Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Finance topic
No spam. Unsubscribe anytime.
District finance chief warns of $3 million annual shortfall if state levy equalization funding declines
Summary
Assistant Superintendent Teresa Main told the Lake Stevens board that Levy Equalization Assistance reductions beginning in 2028 could cut about $3 million annually, and presented preliminary 2026-27 budget projections showing roughly $200 million in revenue against nearly $217 million in expenditures.
Assistant Superintendent of Business and Operations Teresa Main told the Lake Stevens School District Board on April 29 that an expected reduction and eventual elimination of Levy Equalization Assistance beginning in 2028 could lead to an estimated $3 million annual revenue loss.
In a detailed budget overview, Main said the district projects roughly $200 million in revenue and nearly $217 million in expenditures for 2026–27 under preliminary assumptions. She noted the district maintained an AA3 Moody's rating and described conservative budgeting practices that have supported a projected ending fund balance of about 14 percent. Main emphasized that roughly 83 percent of district expenditures support salaries and benefits and that approximately $8.6 million of certificated salaries are currently funded by local levy dollars.
Why it matters: A sustained $3 million annual reduction in state-related levy equalization funding would require the district to consider expenditure reductions, levy strategy changes, or alternative revenue sources to maintain current staffing and programs.
Board response and next steps: Superintendent Dr. Mary Templeton and directors asked clarifying questions about reserve levels, contingency planning and enrollment trends. Main said the district will continue advocating for restoration of the funding and will present a four-year financial forecast at a future meeting. She also noted the district will submit budget documentation to OSPI and the regional Educational Service District before adoption.
The presentation included discussion of inflationary pressures, rising insurance and contracted service costs, and enrollment stabilization at about 1–1.5 percent growth since the pandemic. Main said the district is considering bond sales and possible refinancing of 2016 bonds to reduce interest costs.
The board did not take formal budget action at this meeting; further budget presentations are scheduled through August with a public hearing and final adoption to follow.
Provenance: Budget figures and the LEA projection are recorded in transcript SEG 089 through SEG 111.
