Tacoma Public Schools projects tens of millions shortfall; dozens of staff displaced

Kari Kapman, the district director of strategic financial operations, told the Tacoma School District board at its June business meeting that the district is projecting a budget gap driven by lower revenues and higher expenses.

“We have a total of about $706,000,000 that we manage through that, of which $578,000,000 goes through our general fund,” Kapman said. She told the board projected revenues for the year are $564 million — about $14 million below budget — while projected expenditures are about $579 million, roughly $6 million over budget. Kapman said the district’s board-directed reserve level of 5 percent is expected to fall to near zero at year end.

The shortfall is the latest step in a multi-year financial squeeze the district traced to state funding changes tied to the McCleary-era funding landscape, local enrollment stability and expected cuts to some federal grants. Kapman told trustees the district has eliminated administrative positions in recent years and identified program reductions to close gaps; she said recent federal grant reductions include a $2.6 million cut to a multi‑year mental‑health grant.

Staffing lead Steven Diedrich provided the board with specific personnel impacts tied to the budget and to school reassignments. He said 107 certificated staff have been displaced so far, of whom 65 have been placed and 42 remained to be placed beginning the next day. He said 105 provisional certificated staff were non‑renewed and would be considered for hire once displaced current employees were placed and the 2025‑26 budget was finalized.

For education support professionals (ESPs), Diedrich said 132 staff had been displaced and 57 had been placed into new MTSS ESP positions; he said the district was working to place 10 more displaced ESPs under a memorandum of understanding with union leadership. For the district’s other hourly/professional groups, Diedrich said 34 were displaced and 20 already had new assignments. “This results in a transfer from one school to another for the certificated staff members that are impacted,” he said.

Kapman and Diedrich briefed the board on next steps: awaiting the final state budget, assessing federal funding changes, continuing internal placement efforts and holding budget hearings and potential adoption later this summer. Kapman said the district is looking for other revenue and grant opportunities but cautioned there are legal restrictions on fund uses across the district’s six fund “checkbooks.”

Public commenters at the meeting — many parents, paraeducators and Montessori families — urged the board to preserve ESP positions and certain programs; their remarks are captured in a separate article. Several board members thanked staff and community members and described plans to continue outreach as the district finalizes the 2025‑26 budget.

The district scheduled a public hearing on the proposed 2025‑26 budget and tentative adoption steps at upcoming board meetings.