Lake Washington School District presents $930 million budget draft, cites enrollment decline and state COLA

The Lake Washington School District presented its first reading of the 2025–26 proposed budget at a board meeting June 23, laying out $612,200,000 in general fund spending within a draft $930,000,000 total budget and describing a modest enrollment decline and state cost‑of‑living adjustments that affect revenue and costs.

Associate Superintendent Barbara Holman and Melissa DeVita, director of financial services, told the board the budget reflects a 2.5% state COLA, an 11% increase to health‑benefit premiums and small retirement changes. The district is forecasting a roughly 0.5% enrollment decline and is budgeting revenues that exceed expenditures by about $2,400,000 in the coming year, equal to roughly 0.4% of the general fund.

Holman said the general fund is the district’s largest fund, with salaries and benefits representing about 82% of general fund expenditures. DeVita told the board the district is budgeting $612,200,000 for the general fund and $223,900,000 for capital projects; total budgeted funds across all accounts were presented as about $930,000,000. Debt service authority of $84,000,000 and $3,400,000 for transportation vehicle purchases (15 buses) were also described.

Officials said state funding changes account for part of the revenue increase, including adjustments to the prototypical school model that increase special education and materials funding and higher transportation reimbursements for specialized routes. The district projects a decline of about 300 students for next year and noted longer‑term demographic shifts: “We are graduating around 2,000 seniors every year, but we’re only planning to bring in 1,800 kindergartners this coming year,” DeVita said, which the presentation said will create a continuing enrollment drag.

Board members were told the district achieved a balanced budget draft following a two‑year budget alignment process and that public documents — the F‑195 and related materials — would be posted on the district website for a public comment period from June 23 through Aug. 3. A public hearing is scheduled for the Aug. 4 board meeting; the board plans to take formal action on Aug. 18 and must adopt the budget by Aug. 31 under state law.

The presentation highlighted fixed‑cost increases such as insurance and utilities, noting property and liability insurance has increased nearly $1 million a year in recent years and currently costs more than $8.5 million. DeVita said the district set a minimum ending fund balance of no less than 7% in line with operational expectations and referenced an operating reserve target of 8–10% as prudent practice.

Ending: The board did not vote on the budget at the June 23 meeting; it accepted the presentation as the first reading and opened a public comment period through Aug. 3 ahead of an Aug. 4 public hearing and an Aug. 18 action vote.