Olympia School District adopts 2025-26 budget

The Olympia School District Board of Directors unanimously adopted the 2025-26 budget at a meeting on Tuesday, July 8.

The general fund budget features an ending fund balance of $6,586,473.

Projected expenditures amount to $190,148,850 and revenues are estimated at $189,196,240 for 2025-26.

Executive Director of Business and Capital Projects Kate Davis, who led the presentation of the spending blueprint, cautioned about uncertainty in cycles ahead.

“Keeping in mind — the further out we go, the more unknowns we have,” Davis said. 

General fund sources 

The state of Washington is the district’s largest funding source, accounting for 71% of the total funding. State funding is for general purpose and categorical funds, including special education, pupil transportation, English learners education and learning assistance. 

A series of formula factors, including enrollment, salaries, employee benefits, and non-staffing allocations, dictate the state’s funding amount. 

Seventeen percent of the total funding comes from a voter-approved educational programs and operations levy.

Federal funding accounts or 4% of the budget. It is used to fund programs, such as special education and the nutrition services program. Other revenues and the ending fund balance make up the remaining 8%.

Levy 

In the state of Washington, all school districts are capped on how much they can collect through enrichment levies utilized to aid state funding for basic education.  

The levy cap is set at $2.50 per $1,000 of assessed property value or a per-pupil limit.  

“When we went out for that local levy, we got approval for $41 million. The state caps what we're allowed to collect, and so we're anticipating that we would collect about $32 million, and that's inclusive of that adjustment that changed in law this year,” Davis said. 

House Bill 2049, which is effective on July 27, grants school districts the option to ask for more levy support.  

For districts with fewer than 40,000 students, the per-pupil limit is $2,500, while larger districts can collect up to $3,000 per student, all adjusted for inflation. 

“There's a different amount that we would be collecting there, and because the state has changed … what they are allocating for different programs. Our intended uses are a little bit different,” Davis said. 

The majority of the levy money is being allotted for regular instruction. 

Where the funds are used 

A hefty 83% of the general fund is used for salaries and benefits, which the district describes as “down slightly from prior years as the Legislature lowered pension rates.” 

Community member Jeremy Ruse criticized the non-mandated raises for executives, when members of the board of directors passed a salary schedule on June 26 that calls for an increase in executive compensation for the next school year.

Ruse said the U.S. Bureau of Labor Statistics set the highest average pay for business and financial operations in Olympia as $133,630, and the district superintendent earns approximately 110% more than a comparable career within the Olympia community. 

“The proposed salary schedule for the executive administration averages $181,386. Using the same comparison, it's 36% above the average and again excellent in our community, yet the superintendent seeks raises for the position,” Ruse added. 

Other district expenditures include purchased services (13 %), specifically special education services, information technology subscription contracts, insurance and utilities.  

The district will also allot 4% of the budget for supplies and materials, such as books and classroom supplies, and 0.1% for travel.