Everett Public Schools presents FY2025‑26 operating budget first reading; board schedules August adoption hearing

Superintendent Dr. Robert Saltzman presented the Everett Public Schools operating budget for fiscal year 2025‑26 at the board’s July 1 meeting and the board approved moving the item to a second reading and public hearing in August by general consent.

Saltzman told the board the district serves "more than 20,000 students every day" and reviewed the budget development timeline, enrollment assumptions, key focuses for next year and a four‑year forecast. He said the district used a medium enrollment projection from an outside consultant and that enrollment changes drive staffing and funding. The presentation noted a budget‑to‑budget headcount increase of 166 students, with a projected next‑year increase of about 91 students compared with this year’s budget.

Why this matters: The budget presentation projected a small spend‑down of the general fund in 2025‑26 but forecast stabilization in later years because the district will be able to collect full levy capacity for the 2026 calendar year. Saltzman said that change produces an increase in local tax revenue of about $4.3 million compared with prior projections and, combined with state legislative funding outcomes, reduces the need for further staffing reductions previously required when the district trimmed roughly $22–$23 million two years ago. The board is required to make the proposed budget available to the public by July 10 and to hold a hearing and adopt the budget by late August; Saltzman said the district will submit materials to Educational Service District 189 for posting and review.

Key figures and programs highlighted: - Minimum fund‑balance policy: board policy sets a minimum fund balance of 5 percent, Saltzman said. - Enrollment: medium projection used; budget to budget headcount increase of 166 students and an anticipated 91‑student increase over current budget. - Levy capacity: ability to collect full 2026 levy capacity estimated to add about $4.3 million in local taxes versus the December projection. - Capital projects: Jackson Elementary work continuing; Madison Elementary replacement and Everett High School auditorium modernization planned; mechanical and electrical upgrades at multiple schools. - Transportation: district expects to purchase three electric buses in 2025‑26 partially funded by a state grant. - Debt: outstanding bonds were described as "approximately, just less than $70,000,000" now and projected at just under $67,000,000 for 2025‑26. - Associated Student Body (ASB) funds: high schools are budgeting to maintain a combined balance just under $900,000.

Expenditure assumptions included a 2.5 percent implicit price deflator (IPD) for cost‑of‑living adjustments, higher special‑education staffing and material and service cost increases tied to utilities and insurance. Saltzman said federal funding was assumed to be flat but noted uncertainty about titles 2, 3 and 4; the district estimated approximately $2 million in those federal awards could be at risk and will adjust if final awards differ. The superintendent stressed the district will continue to monitor awards and can make adjustments after adoption if necessary.

What the board did: After presentation and questions from directors — including follow‑ups about career and technical education (CTE) accounting and the district's reengagement/running‑start reporting — the board had "no objection" and adopted the first reading by general consent; the budget will be posted for public review and brought back for a public hearing and second reading on Aug. 19 with adoption to follow per the published schedule.

Next steps: The district will publish the proposed budget, hold a public hearing and seek formal adoption later in August; staff cautioned some state and federal awards may not be finalized until later in the fiscal year.