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.
2025-26 Budget Development Guiding Principles - Confirmed by the School Board
- Honor the District Strategic Plan as the foundational policy guidance (including its focus on Racial and Educational Justice as well as student outcomes).
- Minimize the impact on students both in the classroom and in their educational experiences.
- Keep schools open.
- Comply with negotiated agreements.
- Minimize reduction in force (RIF).
- Preserve consistent and predictable operations and services to the extent possible while working to avoid any additional burdens on the work within classrooms.
- Comply with state mandates (whether funded or not).
- Conform with adopted, existing school board policies.
Contributing Factors to the Deficit
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.
Meanwhile, currently the state does not support districts in resolving budget shortfalls locally. The state limits the amount of funding districts can collect through voter approved levies. So, our only option, unless the Legislature acts and increases state K12 funding, is to continue to cut programs, services, and student supports.
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.
Responding to student need in a post-pandemic world.
Our students continue to have enhanced needs post-pandemic. In response, 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. While the state provided some modest additional staffing support (i.e., counselors), the investment is far from what is needed or requested by our students and families.
2024-25 Budget Development Timeline
2025-26 Budget Development Process
November 12, 2024 - School Board Study Session
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.