2024-25 Budget Summary
As presented at the August 27, 2024, School Board meeting, Shoreline School District is still facing a budget emergency for the 2024-25 school year and beyond.
The district is committed to maintaining the high-quality educational services our students deserve while exploring how to achieve the budget alignment we need. In good faith to our community, district leadership and the School Board will continue to work toward a balanced budget that limits the impact on our students.
Following are the critical pieces of information for members of our school district community to know.
The Key Points
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Our budget emergency persists.
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We anticipate that additional expenditure reductions will be needed.
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State and federal funding does not support the current full program of education in Shoreline.
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Rising costs mean that our expenses are projected to exceed our revenues this year by $4 million.
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The projected ending unreserved fund balance for this year is .5%, which is 1/10th of what it should be for responsible fiscal management of our school district.
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We must continue to take significant steps to avoid binding conditions so we can continue providing high-quality education to our students.
Why are we still in a budget emergency?
In short, our expenses are outpacing our revenue.
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District operations are underfunded
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Washington State public schools are chronically underfunded, and Shoreline School District provides much more educational and support services than are paid for by the state.
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While districts should not have to, we rely on local levy collections to provide the essential services needed to meet the needs of our students, to support a fair living wage for our staff, and to provide additional staffing beyond what is state funded. In addition, the maximum amount we can ask for from our voters is capped by the state.
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Allocation of federal Title I and Title II grant funds has been reduced.
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Declining enrollment equates to less funding from the state
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Because we are funded based on the number of students we have, not the actual educational and support needs of our students, when enrollment goes down, so does the funding we receive from the state. (Learn more about the Prototypical Funding Model and its shortcomings)
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Based on a demographer’s analysis and report, Shoreline School District enrollment is projected to decline through at least 2028.
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Shoreline’s enrollment last peaked in 2019-20, and at that time, it was projected to decline even without the effects of the COVID-19 pandemic.
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Enrollment continues to decline across our district, region, state, and beyond (Learn more about the decline in student enrollment)
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Because school districts’ state funding is largely based on the number of students enrolled, regional trends such as lower birth rates, increased housing costs, and other factors influencing families with school-age children have negatively impacted our overall revenues over the past several years.
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Costs continue to rise*
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Salary and benefit expenses exceed state funding by $27 million.
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Materials, supplies, and operating costs (including insurance) exceed state funding by $2.2 million.
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Legally mandated special education services for students exceed state and federal funding by $8 million.
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Substitute costs exceed state funding by $1.2 million.
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We cannot rely on the possibility of changes in the funding model, future state funding increases, or local levy revenues.
We must align our budget to operate within our means.
*Costs cited are projected 2024-25 figures
What factors are contributing to the projected widening budget deficit in future years?
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Enrollment is projected to continue to decline
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Inflation is projected to increase costs of supplies, materials, and services
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Contract provisions paused will return in the 2025-26 school year
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Employee salaries and benefits increase every year
What have we done so far?
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Reduction of Central Office Staff and Administrative Expenses
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Over the last three years, we have reduced 11 central office staff and administrative positions.
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Administrators and other central staff took furlough days and paused elements of their contracts.
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Additionally, we assess each open position to determine whether it should be filled.
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Labor Partner Collective Bargaining Agreement (CBA) Concessions
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In 2022-23, our labor groups partnered with the district and made CBA concessions, implementing a two-year pause on several significant costs, such as class size. This pause will expire at the end of this year.
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Reduction of Non-Classroom Positions
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We have reduced valued positions that are not funded by the state, such as library techs, family advocates, custodians, and maintenance staff.
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Pause on Instructional Costs
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We have paused spending on instructional licenses and curriculum, where possible.
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Restructure and Alignment of Technology and Levy Revenue
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Certain technology staff and services are now funded through the technology levy budget.
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Training and Travel Expense Restrictions
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Training and travel expenses are now limited to mandatory job training, grant-funded activities, or student activities supported by athletics and fundraising (e.g., Shoreline Public Schools Foundation, Boosters, district-wide and local PTSAs/PTAs).
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Pause on Equipment and Vehicle Replacement
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Purchases of equipment, such as copiers, printers, and vehicles, have been postponed until future or grant funding becomes available.
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Opened K-12 Schools to Out-of-District Students
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All elementary, K-8, middle, and high schools in Shoreline School District are now open to Choice Transfer requests for students who live outside the district’s boundaries.
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Maximized Safety Net Funding Application
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We continue to apply for the maximum available reimbursement from the state of district funds spent each year to support students who receive special education services.
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Building and Departmental Budget Reductions
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Spending across school buildings and departments has been reduced.
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Our community and partners such as PTA/PTSAs, Boosters, and Shoreline Public Schools Foundation have helped cover costs to maintain some of these resources in the meantime.
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Advocated for Increased State Funding
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Board member and Superintendent conversations with our representatives have contributed to some increases in funding for special education, paraeducators and support staff, and materials / supplies costs. Even so, these increases are still only small steps toward addressing the larger funding shortfalls we are facing.
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Partnership with local PTA leadership and other advocates in our community has brought a strong and unified message to state legislators.
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We know these reductions have short- and long-term effects on our district community and, while they have been and will continue to be necessary, we recognize these types of reductions are not ideal or what our district strives for in the educational environment we want for our students, their families, and staff.
What options do we have to align our budget?
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Despite deep cuts to our budget over the past two years, we will continue to scrutinize spending and hiring to limit expenditures and future commitments that can challenge efforts to improve our district's fiscal health
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If we work together to make improvements to our district's fiscal health under the current state funding model that we have no choice but to work with, our district can gradually stabilize its finances and create a more sustainable foundation for future growth, ensuring that we can prioritize essential services and programs that directly benefit students and staff.
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With nearly 90% of the district’s expenses tied to employee salaries and benefits, it will be impossible to make the necessary budgetary changes without affecting jobs. We will strive to rely on attrition and unfilled positions to the extent possible.
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Collaboration with our labor partners will remain crucial to maintaining the high-quality educational services our students deserve, while exploring how employee cost savings can contribute to the budget alignment we need.
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A K-5 school may be closed in response to enrollment shifts and our analysis of school capacity across the district, which would provide some cost savings. The School Capacity Review and Closure Consideration task force will bring a recommendation to the Shoreline School District Board of Directors and superintendent in the fall of 2024. The Board and superintendent will make a determination about whether or not to close a school at that time.
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The district will continue to seek additional revenue sources, including available grants.
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The School Board and Superintendent will continue to advocate strongly with our state and federal legislators around the funding needed to meet student and operational needs.
School Districts Across Washington are Facing Big Budget Challenges
That’s because over the past few years, Washington has seen some big changes in the way the state funds its public schools. While the Legislature has invested more money into K-12 education, they have also limited a community’s ability to support programs and services that students and families rely on. This has left schools in a sticky situation, with a funding solution that is a few apples short of a barrel.
Core Issues with School Funding in WA State
Educational Service District 112, Core issues with school funding website, accessed August 30, 2024, <https://www.esd112.org/schoolfunding/>.
Public Schools Funding FAQs
The Washington school funding system is complex, and many previous attempts to explain it are lengthy and time-consuming to read. Washington State School Directors’ Association (WSSDA) designed this resource to answer some of the most common questions in a simple, accessible, and easy-to-navigate way. Inside this 32-page booklet, you’ll find answers to 36 frequently asked questions.
This guide clearly explains and helps demystify topics such as how education is funded, the prototypical school funding model, details about levies, and the regionalization and experience factor.
Washington Public Schools Funding Frequently Asked Questions
Current Shoreline School District Budget Status
2023-24 Update
Updated June 2024
Using actual financial figures through April 2024:
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Revenue for 2023-24 is projected to end $4.4 million higher than budgeted, due to several reasons, including the following factors:
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Increase in student actual average enrollment from September through May versus budget
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Additional special education and multilingual learner (MLL) student enrollment
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Transportation increase in student bus ridership
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Anticipating an increase in special education Safety Net revenue
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Funding of Ridgecrest schoolwide free breakfast and lunch program
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Increase to state funding for the prototypical staffing model and materials, supplies, and operating costs
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Expenditures 2023-24 are projected to end $3.5 million higher than budgeted due to several reasons, including the following factors:
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Based on specific student special education needs, additional contractual services have been utilized
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Employee salaries and benefits make up approximately 87% of the District’s budget. However, travel makes up 0.088% and capital purchases make up 0.061%
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We projected to spend less on substitute costs. However, the actual cost is coming in higher than the projection and staff are accessing leave more frequently, increasing the number of substitute hours
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2023-24 unreserved fund balance is projected to end at $4.5 million, which is:
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2.6% of projected expenditures
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$2.2 million higher than budgeted
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still significantly below the 4 - 5% as specified by Board Policy 7130, which was waived for the 2023-24 fiscal year.
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less than is sustainable for responsible fiscal management of our district
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These major revenues and expenditures have to wait until later this year to be confirmed and updated:
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Transportation Operations funding (end of May)
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Safety Net award amount (late June)
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Utilities expenditures (May)
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2024-25 Outlook
Updated August 2024
Using actual financial figures through April 2024 and updated projections:
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2024-25 unreserved fund balance is projected to end at $851,700, which is:
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0.5% of projected expenditures
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significantly below the 4 - 5% as specified by Board Policy 7130
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less than is sustainable for the responsible fiscal management of our district
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Revenues are projected to end at $178 million
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Expenditures are projected to end at $182 million
2025-26 General Fund Considerations
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Enrollment is projected to continue to decline 134 full-time students, compared to 2024-25
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Grade K change (18)
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Grades 1-5 change (72)
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Grades 6-8 change +7
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Grades 9-12 change (51)
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Some contract pauses go through the end of 2024-25; hence, need to consider implications for 2025-26
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Additional substitute cost: need to plan for a higher cost based on current (2023-24) expenditure level
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Tech Levy: continued funding of 50% of technology staff and cost for student data processing software and services paid to Washington School Information Processing Cooperative (WSIPC) and Northwest Regional Data Center (NWRDC)
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February 2026 election fees (levy) will be approximately $250,000
Quick Links
Why is there such a focus on General Fund balance, and unreserved fund balance in particular?
Part of the State accounting process each year is to project our beginning and ending fund balance, much like an individual might estimate their savings account goals. If the district spends less than our revenue in a given year, the remainder is fund balance.
The ending fund balance has two parts to it: reserved fund balance and unreserved fund balance:
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The reserved fund balance exists for assets we have for a specific purpose. This includes carryover – or unspent funds – from programs with inflexible expenditures. It also includes things such as our inventory of food items that have not yet been made into a meal and served/sold to students.
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The unreserved fund balance is liquid cash – available to use on any district expenditure and saved for other eventualities, such as lower enrollment than expected or an unexpected expense.
Board Policy 7130 states, in part: The budgeted unreserved fund balance is held to compensate for economic uncertainties and should be targeted at a range between 4.0% and 5.0% of budgeted General Fund expenditures.
2023-24 School Board Meeting Budget Reports and Presentations
- August 27, 2024: Public Hearing and Adoption of Resolution 2024-6, 2024-2025 Budget
- August 13, 2024: 2024-2025 Proposed General Fund Budget Review and Public Hearing and Adoption of 2023-2024 General Fund Budget Extension
- June 23, 2024: First Reading: 2023-2024 General Fund Budget Extension and May 2024 Financial Update
- June 18, 2024: 2024-2025 Preliminary Budget Plan and Overview
- June 4, 2024: March and April Financial Update, April and May Enrollment and 2023-2024 General Fund Year-End Projections as of April 2024
- April 2, 2024: February and March Enrollment Reports, 2023-2024 General Fund Year-End Projections as of February 2024, 2024-2025 Budget Outlook, and 2025-2026 Potential Budget Implications
- January 30, 2024: Enrollment and Financial Update
- December 19, 2023: Financial Report, Updates, and Outlook
- November 14, 2023: Review of 2023-2024 Reduced Educational Program (REP) and Summary and Overview of Summer/Fall 2023 Bargaining Work
- October 10, 2023: Enrollment and Budget Update
- September 26, 2023: September 2023 Enrollment and July 2023 Financial Report
- August 22, 2023: Public Hearing and Adoption of 2023-2024 Budget
August 27, 2024: Public Hearing and Adoption of Resolution 2024-6, 2024-2025 Budget
August 13, 2024: 2024-2025 Proposed General Fund Budget Review and Public Hearing and Adoption of 2023-2024 General Fund Budget Extension
June 23, 2024: First Reading: 2023-2024 General Fund Budget Extension and May 2024 Financial Update
June 18, 2024: 2024-2025 Preliminary Budget Plan and Overview
June 4, 2024: March and April Financial Update, April and May Enrollment and 2023-2024 General Fund Year-End Projections as of April 2024
April 2, 2024: February and March Enrollment Reports, 2023-2024 General Fund Year-End Projections as of February 2024, 2024-2025 Budget Outlook, and 2025-2026 Potential Budget Implications
January 30, 2024: Enrollment and Financial Update
December 19, 2023: Financial Report, Updates, and Outlook
November 14, 2023: Review of 2023-2024 Reduced Educational Program (REP) and Summary and Overview of Summer/Fall 2023 Bargaining Work
October 10, 2023: Enrollment and Budget Update
September 26, 2023: September 2023 Enrollment and July 2023 Financial Report
August 22, 2023: Public Hearing and Adoption of 2023-2024 Budget
Budget Survey Reports
The 2023-24 District and Community Budget Survey sought feedback from members of our school district and community about priorities to help guide planning for reductions to balance our budget.
The survey results were presented at the March 7, 2023, School Board meeting, with the following documents:
Shoreline School Budget Survey Executive Summary
Budget Survey Report (presentation slides)
Watch the presentation from the March 7, 2023, School Board meeting
2022-23 End-of-Year Report
For the 2022-23 fiscal year, Unreserved Fund Balance for the General Fund ended better than expected, at 2.6% of budgeted expenditures, which is up from the estimate in the original budget of 1.4%. While this improvement helped the 2023-24 fiscal year outlook, it is still significantly below the 4.0% - 5% as specified by Board Policy 7130, which was waived for the 2023-24 fiscal year. Shoreline is on a multi-year journey to restore fund balance to fiscally healthy levels.
Key areas for the improved financial position include:
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Increased enrollment for Basic Education, Special Education, and Multilingual Learners
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Increased federal Title II (Teacher & Principal Training and Recruiting) revenue collections
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Special Education Safety Net revenues
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Salaries finishing the year 0.4% below the July forecast due to reduced leave cash-outs for departing employees
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Supplies and materials expenditure reduction
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Special Education contract services coming in lower than estimates in July 2023
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Utilities finishing the year below budget and below what was spent in the previous year
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Expenditure reductions began during the 2022-23 fiscal year.
This improved fund balance allowed Shoreline to begin the 2023-24 year with a 2.3% unreserved fund balance, up from the 1.4% budgeted.
