Will there be budget cuts for the 2024-25 school year?
Yes. Based on projected expenses and revenue, EPS will need to cut $16 million to $20 million for 2024-25.

Why is Evergreen Public Schools having to make reductions?
Enrollment decline: State funding is allocated by student enrollment. EPS has approximately 4,000 less students than it had in 2017. That equates to about $40 million loss in Basic Ed funding per school year

Inadequate state funding: The 2019 McCleary decision overhauled the formula used to determine school funding, The funding model does not provide sufficient revenue to pay for staffing raises and programming costs. 

• • Special Education is not fully funded by the state. Last year EPS had $14 million in Special Education costs that were not covered by state funding. 

  • Unfunded mandates: The state of Washington requires some curricula and programs for which it does not provide funding. Schools must pay for these programs to fulfill these requirements. 

  • Inflation: The rising costs of goods and services nationally and globally takes a bigger chunk out of our budget. 

  • The state does not provide adequate funding to support staff salaries and benefits, leaving a large gap that EPS must make up with levy dollars. 

End to COVID relief: The one-time COVID-19 relief funding (ESSER and state stabilization funds) that helped schools weather the pandemic expense storm are now exhausted. These federal dollars temporarily helped schools overcome funding challenges, including insufficient funding provided via the state’s prototypical funding formula. With these funds no longer available after the 2023-24 school year, districts must make difficult decisions to balance their budgets.

Will there be staff reductions?
Yes, budget reductions of this magnitude cannot be accomplished without eliminating staffing positions. EPS needs to adjust staffing numbers to align with declining enrollment numbers.

Do the initial recommendations include cuts at the District Office?

• • Yes, the recommendations include a 15% cut at the District Office(ASC)

  • 30 total positions

  • That’s about a 3 to 1 ratio compared to reductions at the school level

  • That equates to an over $3.5 million dollar reduction at the District Office

  • This would represent a 24% reduction at the District Office over a 3 year period

Who can I speak to in state government about funding for public schools?
The enrollment area for Evergreen Public Schools is divided into three state legislative districts. Click here to learn which senators and representatives represent your home address and how to contact them.

Budget Factors and Process

What is the budgeting process at EPS?
The budgeting process typically takes 8 months to complete, usually beginning in January. However, because of the challenges we anticipate for the 2024-25 school year, the process started in November 2023. 

In February, student enrollment numbers are forecasted, which drives the majority of state and federal funding. In March, teacher allocations are calculated and shared with individual schools. From January through April, the Washington state legislature compiles the state budget. The final legislative decisions made can have a significant impact on the District’s budget for the following year. In March, if necessary, EPS budget reduction decisions are made by the Superintendent and leadership team and recommended as a Modified Educational Plan to the Board of Directors. Budgets are then shared with the schools and various departments. The tentative budget is made publicly available in mid-July, a budget presentation and public hearing is conducted in August and the School board adopts the final budget at the end of August.

What factors impact the budget?
Student Enrollment: The number of students we serve is the major driver of over 80% of our funding. In the last seven years, EPS enrollment has declined by over 4,000 students, which equates to a 15.3% drop in enrollment. The number of students served drives the state funding for staffing, supplies and services, Transportation, Special Education, LAP, Highly Capable and English Language Learners programs as well as Federal funds for programs like Nutrition Services, Title I and Title II.  Currently, the state funds districts over $10,000 per student in Basic Ed funds. 

Levy Equalization Dollars: LEA funds are distributed by the state to help equalize levy funds across districts. The enrollment decline combined with the rapid increase in local property assessed values result in a significant decrease in equalization funds for the District.

Federal ESSER funds are grant funds allocated by the state to assist with the impacts of Covid-19. These one-time funds will not be available after the 2023-24 school year.

Inflation: Although inflationary factors have been reflected in state funding formulas, it has not kept up with actual costs and falls short of the true expenses associated with operating a school district.  Local funding support is also impacted by inflation. Levy collection amounts are voted on and set for multiple years at a time and as a result, do not keep up with inflationary factors.

Unfunded mandates : The state of Washington requires some curricula and programs for which the state does not provide funding to implement.  Schools must scrape together funds to implement and support these programs. 

Fund balance: District policy requires EPS to maintain a 5% fund balance. Without this money, the district would not be able to pay its bills.

What does the District spend money on?

More than 85% of the District’s budget pays for salaries and benefits for employees. The remainder goes toward  supplies, materials, curriculum, insurance, utilities, device lease payments, contractual services and other such expenses. The contracts  for custodial and food services make up over 4% of total expenditures.

Can the money that we spend on building new schools or for new school buses be spent on District operations?
No, a school district’s budget is made up of five distinct funds: the General Fund, Capital Projects Fund, Debt Service Fund, ASB Funds and Transportation Vehicle Fund. The General Fund pays for day-to-day school operations and staffing, and the other funds have specialized purposes including long term construction, accounting for bonds, student extracurricular activities and school bus purchases.

Can local levy dollars cover budget shortages?
Local levy dollars make up about 12% of the total General Fund revenue. These funds allow the district to provide support and services for students including counselors, nurses, support staff, special education services, arts, athletics and extracurricular programs. For 2024-25, the increase in annual levy funds collected is not enough to cover the total projected decrease in funding due to the significant enrollment decline, the depletion of one-time ESSER funds and increased inflationary costs.

Is Evergreen the only district in our area dealing with major budget issues?

Multiple school districts in the state and region are facing significant budget cuts, highlighted by recent news stories. You can learn more about the statewide challenge regarding school funding on our local ESD 112 website.

Can we save funds by eliminating the free breakfast/lunch program? 

No, free breakfast and lunch for all EPS is funded by a Federal USDA program based on a certain percentage of our families falling under an income threshold. Those meals are not funded by the EPS budget.