Redmond SD 2J finance director warns of another multimillion-dollar budget gap as PERS costs rise

Kathy Steinert, the district''s finance lead, told Redmond School District's budget committee that the district is planning for a $3.7 million gap for the 2025-26 fiscal year driven largely by a projected PERS rate increase and higher payroll costs.

Steinert said the district cut $3.5 million from last year's budget, including elimination of 14 full-time positions that saved about $1.4 million, but that the coming biennium presents new pressures: an unknown state school fund allocation, increased compensation and operating costs, and a PERS rate increase that she described as one of the few known facts affecting the budget.

The state forecast and federal funding risks

Steinert began by describing the uncertain state funding picture: the district is preparing on the basis of the governor's proposed budget and the most recent forecasts but said the legislature will probably not finalize the state school fund allocation until the May forecast. She summarized features of the governor's proposal the district used for planning: a proposed state school fund level of about $11.359 billion and a broad increase in education funding the governor estimates as 10.5% overall. Steinert also said recent changes in how the state calculates current service level and compensation are improving the starting point for school funding but that federal policy changes or economic shifts could alter final allocations.

Enrollment and program trends

Steinert reported that Redmond's enrollment is still below pre-pandemic levels overall but rose by about 1% for 2024-25. She noted structural shifts: middle school enrollment remains the most depressed relative to 2019 levels while RSD Flex, the district's online program, has…