School districts resolve federal funds sharing for now

The Grand Coulee Dam and Nespelem school districts came to agreement Friday on terms of a "tuition" agreement they've been negotiating for the current school year. A solution for the next school year is still under discussion.

The districts had until Jan. 31 to file applications with the U.S. Dept. of Education for "impact aid" funds that are meant to replace tax levy money they can't get because of non-taxable federal land within their boundaries.

They've had an agreement since 1995 on sharing the money given to the Nespelem district when its students attend school in Coulee Dam, which they regularly do, at least after eighth grade. Nespelem has no high school.

That old memorandum of understanding was declared illegal by regulators at the federal Education Department, who said the districts must have a tuition contract between them.

Because the law appropriates the funds differently for students on Indian Trust land, Nespelem gets about twice as much per student as Grand Coulee Dam. But their students attend the GCD district through high school, so they worked out an agreement to share the larger cut gained by Nespelem applying for the money.

The Education Department's ruling now has Nespelem looking more closely at the situation.

"We've just recently this year, for the first time in 20 years, been told no, this is supposed to be ... your levy replacement money. And nobody gives another district they're levy money," said Nespelem School District Superintendent Effie Dean. "So that's kind of what I'm trying to find out for sure, what the truth is, because I'm being told different things. So, I'm going to be trying to research that a bit further."

The amount varies, depending on the year and the number of Nespelem students attending each district, adding about $800,000 to each last year.

"Is it supposed to follow the student? Or is it supposed to stay where the land is?" Dean said. "And so that is what the current question is. And that's why we were, for the first time in 20 years, asking Grand Coulee to split that money with us, instead of just giving it all to them."

As it was Friday, Nespelem's school board voted to accept a proposal to split it for the current school year, 70% to Grand Coulee Dam School District, 30% to Nespelem for students who live there but attend Lake Roosevelt Schools.

Still left to negotiate: the 2023-24 school year.

"Now we're going to roll up our sleeves," said Paul Turner, superintendent at Grand Coulee Dam.