Seattle School Board introduces $1.35 billion 2025–26 budget; vote set for July 1

The Seattle School Board on June 4 received an introduction of the proposed 2025–26 general fund budget, which Assistant Superintendent of Finance Dr. Betleman described as a $1,350,000,000 spending plan that “eliminates the projected hundred and $4,000,000 deficit with some not ongoing solutions.” The board will take a final vote on the budget July 1.

Why it matters: The proposal uses a mix of new state and local levy revenue plus one‑time measures to close a multi‑million‑dollar gap while holding schools open and avoiding district‑wide program cuts for the coming school year. It also leaves some structural questions about multi‑year sustainability for the board and staff to resolve through the summer and at the board’s retreat.

District finance staff told the board the package relies on multiple elements: new state revenue and an increased levy cap that raises local levy proportion; use of portions of the district’s unrestricted fund balance from 2023–24 as one‑time balancing revenue; repayment deferral to the rainy day reserve; and an option to extend repayment terms for an interfund loan taken previously. Dr. Betleman said more than 70% of the general fund would still pay for teaching and teaching support activities.

The presentation covered how enrollment is counted for funding (average annual full‑time equivalent, or AAFTE, which differs from simple head count), projected flat enrollment, and that the district’s four‑year forecast shows an erosion of fund balance if the current trajectory continues. Dr. Betleman also highlighted several cost pressures staff said shaped the plan, including higher transportation and purchased‑services costs and increased outside‑counsel legal expenses.

Staff also introduced a separate resolution to amend the repayment schedule of a prior interfund loan; the proposal would permit the district to repay up to $17,600,000 of that loan in 2025–26 while extending the remaining balance further out. Chief Operating Officer Fred Podesta told the board the extension is one of the short‑term steps used to balance the coming year.

Board discussion focused on the need for a longer‑term sustainability plan. Director Sarju asked whether the district has a multiyear plan to eliminate the structural deficit; staff answered that the introduced budget balances 2025–26 using available revenue and one‑time measures but that a longer‑term plan will need to be developed and discussed at the board retreat and in subsequent work sessions. Directors asked for additional detail on specific line items, including legal costs and how staffing decisions are triggered by enrollment changes.

What’s next: The budget will be the subject of a public hearing that followed the meeting and a board vote set for July 1. Staff said they will provide further details and respond to board questions at the board retreat and in advance of the July 1 vote.