Superintendent Dr. Maloney told the Evergreen School District board on Jan. 13 that a prolonged enrollment decline, state funding shortfalls and rising costs have produced a budget problem that will require significant program reductions.

“[W]e are at just about 21,500 students,” Maloney said in a video presentation the district distributed to the community, comparing current enrollment with more than 26,000 FTE in 2016–17. He said that drop represents a revenue loss he estimated at roughly $55 million a year and that the district will likely need to cut between $12 million and $13 million from the 2026–27 budget.

Maloney outlined the primary drivers: lower student FTE, inadequate state funding (including the unresolved promise of the McCleary decision), inflation-driven cost increases, and federal grant uncertainty. He highlighted specific gaps: special education costs this year were described as $77,000,000 with state funding near $58,200,000—a gap speakers and the superintendent cited as roughly $18,800,000—and substitute staffing and insurance costs substantially above amounts the state provides.

The superintendent described district policy and fiscal constraints, including a target 5% fund balance the district has fallen below; he said the fund balance has fallen to about $16,800,000 (about 2.5%). Maloney laid out a timeline: budget meetings through January and February, a draft of recommended reductions to be presented Feb. 24, and an expected board resolution to adopt a reduced educational program at the March 24 meeting; certificated staff notifications tied to any reduction in force were noted as legally required by May 15.

Maloney said the district will use an equity lens, community input and established budget calendars to guide decisions and warned that all cuts will cause hardship for some programs and staff. The board did not vote on program reductions at the Jan. 13 meeting; Maloney said work on the recommendations is ongoing.