Kent School District board gets stark budget forecast; staff recommends phased $7.5M cuts starting 2026–27

Kent School District trustees spent the bulk of a special meeting reviewing a May financial report that shows the district operating at a larger deficit than anticipated and facing a multi‑year shortfall that staff recommend address through phased, permanent reductions.

"The estimated deficit is about $12,300,000 dollars as opposed to what we anticipated to be $9,700,000," said Mr. Perringo, the district finance staff member who presented the report, describing the year‑to‑date position through May 31. He told the board the district had set a forecast that assumes implementation of roughly $7,500,000 in permanent budget balancing actions beginning in 2026–27, with similar steps in subsequent years to protect a minimum 5% unassigned ending fund balance.

Why it matters: the board and staff said the district relies heavily on local levies and that roughly 80% of the budget is people costs set by contracts and state funding formulae. Directors said a multi‑year approach spreads impacts and is intended to avoid sudden, large workforce or program cuts, but they warned the projections depend on state and federal funding that may change.

The presentation explained the difference between the district's adopted 2024–25 budget forecast — an anticipated $9.7 million deficit — and the May report's higher year‑to‑date shortfall. Staff described a forecast through fiscal 2028–29 showing cumulative declines in ending fund balance unless multi‑year balancing actions are taken. "We are operating at a higher deficit than what we anticipated," Perringo said, noting month‑to‑month timing differences in revenue and expenditures can change the final outcome for the fiscal year.

Board members pressed staff for details on potential reductions and timelines. Staff said they are reviewing "every area of the budget" and will return with specific proposals but had not yet produced a finalized list of recommended reductions. Board members asked when line‑item options would be available; staff said conversations typically begin in the fall and that the district has been preparing for multi‑year reductions for several years.

Directors and staff emphasized external funding uncertainty. The presentation referenced recent updates from the Office of Superintendent of Public Instruction (OSPI) and federal signals that Title I and other federal carryover dollars could be reduced or delayed. Perringo said OSPI had warned districts that federal carryover funding might not materialize and that Title I could be funded at a lower level next year.

Several board members also discussed the impact of state decisions on local programming. One director noted that the district had planned for fifth‑grade camp in the budget but that the program was reduced at the state level, not by the board.

Trustees said they will schedule additional budget work sessions and increase opportunities for staff presentations and public engagement before any permanent reductions are finalized. "We will have even more conversations about this throughout the year to make sure that there are no surprises," President Margell said.

Formal actions taken at the meeting included approval of the consent agenda (items 2.01–2.04), which passed 3–1. The board also voted down a motion to add a separate "board communication" item to the special meeting agenda (vote 1–3); that vote was procedural and did not change the district's budget work plan.

Looking ahead: staff said they will continue monthly monitoring, update the board as OSPI and federal information becomes available, and present more detailed options for where permanent reductions might be made if revenue shortfalls persist.