Olympia School District could save $3.8 million with initial budget cuts

An initial budget reduction proposal from the Olympia School District contains administration and school-related cuts, as well as cost recovery measures that are expected to save around $3.8 million for the 2026-27 school year.

The reductions are described as part of a “multi-year financial stabilization effort” amid issues in declining enrollment, rising costs and expiration of one-time federal funding. 

Superintendent Patrick Murphy presented the 2026-27 Budget Reduction Proposal to the Olympia School District Board of Directors at a meeting on March 25. 

“The two main drivers that are driving this need for reduction (are) enrollment decline and the lack of adequate funding from the state,” Murphy said. 

Murphy pointed out that since the 2019-20 school year, the district has seen enrollment drop by 792 students, which equates to around 8.2 percent of total enrollment. A total of 722 of the students were from elementary schools,

Also, kindergarten enrollment no longer exceeds births within the district, which are both down 30 percent since 2019-20. 

Reductions 

Murphy said that the district’s overall support staff outside of schools — food, service, transportation and maintenance — makes up about 19 percent of the budget, while central administration makes up just under 5 percent. 

“Out of the $3.8 million proposal for reductions, 36.2 percent are going to come out of the central office and district-wide support cuts,” Murphy said. 

Reducing the board and superintendent budget for projects and committees by 50 percent would save $50,000. 

A total of $219,000 worth of savings would come from consolidating administrative support staff responsibilities, including cabinet support, student support administrative work, and facility-use scheduling and billing. 

Freezing pay of district administrators, including the superintendent, assistant superintendent, executive directors, directors and other district administration, would save $120,000. 

School-based reductions include increasing class sizes by one student across fourth through 12th grades, and adjusting elective and enrichment offerings. 

Aside from reductions, the district listed cost enhancement measures to boost revenue through increased participation in school meal programs and a secondary student device protection plan with equity considerations. 

Budget process 

Murphy said the board has put together a shared goal for the budget process, which contains parameters and processes that must be met throughout reduction discussions.  

The Olympia School District Board Budget Process and Parameters document states the budget process will be done through an equity lens, and be transparent and understandable, data-driven, aligned to goals, inclusive, clear about roles, strategic and proactive. 

The document makes sure the community will find the process easy to follow by using plain language and posting budget materials early.   

The board has also distinguished between the exact roles — the board sets direction and the administration builds the budget. 

Community input is also prioritized through surveys, forums and written comments, which will be incorporated into the board’s decision-making process.

The parameters are cyclical and will be done each fall. The budget reduction summary and other budget documents can be found on the district's website.