Tumwater budget work session: district transfers $3.6 million to avoid negative cash balance; enrollment projections flat

At a work-session presentation, staff member Kira reviewed enrollment, revenue and timeline items for the 2024–25 and 2025–26 budget cycles and said the district transferred $3,600,000 from capital projects to cover a February cash shortfall that otherwise would have left the ending fund balance a little more than $1 million in the red.

Kira summarized enrollment trends and demographer projections. The district is down about 56 full-time-equivalent students compared with March of the previous year; demographer flow analytics projects relatively flat enrollment over the next 10 years. Staff noted some high-school student movement to Running Start, Cascadia and New Market High School but said a precise Running Start figure is not on the presented chart and will be provided in a future report.

The presentation compared state prototypical funding to district average pay. Staff said the prototypical allocation for a certificated teacher is $78,209 in the district’s allocation; with a 1.9% IPD adjustment that would increase to about $79,000 and to roughly $80,000 under a 2.4% governor’s proposal. By contrast, the district’s actual average teacher salary is about $96,000; average administrative salary is listed near $162,000 and classified employees about $70,000.

Kira told the board that the School Employees Benefits Board (SEBB) premiums are projected to increase about 12% next year, which staff estimated would add roughly $1,700 per employee in cost that the district will partly absorb despite some state allocation for the increase.

Board members and staff reviewed the levy lid bills under consideration at the Legislature. Staff said district voters have approved levy authority that the district is not currently able to collect because of the levy-rate formula; the amount discussed in staff materials was roughly $4.2 million in unmet levy capacity. Two bill drafts were discussed: one that staff estimated might yield roughly $1.5 million in partial impact in the first year, and a more robust senate draft that would change the formula more fundamentally. Staff and board members said forecasts were uncertain and that the district would monitor OSPI spreadsheets and the state revenue forecast expected after April 1; the governor’s final budget signature was noted as April 27.

Other budget items discussed included special-education multiplier proposals, potential MSOC increases, the apparent legislative failure of pupil-transportation bills this session and non-salary budget-reduction projects (facility use, printer/copy contract reviews, ASB revenue allocations and other operational savings).

Several board members raised public concern about a percussion position in the music program after receiving many public comments and asked whether reconsideration is possible during the budget process. Staff said public input will be considered and that board deliberations continue as staff completes nonrenewals and other budget steps.

No formal budget adoption occurred at the meeting; staff outlined a timetable of additional work sessions and two public hearings ahead of final budget adoption.