Bellevue School District previews 2026–27 budget; four‑year forecast shows growing deficits without reductions

The Bellevue School District on June 25 presented a preliminary 2026–27 general fund budget and a four‑year forecast that officials said will require additional cuts or funding growth to remain solvent.

Deputy Superintendent Dr. Sanchez and Megan Hagen, the district’s director of budget, said the district is projecting beginning fund balances of about $11.5 million and budgeted revenues of roughly $460 million against $458 million in expenditures. "So note that our revenues are greater than our expenditures by $2 million," Hagen said, noting the plan meets the board’s annual goal of increasing the fund balance by $2 million for the year.

The presentation emphasized near‑term progress alongside long‑term risk. Dr. Sanchez told the board the district expects enrollment to decline "by about 250 students which for us represents about $3 million in revenue," a driver of the district’s fiscal position. Under a status‑quo set of assumptions — static staffing, enrollment growing only by the state IPD and levy increases limited to CPI after a one‑time boost — the four‑year forecast shows deficits that compound over time. Presenters said the status‑quo forecast produces a $5.4 million gap in 2027–28 and larger shortfalls in subsequent years.

Hagen walked board members through the budget’s composition: approximately 66% of general fund revenues come from state allocations, 24% from local levies and about 3% from federal sources; on the spending side, roughly 82% of the $458 million is personnel and benefits, with 54% directed to regular instruction and 20% to special education.

The presentation also highlighted legislative context. Hagen said House Bill 2049 provided a $500 per‑student levy boost for calendar year 2026, a one‑time increase that helped near‑term reserves but will not repeat in the same form in future years, when levy growth will revert to CPI.

Budget risks the district listed included special education costs exceeding budgeted amounts, lower than expected fall enrollment, unplanned staffing or MSOC (materials, supplies and operating costs) increases, and transportation ridership declines that affect reimbursements.

The budget preview is part of a multi‑step process: the district will submit the F195 package to the regional Educational Service District for review on July 10 and return to the board with fuller materials on July 30, followed by a budget hearing and anticipated board action on August 13. Hagen urged the public to join the study session immediately following the meeting for deeper questions and detail.

Next steps: the board will review updated projections on July 30; staff signaled that meeting would include a more complete four‑year forecast and options for reductions if state funding does not change.