SEATTLE — Seattle Public Schools is grappling with a budget deficit of more than $94 million, which could impact the quality of students’ education and lead to job cuts.
The district is actively seeking up to $60 million from lawmakers in Olympia to help bridge the budget gap.
Both of the budget scenarios that SPS is currently considering anticipate deep cuts to align spending with expected revenues.
District officials say they remain optimistic that state lawmakers will provide some support. But some board members questioned the administration’s outlook, citing the state’s own budget deficit.
“I would love nothing more than to be wrong about this,” board director Liza Rankin said.
District officials say additional state contributions don’t have to be all new appropriations. If the Legislature lifts the levy cap, the bulk of the $30 million to $60 million the district hopes to get could come from local taxes.
SPS is asking voters this month to approve two levies. One will generate $747 million to pay the salaries of special education staff, security officers and other educational programs.
If the state lifts the cap on the programs and operations levy, the district could raise $13.1 million in the 2025-26 fiscal year or $24.7 million in the full calendar year in 2026. Approximately 17 percent of the 2023-24 general fund came from the local operations levy.
What’s on the table?
Administration officials say they’re hopeful that other bills aimed at addressing school districts’ expenses for special education services, transportation and other costs will result in some additional revenue. Senate Majority Leader Jamie Pedersen, D-Seattle, said potential modifications to the levy caps and other aid tied to changes to state law could boost SPS to the upper end of the $30 million to $60 million estimate it hopes to get from the state.
“It would be very disappointing, from my perspective, if we did not help them (with) something in that range,” Pedersen said.
The hurdles include anticipated state budget shortfalls, including an estimated $12 billion in the state’s operating budget over the next four years.
“In that environment, any increases in spending are challenging,” Pedersen said. “But, notwithstanding that fact, we have a lot of consensus that funding public schools — and doing a better job of supporting our school districts — is our core constitutional duty.”
He said the Legislature might have to consider a combination of cuts and revenues — beyond what it usually would — to free up money for schools.
Pedersen said Seattle and other districts should have “a good idea” in March how much they could expect from the state when revenue forecasts are released.
The local picture
In recent years, the district has faced $100-million-plus deficits.
SPS has cited declining enrollment, on which state funding is largely based, higher special education costs and inflation among the reasons for the shortfalls. Federal pandemic funds, which many districts relied on to cover staffing costs, are gone.
Without aid from the state, budget cuts could lead to increased class sizes and the loss of elementary school assistant principals. Librarian positions would be reduced to part time, and the district would cut discretionary funds that principals can use to pay for additional staff.
With or without help, SPS’ budget scenarios anticipate cuts in central office and administration spending and changes to transportation service.
The district envisions potentially slashing up to $5 million from the central office and district administration. That’s a broad category that also includes services to schools, such as custodial services, for example. According to the district, central office managers are still weighing possible reductions and their potential impacts.
Transportation changes, including altering school schedules, could save up to $11 million, according to the district.
The district could also add a mandatory athletic fee, from which it hopes to generate as much as $2 million. The district collected about $140,000 this year through voluntary contributions. However, School Board members raised concerns about whether mandatory charges could discourage some students from participating in athletics when the topic came up last year.
Both proposals involve using $42.4 million from SPS’ fund balance and $14 million by delaying repaying money it borrowed from itself to plug the 2023-24 budget gap.
What’s next
The district administration is expected to return to the School Board with more budget details. The board has asked for specifics on what exactly falls into the broad categories the administration has presented so far.
School board members also expect to receive information on how proposed spending and cuts align with recently adopted five-year academic goals, which focus on improving second grade literacy, sixth grade math proficiency, and college and career readiness rates.
The recommended budget will be introduced in June, with adoption anticipated the next month. Until then, the administration will discuss potential cuts and spending with the school board.
