Wenatchee schools warned of budget uncertainty as legislature weighs cuts, funding changes
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Summary
The district’s executive director of business and finance told the board the state’s projected $2.3 billion shortfall and several pending bills could reduce school funding this year, affecting special education, MSOC, transportation and local effort assistance. The board will receive two more legislative updates before March.
Sean Fitzgerald, the district’s executive director of business and finance, told the Wenatchee School District Board of Directors on Jan. 27 that a projected state budget shortfall and several pending bills create uncertainty for the district’s 2026 budget.
"The state income shortfall is driving conversations about cuts rather than increases," Fitzgerald said during the legislative update. He outlined areas the district is monitoring, including special education funding, material and supplies and operating costs (MSOC), pupil transportation funding, and potential changes to Local Effort Assistance (LEA).
Fitzgerald reviewed recent policy changes and bills from the 2025 and 2026 sessions. He noted that a prior cap on special education enrollment funding was lifted in 2025 and that work remains to align MSOC funding with rising costs. He described one MSOC proposal under consideration — an increase of $100 per pupil or $100,000 per district, whichever is greater — but said it currently lacked traction in committee given the state deficit.
Fitzgerald also flagged the governor’s budget proposal to reduce or roll back some LEA increases and a proposed reduction in transition-to-kindergarten (TK) slots. He explained other proposals that could affect near-term transportation funding, including extending school bus depreciation to 15 years and a proposed reduction in the running start rate from 1.4 to 1.2.
The executive director named specific measures he is watching as discussed in committee: “house bill 21 60” (benefits eligibility for certain employees), “senate bill 59 18” (an MSOC funding proposal), “house bill 21 16” (school enrichment and levy changes), and several companion bills and resolutions the board should monitor. Fitzgerald said the legislature’s short session moves quickly and the district will provide two further updates in February and March to report on bill progress.
Why this matters: District officials base budget planning on state apportionment, and Fitzgerald said state funding decisions this session could change the district’s revenue picture for next school year. He recommended continued monitoring and updates to the board as bills advance.
The board did not take formal action on legislation at the meeting; Fitzgerald said the next legislative update is scheduled for Feb. 24, with a final presentation March 24.
