Superintendent's Message: Our Path to Restoring Fiscal Stability

Dear Shoreline Schools Community,

I hope this message finds you well as we prepare for the winter season. I want to provide an update on our district’s ongoing work to address significant budget challenges and outline our next steps toward fiscal stability.

Tomorrow evening, we are hosting a community budget meeting that all are welcome to attend and learn more about our current budget picture:
Wednesday, December 11
5:00 - 6:00 pm
Join Zoom Meeting

• Meeting ID: 840 1165 1914
• Passcode: 675360
• Dial-In Phone Numbers: 1-253-215-8782 or 1-669-900-6833

Understanding the Budget Challenge
For the past two years, our district has navigated financial difficulties by implementing spending reductions, hiring freezes, and temporary cost-saving measures, thanks to the cooperation of our labor partners. Despite these efforts, expenses continue to outpace revenues, and we are projected to spend more than we bring in this fiscal year.

Our unreserved fund balance is expected to decline to a critical level. Unreserved fund balance is liquid cash that is available to use on any district expenditure and saved for unexpected expenses. Last school year, it stood at $7.1 million (4.2% of our budget), but it is projected to drop to $3-5 million (1.7-2.8%) by the end of this school year. Without substantial changes, our unreserved fund balance could fall below zero by the end of the 2025–26 school year. School Board policy requires a minimum ending unreserved fund balance of 4%, which is set to maintain the district’s financial stability.

Without major changes to our spending, we are projected to end the 2025-26 school year with -$1.5 to -$3.5 million unreserved fund balance (UFB).

To secure a strong future for our students, we must take decisive action now to restore fiscal health and create a sustainable path forward.

The Path Forward
To address this challenge, we are developing a Reduced Educational Program (REP) for the 2025–26 school year. These reductions will be necessary to bring our spending in line with our revenues, allowing us to stabilize our finances while maintaining our commitment to students and families.

With approximately 87% of our budget dedicated to staffing, and having already made significant cuts in other areas, additional reductions in staff positions and some programs or services will be unavoidable. We recognize the difficulty of this process and are committed to approaching it with care and compassion. We also look forward to working with our labor partners to collaboratively address the school district’s budget challenges.

Using community and staff survey feedback, financial analysis, School Board guidance, and input from leadership across the district, our team is carefully developing the REP. The preliminary proposal will be presented at the REVISED: April 1, 2025, School Board meeting, and we will continue to engage with our labor partners to navigate these challenges collaboratively.

Our Vision for the Future
Our ultimate goal is to create a financially stable district where:

• Resources are aligned with our strategic plan to support student success
• We maintain flexibility to address emerging needs or emergencies
• We can reinvest in programs and services as revenue becomes available

In the weeks and months ahead, we will keep you informed with regular budget updates and provide opportunities for your input. Together, we will work through these challenges and continue to prioritize the needs of our students, families, and staff.

You can learn more at: ssd412.org/budget

Thank you for your partnership and understanding during this critical time for Shoreline Schools.

Sincerely,
Susana Reyes
Superintendent, Shoreline Schools