Kennewick School District adopts 2025–26 budget projecting $6.1M shortfall; board approves resolution 14

Kennewick School District Board of Directors members voted 5-0 to approve the proposed 2025–26 budget and adopt Resolution No. 14 after a public hearing and staff presentation.

The district budget for the coming school year shows $330,555,522 in general-fund revenues and $339,684,735 in expenditures, producing a projected operating shortfall of $6,100,000 and a planned fund-balance draw. Staff said a planned interfund transfer of up to $2 million to capital projects remains an option.

Why it matters: district staff said enrollment drives state apportionment and is the single largest revenue factor. Board members and public commenters pressed staff on how market changes in assessed value (AV) and state Local Effort Assistance (LEA) funding could affect revenues, and how the district will preserve a healthy cash balance while funding operations and capital needs.

Chief budget officer Dr. Brolhardt (presenting staff member) summarized revenue and expense drivers and the district presentation: "Without resources and without adequate funding, we can't enhance those programming," he said during the presentation. He walked the board through enrollment projections, federal and state revenue assumptions, rising health insurance and utility costs, and a four-year model that showed the district's cash balance declining over time under current assumptions.

Public comment during the hearing raised concerns about the sensitivity of the budget to housing values and assessed-value trends. "We have to have a cushion to deal with that," resident Jeanne Pauline said, urging prudence in planning for a potential AV downturn. Another commenter, Jack Fair, said the district needs more scrutiny of the gap between projected expenditures and revenues and cautioned that higher interest rates could depress housing values.

Board discussion emphasized the district's historically large cash balance but noted OSPI guidance showing higher reserves are preferable. Trustees directed staff to continue conservative assumptions and to refine EP&O levy planning as October and November deadlines approach.

Formal action: The board voted to adopt Resolution No. 14, the 2025–26 Kennewick School District budget. Roll-call votes were recorded and the motion passed 5-0.

Looking ahead: Staff said work on the EP&O levy planning and updated enrollment and AV figures will continue into the fall budget cycle; the board requested regular updates if market or apportionment assumptions change.