2025-2026 Budget Development
The Washougal School District is focused on the following financial goals:
- Achieve a Balanced Budget: Implement necessary budget reductions and revenue enhancements to ensure expenditures do not exceed revenues.
- Restore and Maintain Fund Balance: Rebuild the ending fund balance to meet or exceed the School Board’s policy target of 6%, aiming for a 8% balance by the end of the 2027-28 school year.
- Align Staffing with Enrollment: Adjust staffing levels to correspond with declining student enrollment, optimizing resource allocation without compromising educational quality.
- Maintain Financial Transparency and Community Engagement: Continue to involve the community in budgetary decisions through surveys and public meetings, fostering trust and collaboration.
- Advocate for Adequate State Funding: Engage with state legislators to address underfunding issues, particularly in special education and operational costs, to secure necessary financial support. By focusing on these goals, the district can work towards financial stability while maintaining its commitment to providing quality education.
For the 2025-2026 school year, we anticipate a roughly 4% decline in enrollment. A large driver of the enrollment decline is the lower birthrate, and having fewer students in Kindergarten each year than are graduating from Washougal High School. This trend is expected to continue for several more years.
Estimating a reduction will always look like a moving target due to enrollment changes, staff movement, legislature updates, etc. The current potential reduction: $1,350,000 – $1,550,000
Items considered when looking at potential reduction:
- Loss of FTE and the associated state apportionment dollars
- Additional Levy rollback due to declining enrollment
- Obligations within our collective bargaining agreements
- Increase in SEBB insurance costs
- Increase in our materials, supplies, and operating costs due to inflation
2025-2026 Budget Development Timeline
- January – Sent out Community Survey
- January 28 – Board reviews Monthly budget update
- February 25 – Board reviews Budget and enrollment update
- March 25 – Board reviews budget, bargaining and enrollment forecast update
- April 8- Board reviews Community budget survey results
- April 22 – Board action on Modified Educational Program resolution
- April 27 – Legislative Regular Session Ends
- May 27 – Board Budget Progress Update (Legislative Impacts)
- June 10 – Preliminary Budget Presentation General Fund, ASB, Capital Projects, Debt Service and Transportation Vehicle Fund
- July 10 – Draft Budget posted to website
- August 26 – Public Budget Hearing
- August 31 – Final State Deadline for budget adoption
About the budget development process
Each year district leaders and the school board work through the budget planning process to create a roadmap that prioritizes student learning and important programs our community has identified through the strategic planning process.
This process begins each winter, and ends with the board adoption of the budget in August. During the process student, family, staff, and community priorities are identified through surveys, and this feedback is incorporated into the program and staffing plan.
Over the last six years, our enrollment has decreased by about 10%. Washougal experienced a significant growth in enrollment when families moved into the Sunset Ridge neighborhood in the early 2000s. As the last of that large wave of students graduates, our enrollment is projected to decline over the next three to four years. Enrollment is the primary driver of funding for our schools, so we are adjusting staffing to balance our budget, while still advancing student achievement.
Throughout the year, the board and leadership monitor the financial and enrollment data, and real-time adjustments are made to spending. The information about the budget and enrollment is posted to the website as part of our open and transparent board process. This lets community members with questions about the budget process review this data. We are also working to publish additional budget resources to our website to make sure we’re providing helpful and timely information about these processes.
Monthly Updates in Board Docs
Each month, a budget update is provided in the BoardDocs system to the Washougal School District board of directors. Community members can find the budget updates in BoardDocs using this link, categorized by each month’s meeting. Note that in some months, the report is delayed until information is available from the County Treasurer’s office. These reports are provided to the board at the next business meeting.
2024-2025 Budget Development
Like other school districts across the state, Washougal is facing a budget shortfall. In our district, we have a projected budget shortfall of $3 million for the 2024-2025 school year.
ROUND 1 UPDATE
When we shared the $3 million shortfall earlier this year, we also shared the possibility of a round two of reductions. There are four factors that play into the need for additional reductions – the outcome of the legislative session, inflation impacts on current spending, student enrollment decline, and bargaining with our labor partners.
Compensation Concessions Update
Currently, we reached agreement for a pay reduction for the superintendent, interim superintendent, directors and supervisors. Our DO clerical staff agreed to a pay freeze. The Principal Association of Washougal agreed to take less than they bargained for. The classified bargaining unit has agreed to an increase that is less than the Implicit Price Deflator (IPD) percentage. The coaches and advisors association (Washougal Association of Activities or WAA) has agreed to take no increase. The interim superintendent, Aaron Hansen, has agreed to a lower compensation than Superintendent Templeton, including all of the previously agreed to salary concessions.
ROUND 2 UPDATE
The district has been actively monitoring the four factors for round two: the outcome of the legislative session, inflation impacts on current spending, student enrollment decline, and bargaining with our labor partners. In order to ensure that district leadership can create a budget that puts the district back on sound financial footing, we will need to make additional reductions. Capacity for Round 1 and 2 staff reductions was approved by the Washougal School Board at their April 23, 2024 meeting.
Based on the updates for each of the four factors, listed below, an additional $1 million in reductions is needed.
As with round 1, administrative positions and pay will be the category with the largest percentage reduction. These administrative reductions align with the priorities identified by the community earlier in the budget process.
Factor 1: Legislative Session Impacts
We advocated for increased funding and encouraged our legislators to address the significant issues with the state funding model for education during the short legislative session. We are thankful that the legislature provided a small amount of additional funding for materials, supplies, and operating costs ($21 per student). The legislature also provided a small increase in the funding formula for teacher assistants and office support. Finally, they increased the funding cap for Special Education by 1%, which will provide additional funding support for our students with disabilities, but still leaves a significant gap the district must cover. These increases are not enough to keep pace with the increase in costs the district is experiencing.
Factor 2: Inflation Update
The district has been notified of additional, significant increases in costs for next year. These include a 31% increase in our insurance rates which will cost approximately $100,000. Our utility, food, and fuel costs will increase, and we are budgeting for approximately $500,000 in increased expenses due to inflation, including the insurance increase.
Factor 3: Enrollment Update
Our enrollment is projected to be lower again next year. This is based on fewer students registered for kindergarten this fall than will graduate at the end of the year, and the results of our enrollment survey of families. There are also additional students at the secondary level who are choosing to attend the Clark College Running Start program. These two factors will reduce district funding.
Factor 4: Bargaining Update
WAE – Teachers, counselors, and certificated staff
We shared information about our financial situation, including the need to reduce staff, our fund balance below policy, and that our school district is on the state “watch list” for districts having significant financial challenges. The district has met six times to bargain with the teacher association, but we have not yet reached agreement.
The teachers have asked for $1 million in raises, an increase of 5.7% from their current salaries. The district has offered $397,000 in increases, or about 2.3%. The teacher association and district will meet again to bargain on May 13, 2024. A full copy of the bargaining proposals are linked below, and are posted on the Bargaining Updates page on the WSD website.
- A copy of the Washougal Association of Educators bargaining proposal is linked here
- A copy of the Washougal School District bargaining proposal is linked here
PSE – Paraeducators, custodians, bus drivers and other classified staff
We shared information about our financial situation, including the need to reduce staff, our fund balance below policy, and the fact that our school district is on the state’s “watch list” for districts having significant financial challenges. We have reached a TA with PSE and are waiting for ratification. We met 5 times and discussed compensation (Schedule A) only. The TA agrees to a compensation agreement that is below the IPD (Implicit Price Deflator or inflationary adjustment)
Round 1 Budget Shortfall
Our shortfall is caused by several factors, which include the state underfunding education, inflation, declining enrollment, and a levy rollback required for next year.
Reductions are needed to balance the budget
District leaders have made reductions during the 2023-2024 school year, including a hiring freeze, reduction in building budgets, and salary concessions by administrative staff. These changes are needed to help us end the year with enough in our reserve to pay monthly expenses.
In addition, we must make additional budget reductions for next year’s budget. With a $3 million shortfall, cuts in any one area are not going to be enough. District leaders are gathering input from students, families, staff, and community members about how to prioritize the reductions, while still providing excellent service to our students. Learn about ways you can help inform this process.
Why is this Round 1 of reductions? Why do you need to plan for Round 2?
There are four primary factors that will determine whether we need an additional round of budget reductions. The state legislature is currently in session, and considering legislation that may change school funding for next school year, as well as requirements for schools. We are monitoring inflation, especially for things like utilities, which are likely to increase next year. We will be negotiating contracts with our teachers and classified bargaining groups, which may have an impact. Finally, we are monitoring current spending since how much we spend this year will be a factor in where we start the next budget cycle.
2024-2025 Budget Development Timeline
- January 9 – Budget & staffing update, board input on budget priorities and community survey
- January 23 – Board presentation of survey results, and plan for reductions of program and staff reductions for round 1 of budget adjustments
- February 13 – Present refined list of reductions for services, contracts and operating costs, & staffing adjustments
- March 12 – Board reviews draft of: Modified Educational Program resolution
- April 23 – Board action on Modified Educational Program resolution
- July 10 – Draft Budget posted to website
- August 27, 2024 – Public Budget Hearing
Board Budget and Staffing Update 2-13-2024
The board reviewed the budget survey responses and reduction plan created to address the $3 Million shortfall.
Board Budget and Staffing Update 1-23-2024
The board reviewed an update on the budget process, including a summary of survey feedback as the district prepares for $3 million in budget reductions.
Community Budget Survey
Share your feedback about needed budget reductions through our survey.
Board Budget and Staffing Update 1-9-2024
The board reviewed a budget update and the process to identify budget reductions for the 2024-2025 school year. This presentation includes a breakdown of the current budget expenditures, ways the district will gather feedback, and the timeline for round 1 of reductions.
Board Enrollment and Staffing Update December 12, 2023
The board reviewed an updated enrollment and staffing report, which provided an update on the ending fund balance for fiscal year 2022-2023. The report includes information about the need for significant reductions for the 2024-2025 school year, and information about how community members can advocate with our legislators in alignment with the board’s legislative priorities.
Board Enrollment and Staffing Update November 6, 2023
The board has reviewed the enrollment and staffing update, which includes updated projections based on September and October student enrollment.
Community Budget Survey
The board reviewed results from the budget survey at the April 8 work session
New monthly budget status report 12-10-2024
Year end presentation 10-22-2024
The board reviewed the year end presentation that summarizes the 2023-2024 school year finances at their October 22, 2024 meeting. A copy of the year end presentation is linked here.
Board Budget Hearing Presentation 8-27-2024
The board reviewed and adopted the 2024-2025 budget at their August 27, 2024 meeting. A copy of the summary budget presentation is available here.
Preliminary 2024-25 Budget Presentation 6-11-2024
The board reviewed and asked questions about the Preliminary 2024-25 School District Budget shared during the June 11, 2024 board meeting, which provides an overview of anticipated revenue and expenditures in each of the five district funds, along with an update on enrollment and a four year projection for the district budget.
Monthly Updates in Board Docs
Each month, a budget update is provided in the BoardDocs system to the Washougal School District board of directors. Community members can find the budget updates in BoardDocs using this link, categorized by each month’s meeting. In some months, the report is delayed until information is available from the County Treasurer’s office, and are provided to the board at the next business meeting.
