Issaquah School District outlines budget challenges due to declining enrollment and rising costs

The Issaquah School District Board convened on March 13, 2025, to discuss critical financial updates and enrollment projections amid ongoing budgetary challenges. The meeting highlighted the district's financial sustainability efforts and the implications of declining student enrollment on funding.

The session began with a review of the current budget landscape, emphasizing the importance of strategic financial planning in light of fluctuating enrollment and rising operational costs. Board members expressed appreciation for the district's resource stewardship, particularly as they prepare for a visit to Olympia with students to advocate for educational funding.

Mariah Banaszek, Executive Director of Finance and Budget, presented a detailed analysis of the district's fund balance, noting a projected decline from $52 million to $43 million due to various factors, including a $6.2 million investment in curriculum and $1.3 million in lost revenue from lower-than-expected enrollment. The board was informed that current enrollment is down by 329 full-time equivalent (FTE) students compared to the previous year, with projections indicating a further decline of 355 students for the upcoming year.

The discussion also addressed special education enrollment trends, which have flattened since October, raising concerns about aligning staffing resources with student needs. The board acknowledged the challenges posed by slower growth in local levy revenues, which have decreased from over 10% annually to around 3%, complicating financial planning.

In light of these challenges, the board discussed the need for sustainable revenue strategies and the potential impact of legislative changes on funding, particularly regarding special education and transportation. The board is closely monitoring the legislative session for developments that could affect funding multipliers and local levy limits.

Looking ahead, the board emphasized the importance of careful financial planning to manage resources effectively in response to declining enrollment. They are exploring options to open enrollment beyond district boundaries to attract more students, particularly at the elementary level, as housing affordability remains a barrier for young families.

The meeting concluded with a commitment to ongoing evaluation of programs and resources, ensuring transparency in decision-making as the district navigates these financial challenges. The board plans to finalize the budget by August, incorporating insights from ongoing legislative developments and community feedback.