Evergreen Public Schools faces budget challenges amid declining enrollment and rising costs

The Evergreen School District held a significant board meeting on August 12, 2025, focusing on the district's financial challenges and the proposed budget for the 2025-2026 school year. Superintendent Maloney opened the meeting by highlighting the pressing budget issues that the district faces, emphasizing the need for careful financial decisions to maintain the district's overall financial health.

Chief Financial Officer Jennifer Jacobson then presented the proposed budget, which totals approximately $467 million. Jacobson noted that the budget is complex, comprising over 230 pages and including various revenue sources and grants. A key point of her presentation was the district's declining enrollment, which has decreased by about 5,000 students over the past decade. This decline significantly impacts the district's revenue, as approximately 85-90% of funding is tied to student enrollment. Jacobson explained that losing 5,000 students equates to a loss of $55 million in revenue, which is comparable to the funding of an entire elementary school.

The CFO provided a detailed overview of the budget's beginning fund balance, projected at $22 million, and discussed the anticipated deficit of $10 million for the current year. She highlighted that expenditures have exceeded expectations, particularly due to an increase in special education needs, which required hiring additional staff. The projected ending fund balance for the next year is estimated to be $16.8 million, with a significant portion of this amount restricted for specific purposes, such as food services.

Jacobson also addressed the sources of revenue, noting a slight increase in state funding but a concerning drop in the percentage of total revenue coming from the state, which has decreased from 55.5% to 52.3%. The district's reliance on local tax levies has increased to help bridge the funding gap caused by declining enrollment and rising costs.

Throughout the presentation, Jacobson emphasized the impact of inflation on operational costs, particularly in areas such as insurance and utilities, which have risen significantly without corresponding increases in state funding. She pointed out that the district is facing a growing gap between the costs of providing basic education and the funding received from the state, which has increased from a $1,800 shortfall per student in 2015-2016 to an anticipated $3,000 shortfall for the upcoming year.

The meeting concluded with a discussion on the broader context of school funding issues across Washington State, highlighting that many districts are experiencing similar challenges due to inadequate state funding and declining enrollment. The board acknowledged the need for ongoing discussions and strategic planning to address these financial hurdles as they move forward.

Overall, the meeting underscored the critical financial situation facing the Evergreen School District and the importance of proactive measures to ensure the sustainability of educational services for its students.