2025-26 Budget Development

The Northshore School District, like many other school districts in Washington, is again anticipating a budget shortfall, though a much smaller deficit, for the 2025-26 school year due to factors outlined below. 
 
As of October 1, 2024 the current expected shortfall is estimated at $6 million, bringing the total amount of cuts to $52M over the course of three years (2023- 2026). Final numbers will be available after the 2023-24 fiscal year end closes and will be provided publicly at the November 12, 2024 Budget Study Session. 

 

Contributing Factors to the Deficit

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Declining student enrollment.

Since 2019-20 and the start of the pandemic, Northshore has seen a decline of 1,004 student full-time equivalents (FTE). Every 80 students is the equivalent of approximately $1 million dollars. The school-age population in Washington is shrinking due to declining birth rates. For example, most of our upper grades have over 1,700 students enrolled districtwide, but grades K-2 are much lower, with our 24-25 Kindergarten numbers reflecting just over 1,400 students enrolled districtwide. Other factors include the rising cost of living and remote work options inducing family relocation out of our area.

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Responding to student need in a post-pandemic world.

We have augmented instructional program opportunities for many students as well as increased areas of staffing which provide important social, emotional, and academic supports to our students. 

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The state’s continued underfunding of public education, specifically special education.

For example, in 2024-25, Northshore will spend $20.7 million dollars of local levy funds to make up the gap between what the state provides for special education and what our students need and deserve. If the state was paying the full cost of legally required special education services,  anticipated budget cuts for next school year would be eliminated, no reductions would be needed and in fact other reductions could be restored

Our district did receive an additional $9 million dollars in special education funding as a result of increased funding from the state. While we are grateful for this increase it was far from the $20.7 million dollars needed for this school year. Full funding of special education is a legislative priority of education leaders and organizations across our state including the Washington State Parent Teacher Association (PTA), Washington’s State Superintendent of Public Instruction, Washington Education Association, Washington State School Directors’ Association, and the Washington Association of School Administrators among others. 

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State spending on public education hasn’t kept pace with inflation and the true cost associated with operating schools.

Inflation has impacted fuel and energy prices, supplies and parts, food, etc. - all costs outside our control but that we must respond to.

 

Additional Information

As part of the 23-24 budget development process, $20 million in reductions were identified and implemented. Last year, as part of the 24-25 budget development process, another $26 million in reductions were identified and are being implemented this school year.  

We knew last year that this would be a multi-year process to realign our expenses with our revenues, and that forecast remains accurate. 

Responding to this year's budget deficit will be challenging, even though the deficit number is anticipated to be much smaller, every reduction now has impacts to our schools.  

As we developed the 2024-25 budget, guiding principles of the District included complying with state mandates and board policies, minimizing the impact on students both in the classroom and in their educational experiences, and advancing the District’s strategic plan. These  guiding principles remain in effect for the budget development process for the 2025-26 year. District leadership is looking at several potential cost-saving measures while adhering to these guiding principles.