Everett School District hears first reading of 2026–27 operating budget; public hearing set for Aug. 18

The Everett School District board on July 1 received a first reading of the district’s 2026–27 operating budget and agreed by general consent to send the proposal to a public hearing and second reading on Aug. 18.

Superintendent and budget staff outlined a planning timeline that requires the proposed budget to be made public by July 10 and adopted by Aug. 31 under state law. The presentation described revenue assumptions, enrollment projections, a four-year forecast and planned capital activity tied to the 2026 bond.

"We must make our budget available to the public by July 10th and we post that on our website," Superintendent Dr. Saltzman said while reviewing statutory deadlines and the required state-format F195 documents. The presentation noted the district’s operating fund target of a 6% fund balance but warned that without reductions the fund balance will fall below minimum levels in later years.

Budget materials the board reviewed project enrollment at just under 20,000 students for 2026–27; the presenter said enrollment (October 1 headcount and annual average FTE) drives more than 60% of district revenues. The projection assumes modest growth in certain programs but continued overall fiscal pressure.

Directors and staff said a major pressure this year is insurance and purchase-service costs. Director Jackson Lawrence said the district’s risk pool estimated an 18% increase in insurance earlier this year but recent large claims pushed the expected rate closer to 45%, increasing insurance spending from about $4.2 million to roughly $6.2 million. "This money will come out of the general fund, which is the same fund that we use to support our students and teachers," Jackson Lawrence said, urging state action on MSOC funding to help cover the cost.

Staff said staffing remains the largest share of budgeted expenditures (about 83% overall), with increases planned in special education to match rising special-education enrollment and corresponding decreases in general-education staffing to align with lower-than-budgeted overall enrollment. Purchase services — including transportation contracts and special-services agreements — and insurance were identified as rapidly growing cost drivers.

The capital and debt discussion reflected the district’s recently approved 2026 bond. Staff said the district anticipates issuing an initial bond of about $40 million to fund a slate of projects, including school replacements and new synthetic track and field work. In the debt service fund, staff said the district is evaluating refunding a 2020 bond to capture potential savings; refunding is the municipal equivalent of refinancing and is pursued only if savings meet guidance thresholds.

Officials noted transportation planning in the vehicle fund to purchase two buses next year and described a decline in some state revenue tied to changes in the state depreciation schedule and prior one-time grants for electric buses.

Board members asked whether potential legislative changes to MSOC funding or the risk pool would materially affect the four-year outlook; staff responded that updated legislative funding would change revenue projections and could improve forecasts if enacted. Trustees also pressed for more detail about what is included in the rising purchase-services category and discussed fund-balance trajectory and possible reductions in 2027–28.

By general consent, and without a formal roll-call vote, the board advanced the 2026–27 operating budget to a second reading and a public hearing on Aug. 18 as part of the statutory adoption timeline. The board will consider adoption following the public hearing and required next steps; the district must adopt the final budget by Aug. 31.

The district posted a list of upcoming August agenda items, which include recognition items, the budget hearing, bid lists, multiple sole-source and contract items, mechanical upgrade acceptances and the 2026–31 capital facilities plan.