Peninsula School District previews 2025–26 budget; enrollment declines and state underfunding cited as drivers

Peninsula School District Chief Financial Officer Ashley Murphy and budget intern Logan presented the district’s proposed preliminary 2025–26 all‑funds budget during a public hearing on Aug. 19, detailing enrollment declines, revenue risks and spending pressures that the district says have driven the need for careful prioritization.

Murphy said the district’s K–12 funded enrollment used for the budget totals 8,208 students in 2025–26, down from 8,305 in the prior year. “That subtotal for K through 12 … is a pretty significant drop,” Murphy said, and she tied much of the loss to longer‑term demographic trends, including lower birth rates in the community.

The presentation said the district is projecting general‑fund revenues of $173.3 million and proposed expenditures of $178.8 million; budgeted beginning and ending fund balances shrink under the proposed numbers. Murphy said the district is projecting an estimated ending unrestricted/unreserved fund balance of about $7.4 million (roughly a 4.1 percent ending fund balance in the proposed budget), down from prior years. She told the board the district has used careful…