Lacey School District budget shows no salary raises and potential tax increases

In a stark revelation during the School Board Special Budget Meeting on May 1, 2025, officials announced that the proposed budget will not include salary raises for the majority of employees, including teachers and support staff. This decision has raised concerns about the financial stability and future negotiations for the district.

The budget, described as "tight," relies heavily on one-time use of the district's savings, or "free balance monies," which could further jeopardize its financial health. Currently, the district is operating below the recommended 2% reserve, with projections indicating it may drop to under 1%. This situation has been labeled as "very dangerous" for the organization, highlighting the precarious nature of the district's finances.

Tax implications were also a significant focus of the meeting. With property values in Lacey continuing to rise, the new average assessment is expected to generate a tax rate of 1.619. For homeowners, this translates to an estimated school tax increase of approximately $616 on average assessed homes, with higher increases for more valuable properties.

As the district navigates these financial challenges, the lack of salary increases and the depletion of savings could have lasting impacts on staff morale and the quality of education provided. The board's decisions will be closely monitored as they work through the budgetary constraints and prepare for future negotiations.