A shortfall in the Tumwater School District budget triggered a multimillion-dollar transfer of funds to cover expenses.
The district transferred $3.6 million from its Capital Projects Fund to the General Fund earlier this year.
Kira Acker, Tumwater School District (TSD) Director of Finance & Operations, discussed the importance of the transfer during a budget development work session on March 12, 2025.
“If we hadn't made our transfer from capital projects … our ending fund balance in February would be … just over $1,000,000 in negative cash balance. So it really shows that our projections are about what we … figured that it would be and that transfer was very much needed,” Acker said.
The board had a work session on Jan. 9, at which there was a discussion about budget woes along with different options to address the issue.
A board meeting followed on Jan. 23 for the approval of Resolution #1, which reduced positions at the central office and support services.
That was followed by another meeting on Feb. 13 for Resolution #2, which reduced school-level staff.
“Moving forward and looking at creating our budget, we are continuing to work looking at … the contracts … our budget projections. We've got a lot still left to do and a lot of decisions left to make,” Acker said.
A board meeting on March 27 is expected to address the school district's mid-year budget status.
The previous school year, TSD had 35 more full-time equivalent (FTE) students in March compared with September. This year, the district has 18 fewer FTEs in March compared with September.
Breaking up elementary, middle and high school, Acker said enrollment is projected to be flat for middle and high schools, with a longer-term upward trajectory from 2030 in kindergarten through fifth grade.
Assistant Superintendent of Finance & Operations Ben Rarick explained that the current figures are “almost purely a demographic,” which does not look at enrollment in special programs, such as New Market Skills Center, but only trends related to it.
For 2024, the Tumwater School District combined tax rate was $1.24 for the bond levy rate, $2.13 for the maintenance and operations levy rate, and $0.61 for the capital project rate.
The 2025 rate is $1.16 for the bond levy rate, $2.04 for the maintenance and operations levy rate, and $0.59 for the capital project rate.
The district has prepared the rates until 2027, except for the 2027 capital levy, which is projected to run out and will be presented to the voters again for approval.
“A decision that we need to make is do we want to …go to the voters and ask for a two-year capital levy so that we get back in line with our … EP&O (Educational Programs and Operations) levy and they're … approved at the same time, or if we want to … get on that same cycle so that the voters are …approving the same thing every time,” Acker said.
Acker also presented non-salary budget reductions that are being considered and drafted, such as middle school athletics, facility use and printer policies.
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