Wenatchee School District holds budget hearing; board approves bus‑driver contract and 180‑day waiver

The Wenatchee School District Board of Directors met Aug. 12 for a public hearing on the district’s 2025–26 budget and four‑year projections and took two board actions: approving a collective bargaining agreement with the district’s bus drivers and adopting a resolution to request a waiver of the 180‑day minimum school year for K–12 under state rule WAC 180‑18‑040.

The budget presentation, delivered by Sean Fitzgerald, executive director of business and finance, outlined a $133.5 million total budget for 2025–26, updated enrollment forecasts tied to recent birth‑rate data, and several funding and expenditure items that the board will track before adopting the final budget on Aug. 26. Fitzgerald told the board the district is projecting a $2.5 million drawdown of general‑fund reserves in 2025–26 and emphasized federal funding uncertainty for programs funded through Title and other federal grants.

District context and why it matters: the general fund accounts for the majority of day‑to‑day operations and, as presented, makes up about 87 percent of the 2025–26 budget. The board must weigh declining enrollment projections, state funding formulas linked to student counts, and the potential for reduced federal grant funding when it adopts the budget Aug. 26 and certifies it to the Office of Superintendent of Public Instruction (OSPI) by Aug. 31. Fitzgerald said the district updated its forecasts after receiving 2024 birth data and added a longer forecast horizon to 2029–30 to reflect recent demographic shifts.

Enrollment and projections: Fitzgerald noted a long‑term decline in district enrollment from a high in 2015–16 and said updated July 2025 counts put current budgeted enrollment at roughly 6,553 full‑time equivalent (FTE) students, a drop of about 205 FTE from 2023–24. He pointed to a decline of roughly 1,100 FTE since the 2015–16 peak and explained that birth‑rate declines between 2019 and 2020 reduced incoming kindergarten cohorts, though 2024 birth data show an uptick that may modestly raise kindergarten counts by 2029–30. “One of the biggest things we’re highlighting for the incoming kindergarten class is the drop of 71 births from 2019 to 2020,” Fitzgerald said, noting the COVID pandemic’s likely effect on birth rates.

Federal and state revenue risks: the budget assumes roughly 74 percent of revenues from state sources, with federal special‑purpose grants and Title programs making up the largest share of federal funding lines. Board director Tucker asked whether the district expected cuts; Fitzgerald said the 2025–26 budget is covered but expressed concern about 2026–27 and beyond as the federal budget process continues. Superintendent Dr. Kelleher described July’s disruption — when federally allocated funds were briefly not released — and said the money was restored on July 25: “The funds were released on the July 25, which kinda concluded that 15 day or, I guess, 18 day chaos,” she said, commending staff for rapid contingency work.

Major budget items and reserves: Fitzgerald described fund‑by‑fund details. The district budgets $12,000,000 in 2025–26 for the skill‑center project while noting a $14.5 million state grant funds the overall renovation across two fiscal years; he said the district has selected a project manager, contractor and architects for that work. He also said the transportation vehicle fund will receive three new buses in September and that the district will temporarily transfer $150,000 from the general fund to pay for them until state depreciation reimbursements arrive, at which point the transfer will be returned. Capital‑projects ideas for 2025–26 include boiler and controller maintenance at Foothills and a potential elevator replacement at the district office; Fitzgerald said those projects would largely be funded by a proposed $500,000 transfer from the general fund.

Fitzgerald summarized revenue and expenditure drivers: total revenue of $133.5 million; local levy and taxes about $15.7 million; salaries and benefits accounting for more than 80 percent of expenditures; and a projected general‑fund beginning balance of about $13.6 million that would fall to roughly $11.1 million after the projected 2025–26 deficit of $2.5 million. He noted the district is considering whether to raise the minimum fund‑balance policy from 5 percent to 6 percent but said the board will revisit that after fall enrollment and assessed‑value numbers are final.

Compliance and disclosures: Fitzgerald presented the MSOC (materials, supplies, operating costs) disclosure required under state statute and showed state MSOC funding of about $10.4 million compared with proposed MSOC spending of $13.5 million — a $3.1 million difference that he said keeps the district in compliance with the RCW disclosure requirement. He also reviewed the budget timeline: public hearing Aug. 12, adoption scheduled for Aug. 26, and certification to OSPI by Aug. 31.

Board actions taken: after the budget hearing, the board approved two items with voice votes. The board approved a collective bargaining agreement (CBA) with the public‑school employees representing Wenatchee bus drivers for the 2025–26 contract year; the motion to approve was made by board director Julie and seconded by board director Mark and passed with all members saying “aye.” The board also approved Resolution 0225, a request for a waiver of the 180‑day minimum school year under WAC 180‑18‑040 to allow three parent‑teacher conference days; the motion was made by board director Martin and seconded by Julie and passed on a voice vote.

Public comment and next steps: no members of the public registered to speak during the hearing. Superintendent Dr. Kelleher and district staff will incorporate final fall enrollment and assessed‑value data before the Aug. 26 adoption. Fitzgerald told the board the district will monitor federal grant decisions and fall enrollment and return to the board for any required adjustments.

Quotes from the meeting are drawn from board members and district staff present at the Aug. 12 hearing.