On December 13, 2023, the School Board adopted Resolution No. 2023-24-7, which directs the Superintendent to develop a Fiscal Stabilization plan to address the budget deficit for the 2024-25 school year.

1. “The Superintendent is directed to present a plan for balancing the budget for 2024-25 and 2025-26, with the goal of transitioning to sustainable financial plans that aligns general fund expenditures with reasonably anticipated revenues and supports a system of well-resourced schools;
2. The Superintendent is authorized to incorporate into the Fiscal Stabilization Plan the use of an interfund loan or other short-term borrowing program(s);
3. The Superintendent is authorized to consider and research the following in the development of a balanced budget proposal for FY 2024-25:
   • Reductions and adjustments in central office staffing and expenses;
   • Reductions and adjustments in school staffing allocations;
   • Changes to transportation;
   • Fees;
   • Lease or sale of non-school properties;
   • Program adjustments and restructuring;
   • Delayed repayment of the Economic Stabilization Fund;
   • Reductions in contingency balances; and
   • Utilization of one-time self-help funds and school carryforwards.
4. The Superintendent is directed to work with the Board to explore legislative solutions.
5. The Superintendent is directed to present a plan to realize the vision for a system of well-resourced schools by May 8, 2024. This plan may include:
   • School consolidations, to be implemented in the 2025-26 school year and beyond;
   • Grade level reorganizations; and
   • Program adjustments and restructuring.
6. The Superintendent is directed to prioritize on-going solutions in the development of the budgets for 2024-25 and 2025-26. These solutions should include research and analysis of enrollment and the significant cost drivers;”

School Positions Included in the Central Office Budget

Many positions are centrally funded but actually work in the schools. This enables school leaders to focus on academic issues. Examples of these positions include:

• nutrition services workers
• custodians
• occupational and physical therapists
• speech and language specialists
• audiologists, psychologists
• nurses
• instrumental music teachers
• family and support workers
• bilingual instructional assistants
• school security specialists
• transportation services
• grounds and maintenance workers

What is SPS plan for a responsible budget?

While we are not closing any schools for the 2024-25 school year, we will be making some necessary changes to balance our budget in a fiscally responsible manner that ensures educational excellence across the district. To balance the budget for 2024-25 school year, this district intends to seek the implementation of loan tools the Washington State Legislature provided to specifically address budget de-stabilization, along with restructuring some programs.  

Why this will work? 

Our plan to balance our budget provides significant long-term savings and opportunities for more savings in the future.  

What’s the issue with the budget?  

SPS faces projected deficits of $105 million for fiscal year 2024-25, $129 million for fiscal year 2025-26, and $153 million for fiscal year 2026-27. This structural shortfall is caused primarily by insufficient funding from the State of Washington; declines in enrollment, the spending of one-time funding sources. 

What’s the situation with enrollment? 

Today, enrollment is approximately 48,000 students and there are 104 school buildings. From 2019-23, enrollment has decreased by 4,900 students, which has resulted in an $81 million drop in revenue.  

Why consolidate or close schools in the future? 

As much as we love every one of our schools, when they are under-enrolled, they become under-resourced and this causes inequity and inconsistency from school to school.  

Aren’t there better ways to cover the deficit than closing schools? What other alternatives were considered? 

Closing a school will save $750,000 to $2,000,000. While that is only part of budget savings, it will indeed make a difference.  

Why can’t we have smaller schools? 

Current Washington state funding does not support smaller schools or smaller class sizes. State funds are based on the cost to run a 400-student elementary school, which means schools smaller than that are not financially feasible or sustainable.  

How is this process going to lead to well-resourced schools? 

We have launched a community-wide effort to reimagine a system of well-resourced schools which offers students and families the support, the programs and resources, and the inspiration they need to succeed and thrive in the neighborhoods where they live.

We will continue this community engagement to ensure that the decisions we make will be responsive, equitable, and sound, as we consider making any substantial consolidation, closure, and programmatic changes. Read more about the well-resourced schools community engagement.