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flag Washington State's Moses Lake School District faced severe financial issues from 2022 to 2024 due to overspending, rule violations, and poor recordkeeping, prompting major reforms and layoffs.

flag A Washington State Auditor’s report released March 19, 2026, found the Moses Lake School District in severe financial distress from 2022 to 2024, with its general fund balance dropping 47% and reserves covering only 27 days of expenses by August 2024. flag The district overspent its budget by millions in 2023 and 2024, violated state procurement rules, improperly placed enrichment levies on ballots without prior approval, and failed to maintain proper documentation for payroll, purchases, and contracts. flag In response, the district implemented stricter financial controls, conducted over 200 layoffs, improved reporting, and established oversight committees, with reserves improving to 64 days by August 2025. flag Officials attributed many issues to past leadership and staff turnover, and pledged ongoing reforms to ensure compliance and transparency.

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