Sultan School District reports $1.8M shortfall this year, institutes spending freeze and approves plan to identify staff reductions
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Summary
District finance staff reported expenditures about $1.8 million over revenues, announced a spending freeze and plans to borrow from capital projects to manage cash flow; the board approved Resolution 25-06 authorizing development of a reduced-educational plan that could identify positions for reduction for 2026–27.
District finance staff told the Sultan School District board on March 23 that expenditures so far this year exceed revenues by about $1.8 million, prompting a districtwide spending freeze and a plan to borrow from capital projects to maintain operations.
“We have to borrow from capital projects to make it through the year,” the finance presenter said, and described a spending-freeze posture while preserving expenditures that the state requires (for example, CTE program spending that must be used or risk reversion). The presenter said the general fund is roughly $150,000 above last year’s point, cash with the county was reported as “474” in the presenter’s update (units not specified in the meeting transcript), and month-end capital projects balances were reported around 2,700,000. The presenter also said the district had received roughly $950,000 in capital-project grants, requiring budget extensions next month to authorize spending.
In response to the funding context, the board approved Resolution 25-06 directing staff to develop a reduced-educational plan that will identify positions the district may reduce for the 2026–27 school year. The superintendent said the plan will mark positions that are reduced through attrition, explain choices by seniority and credentialing where applicable, and that the district has a May 15 deadline to notify certificated employees who may not be employed in the next year.
Board members discussed putting a capital bond before voters and the timing tradeoffs between November (higher turnout, better validation prospects) and February (lower turnout). Staff said service architects are finalizing cost estimates for CFAC-proposed projects including a new high school on the Sultan Basin, expansion of Gold Bar to serve all K–2 students, and another elementary project; board members asked for cost details before deciding a ballot date.
What the board did: the board approved the resolution to develop the reduced-educational plan and continued working with service architects and the bond committee for cost estimates. The finance presenter said the district will bring budget-extension requests next month for the capital grants and will continue close review of all expenditures.
What to watch next: staff and the board will publish cost estimates for the proposed capital projects, and the district will present the detailed reduced-educational plan next month that will identify positions targeted for reduction or left vacant by attrition.
