3 Rivers budget committee approves $71.2 million budget, sets tax rate at 3.7262 per $1,000

The 3 Rivers School District budget committee voted to approve the district’s proposed 2025–26 budget and set the operating tax rate at 3.7262 per $1,000 of assessed value.

The approved budget allocates a $71,200,000 general fund. Superintendent Dave Valenzuela told the committee the district began the budget process facing an initial general-fund shortfall of about $2,500,000 and that staff worked to protect classroom programs while balancing the books through strategic reductions, grants and use of beginning balances. "We were around $2,500,000 short," Valenzuela said during his budget message. He added the district avoided cutting school days or furloughing staff and instead eliminated vacant positions and reduced discretionary budgets.

Accounting manager Megan Beck walked the committee through the budget structure, noting that 54% of the general fund is for classroom instruction and that salaries and benefits account for roughly 68% of expenditures. Beck described specific reductions that helped balance the budget: about 5.2 FTE removed through attrition, 0.5 FTE shifted to grant funding, a 10% reduction in discretionary department budgets, deferred maintenance projects and an adjustment to an administrative employment contract.

The packet presented to the committee included assumptions about revenues and state funding. Beck said the district estimates local property tax revenue of about $23,000,000 and cited a newly released state school fund forecast for K–12 that affects district allocations. She also described PERS (Public Employees Retirement System) cost pressure and said a recent senate bill will provide a modest statewide reduction in district rates, estimating about $500,000 in relief for the district.

Committee members asked staff to follow up on several line items and clarifications in the document, including the roll-up of special revenues and changes tied to ESSER one-time funding. Beck confirmed some services that previously appeared in the general fund (for example, district nurses) are now paid from grants such as the Student Investment Account; she agreed to provide more detailed line-item breakdowns on request.

During discussion the committee discussed capital priorities, noting the proposed capital projects allocation of about $1,891,000 and that one catastrophic facility failure (for example, a septic or major HVAC repair) could consume a large portion of that fund. Valenzuela cited Madrona septic repair estimates north of $500,000 as an example.

A committee member moved that the budget committee approve the proposed budget as presented and set taxes for fiscal year 2025–26 at a rate of 3.7262 per $1,000 assessed value. The committee seconded the motion and approved it by voice vote. No roll-call tally was recorded in the meeting transcript.

Next procedural steps: the board will adopt the budget at its June 11 meeting and the fiscal year begins July 1. The budget committee adjourned following the vote.