Instruction (OSPI) to review the district’s current financial situation and our plans for the 2026–27 school year.

• We will remain on Binding Conditions and could be moved to Financial Oversight if our financial condition does not improve.
• OSPI will update our Binding Conditions letter in September to reflect our updated financial situation. 

For additional information, you can review OSPI’s two previous Binding Conditions letters:

• Yelm Update Memo (December 18, 2025)
• Yelm Binding Conditions Letter (September 4, 2024)

Actions Already Taken

Over the past several months, we have taken many steps to reduce costs for our current school year:

Cuts made during the 2025-26 school year

• Eliminated staff hired through contracted agencies
• Instituted a hiring freeze, with exceptions only for safety, legal, or essential student needs
• Eliminated overtime and extra hours except in emergencies
• Stopped out-of-district travel
• Reduced materials, supplies, and operating budgets
• Shifted allowable expenses (such as technology subscriptions and hardware) from the General Fund to the Capital Fund for this school year
• Transferred $1.1 million in accumulated Capital Fund interest (2015–2025) to the General Fund (this is a one-time transfer)
• Transferred an additional $7.8 million in allowable funds from the Capital Fund to the General Fund (this is a one-time transfer)

Cuts for the 2026-27 school year

• Approved a Reduced Education Plan, allowing us to move forward with a Reduction in Force (RIF)
• Reduced extracurricular programming, including C-Team high school sports and all middle school sports for the 2026–27 school year
• Reduced School Resource Officer (SRO) support from two officers to one for the 2026–27 school year
• Reduced Campus Security staffing at Yelm High School from three positions to one for the 2026–27 school year
• Reduced district nursing staff from 3.8 FTE to 2.0 FTE for the 2026–27 school year 
• Eliminated the Human Resources Coordinator position from the District Office, starting in July
• Eliminated the Fiscal Coordinator position from the District Office, starting in July
• Eliminated many positions (vacated by resignations and retirements) across the district, based on enrollment numbers

Upcoming Meetings

• School Board Meeting: Thursday, August 13, 2026 at 6:00 PM
  • Yelm Community Schools District Office
• School Board Meeting: Thursday, August 27, 2026 at 6:00 PM
  • Yelm Community Schools District Office
• School Board Meeting: Thursday, September 10, 2026 at 6:00 PM
  • Mill Pond Elementary School
• YCS/OSPI/ESD 113 Binding Conditions Meeting: Wednesday, September 23

Please don’t hesitate to reach out. Our district office and the building principal are the best point of contact for district and school-level questions.

Thank you again for your partnership and for everything you do to support our students and schools.

Sincerely,

Chris Woods
Superintendent, Yelm Community Schools

July 1, 2026 Dear Yelm Community Schools families, As we end our school year, I want to let you know that this summer I will provide a monthly update on binding conditions and our financial situation. Thank you for taking the time to stay informed and engaged as we navigate this challenging budget situation together. We appreciate your continued support, patience, and care for our students and schools.  I want to share a link to the OPSI website that explains public school funding, give an update on our recent Binding Conditions Meeting and our recent Board Meeting, and outline where we are and what comes next. Understanding Public School Funding Understanding Public School Funding  Binding Conditions Meeting Update: Wednesday, June 24, 2026 We met with ESD 113 and OSPI to discuss our current financial situation and our plans for the 2026-27 school year OSPI will update our Binding Conditions letter in September to reflect our current financial situation and that we will remain on Binding Conditions for the 2026–27 school year.   The letter will reflect that the only reason we are projecting a positive ending fund balance next year is due to the transfer of funds from our Capital Fund to the General Fund.  We will need to cut significantly more for the 2027-28 school year if we do not pass a levy You can see the two previous Binding Conditions letters from OSPI below Yelm Update Memo (December 18, 2025) Yelm Binding Conditions Letter (September 4, 2024) Board Meeting Update: Thursday, June 25, 2026 The Board received information on Policy 5310, which is the salary schedule that the Board governs The Board will decide if any changes are made to compensation or working conditions for these employees for the 2026-27 school year I have requested that I not receive a percentage increase regardless of what they decide for the rest of the staff under Policy 5310 Here is a link to all our other labor groups and their contracts: Yelm Community Schools Labor Groups & Contracts  Actions Already Taken Over the past several months, we have taken many steps to reduce costs for our current school year and to create a balanced budget for the 2026-27 school year: Cuts made during the 2025-26 school year Eliminated staff hired through contracted agencies Instituted a hiring freeze, with exceptions only for safety, legal, or essential student needs Eliminated overtime and extra hours except in emergencies Stopped out-of-district travel Reduced materials, supplies, and operating budgets Shifted allowable expenses (such as technology subscriptions and hardware) from the General Fund to the Capital Fund for this school year Transferred $1.1 million in accumulated Capital Fund interest (2015–2025) to the General Fund Transferred an additional $7.8 million in allowable funds from the Capital Fund to the General Fund

Cuts for the 2026-27 school year Approved a Reduced Education Plan, allowing us to move forward with a Reduction in Force (RIF) Reduced extracurricular programming, including C-Team high school sports and all middle school sports for the 2026–27 school year Reduced School Resource Officer (SRO) support from two officers to one for the 2026–27 school year Reduced Campus Security staffing at Yelm High School from three positions to one for the 2026–27 school year Reduced district nursing staff from 3.8 FTE to 2.0 FTE for the 2026–27 school year  Eliminated the Human Resources Coordinator position from the District Office, starting in July Eliminated the Fiscal Coordinator position from the District Office, starting in July We will also be eliminating many positions (vacated by resignations and retirements) across the district, based on enrollment numbers Next Steps We will continue to monitor enrollment and make staffing adjustments as needed. Upcoming Meetings Community Feedback Forum: July 16, 2026 at 4:30-5:30 PM  Yelm Community Schools Transportation Building, 202 Stevens Street NW, Yelm  School Board Meeting: July 16, 2026 at 6:00 PM Yelm Community Schools Transportation Building, 202 Stevens Street NW, Yelm Please don’t hesitate to reach out. Your principal or supervisor is the best point of contact for school-level questions, and our district office is always here to support broader concerns. Thank you again for your partnership and for everything you do to support our students and schools. Sincerely, Chris Woods Superintendent, Yelm Community Schools

Dear Yelm Community Schools Families, As we get close to the end of the school year, I want to let you know that this summer I will provide a monthly update on binding conditions and our financial situation. Thank you for taking the time to stay informed and engaged as we navigate this challenging budget situation together. We appreciate your continued support, patience, and care for our students and schools.  I want to share an update following our Board Meeting last night, outline where we are, and what comes next. Board Meeting Update: Thursday, May 28, 2026 During Community Comments, we heard from two of our three YHS security staff, whose positions have been eliminated due to budget cuts. They shared their thoughts on the challenges YHS will have with only one remaining security staff member. Our Director of Operations gave an update on several projects We will be replacing faucets and fixtures that were affected by lead testing. This summer, the YHS classrooms under the stadium will receive a new heating, ventilation, and air conditioning (HVAC) system. The project will cost $744,000 and is fully funded through an OSPI grant. YHS will also have all of its lights converted to light-emitting diode (LED) lighting. This project will cost $649,570 and is fully funded through a Department of Commerce grant. This is a new requirement from the State of Washington, and we will eventually need to complete this work in all district facilities. In addition, we will replace a portable at YHS that was damaged by the fire earlier this school year. The cost of demolishing the old portable and purchasing and installing the new one will be covered by insurance. We shared an update on the 2026-27 School Meal Program We are currently working to clarify which schools will offer free meals through federal funding and which will offer free meals under HB 1238. For more information, here is a link to the OSPI page about Meals for Washington Students The Board approved my superintendent contract for July 2026 through June 2029. The contract outlines the terms of employment, and compensation is addressed in YCS Board Policy 5310, which the Board is expected to review and act on in June or July. I have recommended that my position not receive an increase.  Actions Already Taken Over the past several months, we have taken many steps to reduce costs for our current school year and to create a balanced budget for the 2026-27 school year.: Cuts made during the 2025-26 school year Eliminated staff hired through contracted agencies Instituted a hiring freeze, with exceptions only for safety, legal, or essential student needs Eliminated overtime and extra hours except in emergencies Stopped out-of-district travel Reduced materials, supplies, and operating budgets Shifted allowable expenses (such as technology subscriptions and hardware) from the General Fund to the Capital Fund for this school year

 

transferred $1.1 million in accumulated Capital Fund interest (2015–2025) the General Fund Transferred an additional $7.8 million in allowable funds from the Capital Fund to the General Fund Cuts for the 2026-27 school year Approved a Reduced Education Plan, allowing us to move forward with a Reduction in Force (RIF) Reduced extracurricular programming, including C-Team high school sports and all middle school sports for the 2026–27 school year Reduced School Resource Officer (SRO) support from two officers to one for the 2026–27 school year Reduced from three Campus Security positions at Yelm High School to one position for the 2026-27 school year Reduced from 3.8 nurses in the district to 2 nurses for the 2026-27 school year Eliminated the Human Resources Coordinator position from the District Office, starting in July Eliminated the Fiscal Coordinator position from the District Office, starting in July We will also be eliminating many positions (vacated by resignations and retirements) across the district, based on enrollment numbers Next Steps We are currently working on finalizing staffing at each school for the next school year. We will continue to monitor enrollment and make adjustments as needed. Upcoming Meetings Binding Conditions Quarterly Meeting: June 24, 2027 School Board Meeting: June 25, 2027 Please don’t hesitate to reach out. Your principal or supervisor is the best point of contact for school-level questions, and our district office is always here to support broader concerns. Thank you again for your partnership and for everything you do to support our students and schools. Sincerely, Chris Woods Superintendent, Yelm Community Schools

Dear Yelm Community Schools Families, Thank you for taking the time to stay informed and engaged as we navigate this challenging budget situation together. We know this information can be difficult, and we truly appreciate your continued support, patience, and care for our students and schools. I want to share an update following our Board Meeting last night, outline where we are, and what comes next. Board Meeting Update: Thursday, May 14, 2026 During this meeting, the Board approved Resolution 08-25-26 This resolution represented another $2 million in cuts Actions Already Taken Over the past several months, we have taken many steps to reduce costs for our current school year and to create a balanced budget for the 2026-27 school year.: Cuts made during the 2025-26 school year Eliminated staff hired through contracted agencies Instituted a hiring freeze, with exceptions only for safety, legal, or essential student needs Eliminated overtime and extra hours except in emergencies Stopped out-of-district travel Reduced materials, supplies, and operating budgets Shifted allowable expenses (such as technology subscriptions and hardware) from the General Fund to the Capital Fund for this school year Transferred $1.1 million in accumulated Capital Fund interest (2015–2025) to the General Fund Transferred an additional $7.8 million in allowable funds from the Capital Fund to the General Fund Cuts for the 2026-27 school year Approved a Reduced Education Plan, allowing us to move forward with a Reduction in Force (RIF) Reduced extracurricular programming, including C-Team high school sports and all middle school sports for the 2026–27 school year (We do not receive any state funding for athletics) Reduced School Resource Officer (SRO) support from two officers to one for the 2026–27 school year (We do not receive any state funding for SRO’s) Reduced from three Campus Security positions at Yelm High School to one position for the 2026-27 school year (We currently, as of April, receive .255 FTE funding from the state for security staffing at YHS, which equals about ¼ of a staff member) Reduced from 3.8 nurses in the district to 2 nurses for the 2026-27 school year Eliminated the Human Resources Coordinator position from the District Office, starting in July Eliminated the Fiscal Coordinator position from the District Office, starting in July We will also be eliminating many positions (vacated by resignations and retirements) across the district, based on enrollment numbers Next Steps We are currently monitoring enrollment projections for the 2026-27 school year to determine which, if any, of the vacated positions (due to retirements and resignations) we will need to fill. Upcoming Meetings School Board Meeting: May 28, 2027 Binding Conditions Quarterly Meeting: June 24, 2027

We understand that updates like this bring questions and concerns. Please don’t hesitate to reach out. Your principal or supervisor is the best point of contact for school-level questions, and our district office is always here to support broader concerns. Thank you again for your partnership and for everything you do to support our students and schools.

Dear Yelm Community Schools families,

Thank you for taking the time to stay informed and engaged as we navigate this challenging budget situation together. We know this information can be difficult, and we truly appreciate your continued support, patience, and care for our students and schools.

I want to share an update following our recent Board Study Session and outline where we are and what comes next.

Board Study Session Update: Thursday, April 23, 2026

During this session, the Board reviewed both our current and future financial outlook, including:

• The budget projection for the remainder of the 2025–26 school year
• The budget forecast for the 2026–27 school year
• The need to make approximately $6 million in reductions between early 2026 and the end of 2027
• A one-time transfer of approximately $9 million from the Capital Fund to the General Fund to help offset the loss of levy funding

Actions Already Taken

Over the past several months, we have taken many steps to reduce costs and preserve resources:

• Eliminated staff hired through contracted agencies
• Instituted a hiring freeze, with exceptions only for safety, legal, or essential student needs
• Eliminated overtime and extra hours except in emergencies
• Stopped out-of-district travel
• Reduced materials, supplies, and operating budgets
• Shifted allowable expenses (such as technology subscriptions and hardware) from the General Fund to the Capital Fund for this school year
• Reduced extracurricular programming, including C-Team high school sports and all middle school sports for the 2026–27 school year
• Transferred $1.1 million in accumulated Capital Fund interest (2015–2025) to the General Fund
• Transferred an additional $7.8 million in allowable funds from the Capital Fund to the General Fund
• Approved a Reduced Education Plan, allowing us to move forward with a Reduction in Force (RIF)
• Began coordination with the Yelm Police Department to reduce School Resource Officer (SRO) support from two officers to one for the 2026–27 school year
• Reducing three positions at the district office

Next Steps

We are currently working through approximately $2 million in staffing reductions for the 2026–27 school year as part of the Board-adopted Reduced Education Plan. These are difficult decisions, and we are committed to making them thoughtfully, with a continued focus on student safety, learning, and well-being.

Upcoming Meetings

• School Board Meeting: May 14, 2027
• Binding Conditions Quarterly Meeting: June 24, 2027

We understand that updates like this bring questions and concerns. Please don’t hesitate to reach out. Your principal or supervisor is the best point of contact for school-level questions, and our district office is always here to support broader concerns.

Thank you again for your partnership and for everything you do to support our students and schools.

Dear Yelm Community Schools families,

Thank you for taking the time to read these updates and for remaining engaged in the work we are doing during this very challenging budget situation. Here is the latest update.

Binding Conditions Quarterly Meeting Update (Thursday, April 16, 2026)

• We had a productive meeting with OSPI and the ESD 113 on Thursday. 
• They agreed that we are moving in the right direction with the reductions we are making, and we agreed that we need to cut $3-$4 million for the 2026-27 school year.
• We have our next quarterly meeting scheduled for June 24. 

Actions Already Taken

• Eliminated staff hired through contracted agencies
• Instituted a hiring freeze, with exceptions only for safety, legal, or essential student needs
• Eliminated overtime and extra hours except in emergencies
• Stopped out-of-district travel
• Reduced materials, supplies, and operating budgets
• Moved qualifying expenditures, including technology subscriptions and hardware, from the General Fund to the Capital Fund for this school year, where allowable
• Cut C-Team sports at the high school and all middle school sports for the 2026–27 school year
• Transferred $1.1 million in accumulated Capital Fund interest from 2015 to 2025 to the General Fund
• Transferred all remaining allowable funds, $7.8 million, from the Capital Fund to the General Fund
• The School Board approved the Reduced Education Plan Resolution, which allows us to move forward with a Reduction in Force (RIF)
• We have met with the Yelm Police Department and have let them know that we will need to reduce from two School Resource Officers (SRO) to one SRO for the 2026-27 school year

Next Steps

• We are finalizing our enrollment projections for the 2026-27 school year, which determine our staffing levels for each school.
• We are determining which vacated positions we will not fill for the 2026-27 school year and which additional positions we will need to cut.
• We have a School Board Study Session on April 23 to continue discussing the 2026-27 budget.

How We Will Keep You Informed

• I will continue to provide regular updates (every two weeks while Binding Conditions remain in effect) and share information on key decisions, meetings, agendas, and public hearings through the district website and email alerts.

For questions, please contact your principal or supervisor for school-level matters, or the district office for district-level support.

Dear Yelm Community Schools Families,

Thank you for taking the time to read these updates and for staying engaged in the work we are doing during this very difficult budget challenge. Here is the latest update 

Binding Conditions Meeting Update (Wednesday, February 18, 2026) 

• On Wednesday, February 18, we met with OSPI and ESD 113 for our Binding Conditions review. They recommended transferring all legally allowable funds from the Capital Fund to the General Fund and continuing to identify additional reductions to address the projected multi-million-dollar 2026–27 deficit from lost levy revenue. They acknowledged the progress we have made and kept us under Binding Conditions rather than moving us to Financial Oversight, though difficult decisions still remain.  

Board Meeting Update (Thursday, March 12, 2026)

• At our Board meeting on March 12, 2026, we reviewed the procedures and timeline for a potential Reduction in Force (RIF). We must consider taking this step for several reasons:

• A multi-million dollar deficit resulting from lost levy revenue.

• Declining state support for K–12 education has led state funding to fall significantly as a share of the state budget (from 52% in 2019 to an estimated 42% in the proposed 2026 budgets).

• Reductions in federal funding for targeted special programs.  

Actions Already Taken

• Eliminated staff hired through contracted agencies.

• Instituted a hiring freeze (with exceptions only for safety, legal, or essential student needs).

• Eliminated overtime and extra hours except for emergencies.

• Stopped out-of-district travel.

• Reduced materials, supplies, and operating budgets.

• Moved qualifying expenditures (technology subscriptions and hardware) from the General Fund to the Capital Fund for this school year, where allowable.

• Cut C-Team sports at the high school and all middle school sports for the 2026-27 school year.

• Transferred $1.1 million in accumulated Capital Fund interest (2015–2025) to the General Fund.

• Transferred all remaining allowable funds, $7.8 million from the Capital Fund to the General Fund.   

Next Steps

• Reduction in Force Resolution

• We will continue to work with OSPI and ESD 113 to identify additional, legally permissible reductions and revenue strategies to reduce the projected 2026–27 deficit.  

Budget Forecast

• If we make no additional cuts and everything else stays the same, we would end the 2026–27 school year with an estimated $1.5 million in our ending fund balance.

• Board Policy 6022 requires us to maintain a 5% reserve, which is about $4.8 million.

• To meet that policy requirement, we would need to reduce spending by an additional $3.3 million.  

How We’ll Keep You Informed

• I will continue to provide regular updates (every two weeks while Binding Conditions remain in effect) and share information on key decisions, meetings, agendas, and public hearings through the district website and email alerts.  

I understand these updates can be hard to read, and that the uncertainty is stressful for students, families, and staff. Please know that our decisions are guided by our responsibility to students, staff, and the district's long-term stability. We appreciate your patience, your questions, and your continued focus on our students.

For questions, please contact your principal or supervisor for school-level matters, or the district office for district-level support.  

Dear Yelm Community Schools Families, Thank you for taking the time to read these updates and for remaining engaged in the work we are doing during this very challenging budget situation. Here is the latest update. Board Meeting Update (Thursday, March 26, 2026) At our Board meeting on March 26, 2026, the School Board approved a Reduced Education Program resolution, which allows us to move forward with a Reduction in Force (RIF). A RIF is necessary for several reasons: A multi-million-dollar deficit resulting from lost levy revenue Declining state support for K–12 education State funding has dropped significantly as a share of the overall state budget, from 52% in 2019 to an estimated 42% in the proposed 2026 budgets Reductions in federal funding for targeted special programs Significant increases in materials, supplies, and operating costs Actions Already Taken Eliminated staff hired through contracted agencies Instituted a hiring freeze, with exceptions only for safety, legal, or essential student needs Eliminated overtime and extra hours except in emergencies Stopped out-of-district travel Reduced materials, supplies, and operating budgets Moved qualifying expenditures, including technology subscriptions and hardware, from the General Fund to the Capital Fund for this school year, where allowable Cut C-Team sports at the high school and all middle school sports for the 2026–27 school year Transferred $1.1 million in accumulated Capital Fund interest from 2015 to 2025 to the General Fund Transferred all remaining allowable funds, $7.8 million, from the Capital Fund to the General Fund The School Board approved the Reduced Education Plan Resolution, which allows us to move forward with a Reduction in Force (RIF) Next Steps Binding Conditions Quarterly meeting with OSPI and the ESD 113 will be on April 16. We will continue to work with OSPI and ESD 113 to identify additional, legally permissible reductions and revenue strategies to reduce the projected 2026–27 deficit. We will continue to evaluate staffing needs for 2026-27 as we finalize enrollment projections.  Budget Forecast If we make no additional cuts and everything else stays the same, we would end the 2026–27 school year with an estimated $1.5 million in our ending fund balance. Board Policy 6022 requires us to maintain a 5% reserve, which is about $4.8 million. To meet that policy requirement, we would need to reduce spending by an additional $3.3 million. How We Will Keep You Informed I will continue to provide regular updates (every two weeks while Binding Conditions remain in effect) and share information on key decisions, meetings, agendas, and public hearings through the district website and email alerts.

I know these updates can be difficult to read, and the uncertainty can feel stressful for students, families, and staff. Please know that we are making decisions with great care, always keeping our students, our staff, and the long-term stability of the district in mind. We truly appreciate your patience, your questions, and your continued support of our students. For questions, please contact your principal or supervisor for school-level matters, or the district office for district-level support.

Dear Yelm Community Schools Families, Thank you for taking the time to read these updates and for staying engaged in the work we are doing during this very difficult budget challenge. I want to provide a clear update following our most recent meetings and outline our next steps. Binding Conditions Meeting Update (Wednesday, February 18, 2026) On Wednesday, February 18, we met with the Office of Superintendent of Public Instruction (OSPI) and Educational Service District 113 (ESD 113) for our regularly scheduled Binding Conditions meeting. OSPI and ESD 113 recommended that we transfer all legally allowable funds from our Capital Fund to our General Fund and urged us to continue identifying additional reductions to address the multi-million dollar deficit projected for 2026–27 due to the loss of levy funds. They expressed support for the reductions we have implemented so far and, based on our progress, decided to keep us under Binding Conditions rather than moving us to a higher level of supervision at this time, Financial Oversight. That is encouraging, but it does not change the reality that many difficult decisions still lie ahead. Board Meeting Update (Thursday, February 26, 2026) At our February 26 meeting, I shared with the Board of Directors an update on allowable transfers from our Capital Fund to our General Fund, based on ongoing meetings with ESD 113 and OSPI. There are two qualifying reasons we can transfer the funds, based on the 2025 School District Accounting Manual: Whether the transfer resolution is included in the resolution to adopt the budget or if it is a separate, independent board resolution, a copy must be sent to OSPI to approve the transfer. Apportionment, redirected by board resolution, may be transferred back into the General Fund for its original intended purpose, in accordance with the same requirements which were met to initially authorize the transfer. Actions Already Taken Eliminated staff hired through contracted agencies. Instituted a hiring freeze (with exceptions only for safety, legal, or essential student needs). Curtailed overtime and extra hours except for emergencies. Stopped out-of-district travel. Reduced materials, supplies, and operating budgets. Moved qualifying expenditures (technology subscriptions and hardware) from the General Fund to the Capital Fund for this school year, where allowable. Cut C-Team sports at the high school and all middle school sports for the 2026-27 school year. Transferred $1.1 million in accumulated Capital Fund interest (2015–2025) to the General Fund. This allowable transfer will help reduce the projected deficit for the current school year (previously estimated between -$1.5M and -$4.0M).

Next Steps We Are Pursuing At our March 12, 2026, Board meeting, we will present a resolution to transfer all legally allowable funds from the Capital Fund to the General Fund, as recommended by OSPI and ESD 113.  Washington law (RCW 28A.150.270 and WAC 392-121-445) authorizes such transfers. The Board’s transfer resolution would need to be submitted to OSPI for approval, as required by law. At our Board meeting on March 12, 2026, we will review the procedures and timeline for a potential Reduction in Force (RIF). We will present the financial data, legal requirements, and proposed timeline at the meeting so the Board can make an informed decision. We must consider taking this step for several reasons: A multi-million dollar deficit resulting from lost levy revenue. Declining state support for K–12 education, state funding has fallen significantly as a share of the state budget (from 52% in 2019 to an estimated 42% in the proposed 2026 budgets). Reductions in federal funding for targeted special programs. We will continue to work with OSPI and ESD 113 to identify additional, legally permissible reductions and revenue strategies to reduce the projected 2026–27 deficit. What Remains the Same Binding Conditions remain in effect. Current contracts and collective bargaining agreements will continue to be honored and are not automatically cancelled by the Binding Conditions process. We remain committed to protecting programs and positions where it is feasible and responsible to do so. How We’ll Keep You Informed I will continue to send updates regularly (every two weeks while Binding Conditions remain in effect) and whenever there are material decisions to share. Meeting materials, agendas, and notices will be posted on the district website, and we will send district email alerts for important actions and public hearings. For school-level questions, please contact your principal or supervisor. For district-level questions, contact the district office. I know these updates are difficult to read and that the uncertainty is stressful for students, families, and staff. Please know our decisions are guided by our responsibility to our students, staff, and the long-term health of the district. We appreciate your patience, your questions, and your continued focus on our students. If you have immediate questions, please contact your building principal or the district office.

Dear Yelm Community Schools families,

Thank you for your continued support and engagement as we work through a very difficult budget challenge. I want to provide a clear update following our most recent meetings and next steps.

Binding Conditions Meeting (Wednesday, February 18, 2026)

We met with the Office of Superintendent of Public Instruction (OSPI) and Educational Service District 113 (ESD 113) on Wednesday, February 18, for our regularly scheduled Binding Conditions meeting.

• OSPI and ESD 113 recommended that we transfer all legally allowable funds from our Capital Fund to our General Fund and urged us to continue to identify additional reductions to address the multi-million dollar deficit projected for the 2026–27 school year due to the loss of levy funds.
• They expressed support for the reductions we have implemented so far and, based on our progress to date, decided to leave us on Binding Conditions rather than move us to Financial Oversight, a more structured level of oversight, at this time. That is encouraging, but it does not change the reality that many difficult decisions still lie ahead.
  
  Board study session (February 19, 2026)
  
  Last night, the School Board, district leadership, and I met during our open Board Study Session. One of the topics we discussed was to review OSPI/ESD 113’s recommendation to transfer all legally allowable Capital Fund resources to the General Fund. The Board discussed the recommendation and has agreed to continue the conversation at the next Board meeting so they can consider the legal parameters, timing, and impact before taking formal action.

Actions already taken

• Eliminated staff hired through contracted agencies

• Instituted a hiring freeze (exceptions only for safety, legal, or essential student needs).

• Curtailed overtime and extra hours except for emergencies.

• Stopped out-of-district travel.

• Reduced materials, supplies, and operating budgets.

• Moved qualifying expenditures (technology subscriptions and hardware) from the General Fund to the Capital Fund for this school year, where allowable.

• Cut C-Team sports at the high school and all middle school sports for the 2026-27 school year.

• At the February 12, 2026, Board meeting, the Board approved a one-time transfer of $1.1 million in accumulated Capital Fund interest (2015–2025) to the General Fund. While Capital Fund balances are normally reserved for facilities and capital projects, this allowable transfer will help reduce the projected deficit for the current school year (previously estimated between −$1.5M and −$4.0M).

Next steps we are pursuing 

• The district will evaluate the recommendation to transfer all legally allowable Capital Fund resources to the General Fund and present options and legal guidance to the Board at the next meeting. No transfers will occur without Board action and appropriate legal review.
   

• We will continue to work with OSPI and ESD 113 to identify additional, legally permissible reductions and revenue strategies to reduce the projected 2026–27 deficit.
   

• We will explore every legal and responsible option to use available revenue and control costs with the goal of minimizing program and position reductions where possible.
   

What remains the same  

• Binding Conditions remain in effect; current contracts and collective bargaining agreements continue to be honored and are not automatically cancelled by the Binding Conditions process.
   

• We remain committed to protecting programs and positions where it is feasible and responsible to do so.
   

How we’ll keep you informed  

• I will continue to send updates regularly (every two weeks while Binding Conditions remain in effect) and whenever there are material decisions to share.
   

• Meeting materials, agendas, and notices will be posted on the district website, and we will send district email alerts for important actions and public hearings.
   

• For school-level questions, please contact your principal or supervisor. For district-level questions, contact the district office.

I know these updates are difficult to read and that the uncertainty is stressful for students, families, and staff. Please know our decisions are guided by our responsibility to students and to the long-term health of the district. We appreciate your patience, your questions, and your continued focus on our students.

Dear Yelm Community Schools families, Thank you for your continued support and engagement as we navigate challenging times. Below is a short, clear update on our Binding Conditions status, recent budget decisions, and what to expect next. Quick summary  We remain under Binding Conditions with the Office of Superintendent of Public Instruction (OSPI) and Educational Service District 113 (ESD 113). Our next meeting with ESD 113 and OSPI is scheduled for February 18, 2026. On January 15, we met with OSPI and ESD 113; because of the progress we’ve made implementing cost reductions (and the additional steps below), they have decided not to convene a Financial Oversight Committee in February. That is encouraging, but it does not change the fact that we remain in Binding Conditions and must continue careful stewardship of district resources. Actions already taken Eliminated non-essential contracted staff Instituted a hiring freeze (exceptions only for safety/legal/essential student needs) Curtailed overtime and extra hours except for emergencies Stopped out-of-district travel Reduced materials, supplies, and operating budgets Moved approximately $340,000 of qualifying expenditures (technology subscriptions and hardware) from the General Fund to the Capital Fund for this school year. While these costs are usually paid from the General Fund, using qualifying Capital Fund resources this year is a prudent step given our financial position. The Board approved a plan to offer only high school varsity and JV sports for the 2026–27 school year. We will not offer C-Team athletics at the high school and will not offer middle school sports for 2026–27. This decision is expected to save the district more than $400,000. We know this creates hardship for students, families, and staff, and we do not take the decision lightly. Additional budget steps to be taken At the Board meeting on February 12, we will present a resolution to transfer $1.1 million from our Capital Fund to our General Fund. These are allowable transfers of accumulated interest revenue (2015–2025) held in the Capital Fund. While Capital Fund balances are typically used for facilities and capital projects, this one-time transfer will help reduce the projected deficit range (previously estimated between –$1.5M and –$4.0M). We will continue to explore every legal and responsible option to use available revenue and control costs to minimize program and position reductions. What remains the same Current contracts and collective bargaining agreements remain in effect; nothing is automatically cancelled by the Binding Conditions process. We will keep working with OSPI, ESD 113, and the Board to protect programs and positions where possible.

Communication cadence & how to stay informed I will continue to send updates every two weeks on Binding Conditions and financial decisions. We will post meeting materials and notices on the district website and send district email alerts. If public hearings or opportunities for community input are scheduled, we will share how staff and families can participate. For school-level questions, please contact your principal or supervisor. For district-level questions, contact the district office. Washington state bills to watch Click on the Bill Tracker to learn more about bills in this session. Bills we are tracking include: HB 2147 — Funding for school materials, supplies, and operating costs SB 6125 — Enrollment stabilization funding HB 2116 — Updating school enrichment funding formulas HB 2636 — Review of public education performance, operations, and funding Thank you for everything you do for our students and for the district. Please reach out if you have questions or need clarification.

Dear Yelm Community Schools Families,

Thank you for your continued partnership and support of Yelm Community Schools. We know this has been a challenging time, and we appreciate the care and trust you place in our schools every day. I’m writing to share an update on the district’s financial situation, actions discussed at last night’s School Board meeting, and what this means for our students and families.

Where we are now

On January 15, district leadership met again with the Office of Superintendent of Public Instruction (OSPI) and Educational Service District 113. Based on the steps we have already taken to reduce costs and strengthen our financial position, OSPI and ESD 113 determined they will not convene a Financial Oversight Committee in February. This is a positive development and reflects the early impact of the actions described below.

That said, the district continues to face significant financial challenges, and careful stewardship of resources remains essential.

Steps already taken

To address our budget shortfall, the district has already:

• Eliminated non-essential contracted services

• Implemented a hiring freeze (with limited exceptions for safety, legal requirements, and essential student needs)

• Reduced overtime and extra hours except in emergencies

• Stopped out-of-district travel

• Reduced spending on materials, supplies, and operating costs

These steps were taken to help preserve classroom instruction and essential services for students.

Additional budget actions

At last night’s Board meeting, the following actions were approved or discussed:

• Approximately $340,000 in qualifying technology costs (such as software subscriptions and hardware) will be moved from the General Fund to the Capital Fund for this school year. While these expenses are often paid from the General Fund, using Capital Funds this year helps reduce immediate financial pressure.

• At the February 12 School Board meeting, the Board will consider a resolution to transfer $1.1 million from the Capital Fund to the General Fund. These funds come from accumulated interest revenue and are legally allowable to transfer. This step helps reduce the projected budget deficit and supports ongoing operations.

We will continue exploring every responsible and legal option to use available funds and control costs while minimizing impacts on students and staff.

Athletics and activities for 2026–27

The School Board approved a plan to offer high school varsity and junior varsity sports only for the 2026–27 school year. C-Team athletics at the high school level and middle school sports will not be offered next year.

This decision is expected to save the district more than $400,000, but we recognize it is difficult and will directly impact students and families. We are grateful to the Yelm Extra Curricular Association (YECA) for their partnership and their continued willingness to work with us to explore the most efficient ways to support extracurricular opportunities for students.

What has not changed

• Current employee contracts and collective bargaining agreements remain in effect.

• No programs or positions are automatically eliminated as part of the binding conditions process.

• We will continue working closely with OSPI, ESD 113, and the School Board to protect programs and student opportunities whenever possible.

Staying informed and engaged

We are committed to transparent and regular communication. District updates on our financial situation will be shared approximately every two weeks. Information about Board meetings, materials, and any opportunities for public input will be posted on the district website and shared through district communications.

For school-specific questions, families are encouraged to contact their school principal. For district-level questions, please contact the district office.

We have also included information below about state legislative contacts and key education funding bills, as state funding plays a significant role in the long-term financial health of our schools.

Thank you for your continued support of Yelm Community Schools and for partnering with us on behalf of our students. Please don’t hesitate to reach out if you have questions or need clarification.

Dear Yelm Community Schools Families,

Below is a short, clear update about our district finances and next steps.

We recently met with OSPI and ESD 113 to review our cash projections. Their analysis shows we could face a year-end shortfall unless spending reductions continue. OSPI’s current estimate ranges from -$1.5 million to -$4.0 million if additional actions aren’t taken. These are projections; we expect clearer numbers after January and February financial reports.

What we’ve already done to reduce costs

• Eliminated non-essential contracted staff.
• Instituted a hiring freeze (exceptions only for safety, legal, or essential student needs).
• Curtailed overtime and extra hours except in emergencies.
• Stopped out-of-district travel.
• Reduced materials, supplies, and operating budgets.

These steps are already helping, but more reductions will be needed in 2026.

Next steps & timeline

• OSPI will convene a Financial Oversight Committee in early to mid-February 2026.
• At least three business days before that meeting, we must provide OSPI:
• Any new cost-reduction actions we’ve taken;
• A three-year cash balance projection that reflects those actions; and
• An updated budget timeline for 2026–27.
• Some savings may not appear in our reports until January or February because of billing and notice cycles. We plan to share more detailed information in February–March 2026.
• The oversight process may include public meetings or hearings; we will announce dates, times, and how families can participate as soon as they are set.

What this could mean for students and families

• Current contracts remain in effect — nothing is canceled automatically by the oversight process.
• We are working with the School Board, OSPI, and ESD 113 to protect programs and positions where possible. However, we must plan for potential additional reductions in 2026 that could affect athletics, activities, services, and staffing.

How to stay informed & get involved

• We will post updates and meeting notices on the district website and send email alerts.
• If a public hearing is scheduled, we’ll share how families can offer input.
• For school-level questions, contact your child’s principal. For district questions, contact the district office.

Thank you for your understanding and support as we work through this together. We will continue to communicate clearly and promptly.

Dear Yelm Community Schools Staff and Families,

I want to thank each of you for your continued dedication to our students and families during what is a very difficult time for our district. As many of you know, the recent levy did not pass. Because of that outcome, we will be without levy funds for 2025 and 2026. I know this raises concerns, and I want to be transparent about the actions we are taking now and the steps that will follow.

Immediate actions we are taking now

• We are instituting a hiring freeze on open positions unless the position is required for safety/legal reasons or to meet essential student needs.

• We are reducing school and department budgets and cutting discretionary spending where possible.

• We are eliminating overtime, extra hours, and out-of-district travel unless required.

Possible additional reductions for 2026

• As we plan for next school year, we will be considering additional reductions that will affect athletics, activities, programs, services, and staffing.

• All major decisions about reductions will be made in partnership with the School Board, the Financial Oversight Committee, the Office of Superintendent of Public Instruction (OSPI), the Educational Service District 113, and input from other stakeholders.

OSPI Financial Oversight
We will receive a letter (no later than the end of the first week of December) announcing that the Financial Oversight Committee has been convened. After the Committee completes its initial review, the district will receive a separate letter that will either:

• Provide additional or updated binding conditions that the district must follow, or

• Place the district under Enhanced Financial Oversight

If the district is placed on Enhanced Financial Oversight, possible consequences include the appointment of a special administrator, review or approval requirements for certain contracts prior to authorization, and/or the need to request approval for certain expenditures prior to issuing payment.

The Financial Oversight Committee will also be required to determine whether dissolution is an option that should be considered. While this is a serious possibility to consider, it is important to note that school district dissolution in Washington is rare; in the last 25 years, only one district has gone through the dissolution process.

What is Financial Oversight?
This stage requires the convening of a Financial Oversight Committee. The Committee reviews the financial condition of a school district, updates any prior binding conditions requirements, and may recommend that a district enter Enhanced Financial Oversight.

What is the role of the Financial Oversight Committee?
The Committee is convened when a district is in binding conditions and is unable to put together a viable financial plan or is at risk of being financially insolvent within two years without a viable plan. The Committee is made up of school district fiscal experts from around the state who assess the district’s financial plan and can develop an alternate plan. The process includes a public hearing at which the community may provide feedback on the district’s plan or the Committee’s alternate plan. That public hearing is scheduled for January 2026.

What authority does the Financial Oversight Committee have over local decision-making?
The Committee may refer the district to participate in Enhanced Financial Oversight, which can exercise the strictest level of control over financial decisions impacting the district.

Does being placed in Financial Oversight or Enhanced Financial Oversight nullify current contractual obligations?
No. Entering Financial Oversight or Enhanced Financial Oversight does not nullify any current contractual obligations with labor partners or other entities.

What happens if dissolution is recommended?
Dissolution would mean consolidation with one or more neighboring school districts. As mentioned above, this is rare in Washington, but it is one of the options the Committee must consider if it believes no viable financial plan exists.

Timeline and next steps

• Letter convening the Financial Oversight Committee: no later than the end of the first week of December.

• Financial Oversight Committee initial review: expected to be completed before the public hearing.

• Public hearing: January 2026.

• As soon as the date is announced, we will provide notification of the date, time, and location.

I know this is unsettling news. I am committed to open communication and to doing everything we can to protect the programs and people who make Yelm Community Schools special. Thank you for your patience, your professionalism, and most of all for the work you do for our students every day. If you have questions, please reach out to your principal or to the district office.

The Yelm School District Board of Directors held a meeting on Thursday, September 25, 2025, at Yelm High School Performing Arts Center. Representatives from the Office of Superintendent of Public Instruction (OSPI) and Educational Service District 113 presented on Binding Conditions and Financial Oversight. The presentation covered the state’s financial oversight process, factors impacting school district budgets, and Yelm’s current financial status under binding conditions.

Binding Conditions & Financial Oversight Presentation

Board Meeting Recording

Dear Yelm Community Schools Staff,

We are just over two weeks into the new school year, and there is already a lot happening across the district. Thank you for staying engaged in the latest news and for keeping up to date on the information we are sharing on our website. Yelm Community Schools

Board Meeting Update: Thursday, September 24, 2026

• Our Director of Operations presented our Capital Facilities Plan

• We also reported that our enrollment has come in as projected

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Levy Listening Session Update: Thursday, September 24, 2026

• We had two listening sessions at 4:30 PM and 7:30 PM at Southworth Elementary School

  • We had 22 people attend the first meeting, and 7 participants attended the second meeting

  • We have four more Listening Sessions left (see dates below)  

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Binding Conditions Meeting Update: Wednesday, September 23, 2026

On Wednesday, September 23, Yelm Community Schools met with representatives from ESD 113 and the Washington State Office of Superintendent of Public Instruction (OSPI) to review the district’s current financial situation and our plans for the 2026–27 school year. T.J. Kelly gave us the following feedback: 

• We will remain on Binding Conditions and could be moved to Financial Oversight if our financial condition does not improve. TJ confirmed that the state is prepared to appoint a Financial Oversight Committee in the event that the levy does not pass.

• Please see the updated Binding Conditions letter below

  • Yelm Community Schools Status Update (September 28, 2026)

• For additional information, you can review OSPI’s two previous Binding Conditions letters:

• Yelm Update Memo (December 18, 2025)

• Yelm Binding Conditions Letter (September 4, 2024)

Upcoming Meetings

• Yelm City Council Study Session Levy Presentation: Tuesday, October 6, 2026 at 6:00 PM

  • Yelm City Hall

• Levy Listening Session: Thursday, October 8, 2026 at 4:30 PM

  • Lackamas Elementary School

• School Board Meeting: Thursday, October 8, 2026 at 6:00 PM

  • Lackamas Elementary School

• Levy Listening Session: Thursday, October 8, 2026 at 7:00 PM

  • Lackamas Elementary School

• Levy Listening Session: Tuesday, October 13, 2026 at 6:00 PM

  • McKenna Elementary School

• Levy Listening Session: Tuesday, October 13, 2026 at 7:30 PM

  • McKenna Elementary School

• School Board Meeting: Thursday, October 22, 2026 at 6:00 PM

  • Yelm Community Schools District Office

Please don’t hesitate to reach out. Our district office and the building principal are the best points of contact for district and school-level questions.

Thank you again for your partnership and for everything you do to support our students and schools.

Thanks,
Chris M. Woods
Superintendent