Northshore board reviews restoration options as district faces shortfall, low reserves

The Northshore School District Board of Directors met in study session on Jan. 13 to continue development of the 2025-26 budget and to review staff'modeled restoration options that depend on potential state funding.

Deputy Superintendent Joanne Berge presented the district's updated projections and four restoration scenarios tied to varying levels of legislative funding. Berge said the district currently has a balanced 2024-25 budget but projects a widening gap for 2025-26 if no new revenue arrives. "There is never a guarantee," Berge said of legislative funding, but she added that some early bill drafts make modest funding appear "doable." She told the board the district has cut about $46,000,000 over the last two years and would exceed $50,000,000 with the next round of reductions.

Why it matters: Northshore's unassigned, or rainy-day, fund balance is well below the board's 3% policy. Berge said the district ended the year with about $8.1 million in total fund balance and that the portion categorized as unassigned is now projected at about $2.957 million. Without new revenue, staff projected a roughly $4.5 million operating deficit for 2025-26 under a no-action scenario, with existing proposed reductions and fund balance drawdowns leaving the district under the 3% minimum.

What staff presented: Berge and business staff described a central set of proposed reductions and a menu of restoration options contingent on state aid:

- Baseline reductions: staff…