Kennewick district warns of enrollment-driven $3 million revenue drop; levy and timing of legislation shape outlook
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Summary
District staff told the board a projected 300-student enrollment decline could cut roughly $3 million from 2026–27 revenues; special-ed and LEA funding drops and insurance/retirement and other rates add uncertainty while levy proceeds partially offset the loss.
District budget staff gave a preliminary look at assumptions for the 2026–27 budget and warned the board that revenue projections remain uncertain until state legislation is finalized.
"All indications right now will play it's probably closer to 2.6%," the budget presenter said when describing an expected implicit price deflator used in budget models. The presenter said the legislative session closing the following day will determine several final figures. He told the board the district is currently projecting an enrollment decline of about 300 students for next year, which he said translates to roughly a $3,000,000 decrease in funding.
The presenter also noted other pressure points: a roughly $500,000 decrease in special-education apportionment based on the most recent apportionment review, and an expected roughly $1,600,000 decrease in local-effort-assistance (LEA) in the current modeling. He said insurance and retirement rates are also uncertain and that the district's staffing—about 86% of expenses—will be central to budget decisions.
On the revenue side, the presenter said the district's recently passed EP&O levy will increase related local levy receipts in the 2027 portion of the budget by about $2,100,000 (as modeled for the calendar/budget-year interaction). He also said the district will return to the board with more detailed projections in May and plans to publish a formal budget advertisement in the local paper in June ahead of a June 24 approval recommendation.
Board members discussed the need for cautious staffing decisions and for maintaining instructional services while adapting to projected revenue changes. The board received the preliminary update; no budget adoption took place at this meeting.
