Petition for dissolution of Prescott School District rescinded

PRESCOTT — In a letter to Superintendent Steve McCullough, Chris Reykdal, Washington’s Superintendent of Public Instruction, informed ESD 123 that the petition to dissolve the Prescott School District had been rescinded. The decision was based on new financial resources identified and the Financial Oversight Committee’s recommendation.

In the letter dated March 25, 2026, Reykdal summarized a series of events that demonstrate the district’s financial viability through the end of the 2026-27 school year. 

Between January 12, 2026, and March 25, 2026, these events include the passage of the district’s supplemental levy, the district’s sale of the Teachers Cottage, updated cash flow statements, and significant community support. 

In addition, the state legislature passed SB 6065, sponsored by State Senator Perry Dozer, allowing the district to make interfund loans from its debt service and transportation vehicle funds to meet immediate financial obligations.

The bill also allows these interfund loans to be forgiven, provided the original funds remain financially strong.

Reykdal said there is still a lot of work to be done to ensure the district’s path to fiscal sustainability continues over the next 12 to 18 months. The district will remain under enhanced financial oversight for the 2026-27 school year. 

“Congratulations to the Prescott community on supporting the district during these challenging times,” said Reykdal. “Without the local fundraising and the overwhelming support of the levy in February, we would not be celebrating this success.”