The Port Angeles School District Board of Directors on Aug. 21 adopted the 2025–26 operating budget by approving Resolution 2425‑21, following a July financial report that showed the district’s general fund ending balance and year‑to‑date revenues and expenditures tracking ahead of projections.

Karen, a district finance staff member who presented the report, said the general fund’s ending balance is 2.7 (as presented at the meeting), year‑to‑date revenues were about 90% of projections and expenditures about 89%. She reported capital projects fund expenditures of $5.9 (as presented) and an ending capital fund balance reported in meeting materials as $73,200,000. The district’s debt service fund balance was reported at $771,000 and the transportation vehicle fund at $584,000. Karen told the board that higher-than‑budgeted salary and benefit spending in July reflected vacation buybacks and sick leave cash‑outs for retiring employees.

Board members thanked finance staff and others who prepared the budget and moved to approve the required documents for OSPI submission. The board’s motion to adopt the 2025–26 budget was moved, seconded and carried by voice vote; no roll‑call opposition was recorded.

Karen also noted an increase in material, supplies and operating costs (MSOCs) tied to the district’s effort to spend grant funds so money is not left unspent. Board members and administrators said they were pleased that the July numbers were better than internal forecasts earlier in the year.

The board also approved related administrative resolutions on signatures and D‑form intent that allow district officials to execute required state forms and continue the capital project process. The district must submit required OSPI documents by Aug. 31, and board action tonight satisfied those submission requirements.

The district will present an updated financial report in subsequent meetings and continue monitoring revenues and expenditures through the fiscal year.