Everett School Board adopts $25-26 operating budget; board approves by voice vote

The Everett Public Schools Board of Directors voted to adopt the district's operating budget for fiscal year 2025-26 (Resolution 13-24) during its Aug. 19 regular meeting after a public hearing and a voice vote.

The budget, which the district presented in a first reading on July 1 and submitted unchanged since then, projects expenditures that exceed revenues for 2025-26 but leaves an ending fund balance of about 7% of total expenditures, above the district policy minimum of 5%. The finance presentation said revenue increases are driven by a state cost-of-living adjustment and enrollment growth, while expenditures rise primarily because of added staffing allocations, higher staff costs and increased materials and operating costs.

The superintendent's finance staff said the district used a demographer's medium enrollment projection when preparing the budget. The presentation compared actual October 1 head counts and projected budgets, noting a projected increase of about 91 students compared with the 2024-25 actuals and a budget-to-budget increase of about 166 students. Officials said they are not yet back to pre-pandemic enrollment levels but expect continued year-over-year growth.

Budget documents presented to the board break revenue growth into local tax (levy) increases, state general purpose funding increases tied to cost-of-living adjustments and MSOC changes, and higher state special purpose funds for areas such as special education and multilingual programs. The district also noted anticipated categorical increases for multilingual instruction and learning-assistant program grant awards.

In response to questions from directors, the district confirmed a projected MSOC (Materials, Supplies and Operating Costs) disclosure for 2025-26 of about $5,700,000 and described a routine November transfer from the capital projects fund to the general fund of about $4.5 million to pay for capital-eligible expenditures that must be paid from the general fund under state rules. Finance staff also said transportation costs, insurance, utilities and service contracts are included in the purchase-services category and that staff costs are the largest single driver of the year-over-year increase.

Finance staff reviewed the five major funds (general, capital projects, debt service, associated student body and transportation vehicle fund). The transportation vehicle fund reserves capacity to purchase three electric vehicles in 2025-26, to be paid partly with state funds and an anticipated grant. The capital projects forecast reflects projects funded by the 2022 capital levy and planned future levies.

The board opened a public hearing on the proposed resolution after Director Atkins moved and Director Rovalinski seconded the motion. No members of the public spoke on the budget. With no public comments, the board closed the hearing and approved the budget by voice vote; the motion carried.

The district's finance director said multiyear forecasts assume continued enrollment increases per the demographer's medium projection, state cost increases per the state price deflator, no new state legislative changes, modest levy growth and a potential reduction in federal Title funding in later years.

Board members thanked staff for the presentation and noted the district will monitor federal and state funding developments. The adopted operating budget becomes effective for fiscal year 2025-26 under Resolution 13-24.

Looking ahead, finance staff said the district will continue monitoring federal Title funding and legislative activity that could affect revenues and will bring updates to the board as additional information becomes available.