At the December 3 school board work session, Executive Director of Finance Raul Parungao provided an update on the result of the year-end close of fiscal year 2024-25 (prior year) and reviewed the district’s significant budget challenges.
Fiscal year 2024-25 ended with a fund balance of $58.8 million, $1.4 million lower than anticipated. After designating restricted ending fund balance and other legally required items of $12.8 million, the unassigned ending fund balance is $46 million (8.9 percent), which is above the five (5) percent minimum required under Board Policy 6022.
Fiscal year 2025-26 is projected to end with an unassigned fund balance of $30.6 million or 5.7 percent after implementing budget reductions of $7.1 million resulting from the reduction of revenues due to declining enrollment.
With the information currently available, there is a projected $35 million budget shortfall for the 2026–27 school year. To maintain a five (5) percent unassigned ending fund balance, significant reductions must be implemented. All areas of the district are being reviewed for efficiencies, revenue opportunities, and expenditure reductions.
Key points include:
A projected shortfall of $35 million for the 2026–27 school year.
Paid Family Medical Leave Act premiums have more than doubled since 2021.
Workers’ compensation costs are projected to rise by $3 million.
Enrollment decline is projected to continue, resulting in revenue loss faster than reduction of expenses.
State funding is not meeting rising costs, creating a structural deficit, and without action, this deficit will deplete our ending fund balance.
Our general fund costs average $47 million per month; the required Board Policy five (5) percent ending fund balance covers only 2.5 weeks of operating costs.
Approximately $8 million in federal funds remains at risk of reduction or elimination.
We have always worked to protect schools as much as possible, but the size of the budget shortfall means changes will be felt across the district, including in schools, programs, and departments.
We remain committed to acting with transparency, empathy, and care by:
Sharing accurate, timely information with the board, staff, families, and the community.
Making student-centered decisions that preserve educational quality.
Listening to feedback from schools, departments, employee groups, and community members.
Kent School District is launching a community engagement campaign in January to hear from our community on budget challenges.
Mark your calendar:
Wednesday, January 7, 2:00 p.m. KSD All Staff Meeting (Online)
Monday, January 12, 6:00 p.m. Community Meeting (In Person)
Wednesday, January 21, 1:00 p.m. KSD All Staff Meeting (Online)
Saturday, January 24, 10:00 a.m. Community Meeting (Online)
Additional details about these meetings will be shared soon on district and school websites.
As OneKSD, we will work together to ensure every student has access to opportunities, resources, and support because their future is our shared mission.