Superintendent Dr. Garcia told the Tacoma School District Board of Directors that the district’s projected fund deficit has narrowed but significant financial pressure remains and further reductions are likely.

The superintendent said the district’s projection for May moved a negative fund balance of about $3.5 million to "1 and a half million dollars or $1,600,000," and officials are “feverishly working to balance our budget and making some great progress.” The board was told the district is monitoring daily uncertainties and cannot guarantee the recovery through the close of the fiscal year.

The nut graf: The district is preparing for a public budget hearing and planned adoption on July 10 while reconciling large, state-level changes that include the removal of a transportation proviso that previously allowed school districts to bill for McKinney‑Vento student transport. District leaders say that change creates an unfunded mandate that could cost Tacoma School District between $750,000 and $1 million in a given year and will force program and personnel adjustments.

Board and staff discussion laid out the main drivers of the budget strain: rising costs for utilities, supplies and salaries; limits in state funding; and statutory and accounting constraints (maintenance‑of‑effort, MSOC certification and collective bargaining obligations). Dr. Garcia said the district aligns its budget development to the state’s two‑year legislative cycle and that some statewide increases will not be available to the district unless local voters approve levy measures in future years.

Staffing consequences were presented as a connected but distinct item. Staffing lead Steven Diedrich summarized personnel impacts from recent reorganizations and reductions: "We have a total of a 107 displacements. The good news is all 107 have now been placed into a teaching assignment for the 25‑26 school year." He said 431 staff members in total have been impacted by position eliminations; 222 of those displaced staff have been placed while 209 remained without assignments as of the report.

Diedrich described ongoing recall and placement procedures for certificated and classified employees, noting the district is recalling non‑renewed provisional staff into 22 current teaching vacancies based on student needs, certificate status and Washington state teaching seniority agreed in collective bargaining processes. He also reported 159 displaced education support professionals, of whom 75 had been placed into newly created roles such as MTSS ESP positions, playgroup ESP roles and ECAP family resource or instructional assistant roles.

Board members asked clarifying questions about McKinney‑Vento counts and impacts. Dr. Garcia said Tacoma previously served about "2,400" students who qualified for McKinney‑Vento services in the 2022–23 and 2023–24 school years and confirmed that the state’s definition and the district’s reporting are aligned to Washington’s categorical designation. The superintendent also noted that OSPI materials presented to the board showed the long‑term effects of reduced state investment since the McCleary litigation era.

The board was told that the district’s budget advisory committee — a biannual body of community volunteers — had 28 members who met five times and recommended preserving direct classroom supports, whole‑child services, family engagement and extended learning. Dr. Garcia pointed to a district budget website and materials for the full advisory report.

The board set a public budget hearing and an adoption vote for the July 10 meeting; Dr. Garcia said adoption on that date does not preclude further conversation or adjustments but is the next formal milestone. She emphasized the district must keep expenditures within available revenues and work to restore the fund balance.

Ending: The financial briefing closed with staff warnings that additional reductions and reassignments may be necessary as the district finalizes the 2025–26 budget; the district encouraged public participation at the July 10 budget hearing and offered a QR code and website resources for more detail and ongoing updates.