Olympia School District adopts 2025–26 budget amid public criticism of administrative pay and possible school closures

The Olympia School District Board of Directors voted to adopt the district's 2025–26 F-195 general fund budget and accompanying four-year projections on July 8 after a second-reading presentation by Executive Director Kate Davis and Superintendent Murphy.

The adopted budget projects roughly $189 million in revenues, about $190 million in expenditures, and an ending general fund balance of approximately $6,586,000 (about 3.5 percent) for 2025–26. Board materials and the staff presentation emphasized that roughly 86 cents of every dollar in the budget is allocated to personnel costs.

Why it matters: community members at a pre-meeting public hearing and later public comments told the Board they were alarmed that the proposed budget includes pay increases for central administration while neighborhood schools face program cuts or potential consolidation. Speakers linked executive pay decisions to community trust, staff retention, and the district's stated priorities for student-facing services.

Public testimony: Jeremy Roos said he was concerned about 'inappropriate' executive pay scales and asked the district to provide data on staff efficiency and technology use; he noted the superintendent's proposed pay and compared it to local Bureau of Labor Statistics figures ("the superintendent earns approximately a 110% more than a comparable career within the Olympia community"), and urged more transparency and prioritization of classroom positions. Erica Larry, representing OSD For All, criticized reopening school-closure discussions and accused the district of 'tone-deaf' decisions that risked driving away teachers and families. Colette Paulson and other speakers urged the Board to consider the optics and the real impacts to students when administrative raises are considered alongside consolidation scenarios.

Staff presentation and federal grant risk: Executive Director Kate Davis explained the F-195 presentation and four-year projections and gave a detailed crosswalk of state prototypical allocations versus the district's actual staffing (for example, the district staffs more teachers and teacher-assistants than state prototypical allocations in some categories, while other areas, such as librarians, show differences driven by levy and tech-levy funding). Davis also told the Board that the Office of the Superintendent of Public Instruction (OSPI) had notified districts that Title I/II/III/IV awards were under review, and that the district had already taken a conservative approach in the budget; staff estimated a potential exposure of roughly $495,000 if some federal awards were delayed or withheld and described mitigation planning.

Capital and transportation items: Davis reviewed capital projects and the technology levy (items include device replacement, assistive technology, software and safety systems), and described debt-service timing that limits new bond capacity until the early 2030s without additional tax action. The district also described transportation vehicle planning: the district purchased 11 buses in 2024–25 and expects a Department of Ecology grant to cover five electric buses; because bus delivery is lengthy, staff said they plan a September resolution for an interfund loan to place orders and later reimburse the capital project fund when grant dollars arrive.

Board action and related motions: during final budget deliberations the Board took several votes: it unanimously adopted a motion to list a $140,000 district share for scoping and visioning work with the City on the proposed Freedom Farm park (moved and seconded during the capital projects discussion); it then adopted the F-195 2025–26 general fund budget and four-year projections (roll-call result recorded as 4 ayes, 0 nays). The consent agenda and minutes were also approved earlier in the meeting.

Superintendent contract outcome: following an executive session for the superintendent's evaluation and contract review, the Board reconvened publicly and approved a cost-of-living adjustment equal to the K-12 salary inflationary factor (2.57 percent) that raises the superintendent's annual salary to $263,333. The board also removed mandatory furlough days from the superintendent's contract language while reserving the right to request up to 10 furlough days during 2025–26. The contract amendment was approved unanimously.

Board and community reaction: Board members expressed differing views in debate before the budget vote. Several directors and public commenters called for clearer linkages between resource allocations and measurable student outcomes, more transparent justification for administrative compensation increases, and continued work on equity, boundary and facility planning to guide longer-term structural choices. Directors also noted that proceeding without passing a timely budget could push the district toward state intervention, and several members argued that adopting a budget now preserves the district's ability to hire and offer positions for the coming school year.

What's next: staff said they will continue mitigation planning if federal Title allocations are delayed or reduced, will return in September with the interfund loan resolution needed to order electric buses if grant timing requires it, and will advance the capital-projects plan (including the $140,000 partnership scoping item for Freedom Farm) as the district refines its long-range facilities work.

Quotes (selected): "It is the board's responsibility to advocate for a balanced sustainable use of taxpayers' money," said Jeremy Roos during the public hearing. Superintendent Murphy emphasized summer programs and staff work and asked the public to consider student outcomes in evaluating budget priorities. Executive Director Davis warned that federal Title awards were under review and said the district had already budgeted conservatively for possible reductions.

Provenance: Public testimony and the detailed staff budget presentation are recorded in the meeting transcript and were the primary basis for this report.