Battle Ground School District projects large fund‑balance draw, 116 FTE eliminations after levy nonrenewal

Business office staff presented the Battle Ground School District’s proposed 2025–26 budget at a board workshop, saying the district will draw roughly $14.9 million from reserves and eliminate 116 full‑time equivalent (FTE) positions after voters did not renew a local levy.

The presentation, identified in the district’s meeting materials as the state F‑195 budget document, described a two‑year funding gap of $38,300,000 created by the levy nonrenewal. “The non renewal of the local levy resulted in a $38,300,000 funding gap over 2 years,” the presenter said, and added that the district plans to use $5,200,000 of fund balance specifically to cover the immediate levy shortfall. “While we try to keep cuts as far away from students as possible, these reductions will still have an impact,” the presenter said.

The nut of the proposal: to balance the general fund for 2025–26 the district would use $14,875,490 in fund balance, producing a projected ending fund balance of $17,224,510 (about 7.2 percent) from an opening balance of roughly $32.1 million. The proposed revenue total shown in the budget materials is $224,437,769.

Why it matters: the district says state and federal funding increases are not keeping pace with rising costs for salaries, materials and operations, so local levies have been essential to maintain services. The presenter said the district projects 12,306 full‑time equivalent students for 2025–26 (a net reduction of about 185 FTE from the current year) and described particular pressure in special education and substitute costs. The presentation listed a remaining special education shortfall of about $5,000,000 and a separate estimated substitute cost shortfall of $2,500,000.

Key budget actions and assumptions

- Staffing: The budget incorporates elimination of 116 FTEs (56 certificated and 60 classified). The presenter noted FTE counts are contract‑based (certificated FTE = 7.5‑hour, 180‑day basis; classified FTE = 8‑hour, 260‑day basis).

- Reserves: The plan uses $14,875,490 of fund balance in 2025–26; assigned reserves that had been dedicated to curriculum adoptions and capital improvements are being tapped to balance the year.

- State policy and forms: The budget materials rely on the state F‑195 budget form submitted to the Office of Superintendent of Public Instruction (OSPI); the presenter emphasized that the F‑195 is a state‑provided document and cannot be altered by the district.

- Grants and other revenues: The presenter said the district expects some state policy‑level increases for materials and for special education but that statewide grant reductions ($140 million cited for the state) have reduced some funding streams; Battle Ground had previously been awarded $366,000 for an outdoor school grant that the presenter said is no longer funded under recent legislation.

- Capital and debt: The presentation included planned capital projects paid from the capital levy and impact fees, and described a board agenda item to allow a transfer to the debt service fund (pending board approval). The presenter also noted a request on the board agenda for authority to seek a loan or other financing for districtwide lighting retrofits and HVAC work at Battle Ground High School; those financing steps were presented as requests to the board rather than completed actions.

- Four‑year forecast: The presenter showed a multi‑year forecast that assumes flat expenditures and no new local levies; under those assumptions the district projects a declining fund balance that becomes negative in later years unless additional reductions or revenue sources occur. The district plans a fuller four‑year forecast presentation at a subsequent board meeting.

Enrollment and program details

The presenter described enrollment assumptions in the F‑195 submission: a conservative projection of 12,306 FTE (12,001 FTE when excluding some program lines), with most of the decline concentrated in high school and running start participation. The district identified comprehensive schools, four alternative learning environments (Battle Ground Virtual Academy, Summit View High School, CAM and River HomeLink) and an Open Doors/dropout reengagement program.

Spending composition and levy uses

The presenter explained that salaries and benefits account for about 77 percent of expenditures in the submitted budget (the presenter noted transportation and nutrition are contracted services, so if the district instead employed those workers directly the staffing share would be higher). The district uses four primary funds: the general fund, Associated Student Body (ASB), capital projects and debt service. The presenter said levy funds and reserves previously supported curriculum adoptions, extracurriculars and other items now proposed for reduction.

Board‑level next steps

The presenter listed the next steps required by state law: a public budget hearing and adoption of the budget at the August 25 board meeting, with a final adopted budget required by Aug. 31. Several items were presented as pending board decisions that night, including a transfer to the debt service fund and authority to pursue financing for lighting and HVAC projects.

Attributions and sources

Quotations and specific numerical details in this report come from the district’s budget workshop presentation and the F‑195 budget document posted in the board materials. The presenter repeatedly referenced the OSPI F‑195 form and board policy 6022 (minimum fund balance policy) when explaining fund balance classifications and required reserve levels.

The presenter invited board questions during the workshop and said staff will provide follow‑up answers to items not resolved in the session.