OSD Board of Directors to hold public hearing on 2026-27 budget

A public hearing on the 2026-27 Olympia School District budget is set for this week amid a backdrop of financial and enrollment challenges.

The hearing is being held on Thursday, June 25, one week after Olympia School District (OSD) Board of Directors held a first reading of the budget on June 18. State law requires a public hearing take place before the second reading, which is also set for Thursday.

OSD Superintendent Patrick Murphy and Executive Director of Business and Finance Kate Davis presented the budget to school board on June 18.

“The budget … is cyclical. We started building in autumn with a cross-level budget committee. This committee had folks from our schools, from our departments and leadership,” said Davis at the meeting.

She said the goal is to end the year with a 4.4 percent ending fund balance, which is roughly $8.4 million.

But Davis pointed out that more budget cuts are on the horizon given the district's financial challenges.

“We do see the need that we would still be needing to take cuts. There's just a structural problem in the way that the district is funded. Declining enrollment contributes to it,” she said.

Murphy said $3 million in reductions this year are designed to address ongoing fiscal challenges and prioritize operational efficiencies. 

About 70 percent of the district’s budget comes from the state, both apportionment and categorical funds spanning special education, transportation, learning assistance program and some food services. Other sources include levy (19 percent), federal funds (3 percent) and other revenues (8 percent). 

“The greatest generator of revenue in the district is our enrollment. When students walk through our doors, they generate an allocation that comes from the state,” Murphy said. 

Detailed information on the budget process is available on the district website. 

The public is invited to attend the hearing, which takes place  from 5:30 p.m. to 6:30 p.m., at Knox Administration Center, 111 Bethel St. NE in Olympia. To watch online, click here.

People interested in commenting need can sign up by calling 360-596-6114 before 4 p.m. on June 24.