Kent School District projects multi‑year budget shortfall after enrollment and federal funding drops

Kent School District budget staff told the school board at a retreat that the district faces a multi‑year structural deficit driven by lower enrollment, rising special‑education costs and proposed federal funding cuts.

Director of Budget Ms. Tyler presented the district’s adopted 2025‑26 budget and an updated forecast. The budget the board adopted in June showed about $555.6 million in revenue against $570.0 million in appropriations, a $14.9 million budget gap at adoption. After designations, the unassigned ending fund balance at adoption was about $39.5 million, or 7.3 percent of the general fund — above the board’s 5 percent reserve policy.

Ms. Tyler said the district’s October student count was 792 students below the numbers used to adopt the budget, and special‑education enrollment was down about 413 FTE versus the adopted estimate. She told the board those changes prompted a revenue recalculation that, together with a proposed federal reduction in Title I, II and III funding, produce roughly $20.4 million of near‑term pressure: an $8.2 million loss tied to K‑12 enrollment, about $6.2 million tied to inclusive (special) education enrollment, and about $6 million in proposed cuts to federal programs.

The budget presentation laid out staff projections for balancing the shortfall. To hold the district’s unassigned ending fund balance at the board’s…